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(5) Performance evaluation report. Following the PEB meeting at which the award fee recommendation is reached, the executive secretary will prepare a performance evaluation report and forward this to the contracting officer. The contracting officer will prepare a letter for signature of the FDO informing the contractor's general management of the amount of basis of the fee awarded. The contracting officer shall forward the performance evaluation report and the fee determination letter (the performance evaluation report shall be an attachment to the fee determination letter) to the FDO for signature. The FDO will review the performance evaluation and fee recommendation and make a final determination of fee.

(h) Simplified procedures. The following CPAF procedures are authorized for procurements of $1,000,000 or less.

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(1) No appointment of a formal PEB is necessary. A program office representative and the contracting officer shall perform the duties and functions of the PEB members. In lieu of performance monitors reporting to evaluation coordinator, the program official will personally monitor and assess the technical performance of the contractor for each evaluation period. The contracting officer will monitor the business aspects of the contractor's performance.

(2) The chief of the contracting office shall approve the award fee plan in lieu of the HCA.

(3) The project officer and the contracting officer shall report performance events in the format described in 416.404-277(a)(1). Use of the summary of significant performance events is not required.

(4) The project officer, with input from the contracting officer, will prepare the performance evaluation report.

[53 FR 6063, Feb. 29, 1988]

416.405 Contract clauses.

The contracting officer shall insert a clause substantially the same as the clause at 452.216-70, Award Fee, in solicitations and contracts which con

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tract, in a definitive contract superseding a letter contract.

[53 FR 6065, Feb. 29, 1988]

416.670 Contract clauses.

The contracting officer shall limit the Government's obligation under a time-and-materials or labor-hour contract by inserting the clause at 452.21674, Ceiling Price.

[53 FR 6065, Feb. 29, 1988]

Subpart 416.7-Agreements 416.702 Basic agreements.

Promptly after execution by the Government, the HCA shall furnish to the Director, Office of Operations, a copy of each basic agreement negotiated with a contractor in accordance with FAR 16.702.

[50 FR 14198, Apr. 10, 1985]

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the clause at 452.217-70, Option to Extend the Term of the Contract-CostPlus-Fixed-Fee Contract, in term (level-of-effort) contracts. Alternate I of the clause is for use in completion contracts.

(b) If the Government needs additional periods of contractor performance, the contracting officer shall insert a clause substantially the same as the clause at 452.217-71, Option to Extend the Term of the Contract-CostNo-Fee Contract, in term (level-of-effort) contracts. Alternate I of the clause is for use in completion contracts.

(c) If the Government needs additional periods of contractor performance, the contracting officer shall insert a clause substantially the same as the clause at 452.217-72, Option to Extend the Term of the Contract CostPlus-Award-Fee Contract, in level-ofeffort contracts. Alternate I is to be used for completion contracts.

(d) If the Government needs additional quantities, the contracting officer shall insert a clause substantially the same as the clause at 452.217-73, Option for Increased Quantity-Cost-PlusFixed-Fee Contracts, in level-of-effort contracts.

(e) If the Government needs additional quantities, the contracting officer shall insert a clause substantially the same as the clause at 452.217-74, Option for Increased Quantity-Cost-PlusFixed-Fee Contract, in level-of-effort contracts.

(f) If the Government needs additional quantities, the contracting officer shall insert a clause substantially the same as the clause at 452.217-75, Option for Increased Quantity-Cost-PlusAward-Fee Contract, in level-of-effort contracts.

(g) If the Government needs additional periods of contractor performance, the contracting officer shall insert a clause substantially the same as the clause at 452.217-76, Option to Extend the Effective Period of the Contract-Time-and-Materials or LaborHour Contract, in time-and-materials or labor-hour contracts.

(h) If the Government needs additional periods of contractor performance, the contracting officer shall insert a clause substantially the same as

the clause at 452.217-77, Option to Extend the Effective Period of the Contract-Indefinite-Delivery/IndefiniteQuantity Contract, in indefinite-delivery and indefinite-quantity contracts.

(i) If the Government needs additional periods of contractor performance, the contracting officer shall insert a clause substantially the same as the clause at 452.217-78, Option to Extend the Term of the Contract-FixedPrice Contract, in fixed-price contracts.

(j) If the Government needs additional quantities, the contracting officer shall insert a clause substantially the same as the clause at 452.217-79, Option for Increased Quantity-FixedPrice Contract, in fixed-price contracts.

[53 FR 6065, Feb. 29, 1988]

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mination required by FAR 17.502 shall be made at a level above the contracting officer.

[50 FR 14198, Apr. 10, 1985]

Subpart 417.6-Management and Operating Contracts

417.602 Policy.

(a) The Assistant Secretary for Administration shall make the determination to enter into or renew any management and operating contracts as prescribed in FAR 17.602(a).

(b) Written determinations shall be prepared for the Assistant Secretary's signature and submitted by the HCA to the Director, Office of Operations, for action. The determination shall be submitted prior to solicitation for the requirement and shall:

(1) Reference the statutory authority for awarding a management and operating contract;

(2) Discuss the relationship between the requirement and the limitations in FAR 17.603;

(3) Include a copy of the solicitation document including evaluation criteria;

(4) If non-competitive acquisition is proposed, include a copy of the jus

tification.

(c) The HCA shall be responsible for conducting the reviews required by FAR 17.602(c).

PART 418-(RESERVED)

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plishments, objectives and procedures with respect to these programs, and recommend corrective actions for program improvement. The HCA's and Departmental staff office directors whose programs generate requirements for contract actions shall administer the Department's procurement preference program within their organizations. This responsibility may be delegated to ensure program effectiveness. 419.201-71 OSDBU coordinators.

HCA's shall designate an OSDBU Coordinator in each contracting office. In addition, Departmental staff office directors whose programs generate contracts shall designate an OSDBU Coordinator. OSDBU Coordinators shall take positive actions which will maximize contracting opportunities for small businesses, including minority and women-owned businesses. The amount of time required for the performance of functions concerning this program shall be directly related to the number and dollar value of contract awards made in each office. In addition to their regular assigned duties, it is anticipated that about 20 percent of their time should be spent as OSDBU Coordinators. Supervisors of OSDBU Coordinators are encouraged to provide time for the coordinators to perform this important function. The duties and responsibilities of the OSDBU Coordinators shall include, but not be limited to, the following:

(a) Review each proposed acquisition expected to exceed $10,000 prior to its solicitation. The Coordinator shall:

(1) Recommend section 8(a) action and identify potential contractors, or

(2) Identify available minority and women-owned businesses to be solicited by competitive procedures. Coordinators shall document the contract file with recommendations made and actions taken.

(b) Participate in goal-setting procedures and planning activities as described in 419.201-72.

(c) Ensure that the subcontracting clause entitled "Utilization of Small Business Concerns and Small Disadvantaged Business Concerns," as pre

scribed in FAR 19.708, is included in applicable solicitations. The coordinator shall participate in the review of those contracts which require the successful offeror to submit written plans for the utilization of small and small disadvantaged businesses as subcontractors.

(d) Ensure that small purchases (under $10,000) are reserved exclusively for small businesses, including minority and women-owned businesses as prescribed by FAR 13.105 and 19.503. This policy shall be implemented unless the contracting officer is unable to obtain offers from two or more small business concerns that are competitive with market prices and in terms of quality and delivery of the goods or services being purchased.

(e) Maintain comprehensive source listings of small, minority and womenowned businesses and utilize SBA's Procurement Automated Source System (PASS) and the National Minority Purchasing Council's Vendor Information Service to build and maintain these listings. Ensure that all small, minority and women-owned businesses seeking to do business are informed of the bid and proposal submission requirements, and of financial, management and technical assistance programs offered by SBA and the Minority Business Development Agency. Ensure that these firms, upon request, are directed to appropriate program and project personnel.

(f) Upon written request, provide small, minority and women-owned businesses the bidders mailing lists of individuals receiving solicitations which will contain the subcontracting clause entitled "Utilization of Small Business Concerns and Small Disadvantaged Business Concerns." These lists may be limited to those supplies or services of major interest to the requesting firms.

(g) Develop a program of contacts with local, small, minority, and women-owned trade, business, and professional associations and organizations and Indian tribal councils to apprise them of the Department's program needs and recurring contract requirements.

(h) Actively participate in the programs and activities of the local Mi

nority Business Opportunity Committees (MBOC) and assist the Minority Business Development Centers (MBDC), where applicable. Become aware of and participate in locally sponsored workshops, conferences, trade fairs, etc., which are held to apprise small, minority and women-owned firms about current and projected contracting opportunities.

(i) Periodically meet with program managers to discuss the section 8(a), small, minority and women-owned business programs and the impact which their requirements can have to achieve progress. Explore the feasibility of breaking large complex requirements into smaller lots suitable for participation by small, minority and women-owned firms. Encourage program managers to meet with these firms so that their capabilities can be demonstrated.

(j) Establish internal operating procedures which implement the requirements of the regulations as set forth in this Part 419. Compile data and prepare all reports pertaining to the small, minority and women-owned business activities. Ensure that these reports are accurate, complete and up-to-date.

[49 FR 12120, Mar. 28, 1984, as amended at 50 FR 14198, Apr. 10, 1985]

419.201-72 Goals.

(a) The Department is required by Pub. L. 95-507, Section 221, Executive Order 12138 (May 18, 1979) and Executive Order 12073 (August 16, 1978) to establish fiscal year goals for the procurement preference programs. Goals shall be reviewed and approved by the Director, Office of Small and Disadvantaged Business Utilization (OSDBU). HCA's and staff office directors whose programs generate contract requirements shall submit to the Director, OSDBU, the following data no later than August 1 of each fiscal year:

(1) An estimate of the total dollar amount of all prime contracts regardless of dollar value to be awarded during the fiscal year, including awards to non-profit organizations, educational institutions, all transportation services and real property leases. Do not include foreign military sales, contracts to be awarded and performed en

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