§ 591.201-50 A principal assistant responsible for procurement.

This term means an individual designated by the head of procuring activity to be responsible for procurement functions at the procuring activity level which are not required by ASPR, APP, or other directive to be performed personally by the head of procuring activity or his deputy.

§ 591.201-51 A chief of purchasing office.

This term means an individual who is the head of a purchasing office as defined in § 1.201-24 of this title.

§ 591.201-52 A level higher than the contracting officer.

This term means the next higher procurement authority to whom a contracting officer is responsible; e.g., a chief of a purchasing office is a level higher than a contracting officer subordinate to him. § 591.302 Sources of supplies and serv

ices.

[36 F.R. 20677, Oct. 28, 1971]

§ 591.302-50 Procurement from U.S. sources by offshore purchasing offices. It is Department of the Army policy that offshore purchasing offices shall not purchase supplies directly from sources within CONUS. Supplies shall be obtained by requisition through appropriate supply channels. The reasons for this policy are

(a) To preclude bypassing of established supply channels,

(b) To eliminate possible duplication of effort by Government purchasing offices, and

(c) To permit consolidation of requirements for quantity procurement whenever practicable.

The policy does not apply to purchase of services.

[36 F.R. 20677, Oct. 28, 1971]

Subpart C-General Policies

SOURCE: The provisions of this Subpart C appear at 34 F.R. 9489, June 18, 1969, unless otherwise noted.

§ 591.304 Procurement of privately developed items.

§ 591.304-2 Specific procurement methods.

The authority granted by § 1.304-2(b) (4) of this title to a head of procuring activity to authorize the use of reverse engineering may not be redelegated. § 591.307 Priorities, allocations, and allotments.

(a) The Assistant Secretary of the Army (Installations and Logistics) has assigned the responsibility for administering the Priorities and Allocations System within the Department of the Army to the Deputy Chief of Staff for Logistics and has delegated to him, with power of redelegation, the authority

(1) To apply or assign the right to apply DO or DX ratings, as appropriate, to contracts and orders,

(2) To make allotments of controlled materials, and

(3) To reschedule deliveries of materials which are required in support of the Aircraft (A-1) and Tank Automotive (A-4) Programs.

These delegations of authority are reproduced in § 591.5102.

(b) Since the use of priorities and allocations is limited to procurements placed with U.S. suppliers, the Deputy Chief of Staff for Logistics has not redelegated his authorities to oversea commanders. Should an oversea commander be authorized to place a procurement directly with a U.S. supplier and a priority rating be required to obtain timely delivery, a request for a priority rating shall be submitted to HQDA (DALO-MAE-I) containing the following information

(1) Contract or purchase order number and date;

(2) Name and address of U.S. supplier;

(3) Item or items on order, giving FSN and nomenclature, number of each item on order, and dollar value of order; (4) Address to which item or items are to be shipped; and

(5) Purpose for which item or items are required.

Upon receipt of a request, action will be taken, if appropriate, by the Office, Deputy Chief of Staff for Logistics, to advise the U.S. supplier of the assignment of the priority rating and to notify the purchasing office concerned of the action taken.

(c) Detailed instructions for controls, allotment procedures, maintenance of records, and preparation and submission of reports are contained in AR 715-5.

[34 F.R. 9484, June 18, 1969, as amended at 88 FR. 20677, Oct. 28, 1971; 37 FR 7084, Apr. 8, 1972]

§ 591.310 Liquidated damages.

Whenever a contracting officer uses a liquidated damages provision in a contract, he shall document the contract file to show the reasons necessitating its use.

[35 F.R. 4124, Mar. 5, 1970]

§ 591.310-50 Applications for remission of liquidated damages to a purchasing office or procuring activity.

(a) When a contractor applies to a purchasing office or procuring activity for remission of liquidated damages, action shall be taken to ensure that all alternative administrative remedies available to the contractor (e.g. settlement of a dispute concerning excusable delay) have been exhausted before processing the case to the Comptroller General.

(b) If liquidated damages remain after all administrative remedies have been exhausted, the contracting officer shall prepare an administrative report which shall

(1) Summarize the matter at issue;

(2) Furnish information as to the reasonableness of the rate of assessment of liquidated damages in relation to the total contract price and summarize the actions taken to mitigate the assessment of the liquidated damages;

(3) Provide any other information or evidence deemed necessary to clear understanding of the matter; and

(4) State the findings and recommendations of the contracting officer.

liquidated damages, the Assistant Becretary of the Army (Installations and Logistics) shall promptly notify the cognizant head of procuring activity of the contractor's application. The head of procuring activity shall in turn notify the appropriate purchasing office.

(b) The contracting officer shall prepare an administrative report containing the information prescribed in § 591.310-50(b) and, if all alternative administrative remedies available to the contractor have not been exhausted, identifying those remedies available and stating what actions are being taken thereunder.

§ 591.310-52 Forwarding of administrative reports.

(a) Administrative reports shall be forwarded by purchasing offices through the cognizant head of procuring activity to the addressee in § 591.150(b) (6).

(b) Recommendations of each level of authority through which reports are forwarded shall be attached to the reports. § 591.312 Voluntary refunds.

(a) When a contracting officer considers that a voluntary refund should be requested from a contractor, he shall, after coordination with legal counsel, forward his recommendation to the addressee in § 591.150(b) (6) through the cognizant head of procuring activity. The recommendation shall include

(1) All facts and factors pertinent to the case;

(2) Reasons for seeking a voluntary refund; and

(3) Action proposed to be taken.

(b) Upon receipt of approval from the Assistant Secretary of the Army (Installations and Logistics) to seek a voluntary refund from a contractor, the contracting officer shall prepare a letter to the president or principal officer of the contractor which--

(1) Advises the contractor that he is acting in behalf of the Secretary of the Army to whom the results of his actions will be forwarded;

(2) States the results of his review of the matter;

(3) Advises that the Department of the Army considers it important that a voluntary adjustment or refund be made promptly;

(4) Requests the contractor to refund the determined amount or make the necessary adjustment voluntarily; and

(5) If desired, invites the president or principal officer of the contractor to dis

cuss personally the payment of the refund to the Government.

(c) If a refund action has been recommended by the General Accounting Office (GAO), the contracting officer shall forward to the addressee in § 591.150(b) (6) through the cognizant head of procuring activity for review and approval a proposed response to the GAO which shall contain the information prescribed in paragraph (a) of this section. Upon notification of approval of a proposed response to the GAO which concurs with the recommendation to seek a voluntary refund, the contracting officer shall prepare a letter to the president or principal officer of the contractor which shall contain the information prescribed in paragraph (b) of this section.

(d) If the contracting officer is unable to secure the adjustment, he shall report his actions to the cognizant head of procuring activity and recommend what further action should be taken. The head of procuring activity shall thereupon exhaust every available means to obtain the adjustment. If the head of procuring activity is unable to obtain the adjustment, he shall refer the matter to the addressee in 591.150 (b) (6) with recommendations for further action.

§ 591.314 Disputes and appeals.

(a) When dispute involves an amount not in excess of $5,000, the contracting officer shall include a paragraph in his final decision reading substantially as follows:

If any dispute resulting from the decision hereinabove set forth involves an amount not in excess of $5,000, there is available an Optional Accelerated Procedure of the Board (Rule 12) for disposition of the appeal. To invoke such procedure, the appellant must request that the appeal be processed under Rule 12.

(b) When an appeal to the Secretary of the Army has been filled under the Disputes clause, the cognizant head of procuring activity shall

(1) Furnish appropriate technical and legal assistance to the contracting officer;

(2) Review the findings of fact for completeness as to all issues bearing on the matter in dispute and for the consistency therewith of the decision from which the appeal is taken;

(3) Review for completeness the contracting officer's comprehensive report, including the evidence submitted in support of his decision;

(4) Advise the contracting officer either to furnish additional support for any decision from which a timely appeal has been taken or to withdraw the decision when it is clear from the contract provisions or the applicable law that the decision is not sufficiently supported by available and competent evidence or is erroneous;

(5) Not more than 10 calendar days after taking the action in subparagraph (4) of this paragraph, notify the Chief Trial Attorney of the nature of the action taken and of an estimated date as to when either additional support will be furnished or the decision will be withdrawn;

(6) Not more than 10 calendar days after receiving the contracting officer's comprehensive report, forward to the Chief Trial Attorney

(1) Such evaluations, conclusions, and recommendations as he deems appropriate; and

(11) Any additional evidence considered essential to enable the Chief Trial Attorney to protect the interests of the Government before the Armed Services. Board of Contract Appeals (ASBCA); and

(7) Insure that assistance is rendered the Chief Trial Attorney in obtaining additional evidence or in making other necessary preparations for presenting the position of the Government before the Board.

(c) Decisions of the Board shall be reviewed by the procuring activity and, if the head of procuring activity is of the opinion that a decision should be reconsidered, he may within 10 calendar days after receipt of the decision, request the Chief Trial Attorney to file a motion for reconsideration, stating the grounds relied upon to sustain the motion.

(d) The Chief Trial Attorney shall present to the Board all Department of the Army cases, except that Corps of Engineers attorneys shall act as trial attorneys in connection with Corps of Engineers contract cases. When it is determined by the Commanding General, U.S. Army Materiel Command, that an appeal before the Board has particular significance to his procuring activity and that it involves difficult operational and technical facts, he may, on the filing of the contracting officer's comprehensive report and after consultation with The Judge Advocate General, Department of the Army, detail to the Chief Trial Attor

U.S. Army, Alaska, APO Seattle 98749.

(2) European Theater-Commanding General, U.S. Army Communications Zone, Europe, APO New York 09058.

(3) Pacific Theater-Commander in Chief, U.S. Army, Pacific, APO San Francisco 96558.

(4) Southern Command-Commanding General, U.S. Army Forces Southern Command, Fort Amador, C.Z.

(b) The component Commanders designated above shall

(1) Secure the coordination of and make necessary arrangements with the other major commands, or his command, as appropriate; and

(2) Obtain and furnish the requesting contracting officer the information prescribed in § 591.321 (b).

§ 591.322 Multiyear procurement. 135 F.R. 4124, Mar. 5, 1970]

§ 591.322-6 Multiyear procurement of

services.

sions of Part 286 of this title. Contracting officers shall follow the instructions therein, in Army regulations referenced therein, and § 1.329 of this title and Part 286 of this title with respect to release of procurement information.

§ 591.329-50 Release of information by manufacturers, research organizations, educational institutions holding Army contracts or grants, and other commercial entities.

(a) AR 360-27 prescribes Department of the Army policies and clearance procedures with respect to release of procurement information by manufacturers, research organizations, and educational institutions holding Army contracts or grants, and by commercial firms or organizations which do not hold Army contracts or grants.

(b) Contracting officers shall comply with the requirements in AR 360-27 and shall include an appropriate clause in contracts for the production of military equipment, weapons, supplies, or for research and development and research analyses (see Part 597 of this subchapter).

§ 591.329-51 Release of intelligence material to contractors.

AR 380-9 (C) establishes Department of the Army policy and procedures with respect to release of intelligence material to contractors in support of Department of the Army programs.

[36 F.R. 8943, May 15, 1971]
§ 591.330 [Reserved]
§ 591.330-6.

[Reserved]

§ 591.350 Extensions of contracts. § 591.350-1 Policy.

Contracts shall not be extended or renewed by exercise of options (see Subpart O, Part 1 of this title and § 591.1506) or otherwise for protracted periods of time for the purpose of eliminating competition or perpetuating the use of outmoded clauses, terms, and conditions. Contracts involving successive procurements or continuing services shall normally be closed out after not more than two extensions of the basic contract. An entirely new contract should be awarded for subsequent procurements of an item or service if further procurement is justified.

§ 591.350-2 Justification for extensions

A complete justification, specific in detail, shall be placed in the contract file

for each contract extension. Justifications may include, but are not limited to, such items as→→→

(a) The excessive burden to renumber Government property records;

(b) The increased costs or delay in production required to establish a new contract;

(c) The increased costs due to elimination of special concessions or other problems peculiar to a new contract;

(d) The substantial financial interests of the Government in severable and nonseverable facilities that are not readily transferable to another contractor; and

(e) The relatively small quantity remaining to be produced so that the entire contract can be completed within 6 months.

§ 591.350-3 First or second extensions. The contracting officer may enter into a first or second extension of a basic contract when he makes the determinations in writing required by § 1.1505(c) of this title.

§ 591.350–4

Third or fourth extensions.

A third or fourth extension beyond the term of the basic contract shall be made only with advance written approval of the head of procuring activity, his deputy, or a principal assistant responsible for procurement.

§ 591.350-5 Extensions beyond fourth.

Extensions of a basic contract beyond the fourth shall be made only with advance written approval of—

(a) The Director of Requirements and Procurement, U.S. Army Materiel Command, for procuring activities of that command;

(b) The SAFEGUARD System Manager [SAFSM] for the SAFEGUARD System Organization; or

(c) The Deputy for Materiel Acquisition, Office of the Assistant Secretary of the Army (Installations and Logistics) for all other procuring activities.

[35 F.R. 4124, Mar. 5, 1970, as amended at 35 F.R. 8554, June 3, 1970; 37 FR 7084, Apr. 8, 1972]

§ 591.350-6 Requests for approval of extensions.

Requests for approval of extensions pursuant to §§ 591.350-4 and 591.350-5 shall be submitted to reach the appropriate addressee at least 3 months prior to the expiration of the previously approved extension date of the contract.