case of procurement by negotiation) shall be solicited from all such qualified sources as are deemed necessary by the contracting officer to assure such full and free competition as is consistent with the procurement of types of supplies and services necessary to meet the requirements of the agency concerned. § 1-1.302-2 Production and research and development pools. (a) Description. A production or research and development pool is a group of concerns (1) which have associated together for the purpose of obtaining and performing jointly, or in conjunction with each other, contracts for supplies or services, or for research and development for defense use or to effectuate the purposes of the Small Business Act, (2) which have entered into a production pool agreement governing their organization, relationship, and procedure, and (3) the agreement has been approved either in accordance with section 708 of the Defense Production Act of 1950, as amended (Defense Production Pool), or in accordance with sections 9(d) or 11 of the Small Business Act (Small Business Pool). Production pool participants are exempt from the "manufacturer or regular dealer" requirement of the Walsh-Healey Public Contracts Act and of sections 1-1.211 and 1-1.212. (b) General rule. Except as provided in this section 1-1.302-2, a producion pool shall be treated for purposes of Government procurement on exactly the same basis as any other prospective or actual contractor. (c) Ascertainment of status. The conracting officer is responsible for asceraining whether a group of firms seeking o do business with the Government is a production pool. In ascertaining the status of a group representing that it is 1 pool, contracting officers may rely on 1 copy of the Small Business Administraion (SBA) or the Office of Civil and Deense Mobilization (OCDM) notification of approval of the pool. Each executive gency should expeditiously disseminate o appropriate contracting officers information received from SBA or OCDM concerning the approval of production Dools. (d) Contracting with pools. (1) A bid or proposal of a producCion pool is not eligible for award to the pool unless submitted either by the pool n its own name or by an individual mem 74064 O-62-3 ber expressly disclosing that it is on behalf of the pool. Except as to contracts to be awarded to incorporated pools, the contracting officer shall prior to award to a pool require to be deposited with him a certified copy of a power of attorney from each member of the pool who is to participate in the performance of the contract authorizing an agent to execute the bid, proposal, or contract on behalf of such member. A copy of each such power of attorney shall be appended to each executed copy of the contract retained by the Government. (2) Membership in a pool shall not of itself preclude individual members from submitting bids or proposals as individuals on appropriate procurements. Bids or proposals submitted by an individual member of a pool shall not be considered when the individual member has participated in the bid or proposal submitted by the pool. (e) Responsibility of pool member. Where a member of a production pool has submitted a bid or proposal in its own name the pool agreement shall be considered in determining the pool member's responsibility. (a) Who owns, operates, or maintains a place of business, regularly engaged in performing nonpersonal services, such as the repair, maintenance, or rebuilding of personal property; the packing, crating, or moving of material; the operation of equipment or facilities; the rental of equipment or facilities; or the performance of administrative, professional, or technical functions; or (b) Who, if newly entering into a service activity, has made all necessary prior personnel, arrangements for equipment, and required licenses to perform services. § 1-1.220 Procurement item. "Procurement item" means any personal property or nonpersonal service, including construction, alteration, repair, or installation, which is the object of procurement. Subpart 1-1.3-General Policies § 1-1.300 Scope of subpart. This subpart sets forth general policies with respect to (a) methods of procure(c) ment; (b) procurement sources; service types of contracts; (d) use of specifications, standards, and purchase descriptions; (e) transportation costs; and (f) priorities, allocations, and allotments. § 1-1.301 § 1-1.215 Government instrumentality. "Government instrumentality" means any of the following: (a) An instrumentality of the U.S. Government. (b) An agency or instrumentality of a State or local government thereof, Hawaii, possession, or Puerto Rico. (c) An agency or instrumentality of a foreign government. § 1-1.216 United States. "United States", when used in a geographic sense, means the States and the District of Columbia. § 1-1.219 Contract modification. "Contract modification" means any written alteration in the specifications, delivery point, rate of delivery, contract period, price, quantity, or other contract provision of an existing contract, whether accomplished by unilateral action in accordance with a contract provision or by mutual action of the parties to the contract. It includes (a) bilateral actions, such as supplemental agreements and amendments, and (b) unilateral actions, such as change orders, notices of termination, and notices of the exercise of an option. Methods of procurement. It shall be the objective to use that method of procurement which will be most advantageous to the Governmentprice, quality, and other factors considered. Procurement shall be made on a competitive basis, whether by formal advertising or by negotiation, to the maximum practicable extent, in accordance with the policies and procedures set forth in this chapter. Procurement shall be effected by advertising for bids and thereafter awarding a contract to the lowest responsible bidder, except that when authorized procurement may be effected by negotiation in accordance with Part 1-3 of this chapter. § 1-1.302 Procurement sources. General. (a) Before taking procurement action, in accordance with this chapter, agencies shall have complied with applicable laws and regulations relative to obtaining supplies or services from Government sources and from contracts of other Government agencies. These include excess and surplus stocks in the hands of any Government agency, Federal Supply Schedules, General Services Administration Stores Stock, Federal Supply Service Consolidated Purchase Programs, Federal Prison Industries, Inc., and National Industries for the Blind. (b) Irrespective of whether the procurement of supplies or services from sources outside the Government is to be effected by formal advertising or by negotiation, competitive proposals ("bids" in the case of procurement by formal advertising, "proposals" in the case of procurement by negotiation) shall be solicited from all such qualified sources as are deemed necessary by the contracting officer to assure such full and free competition as is consistent with the procurement of types of supplies and services necessary to meet the requirements of the agency concerned. § 1-1.302-2 Production and research and development pools. (a) Description. A production or research and development pool is a group of concerns (1) which have associated together for the purpose of obtaining and performing jointly, or in conjunction with each other, contracts for supplies or services, or for research and development for defense use or to effectuate the purposes of the Small Business Act, (2) which have entered into a production pool agreement governing their organization, relationship, and procedure, and (3) the agreement has been approved either in accordance with section 708 of the Defense Production Act of 1950, as amended (Defense Production Pool), or in accordance with sections 9(d) or 11 of the Small Business Act (Small Business Pool). Production pool participants are exempt from the "manufacturer or regular dealer" requirement of the Walsh-Healey Public Contracts Act and of sections 1-1.211 and 1-1.212. (b) General rule. Except as provided in this section 1-1.302–2, a production pool shall be treated for purposes of Government procurement on exactly the same basis as any other prospective or actual contractor. (c) Ascertainment of status. The contracting officer is responsible for ascertaining whether a group of firms seeking to do business with the Government is a production pool. In ascertaining the status of a group representing that it is a pool, contracting officers may rely on a copy of the Small Business Administration (SBA) or the Office of Civil and Defense Mobilization (OCDM) notification of approval of the pool. Each executive agency should expeditiously disseminate to appropriate contracting officers information received from SBA or OCDM concerning the approval of production pools. (d) Contracting with pools. (1) A bid or proposal of a production pool is not eligible for award to the pool unless submitted either by the pool in its own name or by an individual mem 74064 O-62-3 ber expressly disclosing that it is on behalf of the pool. Except as to contracts to be awarded to incorporated pools, the contracting officer shall prior to award to a pool require to be deposited with him a certified copy of a power of attorney from each member of the pool who is to participate in the performance of the contract authorizing an agent to execute the bid, proposal, or contract on behalf of such member. A copy of each such power of attorney shall be appended to each executed copy of the contract retained by the Government. (2) Membership in a pool shall not of itself preclude individual members from submitting bids or proposals as individuals on appropriate procurements. Bids or proposals submitted by an individual member of a pool shall not be considered when the individual member has participated in the bid or proposal submitted by the pool. (e) Responsibility of pool member. Where a member of a production pool has submitted a bid or proposal in its own name the pool agreement shall be considered in determining the pool member's responsibility. (a) Federal. A specification covering those materials, products, or services, used by or for potential use of two or more Federal agencies (at least one of which is a civil agency), or new items of potential general application, promulgated by the General Services Administration and mandatory for use by all executive agencies. (b) Interim Federal. A potential Federal specification issued in interim form, for optional use by agencies. Interim amendments to Federal Specifications are included in this definition. (c) Military (MIL). A specification issued by the Department of Defense, used solely or predominantly by and mandatory on military activities. (This definition includes both fully coordinated and limited coordination military specifications.) (d) Departmental. A specification developed and prepared by, and of interest primarily to a particular Federal civil agency, but which may be of use in procurement by other Federal agencies. § 1-1.305-1 Mandatory use of Federal Specifications. Federal Specifications shall be used by all executive agencies, including the Department of Defense, in the procurement of supplies and services covered by such specifications; except as provided in sections 1-1.305-2 and 1-1.305-3. § 1-1.305-2 Exceptions to mandatory use of Federal Specifications. Federal Specifications need not be used under the following circumstances: (a) The purchase is required under a public exigency and a delay would be involved in using the applicable specification to obtain agency requirements. (b) The total amount of the purchase does not exceed $2,500. (Multiple small purchases of the same item shall not be made for the purpose of avoiding the intent of this exception.) (c) The purchase involves items of construction for new processes, new installations of equipment, or items for experiment, test, or research and development, until such time as specifications covering them are issued or it is determined by the General Services Administration, and the procuring agencies notified, that further deviations from the Federal Specifications will not be permitted: Provided, That, in connection with such deviations, existing Fed eral Specifications shall be used to the extent that they are applicable. (d) The purchase involves spare parts, components, or materials required for repair or maintenance of existing equipment, or for similar items required for maintenance or operation of existing facilities or installations: Provided, That existing Federal Specifications shall be used to the extent that they are applicable. (e) The items are purchased in foreign markets for use of overseas activities of agencies. (f) An Interim Federal Specification is used by an agency in lieu of the Federal Specification. (g) Where otherwise authorized by law. § 1-1.305-3 Deviations from Federal Specifications. When the essential needs of an agency are not adequately covered by an existing Federal Specification, and the proposed purchase does not come within the exceptions described in section 1-1.305-2, the agency may authorize deviations from the Federal Specification; provided, that: (a) Requirements of existing Federal Specifications shall be used to the maximum extent practicable. (b) Each agency taking such deviations shall establish procedures whereby a designated official having substantial procurement responsibility shall be responsible for assuring that: (1) Federal Specifications are used, and provisions for exceptions and deviations are complied with; (2) Justifications for exceptions and deviations are subject to competent review before authorization, and that such justifications can be fully substantiated if post audit is required; (3) Major or repeated deviations are not taken except as prescribed in this section 1-1.305–3; and (4) Notification or recommendation for change in the specification is sent promptly to the General Services Administration by the designated official or subdivision at the agency level, through established agency channels, when (i) Deviations taken are of a major nature such as to result in the (5) Notification or recommendation for change in the specification shall be submitted, in duplicate, to the General Services Administration, Federal Supply Service, Washington 25, D.C. It shall include a statement of the deviations authorized by the agency, with justification therefor, and, where applicable, recommendation for revision or amendment of the specification. (c) Deviations taken and reported by the agency in accordance with section 1-1.305-3(b) may not be continued except under the following conditions: (1) Upon notification by an agency that major or repeated deviations have been taken and where no recommendation for change in the specification is made by the agency, the General Services Administration will notify the agency as to whether such deviations may be continued in subsequent procurement. In cases where deviations are not approved and where procurement by the agency has progressed to a point where it would be impracticable to amend or cancel the action, such action may be completed, but the deviation shall not be authorized by the agency in subsequent procurement. (2) Where an agency has recommended changing the specification consistent with the deviations it has taken and reported, those deviations may be continued until such time as the recommended change is coordinated and incorporated in the specification; provided, that where coordination with Federal agencies and industry, as applicable, does not result in acceptance of the change, such deviations shall not be authorized by the agency in subsequent procurement. § 1-1.305-4 Optional use of Interim Federal Specifications. Interim Federal Specifications are for optional use. All agencies are urged to make maximum use of Interim Federal Specifications and to submit statements of suggested changes to the assigned agency for consideration in further development of the specifications for promulgation as Federal Specifications. § 1-1.305-5 Use of Federal and Interim Federal Specifications in Federal construction contracts. When material, equipment, or services for which a Federal or Interim Federal Specification is available are specified in connection with Federal construction, the Federal or Interim Federal Specification shall be made a part of the specification for the construction contract, subject to the provisions in section 1-1.305. § 1-1.305-6 Military and departmental specifications. If no Federal Specification is available, existing Interim Federal, military, and departmental specifications which are listed in the Index of Federal Specifications and Standards should be considered and, wherever practicable, used by any agency having need therefor, consistent with the agency's procedures establishing priority for use of such specifications. § 1-1.306 Standards.1 "Standards," as used in this section 1-1.306, are descriptions which establish engineering or technical limitations and applications for materials, processes, methods, designs, or drafting room and other engineering practices, or any related criteria deemed essential to achieve the highest practical degree of uniformity in materials or products, or interchangeability of parts used in those products; and which may be used in specifications, invitations for bids, proposals, and contracts. The identification of the categories and intended use of such standards are as follows: (a) Federal Standard. A standard promulgated by the General Services Administration, mandatory for use by all executive agencies, including the Department of Defense. (b) Interim Federal Standard. A standard intended for final processing as a new or revised Federal Standard, issued in interim form for optional use by executive agencies. (c) Military (MIL) Standard. A standard issued by the Department of 1 Other instructions concerning the use of standards that are of interest and applicable to executive agencies, but which are of no interest to the public, are contained in General Services Administration Regulation 1-VI, Part 2. |