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Sec. 9-56.405 Selection of contractors for en.
gineering 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. & 9-56.001 Applicability.
(a) The policies and requirements of this part are to be used in the selection of:
(1) Operating contractors; and
(2) Participants under the Power Demonstration Program,
(b) Also, they are to be used for contracts estimated to exceed $500,000 in the selection of:
(1) Research and development contractors;
(2) Architect-engineer contractors, including those for advance engineering;
(3) Cost-type construction contractors; and
(4) Any other contractor where & 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 discretion of the designating official.
(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 & 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
procurement. For the selections of subcontractors under AEC cost-type contracts of the type identified in AECPR 9-56.001(b). evaluations normally should be made on the basis of group judgment by representatives experienced in technical and business areas appropriate to the requirement, using weighted evaluation factors established prior to receipt of proposals. Numerical ratings should be supplemented with supporting narrative explanations of the important judgments involved in arriving at such ratings. Subpart 9-56.T-Contract Proposal
Evaluation Boards & 9-56.100 Scope of subpart.
This subpart sets forth AEC policy, concerning the use of Contract Proposal Evaluation Boards. $ 9-56.101 Use of Contract Proposal
Evaluation Boards. It is the policy of AEC to use Contract Proposal Evaluation Boards in the selection of contractors for contracts of the type referred to in § 9-56.001 (a), (b), and (c). 89-56.102 Purpose of Contract Pro
posal Evaluation Boards. The use of Contract Proposal Evaluation Boards is designed to:
(a) Facilitate the selection of contractors;
(b) Provide for selection of the best contractor for a given job;
(c) Insure consistent treatment of firms under consideration; and
(d) Help promote mutual understanding between AEC and its prospective contractors.
Subpart 9–56.2 [Reserved]
Subpart 9-56.3 [Reserved) Subpart 9-56.4m Policy Governing
Particular Types of Contracts § 9-56.401 Replacement of contractors
operating AEC-owned plants or lab
oratories. (a) Where any of the following conditions exist, contractors operating AEC-owned plants or laboratories at AEC-owned locations are subject to replacement at the time their contracts are proposed for extension, and they will not be considered for selection to continue to operate such plants or laboratories, unless that action would be contrary to the Government's interest and if other qualified firms are available:
(1) Marginal performance;
(2) Conflict of interests between commercial and contract activities when found to outweigh the advantages of using contractors who are demonstrating a sufficient interest in the field of atomic energy to have maintained their own commercial program and thus are assisting in establishing a private, competitive nuclear industry; or
(3) Overconcentration of the firm's activities in the Atomic Energy Commission's program.
(b) Where any of the following conditions apply, the normal selection process (i.e., requesting proposals from industry and others) will be considered for the selection of contractors described in paragraph (a) of this section at the time such existing contracts are proposed for extension, if qualified firms are available:
(1) Where the existing operating contractor's performance is considered not better than average; or
(2) Where the circumstances underscore the high desirability of giving adequate opportunity to other organizations to compete for the business of supplying services to the AEC. $ 9–56.402 Replacement of service-type
contractors performing services of a continuing nature for the AEC at
AEC-owned locations. The policy set forth in $ 9–56.401 above is applicable to the replacement of onsite service-type contractors.
$ 9-56.403 Selection of new onsite sery
ice contractors. Normally a firm will not be considered for selection for an onsite service contract where the work to be performed under the AEC contract, together with work being performed for other Government agencies and others, would place the firm in a predominant position in a field of industrial activity germane to the contract work, unless that action would be contrary to the Government's interest and if other qualified firms are available. § 9-56.404 Selection of research and de
velopment contracts for work in com
mercial 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 à 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 con
struction work involved is in excess of & 9-59.000 Scope of part. $10 million or the estimated cost of the
This part establishes AEC policy and architect-engineer services is in excess requirements for administration of costof $1 million where a construction cost type contractor procurement. estimate cannot be determined. If, for
$ 9-59.001 General. cogent reasons, the designating official believes that such a firm should be
(a) AEC utilizes cost-type contractors invited, approval shall be obtained from
for the operation of its facilities, for the the Division of Contracts. This require
performance of research and develop
ment, and for other services. Such conment shall not apply to:
tractors are generally selected for tech(1) Firms currently engaged only on
nical and managerial capabilities, and AEC fixed-price construction contracts
are expected to make full use thereof in awarded as a result of formal advertising order to achieve the flexibility and highor invited bids;
quality products and services required for (2) Any firm currently engaged on AEC programs. AEC contracts in the same field, the total (b) Procurement activities of AEC of which involves construction costs of cost-type contractors are governed by less than $10 million; or
the requirements of applicable contract (3) Any architect-engineer firm after
provisions. Federal Procurement Regit has completed title II work, exclusive
ulations generally are not directly appli
cable to AEC cost-type contractors. of checking shop drawings, even though
There are, however, requirements of cerit still has title III inspection services to
tain Federal laws, executive orders, and perform.
regulations, including Federal Procure(c) Normally, only those firms which ment Regulations, which pertain to proare compatible with the size and com
curements by cost-type contractors. plexity of the job requirements should These requirements, together with imbe invited; that is, for a small relatively plementing AEC Procurement Regulasimple job, firms whose resources and tions, and certain additional AECPR'S qualifications are far in excess of the
which apply to contractor procurement job requirements should not be solicited,
are listed in § 9-59.004. In addition, AEC and where size and simplicity of the job
has established certain procurement permit, invitees should be limited to the
policies for its cost-type contractors.
These are found in § 9-59.003. geographic area of the job.
$ 9–59.002 Responsibility of contract. PART 9-59-ADMINISTRATION OF
ing officers. COST-TYPE CONTRACTOR PRO
(a) Contracting officers are responsiCUREMENT ACTIVITIES
ble for assuring that procurement by
cost-type contractors conforms to conSec.
tract requirements and provides effective 9-59.000 Scope of part.
and timely support to agency programs. 9-59.001 General.
In carrying out this responsibility, con9-59.002 Responsibility of contracting off - tracting officers: (1) Assure that AEC
cost-type contracts include those provi9-59.003 Policies for cost-type contractor
sions required by law or regulations, and procurement. 9-59.004 AECPR-FPR provisions pertaining
such other provisions as are appropriate to cost-type contractor procure
to implement AEC policies and requirement.
ments; (2) review contractor procure9-59.005 Procedures for handling mistakes ment systems (including policies) as re
under cost-type contractor pro- quired by this section and in accordance curement.
with the provisions of their contracts; 9-59.006 Procurement from contractorcontrolled sources.
(3) review individual procurement ac
tions of certain types or above stated dol. AUTHORITY: The provisions of this part
lar levels established in accordance with 9-59 issued under sec. 161, as amended, 68 Stat. 948, 42 U.S.C. 2201; sec. 205, as amended,
Subpart 9-51.2; and (4) make periodic 63 Stat. 390, 40 U.S.C. 486.
appraisals of the contractor's performSOURCE: The provisions of this part 9-59
ance of the procurement function in appear at 34 F.R. 15236, Sept. 27, 1969, unless
accordance with criteria established by otherwise noted.
the Director, Division of Contracts.
(b) Contracting officers shall require (1) Competitive bids or quotations and cost-type contractors to submit written award. The competitive bid or quotation descriptions of procurement systems and and award method of procurement, methods used or proposed to be used in which normally assures the greatest dethe contract work when:
gree of full and free competition, gen(1) The contract is for the construc- erally involves the following basic steps tion, operation, or maintenance of an and objectives: AEC facility (including research and de- (i) Preparation of invitations for bids velopment facilities) which is segregated or requests for quotations setting forth from the contractor's regular business; the contract terms and conditions and
describing the requirement clearly, ac(2) The contract provides for substan- curately, and completely, but avoiding tial procurement services incident to the unnecessarily restrictive specifications or construction of AEC facilities; or
requirements. (3) The contractor has set up a sepa- (ii) Publicizing such invitations or rate supply function under AEC con- requests by distribution to a reasonable tracts; or
number of prospective bidders and by (4) Expected procurement is consid- such other means as may be appropriate, ered sufficiently significant by the con- in sufficient time to permit the preparatracting officer to warrant such action. tion and submission of bids or quotations
(c) In reviewing cost-type contractor before the time set for opening or receipt descriptions of procurement systems and of bids or quotations. methods, contracting officers shall assure (iii) Handling bids or quotations in a that such statements are not inconsistent manner which provides fair and equal with this part.
treatment to all prospective contractors.
(iv) Making an award to the prospec§ 9-59.003 Policies for cost-type con.
tive contractor whose bid or quotation, tractor procurement.
conforming to the invitation or request, The following policies are established will be most advantageous to the Governfor cost-type contractor procurement. ment, price and other factors considered. Within these policies it is expected that procurement systems and methods will
However, if upon evaluation of written
bids or quotations it is determined to be vary according to the types and kinds of
in the best interests of the Government procurement to be made, the needs of the
to enter into negotiations with prospecparticular programs, and the experience,
tive contractors before award, such negomethods, and practices of the particular contractor. In the development of pro
tiations should be conducted in accordcurement systems and methods, contrac
ance with (2) below with respect to tors should be encouraged to make maxi
according fair and equal treatment to mum utilization of their experience and
prospective contractors. initiative to the extent consistent with
(2) Negotiation. Procurement by this the requirements of this part.
method normally should be conducted by (a) Procurement systems and meth
competitive negotiations through the ods utilized for AEC contract work should
solicitation and evaluation of proposals, be well defined and consistently applied
from an adequate number of qualified
sources to assure effective competition, and should accord with good business
consistent with securing the required practices for the type and amount of
supplies or services. Negotiated procureprocurement involved.
ment involves advance planning, descrip(b) Procurement should be effected in tion of procurement and delivery requirethe manner most advantageous to the ments, and consideration of the effect Government-price, quality, and other these requirements may have on prices factors considered. In order to assure this and competition. Requests for proposals objective and the award of business on an
should describe the property or services impartial basis, procurement (from
required as completely as possible; allow
sufficient time for the submission of prosources other than Government sources) shall be effected by methods calculated
posals; and establish a closing date for
receipt of proposals. Proposals should be to assure such full and free competition
handled in a manner which provides fair as is consistent with securing the re
and equal treatment to all prospective quired supplies and services. Generally, offerors. Selection of offerors for negoprocurement actions are carried out
tiation and award shall be consistent with through one of the following methods: FPR 1-3.805 and $ 9–3.805.
(c) Price or cost analyses shall be performed in accordance with the requirements of FPR 1-3.807 and $ 9-3.807, Pricing Techniques and FPR 1-3.809 and § 9-3.809, Contract audit as a pricing aid. Profits and fees paid shall be consistent with limitations established in $ 9–3.80851.
(d) Supplies and services normally should be procured through the use of suitable specifications, standards, and/or purchase descriptions which clearly and accurately describe the supplies or services to be procured. If such specifications, standards, and/or purchase descriptions are not available and it is impractical or uneconomical to prepare them, “brand name or equal" descriptions may be used. provided the particular physical, functional, or other characteristics of the brand name item which are deemed essential
clearly identified and described.
(e) A fair proportion of supplies and services shall be procured from small business concerns.
(f) The need for access authorizations to classified information shall not be a limiting factor in obtaining competition except where time will not permit securing additional access authorizations.
(g) Awards shall be made only to responsible prospective contractors. Awards shall not be made to firms or individuals on the AEC List of Disqualified Bidders and Ineligible Contractors.
(h) Selection of the type of contract to be used should be based on consideration of the nature of the supplies and services required and other circumstances sur
rounding the procurement. The costplus-percentage-of-cost system of contracting shall not be used in any event.
(1) Small purchases (less than $2,500) should be made by methods designed to (1) obtain fair and reasonable prices, (2) reduce administrative costs of making such purchases to the minimum required to establish the propriety of placing the order at the price paid with the supplier concerned, and (3) improve opportunities for small business concerns within the local trade area to obtain a fair proportion of purchases.
(j) Subcontracts and purchase orders for supplies and services for the AEC work normally should include provisions for resolving disputes to the same extent and in the same manner as in similar AEC direct contracts. A disputes clause which can be used to carry out this policy is set forth in $ 9–7.5004–3(b). $ 9-59.004 AECPR-FPR provisions per
taining to cost-type contractor pro
curement. The AECPR-FPR provisions referenced below pertain to cost-type contractor procurements and are listed in this part to facilitate administration. Some of these provisions are implementations of statutory or other requirements and AEC-wide policies, which provide little or no basis for the exercise of judgment. However, to the extent such provisions permit or provide for the exercise of judgment, contracting officers should be guided by good business practice and the best interests of the Government.
Subject Federal Paper Specifications.. Contingent Fees. Small Business.-Labor Surplus Area Concerns. Qualified Products--Minority Business Enterprises..
Organizational Conflicts of Interest.
Reference 9-1.305-1(b). 9-1.501. 9-1.700. 1-1.805-1. 9-1.11. 9-1.1310(a) and (b), 1-1.1310
(1) and (2). 9-1.5403. 1-3.8, 9–3.800. 1-3.9, 9-3.901. 9-4.402(b). 9-4.601. 9-4.5008. 9-4.5300. 9-4.5400. 9-4.5500. 1-1.319, 9-5.000. 9-6.100, 9-6.800, 9-18.600. 9-7.000-50, 9-14.5002, 9-7.5003