Federal Procurement Regulations apply to all Federal agencies to the extent specified in the Federal Property and Administrative Services Act of 1949 or in other law. Except for standard Government forms and clauses, Federal Specifications and Standards, and except as directed by the President, Congress, or other authority, these Regulations are not mandatory on the Department of Defense. Therefore, the extent of their implementation within the Department of Defense and participation in the System will be determined by that Department. The Regulations apply to procurements made within and outside the United States unless otherwise specified.

tification of every unit. The first digit represents the chapter number allocated to each agency, followed by a dash. This is followed by the part number which may be one or more digits followed by a decimal point. The numbers after the decimal point represent, respectively, the subpart, section (in two digits), and, after the dash, subsection, paragraph, subparagraph, and further inferior divisions. For example, this division is called "section 1-1.007-2," in which the first digit denotes the chapter, the second the part, the third the subpart, the fourth and fifth the section, and the sixth the subsection. § 1-1.007-3

Citation.

Federal Procurement Regulations will be cited in accordance with Federal Register standards approved for the FPR. Thus, this section, when referred to in divisions of the Federal Procurement Regulations, should be cited as "section 1-1.007-3 of this chapter." When this section is referred to formally in official documents, such as legal briefs, it should be cited as "41 CFR 1-1.007-3." Any section of Federal Procurement Regulations may be informally identified, for purposes of brevity, as "FPR" followed by the section number, such as "FPR 1-1.007-3."

§ 1-1.008 Agency implementation.

As portions of FPR material are prescribed, agencies shall publish in the FEDERAL REGISTER implementing regulations deemed necessary for business concerns, and others properly interested, to understand basic and significant agency procurement policies and procedures which implement, supplement, or deviate from the FPR. Detailed instructions of interest primarily for internal agency guidance need not be published. Implementing regulations shall be prepared to conform with FPR style and arrangement. § 1-1.009 § 1-1.009-1

Deviation. Description.

As used in these Regulations, the term "deviation" includes any of the following actions:

(a) When a prescribed contract clause is set forth verbatim, use of a contract clause covering the same subject matter which varies from that set forth.

(b) When a standard or other form is prescribed, use of any other form for the same purpose.

(c) Alteration of a prescribed standard or other form, except as may be authorized in the Regulations.

(d) The imposition of lesser or, where the regulation expressly prohibits, greater limitations than are imposed upon the use of a contract clause, form, procedure, type of contract, or upon any other procurement action, including but not limited to, the making or amendment of a contract, or actions taken in connection with the solicitation of bids or proposals, award, administration, or settlement of contracts.

(e) When a policy or procedure is prescribed, use of any inconsistent policy or procedure.

In the interest of establishing and maintaining uniformity to the greatest extent feasible, deviations from the Federal Procurement Regulations shall be kept to a minimum and controlled as follows:

(a) The head of each agency exercising procurement authority shall prescribe a formal procedure for the control of deviations within the agency. A copy of the procedure shall be furnished to the General Services Administration.

(b) In individual cases, deviations may be authorized by the head of the agency or the officers designated by him for this purpose, in accordance with procedures established by the agency. In each instance the file shall disclose the nature of the deviation and the reasons for such special action.

(c) Deviations in classes of cases shall be considered on an expedited basis jointly by the agency desiring the deviation and the General Services Administration unless, in the considered judgment of the agency and with due regard to the objective of uniformity, circumstances preclude such joint effort. In such case, GSA will be notified of the deviation.

(d) Except as otherwise authorized, when any deviation in a contract form provision is authorized, physical change may not be made in the printed form but shall be made by appropriate provision in the schedule, specifications, or continuation sheet, as provided in agency procedures.

For the purposes of this chapter, and unless otherwise indicated, the following terms have the meanings set forth in this subpart.

§ 1-1.202 Executive agency.

"Executive agency" means any executive department (including the Departments of the Army, the Navy, and the Air Force) or any independent establishment in the executive branch of the Government, including any wholly-owned Government corporation.

§ 1-1.203 Federal agency.

"Federal agency" means any executive agency or any establishment in the legislative or judicial branch of the Government (except the Senate, the House of Representatives, and the Architect of the Capitol and any activities under his direction).

§ 1-1.204 Head of the agency.

"Head of the agency" means the Secretary, Attorney General, Postmaster General, Administrator, Governor, Chairman, or other chief official of an executive agency, unless otherwise indicated, including the assistant chief official of an executive agency and, for the military departments, the Under Secretary and Assistant Secretary of the Departments of the Army, Navy, and Air Force.

§ 1-1.205 Procuring activity.

"Procuring activity" means the organizational element of an executive agency which has responsibility to contract for the procurement of personal property and nonpersonal services (including construction). § 1-1.206

tivity.

Head of the procuring ac

"Head of the procuring activity" means that official, intermediate between the head of the agency and the contracting officer, who has the responsibility for supervision and direction of the procuring activity.

"Contract" means establishment of a binding legal relation basically obligating the seller to furnish personal property or nonpersonal services (including construction) and the buyer to pay therefor. It includes all types of commitments which obligate the Government to an expenditure of funds and which, except as otherwise authorized, are in writing. In addition to a twosignature document, it includes all transactions resulting from acceptance of offers by awards or notices of awards; agreements and job orders or task letters issued thereunder; letter contracts; letters of intent; and orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance. It also includes contract modifications.

§ 1-1.209 Procurement.

"Procurement" means the acquisition (and directly related matters), from non-Federal sources, of personal property and nonpersonal services (including construction) by such means as purchasing, renting, leasing, contracting, or bartering, but not by seizure, condemnation, donation, or requisition.

§ 1-1.210 [Reserved]

[24 F.R. 4454, June 2, 1959]

(a) Who owns, operates, or maintains a factory or establishment that produces on the premises the materials, articles, or equipment required under the contract and of the general character described by the specifications; or

(b) Who, if newly entering into a manufacturing activity, has made all necessary prior arrangements for manufacturing space, equipment, and personnel, to perform the manufacturing operations required for contract performance; and

(c) Who, before being awarded a contract, satisfies the contracting officer that it qualifies under (a) or (b) of this section.

§ 1-1.212 Regular dealer. (a) "Regular dealer" means a person (or firm):

(1) Who owns, operates, or maintains a store, warehouse, or other establishment in which the materials, articles, or equipment of the general character described by the specifications and required under the contract are bought, kept in stock, and sold to the public in the usual course of business; or

(2) In the case of articles of particular kinds (lumber and timber products, coal, machine tools, raw cotton, petroleum, green coffee, tea, agricultural liming materials, or hay, grain, feed, or straw), who satisfies the requirements of the Regulations of the Secretary of Labor (41 CFR 201.101 (b) and 201.603 (f)) under the Walsh-Healey Public Contracts Act; and

(3) Who, before being awarded a contract, satisfies the contracting officer that it is engaged in an established regular business meeting all the criteria of (1) or (2) of this paragraph (a).

(b) It is not enough in the case of a regular dealer to show only that arrangements have been made to set up such a business. Before an award can be made, the dealer must show that it is an established going business regularly dealing in the particular articles, or articles of the general character, sought by the Government.

§ 1-1.213

a

Construction contractor. "Construction contractor" means person (or firm) who, before being awarded a contract, satisfies the contracting officer that he qualifies as one:

(a) Who owns, operates, or maintains a place of business, regularly engaged in the construction, alteration, or repair of buildings, structures, communication facilities, or other engineering projects, including the furnishing and installing of necessary equipment; or

(b) Who, if newly entering into a construction activity, has made all necessary prior arrangements for personnel, construction equipment, and required licenses to perform construction work.

§ 1-1.214 Service contractor.

"Service contractor" means a person (or firm) who, before being awarded a contract, satisfies the contracting officer that he qualifies as one: