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ommis is not intended, however

, to do or a newly established contractor-axe

tionships where a continuing that

ship is contemplated by the parta tained

(4) It should appear that the ose of is an established concern. The

may be either one which has le

business for a considerable med bons

time or a new agency which verd

ently going concern and which is! prin

to continue in business AS a CIENI r in

or selling agency in the futur Deing

business of the agency should be tract ducted in the agency name and en ence.

terized by the customary Indica i ency

conduct of a regular business scial

(5) The fact that a selling con- confines Its selling activities to the usi

of Government contracts does not a hall of itself, disqualify It under the


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written agreement to furnish informa-
tion relating thereto as required by the
contracting officer. Where an invita-
tion for bids is issued, this inquiry shall
be made (and written representation
And agreement secured) by requiring
the bidder (or contractor) to check the
appropriate box in the following state-
ment (which appears on Standard Form
21, Bid Form (Construction Contract),
Standard Form 30, Invitation and Bid
(Supply Contract), and Standard Form
33, Invitation, Bid and Award (Supply
Contract)) to be included in the invita-
tion or bid form:

The bidder represents: (a) That he o
has, o has not, employed or retained any
company or person (other than a full-time
bona fide employee working solely for the
bidder) to solicit or secure this contract, and
(b) that he o bas, o has not paid or
agreed to pay any company or person (other
than a full-time bona fide employee working
solely for the bidder) any fee, commission.
percentage or brokerage fee, contingent upon
or resulting from the award of this contract;
and agrees to furnish information relating
to (a) and (b) above as requested by the
Contracting Officer. (Note: For Interpreta-
tion of the representation, including the
term "bona ilde employee," see Code of
Federal Regulations. Title 41. Chapter 1
Bubpart 1-1.5.)
$ 1-1.506 Interpretation of the repre-

(&) For the purpose of the represen.
tation and agreement required from the
prospective contractor, as described in
$ 1-1.505, the definition of "bona fide
employee" is as specified in § 1-1.5044

(b) The fact that the prospective con-
tractor retains a person who does not
devote his full time solely to the prospec-
tive contractor does not necessarily
mean that the relationship involved is in
violation of the covenant against con-
tingent fees or that there is any stigma
attached to the contractor-agent rela-
tionship. It does mean, however, that
the prospective contractor must fill out
the representation in the affirmative
and, as required, furnish information
with respect to such employment of

(c) If the representation would other. wise be answered in the afimative, the fact that the person employed or retained by the bidder or contractor is an attor. ney, or a public relations consultant, or has any other special or professional title, does not permit answer in the negative.

8 1-1.507 Use
§ 1-1.507-] FC

Pursuant to t ance of the objec Standard Form Contractor's Sta Other Fees for S Resulting from hereby prescribe accordance with subpart. Except 1.507-3, this fori deviation by exi ever either part for in § 1-1.505 firmative. The fi without deviatic where an execu obtain such inf use of the form, required, it may propriate mann form shall be req successful bidders § 1-1.507-2 Sta

Any bidder 01 who has previous Form 119 to the vitation or negoti be permitted to submit in connec contract, a signed Ing when such previously furnis number the prev tract in connect form was submitt Ing that the stat ously furnished such subsequent such case, submi completed Standa be required. 61-1.507-3 Exc

The inquiry ar in § 1-1.505 need mission of Standa be requested in following:

(a) Any advert the aggregate am exceed $25,000.

(b) Any negotia the aggregate am exceed $10,000.

(c) Any negotia Ishable subsisten

nant. The fact, however, that the el

agency is employed to secure is 70r generally, that is

, to represent the cern in connection with sales to the ist ernment as well as regular comme

sales to non-Government activities! ed factor entitled to favorable consider ad in evaluating the case as one can within the authorized exception

. I
rangements confined, however

, to etiam
ing Government contracts, particu
those involving a selling agency a
nized immediately prior to or the
periods of expanded procurement !
sulting from conditions of nater
emergency, must be closely scrutinize
8 1-1.5046 Fees for "Information'

Contingent fees pald for anlar tion" leading to obtaining a Govern contract or contracts are included the prohibition and, accordingly, at breach of the covenant unless the wa qualifies under the exception as a bu



fide employee or a bona fide establisha commercial or selling agency maintan by the contractor for the purposes securing business. $ 1-1.505 Representation and sport

ment required from prospective con

tractors. Except as provided in $1-1.5% ach executive agency shall Inquire ind secure a written representato rom prospective contractors as ! 'hether they have employed or retalar y company or person (other than ull-time employee working solely !! e prospective contractor) to solidt & cure the contract, and shall secure,

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procedure w
matters of fr
$1-1.509 E

one executed
and complet:
statement i
with a record
Including dat
Subpart 1-1.8

$ 1-1.600 S

This subpa
procedures ro
ment of bido
pension of bi
scribed cond
ment of bidd
violations of
cable to the
purchases at
agencies, inc
struction, rer
or dismantle
buildings. Ot
quested to co

ing their pure

137 FR 23337,

In ineligibilit
may be iny

elther to exc
and contract
Ing. These ir
the purpose
the Govern
ment. To a
benefits to be
free compet
these measu
for any time
sary to prote
ernment, ar
only for the
rhod of non-

(a) "Deb
an exclusion
Ing and sub
specified pe
with the se

ance. Howe


(c) II the indicated successful i

or proposed contractor falls to ton
ch the representation and agreement si
- scribed in $ 1-1.505, such fallure o

be considered a minor Informalite
prior to award, such bidder or prou

contractor shall be afforded 8 too
y opportunity to furnish such represent

tion and agreement. A refusal or s
ure to furnish such representation i
agreement, after such opportunity i
been afforded, shall require rețecka
the bid or offer.
§ 1-1.508–2 Failure or refusal to be

nish Standard Form 119.
If the successful bidder or contrast

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upon request, refuses or fails to further
completed Standard Form 119

, or
statement in Heu thereof as provided
$ 1-1.507–2, the executive agency at
cerned shall take one or more of the lo
lowering actions, or other action, esot
be appropriate:

(a) If an award has not been made!
offer accepted, determine whether i
bld or offer should be rejected.

(b) If the contract has been 398
or offer accepted, determine what she
shall be taken, such as making an that
pendent Investigation or considering to
eligibility of the contractor as 8 fute
contractor in accordance with certain
Ished procedure.
8 1-1.508-3 Misrepresentation et

lations of the covenant spalane

procedure with respect to determining
matters of fraud or criminal conduct.
§ 1-1.509 Preservation of records.

Executive agencies shall preserve, for
enforcement or report purposes, at least
one executed copy of any representation
and completed Standard Form 119 (or
statement in lieu of form) together
with a record of any other pertinent data.
Including data as to action taken.
Subpart 1-1.6 Debarred, Suspended, and

Ineligible Bidders
§ 1-1.600 Scope of subpart.

This subpart prescribes policies and
procedures relating to: (a) The debar-
ment of bidders for cause, (b) the sus-
pension of bidders for cause under pre-
scribed conditions, and (c) the place-
ment of bidders in ineligibility status for
violations of the provisions of the Equal
Opportunity clause. It is directly appli-
cable to the advertised and negotiated
purchases and contracts of executive
agencies, including contracts for con-
struction, repair, alteration, destruction,
or dismantlement of public works or
buildings. Other Federal agencies are re-
quested to comply therewith in conduct-
ing their purchasing and contracting op-
137 FR 23337, Nov. 2, 1972)
8 1-1.601 General

Debarment, suspension, and placement
In ineligibility status are measures which
may be invoked by the Government
either to exclude or to disqualify bidders
and contractors from participation in
Government contracting or subcontract-
Ing. These measures should be used for
the purpose of protecting the Interests of
the Government and not for punish-
ment. To assure the Government the
benefits to be derived from the full and
free competition of interested bidders
these measures should not be Instituted
for any time longer than deemed neces.
sary to protect the interests of the Gov.
ernment, and should preclude awards
only for the probable duration of the pe.
riod of non-responsibility.
§ 1-1.601-1 Definitions.

(a) “Debarment” means, in general.
an exclusion from Government contract-
Ing and subcontracting for a reasonable.
specified period of time commensurate
with the seriousness of the offense or
failure or the inadequacy of perform-
ance. However, in connection with Ex-

ecutive Order 1 1965, as impleme lations, and relev tary of Labor in term "debarment sion by reason o: Secretary's rules tracting or subco nite period of tin tion of the circui exclusion was in

(b) "Suspensio cation from Gove subcontracting fi of time becauses is suspected upon 8 1-1.605) of e fraudulent, or se duct,

(c) A "debarm bidders list" mea concerns or indi any or all of the in this section ha

(d) "Bidders" term is used in th bidding pursuant bids or a request 1

(e) "Affiliates" cerns which are when either dire concern or individ power to control aparty controls or trol both. 137 FR 23337, Nov. 2, 81-1.602 Establ

nance of a li viduals debar

clared ineligil (a) Each execu tablish and maint tained in § 1-1.60: of concerns and contracts will not whom bids or pro licited as provided

(b) The list sha the following infor

(1) The names Individuals debarr phabetical order) reference where me Involved in a single

(2) The basis action;

(3) The extent posed; and

(4) The termina barred listing. 41

tingent fece
In case of misrepresentation, or Pial
tlon or breach of the covenant skal
contingent fees, or some other relen
Impropriety. the executive agency me

shall take one or more of the #
lowing actions, or other action, 85
be appropriate:

(a) If an award has not been pret
or offer has not been accepted, determin
whether the bid or offer should!

(b) If an award has been made
ffer has been accepted, take action
nforce the covenant in accordance
's terms; that is, as the best interest
he Government may appear, annu **
ontract without lability or recover
mount of the fee involved.

(c) Consider the future eligiblitt u
ntractor of the bidder or contractor!
cordance with established procede
(d) Determine whether the sea
ould be referred to the Departments
stice in accordance with estabilka


posals be so
when it is
public intere
or his desig
made with
curement ac
dividual is
basis of $ 1-2

(b) Restrz
nated in the
of Labor. A
of $1-1.602

poration, pa
which that
or & control
gible for a
date of publ
General) to
ject to any

(c) Buy A
specified in
U.S.C. 10b(E
awarded for
repair of put
in the contir
where to co

therefor be
firms or ind
may be awa
solicited for
than constr
of public bus

(d) Rest
with the E
concern or
clause shall
ment contra

(e) Restr
& concern o
barred bidd
decline te
that firmo
in which co
emment be
unless it is
to be in the
ment to gra
137 FR, 23337


Subject each execu debar a fir interest fo

not be awarded to a concern or indt

lests he a


(9) Defense Housing and Comic Facilities and Services Act of 1981 U.S.C. 1591).

(10) Federal Civil Defense Act 41

(50 App. U.S.C. 2281 (1)), es (11) Area Redevelopment Act d'I ne (42 U.S.C. 2518).

(12) Delaware River Basin Compe of (sec. 15.1, 75 Stat. 714). C (13) Health Professions Educatie er Assistance Act of 1963 (sec: 731. 778


(14) Mental Retardation Fact by Construction Act (secs. 101, 122, LAL" ad Stat. 282, 284, 288),

(15) Community Mental Health O: ters Act (sec. 205, 77 Stat. 292).

(d) Those the executive agency det mines to debar administratively for e

of the causes and under all of the app , priate conditions listed in ; 1-1.69


e. le

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posals be solicited therefrom. However, (a) Causes.( when it is determined essential in the mission of a crir public interest by the head of an agency dent to obtaining or his designee, an exception may be a public or priva made with respect to a particular pro tract thereunder curement action when a concern or in of such contrac dividual is listed as debarred on the (2) Convictior basis of $ 1-1.602-1(d).

Crime Control A (b) Restrictions under statutes desig of embezzlement nated in the regulations of the Secretary falsification or of Labor. A contractor listed on the basis receiving stolen of $ 1-1.602–1(c), or any concern, cor offense indicatin poration, partnership, or association in tegrity or busint which that contractor has actual control ously and directl or a controlling interest, shall be ineli present responsi gible for a period of 3 years (from the contractor. date of publication by the Comptroller (3) Convictior General) to receive any contracts sub Antitrust Statute ject to any of the statutes listed in mission of bids o $ 1-1.602-1(c).

(4) Violation (c) Buy American Act restrictions. As as set forth belo specified in the Buy American Act (41 is regarded by th U.S.C. 10b(b)), contracts shall not be so serious as to ju awarded for construction, alteration, or (1) Willful fai repair of public buildings or public works cordance with in the continental United States or else within the time where to concerns or their affiliates or contract. individuals listed on the basis of $ 1 (ii) A record 1.602-1(g); nor shall bids or proposals of unsatisfactor therefor be solicited therefrom. However, cordance with th firms or individuals listed on this basis contracts: Provi may be awarded contracts and may be or unsatisfactory solicited for bids or proposals for other curred within a re than construction, alteration, or repair preceding the d of public buildings or public works in the Failure to perford continental United States or elsewhere. formance caused

(d) Restrictions for noncompliance trol of the firm with the Equal Opportunity clause. A tractor shall not concern or individual debarred for non basis for debarm compliance with the Equal Opportunity (iii) Violation clause shall not be awarded a Govern vision against co ment contract.

(iv) Acceptand (e) Restrictions on subcontracting. If which is paid in a concern or individual listed on the de provisions agains barred bidders list is proposed as a sub (5) Any other contractor, the contracting officer shall sibility as a Go decline to approve subcontracting with such serious and that firm or individual in any instance may be determir in which consent is required of the Gov agency to warrar ernment before the subcontract is made, (6) Debarmen unless it is determined by the agency tive agency. to be in the best interest of the Govern (b) Conditions ment to grant approval.

of the causes se (37 FR 23337. Nov. 2, 1972)

§ 1-1.604 shall b § 1-1.604 Causes and conditions appli proval of the cable to determination of debarment

agency or his dul by an executive agency.

ative. Subject to the following conditions, (2) The existe each executive agency is authorized to set forth in (a) o debar a firm or individual in the public necessarily requi interest for any of the following causes: vidual be debar


(e) Those listed by the Director
the Office of Federal Contract Com
ance of the Department of Laboral
Contract Ineligibility List, which
the names of prime contractors ando
contractors that have been declaredo
eligible to participate in Governo
contracting or subcontracting by Tres
of noncompliance with the Equal Opp
tunity clause.

(f) Those the executive agency dist
mines to suspend administrativels!
the reasons and under the conditional
forth in $ 1-1.605.

(g) Those determined by an etas agency in accordance with section !! of the Buy American Act (41 TB 10016)) to have failed to comply with provisions of section 3(a) of that under any contract containing the # cific provision required by said see 318) and made by the agency for a struction, alteration, or repair of public building or public work.

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129 FR 10104, July 24, 1964, as amended
37 FR 23337, Nov. 2, 1972)
$ 1-1.603 Treatment to be seen

firms or individuals in dehors

suspended, or ineligible status Firms or individuals listed br? agency as debarred, suspended

, r ! eligible shall be treated as follows

(a) Total restrictions. A contracist

ual that is listed on the basis al ll 602-1 (a), (b), (d), or (e), or to s concern, corporation. partnership association in which the listed comes or individual has actual control or sa trolling interest; nor shall bids or F

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