with the procedures in FIRMR 20132.206.

[53 FR 6068, Feb. 29, 1988; 53 FR 12748, Apr. 18, 1988]

439.7002 Special delegation of authority.

HCA's shall submit each prospective acquisition, which is greater than the limits of the blanket delegations of authority set forth in 439.7001 or any

other limits stipulated in the HCA's general delegation, to the Director, O0, for a delegation of ADP contracting authority. The Office of Operations will either conduct the acquisition or delegate special authority to the HCA to conduct the acquisition.

[53 FR 6068, Feb. 29, 1988]

PARTS 440-441-(RESERVED)

PART 442-CONTRACT ADMINISTRATION

Subpart 442.1-Interagency Contract Administration and Audit Services

Sec.

442.102 Procedures.

Subpart 442.7-Indirect Cost Rates

442.704 Billing rates.

AUTHORITY: 5 U.S.C. 301 and 40 U.S.C.

486(c).

Subpart 442.1-Interagency Contract Administration and Audit Services

442.102 Procedures.

(a) The Office of the Inspector General (OIG), Audit Division, has established a cross-servicing arrangement with the Defense Contract Audit Agency (DCAA) to provide contract audit services required by the FAR.

(b) All contract audit services required by contracting officers shall be coordinated through the cognizant OIG Regional Inspector General-Auditing (RIG-A). Cognizance is determined on the basis of the contractor's location. The OIG will, at its discretion, perform the audit with OIG personnel or refer the request to the DCAA if such would be more practical due to workload considerations or the location of the contractor. There is no charge for audit services coordinated through OIG.

(c) In order to ensure compliance with this requirement and to evaluate the results of audits, contracting officers shall forward to the RIG-A copies of all price negotiation memoranda prepared for contracts and contract modifications in excess of $500,000.

[49 FR 12129, Mar. 28, 1984, and 50 FR 14197, Apr. 10, 1985]

Subpart 442.7-Indirect Cost Rates

442.704 Billing rates.

The contracting officer shall insert a clause substantially the same as the clause at 452.242-70, Estimated and Al

The contracting officer shall insert a clause substantially the same as the clause at 452.246-70, Inspection and Acceptance, in contracts where inspection and acceptance will be performed at the same location. The clause with its Alternate I is for use when inspection and acceptance will be performed at different locations.

[53 FR 6069, Feb. 29, 1988]

Subpart 446.6-Material Inspection and Receiving Reports 446.601 Inspection and receiving.

(a) The certification stated in 446.603 shall be inserted on each commercial shipping document or packing list for supplies or services and shall be signed by the authorized Government representative as required by FAR 46.401(f), except for small purchases (see FAR 46.404).

(b) Form AD-838, Purchase Order, shall be used to comply with the requirements of FAR 46.406(f) and FAR 46.404.

(c) The certification required by 446.601(a) shall be made at the place or places specified in the contract for performance of Government quality assur

ance as required by FAR 46.401(b) and as prescribed in FAR 46.402 or FAR 46.403, as appropriate.

446.602 Acceptance.

(a) The certification stated in 446.603 shall be inserted on each commercial shipping document or packing list for supplies or services and signed by the authorized Government representative as required by FAR 46.501.

(b) The certification required by 446.602(a) shall be made at the place or places specified in the contract for Government acceptance as required by FAR 46.503.

(c) If the contracting officer elects to use a contractor's certificate of conformance as allowed by FAR 46.315 under the conditions prescribed by FAR 46.504, the certificate may be used as the basis for Government accept

tions deemed appropriate for application of warranty provisions. The recommendation shall address the criteria set forth at FAR 46.703 to document the basis on which a warranty is considered appropriate. The recommendation shall also identify the specific parts, subassemblies, assemblies, systems, or contract line items to which a warranty should apply.

(b) Before soliciting the requirement, the contracting officer shall make a written determination, subject to approval at a level above the contracting officer, whether to include a warranty contract clause.

[50 FR 14200, Apr. 10, 1985]

The contracting officer shall insert a clause substantially the same as the clause at 452.247-70, Delivery Location, in supply contracts when it is necessary to specify delivery locations. If appropriate, the clause may reference an attachment which lists various delivery locations and any other delivery details (e.g., quantities to be delivered to each location, etc).

[53 FR 6069, Feb. 29, 1988]

447.305-10 Packing, marking, and consignment instructions.

(a) The contracting officer shall insert a clause substantially the same as the clause at 452.247-71, Marking Deliverables, in solicitations and contracts if special markings on

deliverables (other than reports) are required.

(b) The contracting officer shall insert the clause at 452.247-72, Packing for Domestic Shipment, in contracts when item(s) will be delivered to a continental destination for immediate use, when the material specification or purchase description does not provide preservation, packaging, packing and/ or marking requirements and/or when the requiring activity has not cited a specific specification for packaging.

(c) The contracting officer shall insert the clause at 452.247-73, Packing for Overseas Shipment, in contracts when item(s) will be delivered to an overseas destination for immediate use, the material specification does not specify packing levels and the required activity has not specified such requirements.

[53 FR 6069, Feb. 29, 1988]

Sec.

449.111 Review of proposed settlements.

Subpart 449.4-Termination for Default 449.402 Termination of fixed-price contracts for default.

449.402-3 Procedure for default.

AUTHORITY: 5 U.S.C. 301 and 40 U.S.C.

486(c).

SOURCE: 49 FR 12130, Mar. 28, 1984, unless otherwise noted.

Subpart 449.1-General Principles 449.106 Fraud or other criminal conduct.

(a) Whenever fraud, such as falsified documents, false statements, or other criminal conduct related to the settlement of a terminated contract is suspected, the contracting officer shall discontinue negotiations and prepare a report of the facts. The report shall be submitted by the HCA to the Inspector General along with copies of documents or other information connected with the suspected violation(s). Concurrently, a copy of the report shall also be submitted to the Director, Office of Operations.

(b) Depending of the findings of the Inspector General, the HCA may initiate suspension of debarment action as prescribed in FAR Part 9.4 and Part 490.4 of this chapter.