SUBPART A-INTRODUCTION

§ 1.100 Scope of subpart. This subpart sets forth (a) introductory information pertaining to the subchapter (its purpose, applicability, content, and arrangement), and (b) instructions for amending, implementing, disseminating, and deviating from the subchapter.

[19 F. R. 3865, June 25, 1954]

§ 1.101 Purpose of subchapter. This subchapter, issued by the Assistant Secretary of Defense (Supply and Logistics), by direction of the Secretary of Defense, and in coordination with the Secretaries of the Army, Navy, and Air Force, establishes for the Department of Defense uniform policies and procedures relating to the procurement of supplies and services under the authority of the Armed Services Procurement Act of 1947, Public Law 413, 80th Congress, as amended, 41 U. S. C. 151-161 (hereinafter referred to as "the act"), or under other statutory authorization. [19 F. R. 3865, June 25, 1954]

§ 1.102 Applicability of subchapter. This subchapter shall apply to all purchases and contracts made by the Department of Defense, within or outside

the continental United States, for the procurement of supplies or services which obligate appropriated funds (including available contract authorizations), unless otherwise specified herein.

[19 F. R. 7481, Nov. 20, 1954]

§ 1.103 Arrangement of subchapter.

§ 1.103-1 General plan. The subchapter is divided into parts, each one of which deals with a separate aspect of procurement, and each part is further subdivided into subparts and sections. [19 F. R. 3865, June 25, 1954]

§ 1.104 Content of subchapter. This subchapter will contain policies and procedures, relating to procurement of supplies and services, which are, or which can advantageously be made, common to the military departments, to the extent that inclusion of any such policies and procedures will be beneficial.

[19 F. R. 3865, June 25, 1954]

§ 1.105 Amendment of subchapter. This subchapter may be amended from time to time by the issuance of "Revisions", by the Assistant Secretary of Defense (Supply and Logistics) after coordination with the Secretaries of the Army, Navy, and Air Force. Unless otherwise directed in a particular case by the Assistant Secretary of Defense (Supply and Logistics), proposed amendments shall be submitted to the Armed Services Procurement Regulation Committee. Proposals for amendments originating within the military departments shall be submitted to the Chairman of the Armed Services Procurement Regulation Committee by the departmental members of the Committee. However, where unusual circumstances warrant, the Secretaries may submit proposals for amendments to the Assistant Secretary of Defense (Supply and Logistics).

[19 F. R. 3865, June 25, 1954]

§ 1.106 Other Department of Defense publications.

§ 1.106-1 Department of Defense directives and instructions. Policies and procedures concerned primarily with procurement may be published in Department of Defense directives or instructions under any of the following circumstances:

(a) When the subject matter is classified.

(b) When the subject matter is not suitable for inclusion in this subchapter.

each fiscal year under each of the circumstances permitting negotiation enumerated in Subpart B of Part 3 of this subchapter.

(c) In accordance with the provisions of § 3.211-4 of this subchapter, a semiannual report of all research and development contracts negotiated by each Department; and

(d) In accordance with the provisions of 3.216-4 of this subchapter, a semiannual report of all contracts negotiated by each Department in the interest of national defense or industrial mobilization.

[15 F. R. 8025, Nov. 23, 1950]

§ 1.111 Reports of suspected criminal conduct. Reports of possible violations of Federal criminal statutes relating to procurement shall be made by each respective department in accordance with procedures prescribed by that Department. Department of Defense policies and procedures with respect to the debarment, ineligibility, and suspension of bidders are set forth in Subpart F of this part.

[19 F. R. 7481, Nov. 20, 1954]

§ 1.112 General Services Administration regulations relating to procurement of supplies and services.

§ 1.112-1 Policy. In the interest of achieving uniformity in the field of government procurement, certain General Services Administration regulations, developed cooperatively by the Department of Defense and the General Services Administration, are made applicable to the Departments with respect to the procurement of supplies and services as defined in § 1.102. In order to insure compliance with the pertinent provisions of such General Services Administration regulations, Department of Defense application will be as follows:

(a) General. All policy and procedural matter of such General Services Administration regulations which is within the scope of this subchapter will be codified herein.

(b) Interagency purchase assignment responsibility. The applicable Department of Defense Directives covering the assignments of responsibility for the purchasing of specific supplies under Interagency Purchase Assignment will be incorporated by reference in this subchapter.

(c) Mandatory use of Federal Supply Schedule Contracts. For Department of Defense implementation of Federal Supply Schedules, see § 5.103 of this subchapter.

[19 F. R. 3866, June 25, 1954, as amended at 19 F. R. 7481, Nov. 20, 1954]

§ 1.112-2 Method of incorporation in this subchapter. General Services Administration regulations which are to be made applicable to the Departments will be incorporated into this subchapter in the manner set forth in § 1.112-1 (a), (b), or (c), prior to any required compliance therewith by the Departments.

[19 F. R. 3866, June 25, 1954]

SUBPART B-DEFINITIONS OF TERMS SOURCE: $1.201 to 1.201-9 appears at 15 F. R. 8026, Nov. 23, 1950, except as otherwise noted.

§1.201 Definitions. As used throughout this subchapter, the following terms shall have the meanings set forth in §§ 1.201-1 to 1.201-9, inclusive.

§ 1.201-1 Department. The term "Department" includes the Department of the Army, the Department of the Navy, and the Department of the Air Force.

§1.201-2 Secretary. The term "Secretary" means the Secretary, the Under Secretary, or any Assistant Secretary of any Department.

§ 1.201-3 Procuring activity. The term "procuring activity" includes, for the Army, the technical services, the continental armies, the National Guard Bureau, the Military District of Washington, and the major oversea commands; for the Navy, each Bureau of the Navy Department, the Office of Naval Research, the Aviation Supply Office, the Military Sea Transportation Service and the United States Marine Corps; for the Air Force, the Air Materiel Command. It also includes the Armed Services Medical Procurement Agency, the Armed Services Petroleum Purchasing Agency, and any other procuring activity hereafter established. The number and designation of particular procuring activities of any Department may be changed by directive of the Secretary of that Department.

[19 F. R. 685, Feb. 5, 1954]

§ 1.201-4 Head of a procuring activity. The term "Head of a Procuring Activity" includes, for the Army, the

chiefs of the technical services, the continental army commanders, the Chief of the National Guard Bureau, the Commanding General of the Military District of Washington, and the commanding generals of the major oversea commands; for the Navy, the Chief of each Bureau, the Chief of Naval Research, the Aviation Supply Officer, the Commander, Military Sea Transportation Service, and the Commandant of the United States Marine Corps; for the Air Force, the Commanding General of the Air Materiel Command. It also includes the Chief of the Armed Services Medical Procurement Agency, the Executive Officer of the Armed Services Petroleum Purchasing Agency, and the head of any other procuring activity hereafter established. The number and designation of Heads of Procuring Activities within any Department may be changed by directive of the Secretary of that Department. [19 F. R. 685, Feb. 5, 1954]

§1.201-5 Contracting officer. The term "Contracting Officer" means any officer or civilian employee of any Department who, in accordance with procedures prescribed by each respective Department, has been or shall be designated a Contracting Officer (and whose designation has not been terminated or revoked) with the authority to enter into and administer contracts and make determinations and findings with respect thereto, or any part of such authority, as hereinafter provided.

§1.201-6 Contracts. The term "contracts" means all types of agreements and orders for the procurement of supplies or services. It includes, by way of description and without limitation, awards and preliminary notices of award; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job orders, task orders or task letters thereunder; letter contracts, letters of intent, and purchase orders. It also includes amendments, modifications, and supplemental agreements with respect to any of the foregoing.

§1.201-7 Procurement. The term "procurement" includes, by way of description and without limitation, purchasing, renting, leasing, or otherwise obtaining supplies or services.

§1.201-8 Supplies. The term "supplies" means all property except land or interests in land. It includes, by way

of description and without limitation, public works, buildings, facilities; ships, floating equipment, and vessels of every character, type and description, together with parts and accessories thereto; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing.

(a)

§ 1.201-9 Source of supplies. The term "source of supplies" shall include only (1) manufacturers, (2) construction contractors, and (3) regular dealers in the supplies to be procured. A "regular dealer" shall be deemed to be any one of the following:

(i) A person or firm who owns, operates, or maintains a store, warehouse, or other establishment in which the materials, supplies, articles, or equipment of the general character described by the specifications and required under the contract are bought, kept in stock, and sold to the public in the usual course of business;

(ii) In the case of supplies of particular kinds (lumber and timber products, coal, machine tools, raw cotton, petroleum, green coffee, or hay, grain, feed, and straw) a person or firm satisfying the requirements of Article 101 (b) of the regulations, as amended from time to time, prescribed by the Secretary of Labor under the Walsh-Healey Public Contracts Act (41 U. S. Code 35).

The definitions in this paragraph shall not apply to contracts for supplies no part of which will be manufactured or furnished within the geographie limits of the continental United States, Alaska, Hawaii, Puerto Rico, the Virgin Islands, or the District of Columbia.

(b) A manufacturer, construction contractor, or regular dealer may bid, negotiate and contract through an authorized agent: Provided, That the agency is disclosed, and the agent acts and contracts in the name of his principal. In this connection, see the clause entitled "Covenant Against Contingent Fees" set forth in § 7.103-20 of this subchapter and the procedures prescribed for obtaining information concerning contingent or other fees, as set forth in Subpart E of this part.

[18 F. R. 1653, Mar. 24, 1953, as amended at 19 F. R. 685, Feb. 5, 1954]

SUBPART C-BASIC POLICIES

§ 1.300 Scope of subpart. This subpart sets forth the general procure

ment policies of the Departments with respect to (a) methods of procurement, (b) sources of supply (including governmental and foreign sources), (c) types of contracts, (d) specifications, (e) place of delivery, and (f) responsible prospective contractors.

[19 F. R. 8747, Dec. 21, 1954]

§ 1.301 Methods of procurement. It shall be the objective of each Department to use that method of procurement which will be most advantageous to the Government-price, quality, and other factors considered. The two principal methods of procurement are by means of formal advertising and by means of negotiation. Procurement shall generally be effected by advertising for bids and thereafter awarding a contract to the lowest responsible bidder, all in accordance with the detailed requirements and procedures set forth in Part 2 of this subchapter. Procurement may be effected by negotiation, however, when authorized by and conducted in accordance with the detailed requirements and procedures set forth in Part 3 of this subchapter. Procurement may also be effected, as provided in Parts 4 and 5 of this subchapter, by such means as (a) coordinated procurement or (b) interdepartmental procurement.

[15 F. R. 8026, Nov. 23, 1950]

§ 1.302 Sources of supplies. § 1.302-1 Government agencies. To the extent possible, supplies shall be obtained from surplus property in the hands of disposal agencies, or from surplus or excess stocks in the hands of any Government agency. Interdepartmental purchases shall be made in accordance with the provisions of Part 5 of this subchapter.

[15 F. R. 8026, Nov. 23, 1950]

§ 1.302-2 Sources outside the Government. Irrespective of whether the procurement of supplies or services from sources outside the Government is to be effected by formal advertising or by negotiation, competitive proposals ("bids" in the case of procurement by formal advertising, "quotations" in the case of procurement by negotiation) shall be solicited from all such qualified sources of supplies or services as are deemed necessary by the Contracting Officer to assure such full and free competition as is consistent with the procurement of types of supplies and services necessary to meet the require

ments of the Department concerned, and thereby to obtain for the Government the most advantageous contract-price, quality, and other factors considered. [15 F. R. 8026, Nov. 23, 1950]

concerns.

§ 1.302-3 Small business It shall be the policy of each Department to place with small business concerns (herein considered to be any concern which, including its affiliates, employs in the aggregate fewer than 500 persons) a fair proportion of the total procurement of supplies and services for that Department. As a means of carrying out this policy, and when not clearly to the disadvantage of the Department, the procurement of supplies or services shall be divided into such reasonably small lots as will enable and encourage small business concerns to make bids or quotations on such supplies or services or on portions thereof. Each Department shall maintain a record of the total value of all contracts placed by it during each fiscal year with small business concerns, and shall prepare an annual report thereon, as of the end of each fiscal year and in the form and manner to be prescribed by the Department, to be submitted to the Munitions Board in the Department of Defense for the preparation of a combined Armed Services report to be submitted to the President. To this end, each Department shall, in soliciting competitive proposals, request any necessary information as to the size of each business concern submitting a proposal.

[15 F. R. 8026, Nov. 23, 1950]

con

§ 1.302-4 Firms performing tracts in labor surplus areas-(a) Definitions. (1) "Labor surplus areas" are those designated as Group IV Areas in the Department of Labor publication "Bi-Monthly Summary of Labor Market Developments in Major Areas" under the heading "Classification of Labor Market Areas According to Relative Adequacy of Labor Supply."

(2) "Set-asides," as used in this subchapter, designates a method of procurement whereby a portion of the requirement, as determined by the procurement activity, is withheld from general solicitation (either formally advertised or negotiated), is reserved for negotiation exclusively with firms located in labor surplus areas, and is to be performed substantially within such labor surplus areas.