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*Contracting officer shall insert the appropriate one of the following phrases, in both of the indicated spaces:

(1) "On (on or before) the date(s) spec1fied below."

(2) "Within the number of days stated below after the date of contracts."

(3) "Within the number of days stated below after the date of receipt of a written notice of award."

(4) "Within the periods specified below." (NOTE: When this phrase is inserted, the wording "during the month(s) of or "not sooner than than

the periods.)

and not later ." should be used to specify

(c) The following clause may be used where delivery by a certain time is desired although not essential, but delivery by a specified later time is necessary to meet the Government's requirements: TIME OF DELIVERY

Delivery is desired by the Government in accordance with the following schedule:

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§ 1-1.317 Noncollusive bids and proposals.

(a) In order to promote full and free competition for Government contracts, the following certification shall be included in all (1) invitations for bids and (2) requests for proposals or quotations, other than for small purchases made in accordance with Subpart 1-3.6 and other than requests for technical proposals in connection with two-step formal advertising, involving firm fixedprice contracts and fixed-price contracts with escalation:

CERTIFICATE OF INDEPENDENT PRICE
DETERMINATION

(a) By submission of this bid or proposal, each bidder or offeror certifies, and in the case of a joint bid or proposal each party thereto certifies as to its own organization, that in connection with this procurement:

(1) The prices in this bid or proposal have been arrived at independently, without consultation, communication, or agreement, for the purpose of restricting competition, as to any matter relating to such prices with any other bidder or offeror or with any competitor;

(2) Unless otherwise required by law, the prices which have been quoted in this bid or proposal have not been knowingly disclosed by the bidder or offeror and will not knowingly be disclosed by the bidder or offeror prior to opening, in the case of a bid, or prior to award, in the case of a proposal, directly or indirectly to any other bidder or offeror or to any competitor; and

(3) No attempt has been made or will be made by the bidder or offeror to induce any

other person or firm to submit or not to submit a bid or proposal for the purpose of restricting competition.

(b) Each person signing this bid or proposal certifies that:

(1) He is the person in the bidder's or offeror's organization responsible within that organization for the decision as to the prices being bid or offered herein and that he has not participated, and will not participate, in any action contrary to (a) (1) through (a) (3) above; or

(2) (1) He is not the person in the bidder's or offeror's organization responsible within that organization for the decision as to the prices being bid or offered herein but that he has been authorized in writing to act as agent for the persons responsible for such decision in certifying that such persons have not participated, and will not participate, in any action contrary to (a) (1) through (a)(3) above, and as their agent does hereby so certify; and (ii) he has not participated, and will not participate, in any action contrary to (a) (1) through (a) (3) above.

(c) This certification is not applicable to a foreign bidder or offeror submitting a bid or proposal for a contract which requires performance or delivery outside the United States, its possessions, and Puerto Rico.

(d) A bid or proposal will not be considered for award where (a) (1), (a) (3), or (b) above has been deleted or modified. Where (a) (2) above has been deleted or modified, the bid or proposal will not be considered for award unless the bidder or offeror furnishes with the bid or proposal a signed statement which sets forth in detail the circumstances of the disclosure and the head of the agency, or his designee, determines that such disclosure was not made for the purpose of restricting competition.

(b) The fact that a firm (1) has published pricelists, rates, or tariffs covering items being procured by the Government, (2) has informed prospective customers of proposed or pending publication of new or revised pricelists for such items, or (3) has sold the same items to commercial customers at the same prices being offered the Government does not constitute, without more, a disclosure within the meaning of paragraph (a) (2) of the Certificate.

(c) It is not required that a separate written authorization be given to the signer of the bid or proposal for each procurement involved where the signer makes the certification provided in paragraph (b)(2) of the Certificate: Provided, That with respect to any blanket authorization given, (1) the procurement to which the Certificate applies is clearly within the scope of such authorization, and (2) the person giving such authorization is the person responsible within

the bidder's or offeror's organization for the decision as to the prices being bid or offered at the time the Certificate is made in a particular procurement.

(d) After the execution of an initial certificate and the award of a contract in connection therewith, the contractor need not submit additional certificates in connection with proposals submitted on "work orders" or similar ordering instruments issued pursuant to the terms of that contract, where the government's requirements cannot be met from another source.

(e) The authority to make the determination described in paragraph (d) of the above certification shall not be delegated to an official below the level of the head of a procuring activity of the agency.

(f) Where a certification is suspected of being false or there is indication of collusion, the matter shall be processed in accordance with Subpart 1-1.9 and appropriate agency procedures. For reiection of bids which are suspected of being collusive and for the negotiation of procurements subsequent to such rejection, see §§ 1-2.404-1(b) (6) and 1-3.214.

[29 F.R. 10104, July 24, 1964, as amended at 30 F.R. 9589, July 31, 1965]

§ 1-1.318 Disputes clause. [33 F.R. 3064, Feb. 16, 1968] § 1-1.318-1 Contracting officer's decision under a Disputes clause.

(a) When a final decision of the contracting officer concerns a dispute that is or may be subject to the Disputes clause, a paragraph substantially as followe shall be included in the decision:

This decision is made in accordance with the Disputes clause and shall be final and conclusive as provided therein, unless, within 30 days from the date of receipt of this decision, a written notice of appeal (in triplicate) addressed to the (Title of the head of the agency) is mailed or otherwise furnished to the Contracting Officer. The notice of appeal, which is to be signed by you as the contractor or by an attorney acting on your behalf, and which may be in letter form, should indicate that an appeal is intended, should refer to this decision and should identify the contract by number. The notice of appeal may include a statement of the reasons why the decision is considered to be erroneous.

(b) A copy of each contracting officer's decision shall be furnished to the contractor by certified mail, return re

ceipt requested, or by any other method which provides evidence of the date of receipt of the decision by the contractor. [33 F.R. 3064, Feb. 16, 1968]

§ 1-1.318-2 Relationship to the Equal Opportunity clause.

See § 1-12.805-9 regarding disputed matters related to the equal opportunity program.

[33 F.R. 3064, Feb. 16, 1968]

§ 1-1.319 Procurement of items using jewel bearings.

(a) General. In order to maintain a jewel bearing production facility in the United States as a part of the mobilization base, the Government owns and, through a contractor, operates the Turtle Mountain Jewel Bearing Plant at Rolla, North Dakota. The Director of the Office of Emergency Planning has requested that agencies use this source in order to promote use of this plant as an established domestic source of jewel bearings. The Joint Economic Committee has also expressed similar interest in this objective.

(b) Policy and procedure. Government agency purchases of jewel bearings will be made from the Turtle Mountain Jewel Bearing Plant. In addition, all procurements of items, whether by Government directly or through cost-type contractors acting for the Government, calling for provision of jewel bearings shall provide, in the solicitations and resulting contracts, a requirement that jewel bearings in the quantities, and of the types and sizes necessary for the end items to be supplied under the contract, be purchased from the Turtle Mountain Plant and be incorporated in the delivered items. Subject to the criteria provided in (c), (d), and (e) of this § 1-1.319 except:

(1) When quantity requirements, quality standards, or delivery requirements cannot be satisfied by bearings manufactured at the Turtle Mountain Plant;

(2) For purchases of commercial end items having jeweled components, and the quantities of such end items or components are such that the contracting officer either knows or reasonably expects that all such end items or components are already manufactured and available from the stock of any dealer, wholesaler, distributor, or manufacturer; or

(3) For bearings used in items that are to be procured and used outside the United States, its possessions, and Puerto Rico.

(c) Provisions in solicitations. In order to assure that all bidders or offerors are competing on the same basis, it is necessary that the solicitation for items containing jewel bearings clearly state:

(1) The successful contractor will be required to purchase (directly or through subcontractors, as appropriate) Turtle Mountain source bearings at prices established in the U.S. Government Jewel Bearing Price List then in effect or, if not included in such price list, at prices quoted by the Turtle Mountain Plant, and to incorporate such bearings in the items to be delivered; and

(2) Bids or proposals are to be predicated on this requirement.

If after award of the contract, the Turtle Mountain Plant rejects the contractor's order entirely or in part, the contractor shall be required to so notify the contracing officer who will effect an equitable adjustment in the contract price to reflect any costs or savings accruing to the contractor by reason of any price differential for such bearings, pursuant to the clause of this contract entitled "Changes."

(d) Waiver of use. To the extent Turtle Mountain bearings are fungible with other bearings and it is not practical or would be costly to segregate jewel bearing inventories or work in process for items to be furnished the Government from that to be furnished commercial customers, or for other similar reasons, it may be in the Government's interest to waive the use requirements at the discretion of the contracting officer. No waiver will be granted to prospective contractors prior to award and no assurance will be given prior to award of any prospective contractors that such waiver will be granted after award. Minor inconvenience to contractors alone will not satisfy the need for demonstrating that the Government's interests are served by such waiver. When the use requirement is waived, an equitable adjustment for cost savings resulting therefrom shall be made.

(e) Minimum purchase and use. In circumstances where a procurement is not exempt from this procedure but it would be impractical or contrary to the Government's best interest to require

actual use of all of the Turtle Mountain bearings required to be purchased, the contracting officer may provide in the solicitation and resulting contract that a minimum fixed percentage of the total bearings requirements be of Turtle Mountain origin, or that Turtle Mountain bearings be purchased for and used in a certain number of the total items to be supplied.

(f) Contract clause. In all procurements subject to these procedures, the following clause is required for use:

REQUIRED SOURCE FOR JEWEL BEARINGS

Jewel bearings required in the performance of this contract (whether by the prime contractor or by subcontractors), shall be procured from the Turtle Mountain Jewel Bearing Plant, Rolla, North Dakota, at prices established in the Official U.S. Government Jewel Bearing Price List dated [insert latest effective date] (or, if not included in such price list, at prices quoted by the Turtle Mountain Plant), to the extent that this source can meet the jewel bearing requirements of the Contractor in the performance of this contract. The Contractor agrees that the delivery dates specified for the quantities and types of jewel bearings so ordered will be reasonably related to manufacturing schedules and delivery requirements of this contract. The Contractor agrees to notify the Contracting Officer promptly of the rejection of his purchase order in whole or in part by the Turtle Mountain Plant and further agrees to an equitable adjustment in the contract price pursuant to the "Changes" clause of this contract to reflect any costs or savings to the Contractor resulting from such rejection. The Contractor agrees to incorporate the purchased Turtle Mountain jewel bearings in the items to be delivered under this contract.1 The requirement for use (but not the requirement for purchase) of such bearings may be waived in the discretion of the Contracting Officer when such waiver is determined by him to be in the Government's interest, and where agreement is reached for an equitable adjustment in the contract price by reason of such waiver.

Public Law 86-695, September 2, 1960 41 U.S.C. 51-54), prohibits the payment, directly or indirectly, by or on behalf of a subcontractor in any tier under any Government negotiated contract of any fee, commission, compensation, gift, or gratuity to the prime contractor or any higher tier subcontractor or to any officer, partner, employee, or agent of the prime contractor, of any higher tier subcontractor, as an inducement or acknowledgment for the award of a subcontract or order. The Act further provides that the amount of any such fee, commission, or compensation, or the cost or expense of any such gratuity or gift, whether heretofore or hereafter paid by the subcontractor, shall not be charged, either directly or indirectly, as a part of the contract price charged by the subcontractor to the prime contractor or higher tier subcontractor. It also creates a conclusive presumption that the cost of any such prohibited payment has been included in the price of the subcontract or order and ultimately borne by the Government. The Act provides for the recovery on behalf of the United States of any such payment from either the subcontractor or recipient, by court action, or by setoff of moneys otherwise owing to the subcontractor either by the United States directly or by the prime contractor. The Act imposes criminal penalties on any person who knowingly makes or receives, directly or indirectly, any such prohibited payment.

[30 F.R. 9589, July 31, 1965]

§ 1-1.321 Stabilization of prices, rents, wages, and salaries.

By Executive Order 11615, August 15, 1971, the President stabilized prices, rents, wages and salaries. Pursuant to the Executive order, the President's Regulations and Purchasing Review Board stated:

The U.S. Government is the largest purchaser of goods and services in the World. That Government purchasing power should be used to the full extent the law permits to support the recently announced Federal Price-Wage-Rent freeze. In placing Government contracts for goods and services, officials should consider, as a decisive factor, whether contractors are in compliance with the Price-Wage-Rent freeze in all of their

transactions.

This section prescribes procedures for carrying out the purpose of the Executive order.

[36 F.R. 22743, Nov. 30, 1971]

§ 1-1.321-1 Solicitations.

Price certifications shall be included in all solicitations (invitations for bids and requests for proposals), excluding small purchases under $2,500 and any contracts resulting therefrom (see § 1-1.321-2). A price certification is prescribed in paragraph (a) of this section and an alternate price certification is prescribed in paragraph (b) of this section which may be employed as provided therein.

(a) Price certification. Agencies shall satisfy the requirements of this section by employing the price certification set forth in this paragraph (a), except to the extent that the price certification prescribed in paragraph (b) of this section is authorized for use.

PRICE CERTIFICATION

(a) By submission of this bid (offer) bidder (offeror) certifies that he is in compliance and will continue to comply with the requirements of Executive Order 11615, August 15, 1971, as superseded by Executive Order 11627, October 15, 1971, for the duration thereof and further certifies that the prices bid (offered) herein conform to the requirements of Executive Order 11615, as superseded by Executive Order 11627, October 15, 1971, or shall be reduced accordingly at the time of any billings that are made during the effective period of the Executive order.

(b) Prior to the payment of invoices under this contract, the Contractor shall place on, or attach to, each invoice submitted the following certification:

I hereby certify that amounts invoiced herein do not exceed the lower of (i) the contract price, or (ii) maximum levels established in accordance with Executive Order 11615, August 15, 1971, as superseded by Executive Order 11627, October 15, 1971.

(c) The Contractor agrees to insert the substance of this clause, including this paragraph (c), in all subcontracts for supplies or services issued under this contract.

(b) Alternate price certification. The price certification set forth in this paragraph may be employed in lieu of the certification in paragraph (a) of this section only in those situations which do not involve the submission of invoices.

PRICE CERTIFICATION

(a) By submission of this bid (offer) bidder (offeror) certifies that he is in compliance and will continue to comply with the

requirements of Executive Order 11615, August 15, 1971, as superseded by Executive Order 11627, October 15, 1971.

(b) Acceptance of any payments for property, goods, or services furnished during the effective period of the Executive order shall constitute a certification by the Contractor that the amounts paid do not exceed the maximum levels established in accordance with Executive Order 11615, as superseded by Executive Order 11627.

(c) The Contractor agrees to insert the substance of this clause, including this paragraph (c), in all subcontracts.

[36 F.R. 22743, Nov. 30, 1971]

§ 1-1.321-2 Notification of contractors. Contracting officers shall notify all contractors with existing contracts (i.e., a contract which does not contain a price certification as prescribed ir. § 1-1.321-1) and all contractors awarded contracts under $2,500 except (a) those made with imprest funds (see § 1-1.321-6), and (b) other small purchases as provided by individual agency procedures, of their obligations under Executive Order 11615, as superseded by Executive Order 11627. This shall be accomplished by issuance of a notice, as provided in paragraph (a) or (b) of this section, whichever is appropriate.

(a) Notice to contractors: Reference is made to No.(s)

your Contract

You are hereby notified of your following obligations under Executive Order 11615, August 15, 1971, as superseded by Executive Order 11627, October 15, 1971:

Prior to payment of invoices submitted under each contract, you must place on, or attach to, each invoice or other payment document submitted the following certification:

I hereby certify that amounts invoiced herein do not exceed the lower of (1) the contract price, or (2) maximum levels established in accordance with Executive Order 11615, August 15, 1971, as superseded by Executive Order 11627, October 15, 1971.

Payments will not be made on invoices submitted under the above noted contract unless certification, as prescribed above, has been completed.

(b) Alternate notice to contractors:

Acceptance of any payments for property, goods, or services furnished during the effective period of the Executive order shall constitute a certification by the Contractor that amounts paid do not exceed the maximum levels established in accordance with Executive Order 11615, August 15, 1971, as superseded by Executive Order 11627, October 15, 1971.

[36 F.R. 22743, Nov. 30, 1971]