114. The opening time shall include the phrase "local time at the place of bid opening" in lieu of references to "daylight time" or "daylight saving time" and abbreviations such as "EDT" or "PDT." Where the block on Standard Form 114 does not readily permit the inclusion of the phrase "local time at the place of bid opening," an asterisk shall be used to call attention to an explanatory phrase which shall be stated elsewhere in the invitation for bids. The time set for commencement of spot bid and auction sales shall also be the local time at the place of sale and shall be indicated in an appropriate place in invitations for bids and sales offerings.

(2) Standard Form 114A, Sale of Government Property—Item Bid Page-Sealed Bid. Standard Form 114A requires entries to be made by the bidder prior to submission of bid. It provides for the bidder to enter the item number of the property on which he is bidding, his offered unit price bid per item, and his total price bid per item. Except as provided in subparagraph (3) of this paragraph, Standard Form 114A shall be made a part of sealed bid sales.

(3) Standard Form 114B, Sale of Government Property-Item Bid Page-Sealed Bid. Standard Form 114B may be used in lieu of Standard form 114A only when:

(i) The number of items of property being sold can be described sufficiently on one page;

(ii) Property is offered on an "as generated" basis (term-type sale);

(iii) Bidding on an increment basis is permitted by the terms and conditions of the sale; or

(iv) The use of Standard Form 114A might not be appropriate, in which case a short, accurate, and to the extent feasible, commercially clear description shall be prepared for each item offered for sale.

(4) Standard Form 114C, Sale of Government Property-General Sale Terms and Conditions. Standard Form 114C, is applicable to all sales of personal property (including sales by negotiation) and shall be made a part of all sales invitations, either by refer

both.

(5) Standard Form 114C-1, Sale of Government Property-Special Sealed Bid Conditions. Standard Form 114C1, is in addition to the Standard Form 114C and is applicable only to sealed bid sales (other than term-type sales) and shall be made a part of all such sales invitations, either by reference or by attachment thereto or both.

(6) Standard Form 114C-2, Sale of Government Property-Special Sealed Bid-Term Conditions. Standard Form 114C-2, is applicable only to sealed bid term-type sales and is in addition to the Standard Form 114C. The form shall be made a part of all such sales invitations, either by reference or by attachment thereto, or both.

(7) Standard Form 114C-3, Sale of Government Property-Special Spot Bid Conditions. Standard Form 114C3, is applicable only to spot bid sales and is in addition to the Standard Form 114C. The form shall be made a part of all sales announcements, bidders registers, and bid cards, either by reference or by attachment thereto or both.

(8) Standard Form 114C-4, Sale of Government Property-Special Auction Conditions. Standard Form 114C4, is applicable only to auction sales and is in addition to the Standard Form 114C. The form shall be made a part of sales announcements and bidders registers, either by reference or by attachment thereto or both.

(d) Other special conditions. (1) Other special terms and conditions considered by a selling agency to be necessary for the particular property offered for sale and not inconsistent with those contained in the forms prescribed in this § 101-45.304-8 may be incorporated in invitations for bids in which these forms are used. Such additional terms and conditions should be kept to an absolute minimum. To the extent practicable, incorporation of such special conditions should be accomplished by a special form developed by the selling agency for that purpose and so indicated on Standard Form 114, Sale of Government Property-Bid and Award. Each selling agency shall review periodically such terms

30 111 0-79-42

and conditions which are in common use in its agency with a view to standardization of those in general use and elimination of unnecessary additions. The agency shall, from time to time, forward to the Commissioner, Federal Supply Service, General Services Administration, Washington, DC 20406, such additional terms and conditions desirable for inclusion in the standard forms.

(2) Standard Form 114, Sale of Government Property-Bid and Award, incorporates by reference Standard Form 114C and Standard Forms 114C1 and 114C-2, as appropriate. Therefore, it is not necessary to attach such forms each time invitations for bids are issued, but an agency may elect to do so. It is essential, however, that any terms and conditions incorporated in an invitation by reference be furnished to any prospective bidder promptly on request.

(e) Standard Form 114D, Sale of Government Property-Amendment of Invitation for Bids/Modification of Contract. Standard Form 114D, is applicable to all sales of personal property and shall be used as required.

(1) Amendment. (i) If after issuance of an invitation for bids, but before the time set for opening of bids or the start of a sale, it becomes necessary to make changes to the invitation, the changes shall be accomplished by the issuance of an amendment to the invitation for bids on Standard Form 114D. The amendment shall be sent to each firm or individual to whom the invitation for bids has been furnished and shall be displayed in the bid room. In the event an amendment must be issued to either an auction or spot bid invitation for bids in which mailed-in bids are not authorized and where time does not permit distribution by mail, such amendment may be issued at the time of bidder registration.

(ii) When an invitation is canceled, bids which have been received shall be returned unopened to the bidders and a notice of cancellation sent to all prospective bidders to whom invitations for bids were issued identifying the invitation and briefly explaining the reason for the cancellation.

(2) Supplemental agreement. A supplemental agreement is required for a contract modification which, in accordance with the contractual provisions, cannot be accomplished by unilateral action of the Government. Such supplemental agreement must be mutually agreed to by both parties and be distributed in the same manner as the original contract. Modifications to contracts require careful consideration before issuance and the sales contracting officer should be absolutely certain that the information contained in the supplemental agreement is accurate. In addition, the sales contracting officer must satisfy himself that the contract modification is authorized and that as a result of the contract modification, the purchaser will enjoy no advantage or gain which is uncompensated, or which would not reasonably flow from the terms and conditions of the invitation for bids or the solicitation of offers out of which the original contract arose.

(f) Standard Form 114E, Sale of Government Property-Negotiated Sales Contract. Standard Form 114E, is applicable only to negotiated sales and is used to confirm quotations received from offerors contracted by the selling activity and constitutes the sales contract upon execution by the purchaser and by the Government. Standard Form 114E shall have attached thereto or made a part thereof by reference, Standard Form 114C, General Sale Terms and Conditions, and those additional special terms and conditions applicable only to the specific negotiation concerned.

(g) Standard Form 114F, Sale of Government Property-Item Bid Page-Spot Bid or Auction. Standard Form 114F, is used only when mailedin bids are authorized in connection with a spot bid or auction sale.

(h) Description of property for sale. The invitation for bids shall include a listing of the property being offered for sale and each unit or line item shall be assigned a specific item number. The property should be adequately described including all factual information necessary to convey to prospective bidders an accurate, concise, and clear understanding of the

property being offered. To the extent applicable, the following guideline information should be included as a part of the description:

(1) Noun name and other descriptive information expressed in understandable commercial terms.

(2) Part numbers and pertinent specifications as to sizes, type, etc.

(3) Manufacturers' name or trade name and year of manufacture.

(4) Estimated total weight or cube. (5) Condition of property limited generally to statements of fact such as "unused" or "used." To these general statements there may be added, when known and applicable, information such as "parts missing," "wrecked," "major components removed," etc.

(6) Quantity stated in the same unit of measure as that for which bids are solicited (each, pound, ton, per lot, etc.), such units to conform with established trade practices in the industry or commodity area in which the property falls.

if

(7) Original acquisition cost, known, or estimated cost (and so indicated) may be included.

(8) Location of the property; dates and time available for inspection; and name, title, and telephone number of custodian.

(i) Removal of property. A reasonable period of time shall be afforded successful purchasers to effect complete removal of the property and must be set forth in the invitation for bids.

[35 FR 12119, July 29, 1970, as amended at 39 FR 44756, Dec. 27, 1974; 42 FR 40853, Aug. 12, 1977]

§ 101-45.304-9 Credit.

Except as authorized in § 101-45.30412, personal property shall not be offered for sale or sold on credit without the prior approval of the Administrator of General Services or his designee. When approved, the terms and conditions of sale shall specifically provide therefor.

§ 101-45.304-10 Deposits and final pay.

ments.

(a) Whenever a bid deposit is required by the terms and conditions of the invitation for bids, the normal de

posit for individual type sales shall be 20 percent of the total amount of the bid. For sales of property on an "as generated" basis during a stated period of time (referred to as term contracts), the normal deposit shall not be less than an amount which will adequately protect the Government's interest, normally 20 percent of the estimated contract price. However, the bid deposit for a term contract in excess of 1 year's duration shall not exceed 20 percent of the total price estimated for 1 year's removal of property.

(b) Whenever a bid deposit is required by the terms and conditions of the invitation fcr bids, such deposit shall be in U.S. currency or any form of credit instrument other than a promissory note, made payable on demand in U.S. currency, except as provided for in condition number 4 of Standard Form 114C, General Sales Terms and Conditions. Postdated credit instruments are not acceptable. Deposit bonds submitted on Standard Forms 150 and 151 (illustrated in §§ 101-45.4901-50 and 101-45.4901-151) may also be accepted when provided for in the invitation for bids.

(c) Irrevocable commercial letters of credit issued by a bank established in the United States, payable to the Treasurer of the United States or to the Government agency conducting the sale, may be used in lieu of the foregoing forms of deposit. Such letters shall be substantially in the format shown in § 101-45.4802. General instructions relating to the preparation of letters of credit are also contained in § 101-45.4803.

(d) Any draft drawn against such letter of credit shall be substantially in the format shown in § 101-45.4804. The draft shall be accompanied by a transmittal letter and certification substantially in the format shown in § 101-45.4805.

(e) Final payments shall be acceptable in the same forms as for bid deposits, with the exception of deposit bonds.

(f) Potential buyers shall be notified as to the exact organizational entity to the order of which the prescribed form of deposit is to be made payable.

In no event shall a bid be rejected solely on the grounds that the instrument of deposit is made payable to the Treasurer of the United States when the offering specifies that it be made payable to the Government agency conducting the sale, or conversely, as the case may be.

[30 FR 2930, Mar. 6, 1965, as amended at 35 FR 12121, July 29, 1970; 42 FR 40854, Aug. 12, 1977]

§ 101-45.304-11 Deposit bonds.

(a) Standard forms. The following standard forms, as applicable, shall be used when a bond, in lieu of cash or other acceptable form of bid deposit, is permitted by the sales invitation.

(1) Standard Form 150, Deposit Bond-Individual Invitation, Sale of Government Personal Property. (See § 101-45.4901-150.)

(2) Standard Form 151, Deposit Bond-Annual, Sale of Government Personal Property. (See § 101-45.4901151.)

(3) Standard Form 28, Affidavit of Individual Surety. (See § 101-45.490128).

(b) Instructions and procedures. (1) Comprehensive instructions for the execution and use of Standard Form 150, Deposit Bond-Individual Invitation; Standard Form 151, Deposit Bond-Annual; and Standard Form 28, Affidavit of Individual Surety, are provided on the reverse of each form. Implementing instructions shall be consistent therewith.

(2) Standard Form 151, Deposit Bond-Annual, contains the following provision:

Upon the making of an award to the principal, or within a reasonable period of time thereafter, the Government shall transmit, in writing, the following information to the surety at the above address:

(i) Name and address of the principal(s); (ii) number of the invitation for bids; (iii) name and address of the department or agency making the award; (iv) date of the award; and (v) total purchase price covered by the award. The phrase, "or within a reasonable period of time thereafter", shall, for practicable purposes, be construed to mean within 15 days following the making of the award. Optional Form 20. Notice to SuretyDeposit Bond-Annual (illustrated at § 10145.4903-20) is a form of written notice available for this purpose.

(3) In the event a bidder whose bid deposit is secured by a deposit bond attempts to withdraw his bid in violation of paragraph 3, General Sale Terms and Conditions, Standard Form 114C, and such bid is determined to be the high bid acceptable to the Government, a formal notice of award shall be issued to inform the bidder of his contractual obligations.

(4) In the event of default by a bidder whose bid deposit has been secured by a deposit bond, a notice of such default should be sent to the bidder (principal) and the surety.

[30 FR 2930, Mar. 6, 1965, as amended at; 42 FR 40854, Aug. 12, 1977]

§ 101-45.304-12 Sales to State and local governments.

(a) General. (1) State and local governments may purchase Government personal property by negotiation as prescribed in this § 101-45.304-12, or they may participate in public sales of Government personal property on a competitive bid basis by having their names maintained on executive agencies' mailing lists.

(2) When sales are made to State and local governments, either by competitive bid or by negotiation, the requirements for bid deposit and for payment for property prior to removal shall be waived.

(b) Definitions. The following terms have the meaning set forth in this § 101-45.304-12:

(1) Estimated fair market value or reasonable value. The selling agency's best estimate of what the property would be sold for if offered for public sale on a competitive bid basis.

(2) Selling agency. An executive agency, through its subordinate selling activities, responsible for conducting sales of Government personal property.

(3) State and local governments. A State, territory, possession, political subdivision thereof, or tax-supported agency therein.

(4) Want list. A list of items desired to be purchased by State and local governments when available, which is maintained by selling agencies and is compiled from requests submitted by State and local governments.

(c) Negotiation. Personal property may be sold by negotiation to State and local governments, subject to obtaining such competition as is feasible under the circumstances; provided, that the estimated fair market value of the property and other satisfactory terms of disposal are obtained. (See §§ 101-45.304-2(a)(1)(iv) and 101

46.403(b)(1).)

(d) Requests to purchase. (1) With the exception of items having an estimated fair market value of less than $25, selling agencies shall honor requests by State and local governments to purchase property by negotiation prior to offering the property for public sale on a competitive bid basis.

(2) When a request is received to purchase property that is available, appropriate action shall be taken by the selling agency to notify such State or local government that the property is available for sale and, when appropriate, consummate the contract in accordance with § 101-45.304-12(e).

(3) To provide for those instances in which property desired by a State or local government may not be available for sale at the time the request is received, selling agencies shall:

(i) Establish a "want list" system to reflect such needs to be screened against future availability;

(ii) To the extent that sufficient information is not included in the initial request, require the interested State or local government to provide such information including but not necessarily limited to the following and with only one type of property to be listed on each specific request:

(a) Name, title, address, and telephone number of official person(s) to contact who would be authorized to negotiate contracts;

(b) Geographical area(s) within which they would be willing to inspect and purchase property;

(c) Specific and complete description of the item(s) desired, such as manual or electric typewriter, not a broad category of office equipment; sedan, station wagon, 22-ton truck, or dump truck, not vehicular equipment; grader. tractor. or lift machine, not construction or road equipment;

(d) Number of days the request should remain on file pending availability of the property, not to exceed 60 days; and

(e) Minimum poorest acceptable condition of the property, i.e., good, usable without repairs; fair, repairable; poor, extensive repairs required.

(iii) Request such other pertinent information from the State and local government as deemed necessary; and (iv) Screen property reported for sales purposes against established want lists.

(4) Property listed on an invitation for bids and already offered to the general public at the time a request is received will not be withdrawn for negotiation purposes under this § 10145.304-12.

(e) Procedures in negotiating sales. (1) When a desired item is available or becomes available for sale, the interested State or local government shall be advised of:

(i) The complete description;
(ii) Its condition, if known;

(iii) Its location and full information concerning inspection; and

(iv) The estimated fair market value or reasonable value when only one State or local government is involved.

(2) Sales by negotiation are subject to obtaining such competition as is feasible under the circumstances.

When two or more State and local governments have indicated a desire to purchase the same item, quotations should be obtained from such interested purchasers. When only one State or local government desires to purchase property and no further competition is feasible under the circumstances and all other conditions for negotiation have been met, the sale may be made.

(3) A reasonable period of time not to exceed 10 days shall be given the State or local government to indicate its interest in purchasing the property.

(4) Satisfactory arrangements must be made with the State or local government regarding payment, pickup, handling, and transportation charges, where necessary.

(f) Want lists. Executive agencies shall provide:

(1) Uniform standards of specific information to be recorded in the want