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§ 9-55.101 Formal advertising.

Justification for AEC formally advertised procurements shall consist of the information required by § 9-55.203. § 9-55.102 Negotiated procurements.

Justification for AEC direct and costtype contractor procurements shall consist of the information required by §§ 9-55.102-2 and 9-55.102-3, respectively.

§ 9-55.102-1 Applicability.

This section is applicable to all negociated contracts and subcontracts (including letters of intent or letter contracts) and modifications thereof involving additional supplies or services, except: (a) Contracts or subcontracts for $2,500 or less, (b) orders against Federal Supply Schedules, (c) orders placed against other Government agencies, (d) orders placed against other AEC offices, and (e) orders placed under one AEC management cost-type contract against another AEC management cost-type contract.

§ 9-55.102-2 Justification of AEC direct negotiated contracts.

The justification of negotiated prime contracts required for actions in excess of $100,000 shall be in the form of a narrative statement covering, to the extent applicable to the particular transaction, the general type of information as indicated in paragraphs (a) through (i) of this section. Actions under $100,000 shall be supported by files containing substantially the same information required by paragraphs (a) through (i) of this section. The scope and detail of information to be included in the contract file should generally be determined on the basis of the nature, dollar value, and complexity of the transaction involved.

(a) Name and address of proposed contractor.

(b) Location of plant- or work-site for performance of the contract.

(c) Contract number, including amendment number if applicable.

(d) Name of prime contractor.

(e) Nature of contract action (letter contract, conversion of letter contract, extension of existing contract, etc., as well as type of contract-cost, CPFF, incentive, etc.).

(f) A reference to the program basis for the contract, including scope of the work or description of supplies or services being procured, delivery or construction

schedules, period of contract, quantities, unit prices, and total price or estimated cost. If the procurement action is a contract modification the relation to the program under the basic contract and the effect thereof should be shown.

(g) A statement justifying the use of negotiation in lieu of formal advertising.

(h) The methods of solicitation employed and the information requested from sources of supplies or services; the distribution and response to such solicitations or requests; and the basis upon which it is concluded that such solicitations or requests were sufficient to assure such full and free competition as is consistent with the procurement of the required supplies or services. This shall include:

(1) A brief summary of the request for proposal used as a basis for solicitation;

(2) Number of firms invited to submit proposals and a list of firms quoting, together with their respective quotations; and

(3) The reason for selection of the proposed contractor, when award is to be made to other than the low offeror or there is a wide margin between the acceptable quotation and other quotations received.

(i) The history of negotiations with the proposed contractor, including the consideration given to appropriate factors, and the basis upon which it is concluded that the results of the negotiations are advantageous to the Government. This shall include:

(1) A brief summary or principal points involved in negotiation and the final results thereof, indicating price changes, if any, during negotiations and explanations therefor;

(2) A comparison of the proposed contract with previous procurements of the same or similar supplies or services, including dates or previous procurements, quantities, changes in specifications from last purchase, if any, and justification for changes in price;

(3) For all contracts involving construction and related engineering services, the cost breakdown resulting from contract negotiations which was used to arrive at the total price or estimated cost for fee or profit computation purposes;

(4) For all contracts for the operation or management of AEC facilities on a cost or CPFF basis, a complete explanation of provisions agreed on for reimbursing costs generated elsewhere than

at the project site, together with complete justification for fixed fee, if any;

(5) For each supply, production, and research and development contract, an appropriately detailed analysis of cost and price reflecting final negotiation, with suitable consideration of the policies and principles stated in FPR Part 1-3, Part 9-3, and § 9-15.5008, including comments showing appropriate review and evaluation of major elements of cost and price by financial, technical, and other qualified personnel;

(6) Names and locations, when available, of prospective subcontractors and estimated amounts of respective subcontracts which will exceed $100,000;

(7) A statement as to whether the contract will contain any form of price redetermination or escalation, including reasons for inclusion or omission;

(8) General types and value of Government property to be furnished, or already furnished to the proposed contractor and which will be used in performance of the work;

(9) A statement as to whether the financial condition of the proposed contractor is considered satisfactory, whether the contract is to be partly or wholly financed by Government funds, whether guaranteed loans are involved, whether the contractor's accounting system is satisfactory and adequate to furnish information required by AEC under the contract, and whether or not accounts under the contract are to be integrated with AEC accounts (if a performance bond is to be furnished, state name of bonding company and amount of bond);

(10) A statement as to the technical ability and past performance of the proposed contractor (if the contractor is presently performing other AEC contracts, state uncompleted contract value, status of work thereunder and the effect of proposed additional contracts or backlog on the proposed contract);

(11) The amount of funds available and encumbered for the proposed contract, including appropriation, allotment number, subprogram class and budget item;

(12) The basis for establishing delivery requirements or other performance schedules;

(13) Any other pertinent data in the form of explanations, comments, or comparisons concerning any unusual or new phases of the procurement or negotiations relating thereto (comments or re

port of the Division of Finance of the Field Office concerned as to the financial and pricing aspects of the proposed contract should be included under this paragraph. Recent and current contracts of the contractor with other field offices and other Government agencies with particular emphasis on a comparison of business aspects of such contracts with the proposed contract should also be commented upon); and

(14) In the case of contract actions requiring Headquarters approval, the name of the AEC negotiator responsible for the transaction, together with his telephone number.

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(a) A written justification, consisting of all information and data upon which it has been determined that the procurement is in the best interests of the Government, shall be required for procurements by cost-type contractors. The scope and detail of such justification shall be consistent with the nature, dollar value, and complexity of the procurement involved.

(b) Except as may be otherwise required by FPR 1–3.811(a) (4), a written justification is not required when costtype contractors use the competitive bid or quotation and award method of procurement, which includes the basic steps and objectives set forth in § 9-59.003 (b) (1), provided award is made without entering into negotiations.

Subpart 9-55.2-Documentation § 9-55.200

Scope of subpart.

This subpart sets forth the administrative requirements for the establishment and maintenance of complete files of documents in support of AEC direct and cost-type contractor procurement actions for equipment, supplies, and services (including construction).

§ 9-55.201 Procurement files.

The procurement file shall include copies of all documents, certified, if necessary, that present a historical record of the fact of the transaction. Basic papers of the procurement file shall be arranged and secured in a logical order so as to facilitate review and audit. A complete file shall be maintained, and the removal of pertinent papers avoided. Bulky material, such as unsuccessful proposals, specifications, drawings, etc., need

not be physically kept in the file, but may be filed elsewhere under the case reference number, cross referenced in both files.

[35 F.R. 6483, Apr. 23, 1970]

§ 9-55.202

Documentation of AEC di

rect negotiated contracts. Files of essential documents for substantially all contracts and modifications made without formal advertising, except files for small purchases (less than $2,500) see Subpart 9-3.6 shall include the following:

(a) Copy of the procurement directive, requisition or other document upon which the procurement is based;

(b) Justification of negotiation required by § 9-55.102:

(c) Copy of request for proposals, including drawings and specifications when applicable or references thereto;

(d) List of prospective contractors solicited;

(e) Abstract of proposals both oral and written;

(f) Copies of written proposals or confirming quotations received;

(g) "Findings and Determinations" required by Part 9-3;

(h) Basis upon which it has been determined that the contractor was financially and technically able to perform;

(i) Cost breakdown or other appropriate information used to determine reasonableness of price in making award, including a statement on the analysis of the price;

(j) Approval of appropriate reviewing authority when required;

(k) Conformed copy of contract or purchase order with specific reference to any unusual contract provisions and reasons therefor;

(1) Related correspondence; and (m) Copies of any modifications.

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(e) Abstract of bids;

(f) Copy of successful bid;

(g) Evaluation of the reasonableness of the low bid accepted, including comparison with the independent Government cost estimate, if applicable;

(h) Copy of notice of award;
(i) Conformed copy of contract;
(j) Copies of unsucessful bids;
(k) Copies of any modifications;

(1) Justification for award to other than the low bidder and other circumstances justifying award, such as basis for making the award in case of equal low bids;

(m) If performance or payment bond requirements on lump-sum or unit-price construction contracts and subcontracts do not conform to the requirements of Part 9-10, state the reason; and (n) Related correspondence. § 9-55.204


contractor procurement.

Contracting officers shall assure that cost-type contractors establish and maintain procurement files which contain those documents essential to present an adequate and accurate record of the transaction.

§ 9-55.205 Approval files-cost-type contractor procurement.

A file shall be established in the field office which will document the review of each cost-type contractor procurement action submitted for approval to AEC.

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Subpart 9-56.4-Policy Governing Particular Types of Contracts

9-56.401 Operating contracts and cost-type onsite service-type contracts.


9-56.402 Selection of operating and costtype on-site service contractors. [Reserved]

9-56.403 9-56.404 Selection of research and development contracts for work in commercial facilities. 9-56.405 Selection of contractors for engineering and construction work. AUTHORITY: The provisions of this Part 9-56 issued under sec. 161, as amended, 68 Stat. 948, 42 U.S.C. 2201; sec. 205, as amended, 63 Stat. 390, 40 U.S.C. 486.

SOURCE: The provisions of this Part 9-56 appear at 34 F.R. 15235, Sept. 27, 1969, unless otherwise noted.

§ 9-56.000 Scope of part.

This part sets forth AEC policies for the use of Contract Proposal Evaluation Boards and policies governing particular types of contracts.

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(2) Architect-engineer including those for advance engineering; (3) Cost-type construction contractors; and

(4) Any other contractor where a judgment of relative technical and managerial capabilities of a group of firms must be made in which the primary objective is the selection of the best qualified firm.

(c) The policies and requirements of this part shall be used for the selection of the contractors for contracts referred to in paragraph (b) of this section estimated to cost less than $500,000 whenever it is considered likely that later phases of the same project will cause the contract to exceed $500,000.

(d) The policies and principles of this part are also applicable to the selection of contractors for contracts estimated to cost less than $500,000, however, less formal procedures and practices than those described in this part may be followed, depending on the circumstances

in each particular selection, at the dis-cretion of the designating official.

(e) [Reserved]

(f) The policies and requirements of this part do not apply to the following:

(1) Extensions of contracts where it has been appropriately determined that formal selection procedures need not be followed;

(2) Formally advertised contracts or fixed-price negotiated contracts in which price is the primary consideration;

(3) Research and development contracts entered into under the criteria in Subpart 9-4.51 or 9-4.52;

(4) Determination as to whether a given scope of work should be performed in AEC-owned or in commercial facilities; and

(5) Determination as to which existing AEC operating contractor should perform a given scope of work.

(g) In paragraphs (b), (c), and (d) of this section, the $500,000 limit applies to the related construction costs for A-E contracts. For A-E contracts, including selections for advance engineering work, where a related construction cost cannot be determined, the limit in the provisions applies to estimated contract cost of $50,000.

§ 9-56.002 Policy, cost-type contractor


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Subpart 9-56.4-Policy Governing Particular Types of Contracts

§ 9-56.401 Operating contracts and costtype onsite service-type contracts. (a) Unless otherwise designated by the Commission, for purpose of this section operating contracts are those contracts for the operation of AEC-owned plants and laboratories located at AEC-owned sites, and cost-type onsite service contracts are those contracts for the performance of services of a continuing nature for the AEC at AEC-owned sites;

(b) Competition for existing operating and onsite service contracts will be sought whenever there is a reasonable expectation that a meaningful improvement can be made in the overall performance of the contract work, including management and operating costs, unless it is determined that to change a contractor would be contrary to the best interest of the Government. [37 FR 17833, Sept. 1, 1972]

§ 9-56.402 Selection of operating and cost-type onsite service contractors. It is AEC policy that operating and cost-type onsite service contracts of a continuing nature should not be concentrated among a relatively few firms. Accordingly, firms already holding contracts of these types will not be considered for selection of another such contract, unless it is determined that this is not in the best interest of the Government.

[37 FR 17833, Sept. 1, 1972] [Reserved]

§ 9-56.403

§ 9-56.404 Selection of research and development contracts for work in commercial facilities.

In selecting recipients of research and development work, it is basic AEC policy to assign the work where it can be done most effectively and efficiently. Where it is otherwise appropriate to assign the work to a commercial concern, it is also the policy of the AEC to make such wide distribution of contract awards as will encourage broad participation by qualified research and development contractors performing work in their own facilities in order to:

(a) Maintain a competitive industrial base; and

(b) Prevent firms from attaining a predominant position in a major segment of the atomic energy industry.

§ 9-56.405

Selection of contractors for engineering and construction work. (a) It is the policy of the AEC to encourage broad participation by qualified architect-engineers and constructors in the atomic energy programs to the fullest extent practicable in order to:

(1) Avoid undue concentration of work with any firm or group of firms in a particular field of work (architectengineer or construction); and

(2) Develop and maintain a broad base of contractors with atomic energy experience and/or nuclear capability which may be used for AEC or commercial requirements.

(b) A firm currently under contract to AEC or to a cost-type AEC contractor shall not be invited to submit a proposal for work in the same field if the proposed project would be performed concurrently with the existing contract and if the estimated cost of the new construction work involved is in excess of $10 million or the estimated cost of the architect-engineer services is in excess of $1 million where a construction cost estimate cannot be determined. If, for cogent reasons, the designating official believes that such a firm should be invited, approval shall be obtained from the Division of Contracts. This requirement shall not apply to:

(1) Firms currently engaged only on AEC fixed-price construction contracts awarded as a result of formal advertising or invited bids;

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