termination.

Any such referral shall

be accompanied by a summary of the public interest and other relevant factors involved, and by a recommendation of the course of action to be taken.

§ 2-1.807 Report on preference procurement on labor surplus areas. Reports required pursuant to § 1-1.807 of this title shall be prepared by each procurement office and submitted in quadruplicate through channels to the Materiel Policy Division, Office of Management Services, within 30 days after the close of each calendar quarter.

Subpart 2-1.10-Publicizing Procurement Actions

§ 2-1.1003 Synopsis of proposed pro

curements.

(a) In order to encourage competition, it is the policy of the Federal Aviation Agency to utilize the Department of Commerce Synopsis to the maximum practicable extent. Procurements shall be planned in such a manner as to keep to a minimum the use of exception permitted by § 1-1.1003-2 (4) of this title.

(b) Procurement information shall be prepared and transmitted in accordance with § 1-1.1003-7 of this title. Originating offices served by the General Services Administration-Public Buildings Service teletypewriter system shall submit material through that system. All other offices shall use air mail. [26 F.R. 7548, Aug. 15, 1961]

§ 2-1.1004 Synopsis of contract awards.

Publicizing of contract awards shall be in accordance with § 1-1.1004 of this title. It should be noted that awards exceeding $25,000 for work performed in any of the United States are required to be published, even though the proposed procurement may not have been publicized. Award information shall be submitted by regular mail by all procurement offices, except those in Alaska and Hawaii which shall use air mail. [26 F.R. 7548, Aug. 15, 1961]

AUTHORITY: 2-2.203 to 2-2.406-4 issued under secs. 303, 313, 72 Stat. 747, 752; 49 U.S.C. 1344, 1354.

SOURCE: 2-2.203 to 2-2.406-4 appear at 25 F.R. 14029, Dec. 31, 1960. Subpart 2-2.2-Solicitation of Bids § 2-2.203 Methods of soliciting bids.

§ 2-2.203-1 Mailing or delivering to prospective bidders.

(a) Copies of invitations may be furnished for informational purposes to other non-governmental organizations such as trade associations, and bidding information services, provided they lend some assistance in advertising the requirements. The extent to which supporting papers (drawings, specifications and general provisions) are furnished, will depend on how the organizations intend to use the material. If they merely prepare a synopsis of bid solicitations for distribution to their members or subscribers, the invitation itself should suffice. If, however, they provide a reading room service (such as various trade associations do for construction projects), a complete set of all papers should be furnished without cost.

(b) In connection with invitations for construction, where the cost of reproduction and distribution of plans or drawings is a substantial cost item, the extent of distribution of bidding papers may be controlled by charging prospective contractors and sub-contractors a flat, non-refundable, plan fee. This method is preferred over the use of a refundable deposit system. When the plan fee method is used, arrangements should be made for plans and other bidding papers to be readily available for free inspection at the procurement office, other Federal Aviation Agency offices, trade association reading rooms, and similar locations. The non-refundable plan fee should be $5.00, $10.00, or $15.00 per set. The value of the project and the cost of reproduction and distribution of the plans should be considered in determining which amount is appropriate. No additional charge should be made for plans which are revised or added after the invitation is issued, or

for additional plans required by the successful bidder. Plan fees collected are for deposit in the "Miscellaneous Receipts" account.

§ 2-2.203-3 Publicity in newspapers and trade journals.

General contracting authority does not include authority to order advertising in newspapers or periodicals. Where

specific authority for such advertising has been delegated, paid advertisements in newspapers and trade journals and similar advertising media may be used to solicit bids for large construction projects (over $500,000) or for other projects where the Agency could not otherwise obtain the full benefit of available competition. Prices paid for advertising shall not exceed commercial rates charged to private individuals. Only Standard Forms SF-1143 and SF1143a shall be used to place these orders. Paid advertising shall be accomplished in accordance with the procedures contained in Title 7, Chapter 5200, GAO Policy and Procedures Manual.

Title 44, U.S.C., 321 prohibits advertising in any newspaper published and printed in the District of Columbia unless the supplies or labor to be secured are to be furnished or performed in the District of Columbia or in the adjoining counties of Maryland and Virginia.

Subpart 2-2.4-Opening of Bids and Award of Contracts

§ 2-2.406 Mistakes in bids. § 2-2.406-3 Other mistakes disclosed before award.

(a) The Chief, Materiel Program Division, Bureau of Facilities and Materiel (BFM), Federal Aviation Agency, Washington, is the designated central authority to make the determinations set forth in § 1-2.406-3 of this title.

(b) Cases referred to the Chief, Materiel Program Division, BFM, shall be accompanied by the data prescribed in § 1-2.406-3(d) (3) of this title.

action until he has received the signed determination or official notice thereof.

(d) Cases considered doubtful by the contracting officer shall be referred to the Chief Materiel Program Division. The Chief, Materiel Program Division will take appropriate action either to make a determination or to prepare a submittal, over his own signature, to the Comptroller General.

(e) Where a case clearly must be submitted to the Comptroller General for decision (either pursuant to a specific request from the contractor or because the case does not fall within the criteria set forth in § 1-2.406-3 of this title), it may, if urgent, be submitted directly to the Comptroller General by the contracting officer. The submittal shall be coordinated with Agency legal personnel available to the contracting office and shall be accompanied by substantially the same data as required by paragraph (b) of this section. A copy of the submittal letter shall be sent to the Chief, Materiel Program Division. If urgency is not a factor, the case shall be referred to the Chief, Materiel Program Division for submission by him to the Comptroller General.

§ 2-2.406-4 Disclosure of mistakes after award.

(a) Agency contracting officers are authorized to correct mistakes in the kinds of cases contemplated in § 1-2.4064(a) of this title.

(b) The Chief, Materiel Program Division, Bureau of Facilities and Materiel, Federal Aviation Agency, Washington, is the designated central authority to make the determinations set forth in § 1-2.406-4(b) of this title.

(c) Cases referred to the Chief, Materiel Program Division, shall be accompanied by the data prescribed in § 1-2.406-4(f) (2) of this title.

(d) When a determination has been made by the Chief, Materiel Program Division, the signed original will be forwarded to the contracting officer. All supporting documents submitted by the contracting officer, except his written statement, will be returned to him. Upon receipt of the signed determination, the contracting officer shall take appropriate action to rescind or reform the contract or to notify the contractor that the award will stand as made.

(a) Formal written findings and determinations (F&D) are required by law to be made and filed with the contract in every case negotiated under §§ 1-3.211 through 1-3.214 of this title. In addition F&D shall be prepared to support negotiation under §§ 1-3.202 and 1-3.210 of this title. F&D for these purposes shall be entitled "Authority for Negotiation."

(b) The findings and determinations required, in a particular case, by § 1-3.301 (a) and (b) of this title shall be combined into a single F&D entitled "Method of Contracting."

§ 2-3.302 Form and requirements for determinations and findings; preserIvation of data.

(a) General. F&D may be made with respect to (1) individual, or (2) classes of purchases or contracts, and shall be final. F&D for class purchases or contracts shall state period of time determination will be effective. This period of time shall be kept to a minimum consistent with the requirements and interests of the Government, and in any event shall not exceed three years.

(b) Responsibility. (1) F&D made under the following sections of this title are to be prepared for signature of the Administrator:

§ 1-3.211 (41 U.S.C. 252 (c) (11)) Experimental, developmental or research work in excess of $25,000.

§ 1-3.212 (41 U.S.C. 252 (c) (12)) Purchases not to be publicly disclosed for reasons of national security.

§ 1-3.213 (41 U.S.C. 252 (c) (13)) Technical equipment requiring standardization and interchangeability of parts.

(2) F&D to be signed by the Administrator shall be prepared by the

contracting officer concerned and forwarded to the Administrator through the Head of the originating Bureau or Office. To reduce the volume of individual F&D required to be signed by the Administrator, maximum use shall be made of class F&D.

(3) Authority to make F&D under the following sections of this title is delegable to the contracting officers of the Agency and shall be executed by such officers to the extent that this authority is formally delegated to them:

§ 1-3.201 (41 U.S.C. 252 (c)(1)) National emergency.

§ 1-3.202 (41 U.S.C. 252 (c)(2)) Public exigency.

§ 1-3.210 (41 U.S.C. 252 (c) (10)) Impracticable to secure competition by formal advertising.

§ 1-3.211 (41 U.S.C. 252 (c) (11)) Experimental, developmental or research work not exceeding $25,000.

§ 1-3.214 (41 U.S.C. 252 (c) (14)) Negotiation after advertising.

§ 1-3.301 (a) and (b) (41 U.S.C. 254(b)) Estimated cost, fee, and type of contract.

§ 1-3.301 (c) (41 U.S.C. 253(b)) Rejection of bids.

(c) Format. (1) To the greatest extent practicable, each F&D should be limited to a single page.

(2) Heading: The following heading should be used:

Federal Aviation Agency Findings and Determinations (Type of F&D-See § 2-3.301)

(3) Findings: This section shall set forth a brief description of the property or services being procured, estimated cost (including, when applicable, a statement of the fee and an explanation of any deviation from Agency fee limitations contained in § 2-3.404-3), the amount of competition being sought, or if no competition is intended, the basis for this decision. In F&D justifying the method of contracting, the reasons for selecting the particular type of contract must be explained. Other findings shall be set forth as concisely as possible, confining them to facts which are relevant to support the one or more determinations being made.

(4) Determination: The determination(s) shall be confined to the requirements of the particular language of the applicable section of the statute, or of Subpart 1-3.2 of this title. The determination(s) must be clearly supported by the findings made. In every case, the

determination shall specifically cite the applicable statute. Examples:

Upon the basis of these findings and determinations, the proposed contract may be negotiated without formal advertising pursuant to 41 U.S.C. 252 (c) (insert applicable subsection).

Upon the basis of these findings, I hereby determine, pursuant to 41 U.S.C. 254(b), that the estimated cost of the contract, exclusive of the fee, is $_____, and that the fee in the amount of $ is reasonable and within statutory and administrative limitations.

Upon the basis of these findings, I hereby determine, pursuant to 41 U.S.C. 254 (b), that the use of (insert type of contract) is likely to be less costly than other methods of contracting.

Upon the basis of these findings, I hereby determine, pursuant to 41 U.S.C. 253(b), that it is in the public interest to reject all bids.

(5) Signature identification: For F&D to be signed by the Administrator, his name and title only shall be typed below the space left for his signature. For all other F&D, show, in addition to the name and title of the signer, the appropriate Bureau or Office and a field office identification (if any) such as: Eastern Region, Facilities and Materiel Depot, NAFEC.

(d) Filing. A minimum of two copies of each individual type F&D shall be made and executed, a copy filed with the General Accounting Office copy of the contract, and the original filed in the procurement office's contract file.

A minimum of three copies of class type F&D shall be made with two copies filed as stated above, and the third copy, with contract number and name of contractor cited, forwarded to the Materiel Policy Division, Office of Management Services, for circulation as deemed appropriate for information to other procurement offices within the Agency. Subsequent contract actions based on a class F&D shall reference the initial file by contract number and name of contractor.

(e) Numbering. It is left to the discretion of each originating office whether consecutive numbering or other identification will result in any benefit for filing or other purposes. § 2-3.350

Selection of appropriate authority and citation.

(a) Where specific authority to negotiate is contained in FAA legislation, that authority shall be used, where applicable,

in preference to any other. In all other cases where authority to negotiate may be derived from more than one source, that source shall be selected which most specifically corresponds with all of the circumstances of the particular procurement. Authority to negotiate contained in section 3709 of the Revised Statutes shall not be used.

(b) With respect to the use of authorities contained in section 302 (c) of the Federal Property and Administrative Services Act of 1949, as amended (41 U.S.C. 252(c)), the use of subsection (10) shall be limited to those situations where none of the other subsections can 'appropriately be used.

(c) Every contract entered into by negotiation, and every related Authority for Negotiation F&D, shall contain a citation to the statutory authority used. Agency or general legislative authority used may be cited by the section and short title of the Act, by appropriate U.S. Code reference, or by a combination of the two. Authority derived from section 302 (c) of the Federal Property and Administrative Services Act of 1949 shall in all cases be cited by appropriate U.S. Code reference.

(a) Description. The fixed-price contract with redetermination provides for negotiated adjustment of the initially negotiated contract price, based on costs incurred by the contractor up to the cutoff date specified by the contract. Providing for price redetermination seeks to eliminate or minimize the inclusion of contingency allowances in the price. A fixed-price contract with redetermination may be a maximum price contract, which provides for adjustment downward only, or a flexible price contract, which provides for adjustment upward to a set ceiling as well as downward. Price redetermination may be applied in a variety of ways depending upon the circumstances of the particular case. Paragraph (d) of this section describes the most commonly used methods.

(b) Applicability. Unless precluded by the limitations stated in paragraph

(c) of this section, a fixed-price contract with redetermination should be selected in preference to a firm fixed-price contract when: (1) The contract is for a substantial amount, usually in excess of $250,000; (2) lack of previous production experience with the contract items prevents adequate price comparisons; (3) effective competition is lacking; and, (4) the quantity of material or labor required, or the extent of other major costs, cannot be determined with reasonable accuracy until some of the work has been accomplished.

should not be used as a substitute for the negotiation of close initial prices. A fixed-price contract with redetermination should not be used when: a target price substantially free of contingencies, or a reasonable maximum price, cannot be initially negotiated; and, a firm fixedprice cannot be established at an early stage in the contract performance.

(d) Use. In the negotiating process, provision for price redetermination should be made when the contractor has presented his lowest proposal for a firm fixed-price contract but the negotiator believes that the price is still unreasonably high. Steps in the process and factors to be considered are:

In

(1) Price redetermination will usually be applied to the full quantity of the contract items or services (retroactive and forward redetermination). situations where it is possible to establish fair and reasonable firm fixed-prices for an initial portion of the contract items or services but not for all, redetermination may be applied only to the subsequent portion which is subject to contingencies (forward redetermination).

(2) When the cost factors which cause the quoted price to be considered unreasonably high cannot be identified, for example, when contingencies appear to be buried in the overhead costs, a maximum price contract is indicated. Under this type the negotiator and the contractor agree upon the maximum price which will be paid and upon the time when redetermination will be made whether that price or a lower price will be paid.

(3) If major contingency factors in the quoted price can be readily identified, but the contractor is unwilling to eliminate them, a flexible price contract