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§ 2-1.102 Authority.

Agency requirements are procured under the authority of Federal statutes and implementing administrative regulations. Basic guidelines are provided by the Federal Aviation Act of 1958, the Federal Property and Administrative Services Act of 1949, and the Federal Procurement Regulations (FPR).

§ 2-1.102-1 The Federal Aviation Act of 1958.

(a) The Federal Aviation Act of 1958-which established the Agencygrants the Administrator certain broad authorities to acquire real and personal property and services for Agency use. The Act empowers the Administrator to make appropriate expenditures:

(1) For rent and personal services at the seat of the Government and elsewhere (sec. 303(a)).

(2) For the acquisition (and exchange), operation, and maintenance of passenger automobiles and aircraft (sec. 303(a)).

(3) For the acquisition of real property or interest therein by purchase, condemnation, lease, or other method (sec. 303 (c)).

(4) For the construction, improvement, or renovation of laboratories and other test facilities (sec. 303(c)).

(5) For such other property as is necessary in performing his duties (sec. 303 (a)).

(6) To make investigations and conduct studies pertaining to aeronautics (sec. 303 (a)).

(7) To provide necessary facilities and personnel for the regulation and protection of air traffic (sec. 307(b)).

(8) To acquire, establish, operate, maintain, and improve air navigation facilities (sec. 307(b)).

(9) To undertake or supervise such developmental work and service testing as tends to the creation of improved aircraft, aircraft engines, propellers, and appliances. This includes the right to purchase experimental equipment of

these types which seem to offer special advantages to aeronautics (sec. 312(b)).

(10) To contract for the development, modification, testing, and evaluation of systems, procedures, facilities, and devices needed for safe and efficient navigation and traffic control of aviation.

(b) Section 303(c) of the Act empowers the Administrator to sell, lease, or otherwise dispose of property.


§ 2-1.102-2 The Federal Property and Administrative Services Act of 1949. (a) The Federal Property and Administrative Services Act of 1949, amended, sets forth procedures "to facilitate the procurement of property and services," and authorizes the Administrator, General Services Administration (GSA), to establish for the executive agencies an economical and efficient system for:

(1) The procurement and supply of personal property and nonpersonal services, including such related functions as contracting, inspection, storage, issue, specifications, property identification and classification, transportation and traffic mangement, establishment of inventory levels, and establishment of forms and procedures.

(2) The utilization of available property.

(3) The disposal of surplus property. (4) Records management.

(b) Section 201(a) of the Act empowers the Administrator, GSA, to prescribe appropriate policies and methods of procurement of personal property and nonpersonal services. The Federal Procurement Regulations are issued under the authority of the Act. The administrator of FAA has been authorized by the Administrator of GSA to issue such orders and directives deemed necessary to implement the Federal Procurement Regulations. Responsibility within the FAA for the development of such material is vested in the Installation and Materiel Service.

(c) Title III of the Act sets forth the procurement procedure to be followed under the Act. It requires that all purchases and contracts for property and services by executive agencies (e.g., FAA) be made by formal advertising as provided in section 303, unless they come within 1 of the 15 exceptions specified in section 302(c) (see Subpart 1-3.2 of this part for exceptions).

(d) Section 304 of Title III sets forth requirements of negotiated contracts. These provide for:

(1) Inclusion of a contract warranty against contingent fees for soliciting or obtaining the procurement.

(2) Prohibition against the cost-plusa-percentage-of-cost form of contract. (3) The applicability of cost-plusfixed-fee contracts.

(4) Statutory limits on estimated fees payable under such contracts.

(5) The right of the procurement office to inspect the plants and audit the books of prime contractors and subcontractors engaged in cost type contracts, and

(6) Inclusion of a clause in all negotiated contracts permitting the General Accounting Office access to directly pertinent books, documents, papers, and records of the contractor or any of his subcontractors.

§ 2-1.103 Issuance.

§ 2-1.103-1 Relation to Federal Procurement Regulations System.

The Federal Procurement Regulations System is designed to bring together, under this Title 41, Subtitle A of the Code of Federal Regulations, the procurement regulations applicable to all civilian agencies of the Government. Federal Procurement Regulations (FPR) are Chapter 1 of this title. This Chapter 2 is assigned for the procurement regulations of the Federal Aviation Agency (FAA). Chapters 3 through 49 of this title are for use by other agencies. Consequenty, regulations applicable to FAA procurement consist of Chapters 1 and 2 of this Title 41. Material issued in the FAPR is numerically keyed to the corresponding sections of FPR as far as possible. The number system established by § 1-1.007-2 of this title is utilized.

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REGISTER and Code of Federal Regulations form may be purchased by the public, at nominal cost, from the Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. Subpart 2-1.2-Definition of Terms

§ 2-1.204 Head of the agency.

The FPR refers to the "head of the agency" or "agency head" as a level of approval. Agency Order OA P 1100.1, paragraph 802, authorizes the Associate Administrator for Development to act as agency head within the meaning of Title III of the Federal Property and Administrative Services Act of 1949, as amended, except in connection with the Supersonic Transport Development program. ferrals to the Associate Administrator for Development (with the exception of National Airspace System Program Office, Office of Supersonic Transport Development, and Bureau of National Capital Airports) shall be made through the Director, Installation and Materiel Service.


§ 2-1.206 Head of the procuring activity.

The FPR refers to the "head of the procuring activity" as a level of review or approval. "Head of the procuring activity" means:

(a) For the Installation and Material Service, the Director, IMS.

(b) For each region, the Director of the respective region.

(c) For either center, the Director of the respective center.

(d) For the National Airspace System Program Office, the Director, NASPO.

(e) For the Office of Supersonic Transport Development, the Director, SST.

(f) For the Bureau of National Capital Airports, the Director, BNCA. § 2-1.250 Chief officer responsible for


The term "chief officer responsible for procurement" as used in the FPR shall be considered synonymous with the title "head of the procuring activity" (see § 2-1.206).

§ 2-1.251 Change order.

"Change order" means a written order signed by the contracting officer, directing the contractor to make changes

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Subpart 2-1.3-General Policies § 2-1.302-3 Contracts between the Government and Government employees or business concerns substantially owned or controlled by Government employees.

(a) Procurement contracts between the Government and its employees or business organizations substantially owned or controlled by Government employees will not knowingly be entered into, except in those cases in which the needs of the Government cannot reasonably be otherwise supplied. The specific approval of the head of the procuring activity as defined in § 2-1.206 must be obtained for any such contract.

(b) Surplus personal property shall not be sold to persons known to be officers or employees of the Federal Government, except as specifically authorized by the head of the procuring activity as defined in § 2-1.206.

§ 2-1.307-4 Brand name products or equal.

(a) Purchase descriptions which contain references to one or more brand name" product under the guise of com"or equal" may be used only in accordance - with this § 2-1.307-4 and §§ 1-1.307-4 through 1-1.307-9 of this title.

(b) The phrase "or equal" shall not be used to procure a particular "brand name" product under the guise of competitive procurement procedures to the exclusion of similar products of at least equal quality and performance that meet the actual reeds. Use of a purchase

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