Subpart 4-4.50 General

§ 4-4.5000 Scope.

This subpart sets forth the various restrictions, authorities, and regulations applicable to the Department of Agriculture for all special types and methods of procurement, except exchange-sale and construction which subjects are covered in Subparts 4-4.52 and 4-4.53.

§ 4-4.5001 Advertising.

See instructions at 1 AR 391 for delegation of authority to order advertising, and 7 AR 103 for payment of advertising. [32 F.R. 1177, Feb. 2, 1967]

§ 4 4.5001a Aerial photography.

Aerial photographic projects shall be cleared with the Aerial Photography Division, Agricultural Stabilization and Conservation Service, in accordance with Secretary's Memorandum No. 1347, Revised. See Subpart 4-16.50 for forms to be used for contracts for this service. [29 F.R. 14286, Oct. 16, 1964. Redesignated, 32 F.R. 1177, Feb. 2, 1967]

§ 4-4.5003 Air operations service.

(a) Purpose. This section prescribes the procuring documents to be used in obtaining aircraft and air operations service on a charter basis, for transportation of persons or property, surveys, observations, reseeding operations, etc., where exclusive use of the aircraft is required.

(b) Authority. Agreement between Department officials and officials of the Transportation Division, General Accounting Office, March 17, 1959.

(c) Contracts for service. Agency contracts for air operations service, whether by formal advertising or by negotiation shall specify the procuring document to be used, i.e., Transportation Request, Government Bill of Lading, or Purchase Order. Generally, the procuring document applicable to the service involved, that is, freight or passenger, should be used. However, if the primary purpose of the flight is the movement of equipment or supplies and the personnel involved are incidental to the main purpose, and the same overall charge is involved, a Government Bill of Lading should be issued to cover the

entire service. Conversely, if the main purpose of the flight is the movement of personnel, such as fire fighting crews, and the equipment and supplies involved are incidental, with charges overall the same, a Transportation Request should be used. Where the service performed is not generally defined as passenger or freight carriage between specific points, such as reconnaissance flights, reseeding operations, etc., and payment is made on a per unit basis, such as hour or acre, a Purchase Order may be used in lieu of a Transportation Request or Government Bill of Lading.

(d) Continuing service. Individual procuring documents, i.e., Transportation Request, Government Bill of Lading, or Purchase Order, are not required for each movement or type of service performed. One appropriate document may be issued to cover a given period of service, provided the carrier's invoice particularizes as to how the various charges were established, and includes flight logs or other documentary proof that may be necessary to show that the services were actually performed.

(e) Emergency service. Transportation services required in emergency situations, including the use of small aircraft operators not under contract arrangements, shall be procured as follows: At the time such services are requested, an inquiry should be made as to whether the carrier or individual operator files tariffs with either a Federal or State regulatory body covering rates and charges. In the event such tariffs are filed, Transportation Requests or Government Bills of Lading, as appropriate, should, where feasible, be used to procure the services required. If the carrier or individual is not required to file a tariff or schedule of rates with a regulatory body, purchase orders may be used to procure the services required.

§ 4-4.5004 Aircraft (aerial) facilities and services (Forest Service only).

Under the provisions of 16 U.S.C. 579a, the Forest Service is authorized by contract or otherwise, to provide for the procurement and operation of aerial facilities and services for the protection and management of national forests, with authority to renew any contract for such purposes annually, not more than twice, without additional advertising.

and 599 for the purpose of making cash purchases by field parties. Such funds may be used for cash purchases where the use of other cash purchase procedures or other established procurement facilities is not feasible. Wages and/or traveling expenses of regular employees shall not be paid from these funds. Otherwise, such purchases may include any field party requirements such as supplies, hire of laborers, food, lodging, transportation, etc., the purchase of which is not otherwise restricted by law or regulation. This authority is especially useful for program operations in foreign countries as well as in isolated, emergency, or other unusual program operations in the United States.

§ 4-3.650-4 Travel expense funds.

Under the authority of the Travel Expense Act of 1949 (5 U.S.C. 835-842), funds may be advanced in accordance with 7 AR 598 and 599. Such funds may be used for cash purchases of only those requirements related to travel in accordance with the Standardized Government Travel Regulations.

This section sets forth the requirements for documenting purchase transactions.

§ 4-3.651-2 Policy.

(a) Any documentation of a purchase transaction is permissible that assures the following:

(1) That the vendor and purchaser are in agreement as to what is being purchased.

(2) That at the time of delivery a record of sale and receipt is created.

(3) That at the time of billing for payment, the foregoing requirements have provided evidence of the items, quantity, price, date sold and other relevant data.

(b) These requirements can be met by:

(1) Issuance of a purchase order on SF-44, which form is then used as an invoice and as a receiving report. (See § 1-3.605-1.)

(2) Issuance of a purchase order on Form AD-38, which the vendor either signs as his invoice or provides his commercial invoice, and receipt for supplies is acknowledged on the form or otherwise in writing.

(3) Payment of cash supported by itemized receiving officer's report and vendor's receipt for cash. (See § 1-3.604.)

(4) Verbal order where vendor's itemized job order or invoice is signed by the officer ordering and receiving the supplies. (See also § 1-3.606 on Blanket Purchase Arrangements.)

§ 4-3.652 Cancellation of purchase orders.

Where the Government's interest demands and will best be served, purchase orders may be cancelled. Ordinarily, orders should be cancelled in writing. In order to maintain good business relations, the vendor should be advised wherever feasible of the necessity for cancellation in advance of formal cancellation and his concurrence obtained. Obtaining concurrence of the vendor will avoid questions of liability. The determination as to whether the public interest requires the cancellation of an order should include consideration of the Government's ultimate responsibility resulting from the cancellation. Cancellation will be generally acceptable to the vendor except where items have been shipped or expense has been incurred such as in special manufacturing or fabrication of items to order. In cases where the vendor will not concur in the cancellation and when it can be established that a contractual relationship exists, the order should be terminated in the same manner as stated in § 4-8.201 for contracts.

§ 4-3.653 Duplicate purchase orders.

If the vendor reports nonreceipt or loss of an original purchase order and requests another copy, there may be issued to him a duplicate copy as his basis of performance. This second issue should be conspicuously marked "DUPLICATE COPY." To avoid the possiblity of a duplicate shipment, a letter of transmit

tal or a notation on the purchase order should read somewhat as follows:

This is a duplicate copy of lost original purchase order, furnished in accordance with your request of The Govern

(Date)

(b) Needs requiring written agreement. Usually, no useful purpose is served either from a procurement or fiscal standpoint by covering such continuing needs with written agreements. There are however, some cases when, to

§ 4-3.654 Follow-up of purchase orders. It is the function of the procurement officer to devise and maintain a purchase-order follow-up system in order to assure that delivery is made within the terms of the purchase order. This may be a periodic review of the fiscal obligations file where arranged alphabetically or by setting up a tickler file of purchase orders, arranged according to the date delivery is expected, or any other arrangement that will facilitate periodic follow-up to assure that delivery requirements are met.

§ 4-3.655 Continuing requirements under $2,500 annually.

(a) General. Contracts need not be executed when there is a continuing need for supplies or services and it is contemplated that the amount involved in any one case will not exceed $2,500 within the fiscal year, regardless of the number of payments involved. This would apply to certain specific services or supplies of this nature, such as ice, laundry or towel service, rental of equipment, automobile storage, etc. This procedure is authorized by Title 7, Section 4510, GAO Manual. It does not waive statutory advertising requirements.

contracts or agreements for such types of services or supplies should be entered into. For example, it may be advisable to enter into a written agreement for automobile storage or for the rental of equipment in order to define in writing the responsibilities and liabilities of the Government and the vendor in case of loss or damage to either Government or private property. Administrative judgment must therefore be exercised in each case to determine if a written agreement is necessary in the interest of the Government, all factors considered. If such an agreement is considered necessary, Form AD-225 should be used for that purpose and should be num

bered and either filed in the General Accounting Office or retained for GAO audit as may be appropriate. In the absence of a written contract or agreement, a purchase order or other equiva

lent document should be issued when the need for such continuous supplies or services arises and should be available for use in the subsequent audit of operations.

(c) Form AD-225, Contract for Services. See § 4-16.850. The form and the general conditions, which are stated on the back thereof, incorporate the main considerations necessary in the negotiation of the majority of these service contracts.

It is the policy of the Department to negotiate contracts authorized by the Act with qualified public or private organizations or individuals for research and marketing service work where such work can be performed more effectively, more rapidly, or at less cost than if performed by the Department, and use of the regular advertising procedures of these regulations is not feasible.

§ 4-3.5003 Authorities.

(a) General. Contracts may be negotiated without regard to statutory advertising requirements, for the purposes stated in Title I and Title II of the Act, which purposes generally include all Agriculture research and marketing service work. Also, where the appropriation is available for research, contracts may be negotiated under the Act to accomplish such research.

(b) Agency authorities. Specific agency contracting authorities concerning research and service work and functions relating thereto stated in Chapter 2 of Title I of the Administrative Regulations are to be exercised in conformance with these Procurement Regulations where applicable. All agencies are authorized to use these contract negotiation procedures for accomplishing research and marketing work when the agency has appropriations for such work, the head of the agency or his designee has determined that the work to be performed will be carried out more effectively, more rapidly, or at less cost than if performed by the Department, contracting authority for this specific type of contracting has been delegated pursuant to Subpart 4-1.4, and the necessary approvals required in 1 AR 115a have been obtained.

procedures of Parts 1-3 and 1-15 shall be followed in negotiating contracts for research and marketing under the Act. § 4-3.5005 Contract forms.

The following forms shall be used in connection with the contract types indicated:

(a) Firm fixed-price:

Form AD-263 Research and Services Contract.

Form AD-264 General Provisions.

(b) Cost-reimbursement:

Form AD-263 Research and Services Contract.

Form AD-264 Form AD-265

Form AD-267

General Provisions.
Cost-Reimbursement Provi-

sions.

Contractor's Claim for Reimbursement.

In addition, Form AD-268, Schedule of Salaries and/or Wages Paid, may be used by contractors in conjunction with Form AD-267 as evidence of payments made. No contract general provisions or costreimbursement provisions shall be used which conflict with those provided in Forms AD-264 and AD-265, respectively. The contract (Form AD-263) should clearly identify those documents applicable and attached thereto, i.e., Forms AD-264, AD-265, etc. Any other attachments used, such as plan of work, special provisions, etc., should also be clearly identified in the contract.

§ 4-3.5006 Contract period.

In accordance with the Act, the contract time may not exceed four years. The contract period should be inserted in the Contract Form AD-263.

§ 4-3.5007 Contract floor.

The annual Appropriation Act for the Department requires that not less than a set amount of the total appropriation shall be available for contracting in accordance with the Act. This "contract floor" is allocated by the Office of Budget

and Finance on recommendations of the Agricultural Research Service based upon project estimates of the agencies.

dures.

Except as otherwise specifically stated in this Subpart 4-3.50, the negotiation

Publication.

See 3 AR 200-206 concerning publication of results obtained under RMA contracts.