Regulation, I hereby delegate to the Heads of Procuring Activities, with the authority to redelegate to Chiefs of Purchasing Offices, the approval of:

a. Leasing arrangements by contractors, in connection with the execution of cost reimbursement type contracts with the Government, for ADPE when the annual lease cost does not exceed $100,000 per contract (ASPR 3-1100.2(a)(v)); and,

b. Acquisition of ADPE, through provision of Government production and research property to contractors in connection with the execution of Government contracts, when the acquisition cost per contract does not exceed $100,000 annual lease or $400,000 purchase (ASPR 13-301(h)(ii)).

2. The foregoing delegation of authority does not apply to:

a. Noncompetitive procurement actions which include a central processing unit; or, b. Procurement actions which include more than one central processing unit.

3. Requirements which exceed this delegation will be forwarded to the Assistant Secretary of the Army (Financial Management) through the Assistant Vice Chief of Staff, Army, address: HQDA(DACS-CM).

EUGENE M. BECKER, Assistant Secretary of the Army, Financial Management. AUGUST 3, 1971.

Ref. No.: SAOSA-71-7

DELEGATION OF AUTHORITY TO CONTRACT FOR PUBLIC UTILITY SERVICES (POWER, GAS, WATER, AND COMMUNICATIONS) FOR PERIODS NOT EXCEEDING 10 YEARS

1. Under Department of Defense Directive 5100.32, June 23, 1971, subject: Delegation of Authority with Respect to Contracts for the Procurement of Public Utility Services, I hereby delegate (i) to the Chief of Engineers as the Department of the Army Power Procurement Officer, the authority to enter into contracts for public utility services (power, gas, and water), and (ii) to the Commanding Generals, U.S. Army Strategic Communications Command and U.S. Continental Army Command, the authority to enter into contracts for communications services, for periods extending beyond a current fiscal year but not exceeding 10 years under one or more of the following circumstances:

a. Where there are obtained lower rates, larger discounts, or more favorable conditions of service than those available under contracts the firm term of which would not extend beyond a current fiscal year.

b. Where connection or special facility charges payable under contracts the firm term of which would not extend beyond a current fiscal year are eliminated or reduced.

c. Where the utility company refuses to render the desired service except under a contract the firm term of which extends beyond a current fiscal year.

2. The authority delegated in paragraph 1 above may be redelegated (i) with respect to contracts for power, gas, and water, to the Deputy Department of the Army Power Procurement Officer, and (ii) with respect to contracts for communications services to a level no lower than chiefs of purchasing offices.

3. This authority shall be exercised strictly in accordance with the applicable provisions of the "Statement of Areas of Understanding Between the Department of Defense and General Services Administration" entitled "Procurement of Utility Services (Power, Gas, Water)," 15 FR 8227 (1950), and "Procurement of Communication Services," 15 FR 8226 (1950).

4. Unless distribution thereof is inadvisable for reasons of security, copies of contracts executed under the authority of this delegation and other pertinent data and information with respect thereto shall be furnished to the General Services Administration.

5. The foregoing delegation of authority supersedes, without prejudice to any action taken pursuant thereto, REF NO: SAOSA71-7, 8 May 1971, subject: Delegation of Authority to Contract for Public Utility Services (Power, Gas, Water, and Communications) For Periods Not Exceeding 10 Years. EUGENE M. BECKER,

Assistant Secretary of the Army,
Financial Management.

[35 FR 4126, Mar. 5, 1970 Appendix, 36 FR 8945, May 15, 1971, as amended at 36 FR 20678, Oct. 28, 1971; 37 FR 7085, Apr. 8, 1972; 37 FR 25922, Dec. 6, 1972]

§ 591.5103 Redelegations of authority.

(a) Redelegations of authority by delegees, when permitted by the pertinent delegation of authority reproduced herein or elsewhere referenced in ASPR or APP, shall be issued in the same format as the basic delegation of authority and shall be signed personally by the delegee.

(b) One copy of each redelegation of authority shall be forwarded on date of issuance by the delegee to the addressee in § 591.150(b)(6).

[34 FR 9503, June 18, 1969]

§ 592.104-3 Fixed-price contracts with escalation.

If neither of the escalation clauses in § 7.106-1 or § 7.106-2 of this title are applicable and an escalation clause is considered necessary, the contracting officer shall forward through the cognizant head of procuring activity to the addressee in § 591.150(b)(6) of this chapter for approval the clause he proposes to use. The request for approval shall explain the requirement for use of an escalation clause and shall state reasons why neither of the clauses in ASPR are appropriate.

Subparts B-C-[Reserved]

Subpart D-Opening of Bids and Award of Contract

§ 592.406 Mistakes in bids.

§ 592.406-3 Other mistakes.

(a) Authority is delegated to chiefs of purchasing offices having legal counsel available to make determinations described in § 2.406-3(a)(1) of this title. When a purchasing office does not have legal counsel available, such determinations shall be made at the cognizant head of procuring activity level.

(b) Authority is delegated to the individuals named in § 2.406-3(b)(1) of this title to make determinations described in § 2.406-3(a) (2), (3), and (4) of this title. Contracting officers shall submit cases for determination by the Deputy or Assistant Deputy for Material Acquisition, OASA (I&L), directly to the addressee in § 591.150(b)(6) of this chapter, concurrently furnishing the cognizant Head of Procuring Activity an information copy. When submitting the documents prescribed in § 2.406-3(e)(3) of this title, the original of the bid of the bidder alleging a mistake, the originals of all correspondence from the bidder regarding the alleged mistake, and the original of the worksheets and other evidence furnished by the bidder in the matter shall be forwarded. The file shall also include a statement of legal counsel concerning the merits of the allegation and the relief sought by the bidder. The originals of the documents will be returned to the purchasing office with the determination.

(c) Doubtful cases submitted to the Comptroller General for decision prior to award shall be forwarded by purchasing offices through the cognizant head of procuring activity to the addressee in § 591.150(b)(6) of this chapter. In addition to the data prescribed in § 2.406-3(e)(3) of this title, the case forwarded shall include a statement that an award has not been made. Recommendations of each level of authority through which the case is forwarded shall be added.

(d) Heads of procuring activities shall monitor and maintain records of administrative determinations in § 2.406-3(a)(1) of this title made by chiefs of purchasing offices in their procuring activity or at head of procuring activity level. For this purpose, chiefs of purchasing offices shall forward to the cognizant head of procuring activity not later than the 10th day of each month a copy of each administrative determination made during the preceding month together with the data prescribed in § 2.406-3(e) (3) of this title.

(e) Delegees named in § 2.406-3(b)(1) of this title shall maintain records of administrative determinations described in § 2.406-3(a) (2), (3), and (4) of this title made by them.

[34 FR 9503, June 18, 1969, as amended at 37 FR 25923, Dec. 6, 1972]

§ 592.406-4 Disclosure of mistakes after award.

(a) Heads of procuring activities shall maintain records of administrative determinations, including data prescribed in § 2.406-4(d)(2) of this title.

(b) In processing a mistake disclosed after award which would normally be handled pursuant to Part 17 of this title but where

(1) The contractor has requested in writing that a decision be made by the Comptroller General; or

(2) Cognizance of the case has been taken by the Comptroller General;

the contracting officer shall forward the case through the cognizant Head of Procuring Activity to the addressee in § 591.150(b)(6) of this chapter (also see § 17.205-2(a) of this title).

§ 592.407 Award.

§ 592.407-8 Protests against award.

(a) When a protest is received prior to award of a contract, the contracting officer shall attempt to resolve the issue, except when

(1) He considers it desirable to submit the protest to a higher authority for resolution,

(2) He considers it desirable to obtain the opinion of the Comptroller General before award, or

(3) The person making the protest indicates that he intends to carry the protest to a higher authority.

(b) Protest cases submitted to higher authority for resolution shall be fully documented and shall include the information set forth in § 2.407-8(a)(2) of this title.

(c) Cases under paragraph (a)(1) of this section shall be referred, in turn, to the next higher level of authority for resolution. Each referral shall be accompanied by an explanation why the matter cannot be resolved at the lower level.

(d) Cases under paragraph (a)(2) of this section shall be processed as follows:

(1) Those cases emanating in purchasing offices under the jurisdiction of Headquarters, U.S. Army Materiel Command, shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b)(12) of this chapter. Each intervening level of authority shall add its recommendations in the matter. Headquarters, U.S. Army Materiel Command, shall forward protests directly to the Comptroller General:

(2) Those cases emanating in purchasing offices under the jurisdiction of the Chief of Engineers shall be forwarded to the Chief of Engineers, address: HQDA (DAEN-GCZ-M). The Chief of Engineers shall in turn forward protests directly to the Comptroller General;

(3) Headquarters, U.S. Army Materiel Command, and the Chief of Engineers shall forward a copy of each transmittal letter, the contracting officer's administrative report, and the legal analysis and opinion of the issues (when appropriate) relative to each protest forwarded directly to the Comptroller General to the addressee in § 591.150(b)(6) of this chapter;

(4) Those cases emanating in purchasing offices other than those enumerated in paragraphs (d) (1) and (2) of this section shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b)(6) (see § 591.150(d) of this chapter). Each intervening level of authority through which the protest is forwarded shall add its recommendations in the matter.

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(e) Cases under paragraph (a)(3) of this section shall be referred for necessary action to the level of authority designated by the protestor. Such cases shall be forwarded through procurement channels.

(f) When a contracting officer makes an award pursuant to § 2.407-8(b)(3) of this title, he shall furnish copies of his decision to award to:

(1) The cognizant head of procuring activity, and

(2) The authority to which the person making the protest had indicated that he intended to carry the protest, if applicable.

(g) When a contracting officer forwards a protest received prior to award to a higher authority for resolution, he shall withhold the award pending instructions from the authority to which the protest was forwarded for resolution.

(h) When a protest is filed directly with the Comptroller General, the cognizant Head of Procuring Activity shall be notified by the Deputy for Materiel Acquisition, Office of the Assistant Secretary of the Army (Installations and Logistics). The Head of Procuring Activity shall in turn notify the contracting officer concerned and the contracting officer shall promptly forward the information prescribed in paragraph (b) of this section together with any other documentation specifically requested by the Comptroller General. Cases shall be forwarded in accordance with paragraphs (d) (1), (2), or (4) of this section.

(i) Because of the sensitivity of many protests filed with the Comptroller General, no award will be made under the provisions of § 2.407-8(b)(2) of this title without prior approval of the Deputy for Materiel Acquisition, Office of the Assistant Secretary of the Army (Installations and Logistics). Furthermore, unless otherwise authorized by the Deputy for Materiel Acquisition, all informal contacts with the Comptroller General shall be made by the Office of the Assistant Secretary of the Army (Installations and Logistics). Such contacts include advising the Comptroller General in appropriate cases of the intent of the Department of the Army to make an award prior to the resolution of the protest.

(j) When a protest is received after award of a contract, the following actions shall be taken:

(1) The contracting officer shall immediately notify the cognizant head of procuring activity of the nature of the protest;

(2) Where it reasonably appears that the award of the contract may be held to be invalid and a delay in receiving supplies or services covered by the contract is not prejudicial to the Government's interest, the contracting officer shall, subject to such instructions as the head of procuring activity deems appropriate, seek a mutual agreement with the contractor to "stop work" on a no cost basis;

(3) If the contractor refuses to enter into such a mutual "stop work" agreement, the head of procuring activity may direct the contracting officer in writing to issue a "stop work" order, unless the head of procuring activity determines that receipt of the supplies or services is so urgent that a "stop work" order would be prejudicial to the Government's interest;

(4) When a head of procuring activity considers that guidance from higher authority is necessary, the matter of withholding contract performance shall be submitted to the next higher level of authority.

(5) The contracting officer shall take no action pending receipt of advice from the appropriate level of higher authority.

[35 FR 8556, June 3, 1970, as amended at 37 FR 7086, Apr. 8, 1972]