proval of Proposed Awards SOURCE: 37 FR 10500, May 24, 1972, unless otherwise noted. § 3-50.100 Scope of subpart. The purpose of this regulation is to establish an independent and impartial review of the contract file to determine that the contract award is in conformance with the law, established policies and procedures, and sound business practices; to determine that the contractual document properly reflects the mutual understanding of the parties within the guidelines and constraints set forth in the Federal Procurement Regulations and HHS Procurement Regulations; to advise the Contracting Officer of noted deficiencies and areas or items of questionable acceptability; and to offer recommendations for corrective actions or means for resolution. The official responsible for the review shall be as follows: Social and Rehabilitation Service-Chief, Contracts Branch, Division of General Services. Office of the Secretary-Chief, Procurement Section, Supply Operations Branch. Office of Education-Director, Contracts and Grants Division. Food and Drug Administration-Chief, Contracts and Grants Branch, Division of General Services. Social Security Administration-Chief, Procurement Section, Property Management Branch. National Institutes of Health-Director, Office of Contracts and Grants and Chief, Procurement Branch, Office of Administrative Services. Health Services and Mental Health Administration-Director, Office of Procurement and Materiel Management. Office of Central Services, Public Health Service-Director, Office of Central Serv ices. (b) Operating agencies shall require review of procurements of a lesser dollar amount to assure that a representative number of the high dollar value procurements within each operating agency are reviewed. 83-50.102 Restriction on reviewers. In no event will the individual signing the contractual instrument be the reviewer of the same procurement. If the individual designated in § 3-50.101 is the same person who signs the contractual document, the individual responsible for the review must be one level above the Contracting Officer. The individual responsible for the review must be knowledgeable in the procurement field. In the event an operating agency utilizes a contract review board, the board must include individuals who are knowledgeable in the procurement field. § 3-50.103 Conduct of the review. The individual responsible may solicit the participation of specialists in various technical and administrative disciplines to aid in the review. The mode of conduct of the review is not prescribed herein in order to permit discretionary judgment in determining the depth to which significant areas are examined. However, the reviewer shall determine that the contract file constitutes an independent record, documented to provide a complete chronology of actions related to all aspects of the procurement and the documentation is consistent with the requirements of HHSPR 3-1.313-51. The reviewer shall determine that each contract file contains documentation or other data, i.e., technical and business management evaluation, cost advisory reports, negotiation memorandums, etc., sufficient to explain and support the rationale, judgments, and authorities upon which all decisions and actions were predicated. In addition the file shall be examined to determine that: (a) If the proposed procurement action is to be awarded on a noncompetitive basis, documentation, and approvals supporting the procurement are in accordance with HHSPR § 33.802-50, and justify the action. (b) Proper publicizing of the proposed procurement was made pursuant to FPR § 1-1.1003. (c) Approval was obtained for any deviations from prescribed contract clauses. (d) Sufficient competition was obtained and that negotiations were conducted with all firms in the competitive range. (e) All the rules set forth in Part 1-2 of the Federal Procurement Regulations were compiled with when the proposed award is a result of an IFB. (f) Appropriate determination and findings as required by FPR 1-3.3 to justify authority to negotiate, method of contracting, and advance payments are a part of the contract file. § 3-50.104 Furnishing of implementing instructions. A copy of all implementing instructions issued by the operating agencies regarding the review of procurements will be furnished to the Director of Procurement and Materiel Management, OASAM. Subpart 3-50.2-Procurement Instrument Identification Numbering System SOURCE: 39 FR 23193, June 27, 1974, unless otherwise noted. § 3-50.200 Scope of subpart. This subpart prescribes policy and procedures for assigning identifying numbers to contracts and related instruments, including solicitation documents, purchase orders and delivery orders. § 3-50.201 Numbering contracts. (a) Contracts which require numbering. The following contracts shall be numbered in accordance with the system prescribed in paragraph (b) of this section: (1) All contracts, including letter contracts and task orders under basic ordering agreements which involve the payment of $2,500 or more for the procurement of personal property or nonpersonal services; (2) all contracts which involve the payment of $2,000 or more for construction (including renovation, or alteration); and (3) all contracts which involve more than one payment regardless of amount. The number assigned to a letter contract shall be assigned to the superseding definitized contract. (b) Numbering system. All contracts which require numbering shall be assigned a number consisting of the following: (1) The three digit code assigned to the procuring office by the Office of Grants and Procurement Management, GASAM; (2) a two digit fiscal year designation; and (3) a four digit serial number. While it is required that a different series of four digit serial numbers be used for each fiscal year, serial numbers assigned need not be sequential. 90-136 0-82--17 (c) Illustrations of contract numbers. The initial contract executed by the Supply Operations Branch, Office of the Secretary for fiscal year 1975 should be numbered 100-75-0001, the second contract 100-75-0002. Alternatively, if it is desirable for internal identification purposes to establish separate series of numbers for formally advertised and negotiated contracts this procedure is permissible. In this instance the initial formally advertised contract might be numbered 100-750001 and the initial negotiated contract numbered 100-75-0500. (d) Assignment of identification codes. Each contracting office of the Department shall be assigned a three digit identification code by the Office of Grants and Procurement Management, OASAM. Requests for the assignment of such codes for newly established contracting offices shall be submitted by the headquarters procurement staff office of the procuring activity to the Director, Division of Grants, Procurement, Materiel Management Information and Reports, OGPM-OASAM. Conversely, in the event that a contracting office is to be disestablished the Director, Division of Grants, Procurement, Materiel Management Information and Reports, OGPM-OASAM, shall be notified. A listing of the contracting office identification codes currently in use is contained in the HHS Contract Information System Manual (DCIS). [39 FR 23193, June 27, 1974, as amended at 41 FR 19635, May 13, 1976] § 3-50.202 Numbering of solicitation documents. Requests for proposals and invitations for bids shall be numbered in accordance with procedures prescribed by the headquarters staff office of the procuring activity. § 3-50.203 Numbering of purchase and delivery orders. Contracting offices shall establish procedures for numbering purchase orders as required for effective identification and control. § 3-50.204 Basic agreements. Basic agreements shall be numbered in accordance with procedures pre scribed by the headquarters staff office of the cognizant procuring activity. However, individual contracts entered into pursuant to the terms and conditions of such basic agreements shall be numbered in accordance with § 3-50.201(b). § 3-50.205 Basic ordering agreements. Basic ordering agreements shall be numbered in accordance with procedures prescribed by the headquarters staff office of the procuring activity. However, task orders placed under such agreements shall be numbered in accordance with § 3-50.201(b) if the dollar amount of such an order is $2,500 or more. Subpart 3-50.3-Preparation of Negotiation Memorandums SOURCE: 38 FR 9080, Apr. 10, 1973, unless otherwise noted. § 3-50.300 Scope of subpart. The purpose of this regulation is to establish a standardized format for the preparation of negotiation memorandums (Summary of Negotiations). § 3-50.301 Contents of the negotiation memorandum. The negotiation memorandum is a complete record of all actions leading to award of a contract. It should be in sufficient detail to explain and support the rationale, judgments, and authorities upon which all actions were predicated. The memorandum will document the negotiation process and reflect the negotiator's actions, skills, and judgments inconcluding a satisfactory agreement for the Government. Negotiation memorandums shall contain discussion of the following or a statement of nonapplicability, however, information already contained in the contract file need not be reiterated. A reference as to the document which contains the required information is satisfactory. (a) Description of articles and services and period of performance. A description of articles and services, quantity, unit price, total contract amount, and period of contract performance shall be set forth (if Supplemental Agreement-show previous contract amount as revised as well as information with respect to the period of performance). (b) Negotiation authority. Cite the particular paragraph of 41 U.S.C. 252 permitting the negotiations and an indication of the date of approval of the required "Findings and Determinations" (F&D) authorizing the negotiation. If a class F&D is cited, indicate expiration date. (c) Procurement planning. Summarize any procurement planning activities that have taken place. Include such items as meetings with programs and staff personnel and the development of procurement planning schedules (See HHSPR Subpart 3-3.50 for further details relative to procurement planning). (d) Synopsis of proposed procurement. A statement as to whether the procurement has or has not been publicized in accordance with FPR 1-1.10. A brief statement of explanation shall be included with reference to the specific basis for exemption under the FPR. (e) Contract type. Provide sufficient detail to support the type of contractual instrument recommended for the procurement and cite any required "Findings and Determination." If the contract is a cost-sharing type, explain the essential cost-sharing features. (f) Extent of competition. The extent to which competition was solicited and obtained will be discussed. The discussion shall include the date of solicitation, sources solicited, and solicitation results. If a late proposal was received, discuss whether or not the late proposal was evaluated and the rationale for the decision. If the procurement is to be awarded on a noncompetitive basis, discuss the rationale for the decision. The "Justification for Noncompetitive Procurement" must be prepared and approved in accordance with HHSPR 3-3.802-50. (g) Technical evaluation. Summarize the results presented in the technical evaluation report and delineate the basis of acceptability or unacceptability of the proposal from a technical standpoint. Discussion should be in nontechnical terms. (h) Business evaluation. Summarize the results presented in the business report and delineate the basis for the determination of acceptability or unacceptability of the business proposal. (i) Zone of consideration. If the procurement is competitive, describe how the zone of consideration or competitive range was determined and state the offerors who were included in the zone of consideration and the ones who were not. Explain why any offeror who submitted a technically acceptable proposal was not included in further discussions. Comment on any changes made in the offeror's proposal as a result of the discussions. The requirement for "written or oral discussions" with concerns whose proposals are "within a competitive range" are set forth in Subpart 3-3.51, Selection of Offerors for Negotiation and Award, in the HHSPR. (j) Cost breakdown and analysis. Include a complete cost breakdown together with the negotiator's analysis of the estimated cost by individual cost elements. The negotiator's analysis should contain such information as: (1) A comparison of cost factors proposed in the instant case with actual cost factors used in earlier contracts, using the same cost centers of the same supplier or cost centers of other sources having recent contracts for the same or similar item. (2) Any pertinent Government-conducted audit of the proposed contractor's records of any pertinent cost advisory report (see FPR 1-3.807-2). (3) Any pertinent technical evaluation inputs as to necessity, allocability and reasonableness of labor, materials and other direct expenses. (4) Any other pertinent information to fully support the basis for and rationale of your cost analysis. (5) If the contract is an incentive type, discuss the rationale for the following: (i) Cost plus award fee. (A) Base fee. (B) Maximum fee. (C) Award fee. (ii) Cost plus incentive fee. (D) Incentives relative to performance and/or delivery. (E) Sharing ratios. (iii) Fixed price incentives. (A) Target profit. (B) Target price. (C) Ceiling price. (D) Sharing ratios. (E) Incentives relative to performance and/or delivery. (6) A justification of the reasonableness of the proposed contractor's estimated profit or fixed fee, considering such factors as any competitive elements, established efficiency or performance, extent of the risk assumed by the proposed contractor, character of the proposed contractor's normal business, the extent of subcontracting in the instant case and the reasons therefor, capital employed, and such other factors as are appropriate including type of organization. (See §§ 1-3.808-2, 1-3.405-5(c)(2) of this title and 3-3.303-52 of this chapter.) (k) Government-furnished property and Government-provided facilities. With respect to Government-furnished material or Government-provided facilities, equipment, tooling, or other property, include the following. A separate finding and determination is required for facilities construction (see HHSPR Subpart 3-3.3). (1) Where no such property is to be provided, a statement to that effect. (2) Where such property is to be provided (i) a full description thereof, (ii) the estimated dollar value thereof, (iii) the basis of price comparison with competitors, and (iv) the basis of rental charge, if rental is involved. (3) Where the furnishing of any property or the extent thereof has not been determined and is left open for future resolution, a detailed explanation. (1) Negotiations. Include a statement as to the date and place negotiations were conducted and identify members of both the Government and contractor negotiating teams by area of responsibility. Details relative to such areas as the statement of work, terms and conditions, and special provisions shall also be included. The detailed results of price negotiations shall include items such as the information required by FPR 1-3.811, record of price negotiations, and FPR 1-15.107, advance understanding on particular items of cost. (m) Other considerations. Include coverage of such areas as: (1) Financial data with respect to a contractor's capacity and stability. (2) Determination of contractor responsibility (refer to HHSPR subpart 3-1.12). (3) Details as to why method of payment-progress payment, advance payment, etc., is necessary. Also cite any required findings and determination. (4) Information with respect to obtaining of a certificate of current cost or pricing data. (5) Such other required special approvals as follows: (i) Data processing systems. (ii) Management consultant. (iii) Foreign research contracts. (iv) Questionnaires-forms. (v) Printing. (vi) Clinical human subjects. investigations with (vii) Audiovisual productions. (viii) Classified projects. (ix) Safety and health. (x) Federal assistance program projects. (xi) Omission of the examination of records clause. (6) If the contract represents an extension of previous work, the status of funds and performance under the prior contract(s) should be reflected. Also determination should be made that the Government has obtained enough actual or potential value from the work previously performed to warrant continuation with the same contractor. (Project officer should furnish the necessary information.) (7) If the contract was awarded on a competitive basis, state where the unsuccessful offerors' proposals are filed. (8) State that equal opportunity provisions of the proposed contract have been explained to the contractor and he is aware of his responsibilities. Also state whether or not a clearance is required. (See HHSPR 3-12.805-1(d)(3).) (n) Terms and conditions. Identify the general provisions. Also identify any special clauses and conditions that are contained in the contract such as option arrangements, incremental funding, anticipatory costs, deviations |