Pursuant to 10 U.S.C. 2304(a) (6), purchases and contracts may be negotiated if:

for property or services to be procured and used outside the United States, its possessions, and Puerto Rico.

§ 18-3.206-2 Application.

This authority shall be used only for the procurement of property or services which are actually purchased from sources outside, and used outside, the United States, its possessions, and Puerto Rico (irrespective of the place of negotiation or execution of the contract), such as property or services (including construction) for overseas installations or for the use of overseas personnel. When this authority is available for the negotiation of a contract, no other negotiating authority shall be used. § 18-3.207 plies.

Medicines or medical sup

§ 18-3.207-1 Authority.

Pursuant to 10 U.S.C. 2304 (a) (7), purchases and contracts may be negotiated

if:

for medicine or medical supplies.

§ 18-3.207-2 Application.

This authority shall be used only when the following two requirements have been satisfied:

(a) Such supplies are peculiar to the field of medicine, including technical equipment such as surgical instruments, surgical and orthopedic appliances, Xray supplies and equipment, and the like, but not including prosthetic equipment; and

(b) Whenever it is determined to be practicable, such advance publicity as is considered suitable with regard to the supplies involved and other relevant considerations shall be given for a period of at least 15 days before making a purchase of or contract for supplies or services under this authority for more than $10,000.

§ 18-3.207-3 Limitation.

Every contract negotiated under this authority shall be accompanied with a determination and findings, signed by

the contracting officer, justifying its u which shall become part of the contra file. The findings shall set forth the facts and circumstances that clearly a convincingly establish, with respect the use of this authority, that forn advertising would not be feasible a practicable. This authority shall not used when negotiation is authorized the provisions of § 18-3.203 or 18-3.2 § 18-3.209 Perishable or nonperisha subsistence supplies.

§ 18-3.209-1 Authority.

Pursuant to 10 U.S.C. 2304 (a) (9), p chases and contracts may be negotia if:

for perishable or nonperishable subsiste supplies.

§ 18-3.210 Supplies

or services which it is impracticable to sec competition by formal advertising

§ 18-3.210-1 Authority.

Pursuant to 10 U.S.C. 2304(a) (1 purchases and contracts may be nego ated if:

for property or services for which it is practicable to obtain competition. § 18-3.210-2 Application.

The following are illustrative of cumstances with respect to which t authority may be used:

(a) When supplies or services can obtained from only one person or fi ("sole source of supply");

(b) When competition is precluded cause of the existence of patent rigl copyrights, secret processes, control basic raw material, or similar circu stances;

(c) When bids have been solici pursuant to the requirements of for advertising, and no responsive bid been received from a responsible bidd

(d) When bids have been solicited p suant to the requirements of formal vertising, and the responsive bid or do not cover the quantitative requ ments of the solicitation of bids, in wh case negotiation is permitted for remaining requirements of the solic tion of bids;

(e) When the contemplated proc ment is for electric power or energy, (natural or manufactured), water, other utility services;

(f) When the contemplated procurement is for training film, motion picture productions, or manuscripts;

(g) When the contemplated procurement is for technical, nonpersonal services in connection with the assembly, installation, or servicing (or the instruction of personnel therein) of equipment of a highly technical specialized nature;

(h) When the contemplated procurement is for studies or surveys other than those which may be negotiated under § 18-3.205 or § 18-3.211;

(i) When the contemplated procurement involves maintenance, repair, alterations, or inspection, in connection with any one of which types of services the exact nature or amount of the work is not known;

(j) When the contemplated procurement is for stevedoring, terminal, warehousing, or switching services, and when either the rates are established by law or regulation or the rates are so numerous or complex that it is impracticable to set them forth in the specifications of a formal solicitation of bids;

(k) When the contemplated procurement is for commercial ocean or air transportation, including time charters, space charters, and voyage charters over trade routes not covered by common carriers (as to which, negotiation is authorized under the provisions of § 18-3.217 and section 321 of the Transportation Act of September 18, 1940, 49 U.S.C. 65), and including services for the operation of Government-owned vessels or aircraft;

(1) When the contract is for services related to the procurement of perishable subsistence such as protective storage, icing, processing, packaging, handling, and transportation, whenever it is impracticable to advertise for such services a sufficient time in advance of the delivery of the perishable subsistence;

(m) When it is impossible to draft, for a solicitation of bids, adequate specifications or any other adequately detailed description of the required supplies or services;

(n) When the contract is for storage (and related services) of household goods; or

(0) When the contemplated procurement is for parts or components being procured as replacement parts in support of equipment specially designed by

the manufacturer, where data available is not adequate to assure that the part or component will perform the same function in the equipment as the part or component it is to replace.

§ 18-3.210-3 Limitation.

Every contract that is negotiated under this authority shall be accompanied with a determination and findings signed by the contracting officer justifying its use, which shall become part of the contract file. The findings shall set forth those facts and circumstances that clearly and convincingly establish, with respect to the use of this authority, that formal advertising would not be feasible and practicable. This authority shall not be used when negotiation is authorized by any other authority set forth in §§ 18-3.201 through 18–3.217, except that this authority shall be used in preference to § 18-3.212.

§ 18-3.211 Experimental, developmental, or research work.

The following are illustrative of procurements with respect to which this authority may be used:

(a) Contracts relating to theoretical analysis, exploratory studies, and experiment in any field of science or technology;

(b) Developmental contracts calling for the practical application of investigative findings and theories of a scientific or technical nature;

(c) Contracts for such quantities and kinds of equipment, supplies, parts, accessories, or patent rights thereto, and drawings or designs thereof, as are necessary for experiment, development, research, or test; or

(d) Contracts for services, tests, and reports necessary or incidental to experimental, developmental, or research work.

§ 18-3.211-3 Limitation.

(a) This authority shall not be used for negotiated contracts with educational institutions where the authority provided by 10 U.S.C. 2304(a)(5) is applicable.

(b) This authority shall not be used for quantity production, except that such quantities may be purchased hereunder as are necessary to permit complete and adequate experiment, development, research, or test. Accordingly, research or development contracts which call for the production of a reasonable number of experimental or test models, or prototypes, shall not be regarded as contracts for quantity production.

(c) This authority shall not be used when negotiation is authorized by the provisions of § 18-3.203 or § 18-3.206.

(d) In order for this authority to be used, the required determination must be made in accordance with the requirements of Subpart 18-3.3. Where property or supplies are procured under this authority, the findings required by Subpart 18-3.3 shall set forth those facts and circumstances that clearly and convincingly establish, with respect to the use of this authority, that formal advertising would not be feasible and practicable.

§ 18-3.211-4 Reports.

For implementation of the statutory reporting requirement to Congress, see § 18-1.110 of this chapter.

§ 18-3.212 Classified purchases.

Pursuant to 10 U.S.C. 2304 (a) (12), purchases and contracts may be negotiated if:

for property or services whose procurement he [the Administrator] determines should not be publicly disclosed because of their character, ingredients, or components. § 18-3.212-2 Application.

This authority may be used for purchases or contracts classified "Confidential" or higher.

§ 18-3.212-3 Limitation.

In order for this authority to be used, the required determination and findings must be made in accordance with the requirements of Subpart 18-3.3. The determination and findings shall set forth those facts and circumstances that are clearly illustrative of the conditions de

Th

scribed for use of this authority. determination and findings shall also s forth those facts and circumstances tha clearly and convincingly establish th formal advertising would not be feasib and practicable. This authority sha not be used when negotiation is autho ized by any other authority set forth §§ 18–3.201 through 18–3.217.

§ 18-3.213 Technical equipment r quiring standardization and inte changeability of parts.

§ 18-3.213-1 Authority.

Pursuant to 10 U.S.C. 2304 (a) (13 purchases and contracts may be negot ated if:

for equipment that he [the Administrato determines to be technical equipment who standardization and the interchangeabili of whose parts are necessary in the publ interest and whose procurement by negoti tion is necessary to assure that standardiza tion and interchangeability.

§ 18-3.213–2 Application.

(a) This authority may be used f procuring additional units and replace ment items of technical equipment an spare parts by negotiation in order assure standardization of equipment an interchangeability of parts where,

special situations or in particular local

ties, such standardization and inte changeability are determined necessar For example, this authority could utilized whenever it is necessary:

(1) To limit the variety and quanti of spare parts that must be carried stock;

(2) To make possible, by standardiz tion, the availability of spare parts th may be interchanged among items damaged or worn equipment; or

(3) To procure from selected supplie technical equipment which is availab from a number of suppliers, but whi would have such varying performan characteristics (notwithstanding detail specifications and rigid inspection) would prevent standardization and inte changeability of parts.

(b) Before making a determination procure specified makes and models u der this authority, consideration shall given to:

(1) The practicability of interchan ing parts and cannibalizing equipment

(2) The probability that future procurement of the selected item of equipment can be effected at reasonable prices;

(3) Whether the standardization will appreciably reduce the variety and quantity of parts that must be carried in stock;

(4) The value of similar equipment and its supporting parts on hand;

(5) Possible savings in training personnel and publishing technical literature;

(6) Whether the standardization will adversely affect existing specifications and standards; and

(7) The degree to which the current design of the specified make and model has been changed from the design of equipment of the same make and model now in the supply system.

(c) Actions taken under this authority shall be reviewed at least once every two = years to determine whether the standardization should be continued, revised, or canceled.

(d) This authority may be used in I situations where only one or a limited quantity of a particular item is to be purchased and where compatibility with existing equipment and interchangeability of parts is essential. The fact that this authority is used in such a case does not mean that a subsequent purchase of similar equipment will necessarily require the use of negotiation for purposes of standardization. The facts involved in each such case must be examined to determine whether compatibility with other equipment and interchangeability of parts are essential objectives.

§ 18-3.213-3 Limitation.

This authority shall not be used for initial procurements of equipment and spare parts, or for the purpose of selecting arbitrarily the equipment of certain suppliers; nor shall it be used unless the Administrator has determined, in accordance with the requirements of Subpart 18-3.3 that:

Pursuant to 10 U.S.C. 2304(a)(14), purchases and contracts may be negotiated if:

for technical or special property that he [the Administrator] determines to require a substantial initial investment or an extended period of preparation for manufacture, and for which he determines that formal advertising would be likely to result in additional cost to the Government by reason of duplication of investment or would result in duplication of necessary preparation which would unduly delay the procurement of the property.

§ 18-3.214-2 Application.

This authority may be used for the procurement of technical or specialized supplies or equipment or major components thereof, and any supplies of a technical or specialized nature which may be necessary for the use or operation of such supplies or equipment. Such procurement generally involves:

(a) High starting costs which already have been paid for by the Government or by the supplier;

(b) Preliminary engineering and development work that would not be useful to or usable by any other supplier;

(c) Elaborate special tooling already acquired;

(d) Substantial time and effort already expended in developing a prototype or an initial production model; and

(e) Important design changes which will continue to be developed by the supplier.

In general, this authority shall be used in situations where it is preferable to place a production contract with the supplier who had developed the equipment, and thereby either assure to the Government the benefit of the tech

(b) Standardization of such equipment and interchangeability of its parts are necessary in the public interest; and (c) Procurement of such equipment or of its parts by negotiation is necessary

acquired by that supplier, or avoid undue delay arising from a new supplier having to acquire such techniques, tooling, and equipment. However, this exception should not be used to avoid duplication of private investment unless this

duplication would be likely to result in additional cost to the Government or would result in duplication of necessary preparation which would unduly delay the procurement.

§ 18-3.214-3 Limitation.

This authority shall not be used unless and until the Administrator has determined, in accordance with the requirements of Subpart 18-3.3, that:

(a) The supplies are of a technical or specialized nature requiring a substantial investment or an extended period of preparation for manufacture; and

(b) Procurement by formal advertising either

(1) Would be likely to result in additional cost to the Government by reason of duplication of investment; or

(2) Would result in duplication of necessary preparation which would unduly delay procurement.

§ 18-3.215 Negotiation after advertising.

§ 18-3.215-1 Authority.

Pursuant to 10 U.S.C. 2304(a) (15), purchases and contracts may be negoti

ated if:

for property or services for which he [the Administrator] determines that the bid prices received after formal advertising are unreasonable as to all or part of the requirements, or were not independently reached in open competition, and for which (1) he has notified each responsible bidder of intention to negotiate and given him reasonable opportunity to negotiate; (ii) the negotiated price is lower than the lowest rejected bid of any reasonable bidder, as determined by the head of the agency; and (iii) the negotiated price is the lowest negotiated price offered by any responsible supplier.

§ 18-3.215-2 Limitation.

This authority shall not be used unless the Administrator has determined, in accordance with the requirements of Subpart 18-3.3, that the bid prices, after formal advertising for such supplies or services, are unreasonable or were not independently reached in open competition. Also, after such determination by the Administrator and after rejection of all bids, no contract shall be negotiated under this authority unless:

(a) Prior notice of intention to negotiate and a reasonable opportunity to negotiate have been given by a contract

Pursuant to 10 U.S.C. 2304 (a) (17 purchases and contracts may be negot ated if:

otherwise authorized by law.

§ 18-3.217-2 Application.

The following are examples of oth statutes which authorize negotiation:

(a) Small Business Act (Public La

85-536 as amended-15 U.S.C. 631-647 Contracts for partial or total set-asid for small business made pursuant to joint determination by the NASA an Small Business Administration (inclu ing contracts entered into pursuant "Small Business Restricted Advertising shall cite as authority 10 U.S.C. 2304 (1 (17) and Section 15 of the Small Bus ness Act (15 U.S.C. 642).

(b) Section 321 of the Transportati Act of 1940 (49 U.S.C. 65). This la permits negotiation for transportati services when the services required c be procured from any common carri § 18-3.218 Construction work. § 18-3.218-1

Application.