## Change Request Number: 02-14 Date Received: 3/7/02

**Title: Non-Mandatory Government Sources (T3.8.4)**

# Name: Yvonne Joseph

Routing Symbol: ASU-110

Phone: 267-8638

Policy OR Guidance: Guidance

Summary of Change: Deletes reference to Federal Prison Industries as a
mandatory source.

Reason for Change: To simplify procurement process.

Development, Review, and/or Concurrence: Developed and reviewed by both
procurement and legal as part of the recent procurement workshop.

Target Audience: Procurement personnel.

Potential Links within FAST for the Change: N/A

Attachments: Language of change.

### Briefing Planned: No

**ASAG Responsibilities: None**

  ----------------------- ------------------------------------------------------- --------------------
                                                                                  

                          Issue Date (revision): April 2002 (rev. 3)              

  [Section]{.underline}   [Topics in the Section]{.underline}                     [Page]{.underline}

  **A**                   **Non-mandatory Government Sources**                    1

  1                       General                                                 1

  2                       Excess Personal Property                                1

  3                       GSA Stock Items                                         2

  4                       Federal Supply Schedules                                2

  5                       Defense Logistics Agency                                2

  6                       Printing and Related Products                           3

  7                       Leased Vehicles                                         3

  **B**                   **Mandatory Government Sources**                        3

  1                       Requirements ~(Revised\ 09/2000)~                       3

  **C**                   **Use of Government Sources by Contractors**            6

  1                       General                                                 6

  2                       Authorization                                           6

  **D**                   **Clauses**                                             7

  **E**                   **Forms**                                               7

  **F**                   **Attachment** ~(Revised\ 09/2000)~                     7
  ----------------------- ------------------------------------------------------- --------------------

**A. NON-MANDATORY GOVERNMENT SOURCES**

**1. GENERAL**

FAA will generally satisfy requirements for products and services from
or through commercial sources. The FAA may purchase from or through
Government sources, such as GSA Stock Program or Federal Supply
Schedules, when in the FAA's best interest, e.g., these sources
represent the best value, prices are most advantageous, delivery is most
expeditious, quality products or services are offered, etc.. Certain
Government sources, however, remain mandatory for the FAA (see section
B. below).

**2. EXCESS PERSONAL PROPERTY**

FAA will consider use of excess personal property in fulfilling its
requirements when it is cost effective and the excess personal property
will meet the FAA's needs. Excess personal property is any personal
property under the control of a Federal agency that is not required for
its own needs. FAA Order 4800.2C, "Utilization and Disposal of Excess
and Surplus Personal Property" provides additional guidance about excess
personal property. Also, FAA offices may obtain more information about
the Federal Utilization Program by contacting GSA Federal Supply Service
at (703) 305-7240 or via Internet from the Federal Supply Service home
page (http://www.fss.gsa.gov). GSA also publishes excess personal
property catalogs and bulletins.

**3. GSA STOCK ITEMS**

GSA, through its Stock Program, purchases a wide variety of common-use
items and makes them available to Federal agencies via a network of
distribution centers. The GSA Supply Catalog, published annually,
contains an alphabetical index of stock items, descriptions, National
Stock Numbers (NSN), and prices. GSA also operates regional Customer
Supply Centers, which are retail outlets for small quantity, immediate
supply items, i.e. office supplies. Each Customer Supply Center has it's
own supply catalog. The FAA may purchase Government stock items when in
the FAA's best interest. Methods for ordering GSA stock items include:

\(1\) Government Credit Card. GSA Supply Catalog items may be ordered
through the Internet-based GSA Advantage System
(http://www.fss.gsa.gov), in writing, or by telephone.

\(2\) FEDSTRIP. Ordering from the GSA Supply Catalog may be made through
GSA\'s automated system, known as FEDSTRIP (Federal Standard
Requisitioning and Issue Procedure). FEDSTRIP allows processing of
orders for stock items of GSA, as well as Departments of Defense and
Veteran's Affairs. For more information about FEDSTRIP, FAA ordering
offices may obtain a FEDSTRIP operating and ordering guide by submitting
GSA Form 457 to: GSA, Centralized Mailing List Services (CMLS), Box
6477, Fort Worth, TX 76115; telephone (817) 334-5215.

\(3\) MUFFIN. Ordering stock items may be made through GSA's on-line
electronic bulletin board, known as Multi-use File for Interagency News
(MUFFIN). MUFFIN allows customers to enter requisitions electronically
into the GSA stock system. For more information about MUFFIN, FAA
ordering offices may contact the GSA Federal Supply Center Commodity
Center responsible for the geographic area of the FAA ordering office.

**4. FEDERAL SUPPLY SCHEDULES**

The GSA Federal Supply Schedule (FSS) program provides Federal agencies
with a simplified process for obtaining commonly used products and
services at prices associated with volume buying. FSS contractors may be
used when in the FAA's best interest. (See Procurement Toolbox Guidance
T3.8.3, "Federal Supply Schedule Contracts," for additional guidance on
this subject.)

**5. DEFENSE LOGISTICS AGENCY**

The Defense Logistics Agency (DLA) is responsible for assuring that
Federal agencies are supplied with their fuel requirements. However, it
may not always be to FAA's advantage to utilize DLA contracts in filling
its fuel needs because Contracting Officers may be able to obtain better
prices and services through local competition. DLA may be used when in
the FAA's best interest. Information about DLA-managed stock, including
fuel, can be found on the Internet at the following address:
http://www.supply.dla.mil.

**6. PRINTING AND RELATED PRODUCTS**

a\. \"Government printing\" means printing, binding and blank book work
for the use of an executive department, independent agency, or
establishment of the Government. \"Related products," means products
that are used and equipment that is usable in printing and binding
operations. The purchase of preprinted documents is not considered
printing services, and is not subject to this section.

b\. The FAA may acquire products and services from the Government
Printing Office (GPO), or those managed by GSA, if in the FAA's best
interest.

c\. Requisitioners should obtain approval from the cognizant FAA
printing office before purchasing in any manner, whether directly or
through purchases of other products or services, printing and related
products. Examples of printing requiring this approval include
composition, plate making, presswork, binding, silk-screening of
specialty advertising items, and micro-graphics (when used as a
substitute for printing). Note that simple copying of a printed document
does not constitute printing.

**7. LEASED VEHICLES**

If vehicles are not otherwise available from GSA, the FAA may lease or
rent vehicles from commercial or private sources. Vehicles should be
necessary for the FAA's mission, have maximum fuel efficiency, and
minimum body, engine, and equipment size, and meet other requirements
established by GSA for leasing vehicles. FAA personnel should coordinate
with the cognizant transportation office prior to leasing or renting
vehicles. FAA order 4670.2B, "Motor Vehicle Management," contains
additional information about renting vehicles.

**B. MANDATORY GOVERNMENT SOURCES**~(Revised\ 09/2000)~

**1. REQUIREMENTS**~(Revised\ 09/2000)~

Contracting Officers are to acquire products and services offered under
the requirements of the Randolph-Sheppard Act and the
Javits-Wagner-O'Day Act. Agencies representing National Industries for
the Severely Handicapped (NISH), and National Industries for the Blind
(NIB).accept the Government credit card for most items; whenever
possible, purchasers should use this method of payment.

a\. *Randolph-Sheppard Act.* The Act gives priority to the blind in
operating vending facilities, requires agencies to provide suitable
vending facility sites to blind vending operators in Government-owned or
occupied buildings, and requires vending machine income be shared with
blind vendors or state agencies for the blind on property under the
Government jurisdiction. The FAA must comply with the provisions of the
Randolph-Sheppard Act. FAA procedures for vending facility operations
under the Randolph-Sheppard Act are contained in Attachment 2.

b\. *Javits-Wagner-O'Day Act (JWOD).* The JWOD Act governs products and
services offered for sale by workshops of the blind or other severely
handicapped persons. The Committee for Purchase from People Who are
Blind or Severely Disabled is an independent Government activity and is
responsible for determining products and services to be purchased from
the central non-profit agencies NIB and NISH (both are referred to below
as JWOD agencies).

\(1\) The FAA must comply with the provisions of the JWOD Act by
considering certain purchases from the Committee for Purchase from the
Blind and Other Severely Handicapped when the Committee is capable of
providing the required products or services and meeting the FAA's
required delivery dates.

\(2\) The Committee maintains a "Procurement List" of all supplies and
services which are required for purchase by Government agencies. FAA
ordering offices may obtain a copy of the Procurement List, or obtain
information whether a given product or service is on the Procurement
List, from: Committee for Purchase from People Who Are Blind or Severely
Disabled, Crystal Square 3, Room 403, 1735 Jefferson Davis Highway,
Arlington, Virginia 22202-3461, telephone (703) 603-7740. The
Procurement List is also available on the Internet from the Committee's
JWOD home page at the following address: http://www.jwod.gov.

\(3\) GSA's Federal Supply Service is the primary distributor of JWOD
office supplies and other general use products. FAA ordering offices may
purchase JWOD items from GSA's Stock Program (JWOD items are identified
in the GSA Supply Catalog and GSA Customer Supply Center Catalogs), from
Federal Supply Schedule commercial vendors (limited to certain vendors
on GSA Schedule 75 III A), or directly from NISH or NIB (the FAA
ordering office must obtain direct order authorization from NISH or NIB
prior to placing orders directly).

\(4\) FAA ordering offices may obtain items on the Procurement List from
commercial sources if: (a) the JWOD agency cannot provide items within
required delivery dates and a commercial source can; or (b) the JWOD
agency cannot economically produce the required quantities. Prior to
purchasing from a commercial source, the ordering office must obtain a
waiver from the JWOD agency.

\(5\) Many of the items provided by JWOD agencies are listed below
(items are regularly updated, however).

+-----------------------------------------+----------------------------+
| Aprons                                  | Markers, writing           |
|                                         |                            |
| Ashtrays                                | Mat, floor                 |
|                                         |                            |
| Bags                                    | Mirror, glass              |
|                                         |                            |
| Ball-point pens                         | Mops and mopheads          |
|                                         |                            |
| Bandage, muslin                         | Notebook, steno            |
|                                         |                            |
| Belt, automotive safety                 | Pad, floor polishing       |
|                                         | machine                    |
| Belt, individual equipment              |                            |
|                                         | Pad, scouring              |
| Binders                                 |                            |
|                                         | Pad, typewriting           |
| Blackboards                             |                            |
|                                         | Pad, writing paper         |
| Board, wall calendar                    |                            |
|                                         | Pallet, material handling  |
| Bookends                                |                            |
|                                         | Pallet, wood               |
| Bookcase, used, executive               |                            |
|                                         | Paper, loose-leaf          |
| Boxes                                   |                            |
|                                         | Paper, teletypewriter      |
| Bulletin boards                         |                            |
|                                         | Paper, writing             |
| Calendar pad                            |                            |
|                                         | Paper sets, manifold and   |
| Clip, paper                             | carbon set                 |
|                                         |                            |
| Clipboard                               | Paperweight, shot filled   |
|                                         |                            |
| Clock, wall                             | Pen set, desk              |
|                                         |                            |
| Cloth, polishing                        | Pencils                    |
|                                         |                            |
| Cover, typewriter                       | Perforator, desk           |
|                                         |                            |
| Credenza                                | Refills, appointment book  |
|                                         |                            |
| Creeper, mechanics                      | Scouring Pad               |
|                                         |                            |
| Cup, plastic                            | Scrapers and Squeegees     |
|                                         |                            |
| Detergent, general purpose              | Screwdrivers               |
|                                         |                            |
| Detergent, disinfectant                 | Sign: no trespassing       |
|                                         |                            |
| Detergent, dish washing                 | Soap, toilet               |
|                                         |                            |
| Easel, display and training             | Sponge, cellulose          |
|                                         |                            |
| File backer, paper                      | Sponge, plastic            |
|                                         |                            |
| File backer backs                       | Stake, wood                |
|                                         |                            |
| File backer fronts                      | Stepladder                 |
|                                         |                            |
| Flashlights                             | Table, office, wood        |
|                                         |                            |
| Folder, file                            | Table, steel               |
|                                         |                            |
| Frame, picture                          | Tag, key                   |
|                                         |                            |
| Glass cleaner                           | Tape, paper                |
|                                         |                            |
| Gloves, cloth, cotton                   | Thimerosal Tincture, NF    |
|                                         |                            |
| Hand truck                              | Tool bag                   |
|                                         |                            |
| Hand, mop, paint roller, wood           | Tool box, portable         |
|                                         |                            |
| Holder, desk memorandum                 | Towel, paper               |
|                                         |                            |
| Iodine ampules, NF                      | Tray, desk                 |
|                                         |                            |
| Lantern, electric head                  | Trimmer, paper             |
|                                         |                            |
| Lath, wood                              | Truck, hand                |
|                                         |                            |
| Light, desk                             | Wedge, wood                |
+-----------------------------------------+----------------------------+

**C. USE OF GOVERNMENT SOURCES BY CONTRACTORS**

**1. GENERAL**

Contracting Officers (COs) may authorize contractors, or subcontractors,
performing under cost-reimbursement contracts, other types of contracts
when appropriate, or contracts under Javits-Wagoner-O'Day Act, to use
Government sources of supply, including Interagency Fleet Management
System vehicles. Government sources of supply include: stock programs of
GSA and Departments of Defense and Veteran's Affairs, Federal Supply
Schedules, and Interagency Fleet Management System.

The CO should consider the following before authorizing contractor use
of Government sources: administrative costs of placing orders, impact of
potential delivery delays, cost, suitability, and recommendations from
the contractor. The CO should issue authorizations to subcontractors
through, and with the approval of, the prime contractor.

**2. AUTHORIZATION**

a\. *Ordering Against* *FSS Contracts.* Contractors must follow the
terms of the applicable FSS contract and include with each order a copy
of the authorization letter (unless previously provided to the FSS
contractor). If an FSS contractor refuses to honor the contractor's
order, the CO should report the matter to GSA, FCO, Washington, DC
20406.

b\. *Ordering from* *Government Stock*. The CO should request
authorization from the agency managing the stock. The CO should also
submit with the request: the contractor's mailing, freight, and billing
addresses; a copy of the authorization letter; the prime contract
number; and the effective date and duration of the contract.

> \(1\) GSA. Submit request to GSA, FSR, Washington, DC 20406, after
> obtaining an activity address code for the contractor.
>
> \(2\) VA. Submit request to Deputy Assistant Secretary for Acquisition
> and Materiel Management (Code 90), Department of Veteran's Affairs,
> 801 Vermont Avenue, Washington, DC 20420.

c\. Title to property obtained by the contractor will vest in the
parties as provided by the contract, unless otherwise stated.

d\. Attachment 1 contains a sample letter authorizing cost-reimbursement
contractors use of Government contracts.

**D. CLAUSES**

See FAST Procurement Toolbox for applicable clauses.

**E. FORMS**

None applicable.

**F. ATTACHMENT**~(Revised\ 09/2000)~

Attachment 1 - Sample Contractor Authorization Letter for Use of FSS
Contracts.

Attachment 2 - FAA Procedures for Vending Facility Operations Under
Randolph-Sheppard ~(Added\ 09/2000)~

Attachment 1 - Sample Contractor Authorization Letter for Use of FSS
Contracts.

Contractor Name

Address

As a Government cost-reimbursement contractor under contract \_\_\_\_\_,
you are hereby authorized to place orders under GSA's Federal Supply
Schedule (FSS) Program, subject to the conditions listed below.

1\. This authorization expires on \_\_\_\_\_.

2\. Purchases made under this authorization are limited to
\$\_\_\_\_\_\_.

3\. This authorization is limited to the following FSS contract(s)
\_\_\_\_\_.

4\. This authorization (does/does not) apply to overhead supplies, and
(does/does not) apply to production supplies.

5\. This authorization is limited to the following facility (insert
contractor facility name and location).

6\. Vesting of title for supplies purchased under this authorization
shall be as follows (insert vesting information).

7\. \_\_\_\_\_(insert any other limitations).

Any supplies or services purchased under this authorization must be
properly accounted for and properly used. You are authorized to order
only those supplies and services required in the performance of your
contract(s) referred to above. You are responsible for compliance with
the applicable policies and procedures prescribed for purchases from FSS
contracts.

Contracting Officer

Attachment 2 - **FAA PR0CEDURES FOR VENDING FACILITY OPERATIONS UNDER
RANDOLPH-SHEPPARD** ~(Added\ 09/2000)~

1.  GENERAL. The Randolph-Sheppard Act, and Department of Education
    Regulations implementing the act and amendments, gives the blind
    priority in operating vending facilities.

2\. RESPONSIBILITY. The Managers, Logistics Divisions, and the Program
Directors for Acquisition at the Aeronautical Center and William J.
Hughes Technical Center are responsible for administering the FAA
vending facility program at facilities within their geographical
jurisdictions.

3\. PRIORITIES. The order of priority for soliciting a vending facility
operator to provide food service and/or operated vending machines on
property occupied and controlled by the FAA is as follows:

a\. State licensing agency for the blind

b\. Socially & Economically Disadvantaged Business Firms (SEDB)

c\. Other Minority Firms

d\. Eligible organizations for the handicapped and handicapped
individuals

e\. Commercial operators

f\. Employee welfare and recreation associations

4\. CRITERIA FOR ESTABLISHING NEW CAFETERIAS AND OTHER TYPES OF VENDING
ESTABLISHMENTS.

a\. The FAA must first determine if a facility is subject to the
Randolph-Sheppard Act provisions (see paragraph 13 through 16). If not,
the following factors should be considered in determining if it is
feasible to rely on nearby food establishments in lieu of establishing
vending facilities on property controlled and occupied by FAA.

\(1\) Accessibility. Such food establishments must be conveniently
located so that employees can reach them, obtain service, and return to
duty within the time allowed for that purpose.

\(2\) Suitability. To be acceptable, good quality service must be
available at reasonably competitive prices, in clean, neat surroundings.

\(3\) Adequacy. The nearby food establishments must be able to serve FAA
employees and their other patrons during required service hours, with
reasonable promptness.

b\. If it is not feasible to depend on nearby food establishments, the
FAA may establish a vending facility if the following prerequisites,
documented in writing, are met:

\(1\) Justification. There must be adequate justification for
establishing a vending facility as set forth in this paragraph.

\(2\) Space. Sufficient, satisfactory, space must be available.

\(3\) Funding . Sufficient funds must be available to the FAA to defray
the costs for which the Government will be responsible.

\(4\) Necessity. The services must be necessary for the health or
efficiency of agency employees while on duty.

\(5\) Codes. It shall be possible to establish and operate each vending
facility in conformance with safety, health, and sanitary codes.

5\. FOOD SERVICE EQUIPMENT. Generally, FAA may furnish, install and
connect all original food service equipment of fixed or substantially
permanent nature, except vending machines operated under the provisions
of the Randolph-Sheppard Act. If a facility is accepted by the State
Licensing Agency (SLA) under the Randolph-Sheppard Act, then the SLA is
required to provide the food service equipment. Other food service
equipment, including cash registers, should be provided by the
concessionaire. Consult the FAA legal counsel\'s office regarding any
vested title to equipment.

6\. SPACE RENTAL FEES AND UTILITY CHARGES.

a\. Blind vendors will not be charged for Government space. Utilities
and other support services may be provided without charge.

b\. Employee welfare and recreation associations, commercial cafeteria
operators, and/or commercial vending machine operators should be
assessed charges for space at a rate equivalent to commercial rents for
comparable property and services. Utility charges should be assessed,
based either on separate metering or appropriate proration by space
occupied or by other acceptable methods for prorations.

c\. Space rental and/or utility charges may be waived or reduced upon
written determination by the assigned contractor officer that
uninterrupted operation of the vending facility is essential to the
efficiency of operations of the activity and a significant factor in
hiring and retaining employees and promoting employee morale.

7\. TERM OF CONTRACT. (This paragraph does not apply to permits issued
to State licensing agencies for the blind under the Randolph-Sheppard
Act).

a\. There is no statutory limitation for the term of a cafeteria
contract in non-GSA activities. However, each contract will establish a
definite period beyond which the contract and extensions thereof will
not be allowed to run.

b\. The contract may permit termination by either of the contracting
parties, without cause, after 90 days written notice to allow the
parties ample time in which to prepare for the transition necessitated
by termination.

8\. BONDS. At the discretion of the Contracting Officer and if required
by the solicitation, the operator may be required to furnish a
Performance Bond to guarantee the faithful performance of his
obligations under the contract. The Performance Bond, if required, will
be of an amount determined by the Contracting Officer to be adequate to
protect the Government\'s interest and will be furnished prior to
commencement of operations of the facilities.

9\. INSURANCE. All contracts will include the clause for contractor
liability insurance.

10\. HOURS OF SERVICE will be determined on a case-by-case basis by the
Contracting Officer and the appropriate Facility Manager.

11\. MONETARY RECEIPTS received by the Government from Operators for
space, utilities, and other services will be deposited into the U. S.
Treasury as Miscellaneous Receipts, via the serving Accounting Division.

12\. AUDIT. The Contracting Officer should arrange periodic spot reviews
and audits during the term of agreement.

13\. JUSTIFICATION FOR EXEMPTION FROM BLIND VENDORS OPERATING FACILITIES
are subject to the Exemptions stipulated in paragraph 16 (Exemption).

a\. Blind persons licensed by a SLA for the blind will be given priority
in the operation of vending facilities, including cafeterias, on
FAA-controlled property.

b\. When the location and/or operation of a blind vending facility would
adversely affect the interests of the United States, a complete, written
justification will be furnished to the Secretary of Education, who will
make the final determination. Each determination will be a matter of
public record by publication in the Federal Register.

c\. The regulations governing this program (34 CFR Part 395) do not
define \"adversely affect the interests of the United States,\" because
the Statute requires a case-by-case determination. If a regional or
center director believes that the establishment of a blind vending
facility would adversely affect the interests of the United States,
he/she will make a written finding to that effect, with concurrence of
regional or center legal counsel, and be addressed to the Secretary of
Education.

14\. ACQUISITION AND OCCUPATION OF FEDERAL PROPERTY

Any FAA acquired (purchased, rented, or leased), constructed, or
substantially altered or renovated building is required to have one or
more satisfactory sites for a blind-operated vending facility.

a\. Substantial alteration or renovation is considered to be a permanent
material change in the floor area of a building that would render it
appropriate for the location and operation of a vending facility by a
blind vendor.

b\. \"Satisfactory site" means an area fully accessible to vending
facility patrons which has:

\(1\) A minimum of 250 square feet available for the vending and storage
articles necessary for the operation of a vending facility; and

\(2\) Sufficient electrical, plumbing, heating, and ventilation outlets
for the location and operation of vending facilities in accordance with
applicable health laws and building codes.

15\. Offering To State Licensing Agencies (SLA)

a\. A region or center will notify the appropriate SLA of buildings to
be acquired or substantially altered or renovated. This notice (see
Figure 2-2, for example notice) should be by certified or registered
mail with return receipt requested. This notification will be provided
at least 60 days in advance of the intended acquisition date or the
initiation of actual construction, alteration, or renovation. As a
practical matter, the SLA should be contacted early in the planning or
design stage of a project. The notice will enable the SLA to determine
if it wants a vending facility in the building and will:

\(1\) Indicate that a satisfactory site or sites for the location and
operation of a blind vending facility is included in the plans for the
building;

\(2\) Forward a copy of a single line drawing indicating the proposed
location of such site or sites, and

\(3\) Assure the SLA that, subject to the approval of the FAA, it will
be offered the opportunity to select the location and type of vending
facility to be operated by a blind vendor prior to completion of the
final space layout of the building.

b.  Responsibility for notification rests with Logistics Division
    Managers and AMQ-1, who will be the designated contact point for the
    SLA. A copy of the notice and response, if any, will be provided to
    the Division for Blind and Visually Impaired, Rehabilitation
    Services Administration, Department of Education, Washington, DC
    20202.

c\. The SLA will be given the opportunity to visit the proposed vending
facility site prior to

preparation of the final space layout.

d\. The SLA must respond within 30-days, acknowledging receipt of the
notice from the FAA region or center, and indicating whether it is
interested in establishing a vending facility, and if interested,
indicating its agreement or alternate selection of location and its
selection of type of vending facility.

e\. If no response is received within the 30-day period, the FAA, region
or center will notify the Secretary of Education at the address in (b)
above that the State licensing agency\'s failure to respond has been
construed as a determination by the SLA that the number of persons using
the property is or will be insufficient to support a vending facility
and that a satisfactory site to be operated under the auspices of the
SLA will not be incorporated, unless directed by the Secretary of
Education. This notification will also be provided if the SLA responds
and affirmatively indicates that it has made such a determination.

16\. EXEMPTION

a\. The Secretary of Education has determined that the requirement to
provide a satisfactory site, as delineated in 15(a)(1) above, does not
apply:

\(1\) When fewer than 100 Federal employees will be located in the
building during normal working hours; or

\(2\) When a building in which services are to be provided to the
general public contains less than 15,000 square feet to be used for
Federal Government purposes; or

\(3\) When a region or center is leasing all or part of a privately
owned building in which the lessor or any of its tenants have an
existing restaurant or other food facility in a part of the building not
covered by the lease and operation of a vending facility would be in
substantially direct competition with such restaurant or other food
operation; or

\(4\) When the SLA and the Secretary of Education determine that the
number of persons using the Federal property is or will be insufficient
to support a vending facility; or

\(5\) When there is an existing vending facility on the Federal property
that is not covered by contract with, or by permits issued to SLA\'s.
However, the SLA must be notified of the expiration of the existing
contract or permit.

17\. COLLECTION AND DISTRIBUTION OF VENDING MACHINE INCOME FROM VENDING
MACHINES ON FEDERAL PROPERTY.

a\. Definitions. The following terms, as defined in 34 CFR 395.1, are
unique to this program and require special attention.

\(1\) Vending machine. For the purpose of assigning vending machine
income, a vending machine is a coin (or currency) operated machine which
dispenses those articles and services that are sold in blind-operated
vending facilities. The machine operated by the United States Postal
Service for selling postage stamps or other postal products and
services, machines providing services of a recreational nature, and
telephones will not be considered vending machines.

NOTE: The income from copy machines is to be made available for
distribution to blind vendors in those cases where in the past such
machines have been available within vending facilities operated by blind
vendors.

\(2\) Vending machine income means receipts remaining to vending machine
operators after deducting either:

(a.) All applicable costs incurred (costs of goods, service maintenance,
repair, cleaning, depreciation, supervisory and administrative
personnel, normal accounting, accounting for income sharing and so
forth); or

(b.) Monies paid to the FAA or an employee welfare and recreation
association by a commercial vending firm.

This definition applies to machines operated, serviced, or maintained on
Federal property by, or with the approval of the FAA. It also applies to
a commercial vending concern which operates, services, and maintains
vending machines on FAA property for, or with the approval of the FAA.
Receipts do not include a blind vendor\' s receipts. Commissions paid do
not include those paid to a blind vendor.

\(3\) Direct competition means the presence and operation of a vending
machine or a vending facility on the same premises as a vending facility
operated by a blind vendor. Vending machines or vending facilities
operated in areas where the majority of the employees normally do not
have direct access (in terms of interrupted ease of approach and the
amount of time required to patronize the vending facility) to the
vending facility operated by a blind vendor shall not be considered in
direct competition with that vending facility.

\(4\) Normal working hours means an eight-hour work period between the
hours (approximately) of 8:00 a.m. - 6:00p.m., Monday through Friday.

\(5\) Individual location, installation or facility means a single
building or a self-contained group of buildings. A self-­contained group
of buildings is two or more buildings in close proximity to each other
between which a majority of Federal employees working in the buildings
regularly move from one building to another in the normal course of
their official business during a normal working day.

b\. Mandatory Distribution Requirements.

\(1\) Pursuant to 34 CFR 395.32, vending machine income, from vending
machines on FAA-controlled property is required to be distributed to
SLA. Distribution is made according to a formula which distinguishes
situations in which the vending machine is in direct competition with a
vending facility operated by a blind vendor from situations in whicdh it
is not. Where direct competiotion does not exist, the distribution
formula further distinguishes between buildings which are open only
during normal work hours from those which are open during non-normal
work hours.

2.  \(2\) Summary of distribution formula:

\(a\) One hundred percent of the vending machine income from a vending
machine in \"direct competition\" with blind-operated vending facilities
will be disbursed to the appropriate SLA.

(b.) Fifty percent of the vending machine income from vending machines
not in \"direct competition: with blind-­operated vending facilities will
be disbursed to the appropriate SLA.

(c.) Thirty percent of the vending machine income from vending machines,
not in \"direct competition\" with blind-operated vending facilities and
located in a building where at least 50 percent of the total work hours
worked on the premises occurs during other than normal working hours,\"
will be disbursed to the appropriate SLA.

c\. Exemptions.

\(1\) The mandatory distribution requirements do not apply if vending
machines are not in \"direct competition\" with a blind vending
facility, and the total vending machine income from all such machines at
any \" individual location, installation, or facility\" does not exceed
\$3,000.00 annually.

\(2\) The mandatory distribution requirements do not apply to existing
arrangements under which the SLA receives a percentage of vending
machine commissions less than that specified above, so long as the
arrangement is covered by a contract with a specified expiration date,
and upon expiration the contract is renegotiated according to the
distribution formula.

\(3\) All arrangements pertaining to the operation of vending machines
on Federal property not covered by contract with, or by permits issued
to, SLA agencies shall be renegotiated upon expiration of the existing
contract or other arrangement to conform with the requirements of this
guidance.

d\. Responsibility. The Logistics Division Managers and Program Director
for Acquisition, or their designated representatives, will be
responsible for:

\(1\) Assuring that vending machine income is collected and accounted
for. Under no circumstances, will the FAA become involved in the actual
physical collection of vending machine income.

\(2\) Assuring that vending machine income is disbursed by the operator
to the SLA quarterly on a calendar year basis. The operator shall
provide the Logistics Division Managers and the Program Director for
Acquisitions, or their designated representatives with a quarterly
certified statement showing that such action has been taken. The first
payment of income shall be made at the end of the first full quarter
following the effective date of this directive.

\(3\) Determining, subject to the approval of the regional or center
director, when a vending machine is in \"direct competition\" with a
blind vending facility. A determination that a vending machine is not in
\"direct competition\" with a blind vending facility shall be also
subject to concurrence of the SLA. In the event of a disagreement
between the FAA region or center and the SLA in the determination of
whether a situation of direct competition exists, the disagreement
should be resolved informally through negotiations between the FAA
region or center and the SLA. If the negotiations do not resolve the
disagreement, the matter would be appropriate for submittal to
arbitration.

18\. APPLICATION FOR SLA PERMIT (See paragraph 20(a) for definition of
Cafeteria)

a\. This paragraph prescribes procedures for submission, review, and
approval of permits for the establishment of vending facilities, other
than cafeterias, on FAA-controlled property. The provisions of this
paragraph and 34 CFR 395.35 will be complied with in establishing a
vending facility.

b\. Authorization. In accordance with 34 CFR 395.34, the SLA will submit
the Department of Education form, Application and Permit for the
Establishment of a Vending Facility on Federal and Other Property (see
Figure 2-3), for review and approval by the Logistics Division Manager.

c\. Review of the permit. Upon receipt of a permit, the Logistics
Division Manager or Program Director for Acquisition or their
representative will.

\(1\) Discuss all details of the permit with the SLA in order to develop
a full and clear understanding of the type of facility proposed, the
nature of the items to be sold, provisions for fixtures and equipment,
the hours of operation, and etc.

\(2\) Compare the type of facility to be provided, and types of articles
and services to be sold with the requirements as determined by FAA. Any
discrepancies should be discussed and resolved with the SLA.

\(3\) Ensure that no new vending facility exists in their space without
a permit in place.

\(4\) Require AF/ANI engineers developing or substantially changing a
large manned facility (such as ATCT, ARTCC, etc.) and/or facility
managers to submit written requests for establishment of new vending
facilities to Logistics for approval. Logistics would make determination
for Randolph-Sheppard applicability, and approve or deny establishment
of a vending facility based on the criteria provided. See the
Randolph-Sheppard Act for the difference between cafeteria and snack bar
as provided by this statute.

\(5\) Add the following clause to the permit if the SLA requests
approval to prepare and sell brewed coffee and/or food items:

> Approval for the preparation and serving of brewed coffee and/or food
> items is subject to certification by the State licensing agency that
> the blind vendor is capable of performing these tasks in a safe and
> sanitary manner, in accordance with all applicable health, sanitation
> and building codes or ordinances, or that a sighted assistant will be
> employed to perform these tasks.\"

19\. TERMS OF THE PERMIT.

a\. The permit will be issued in the name of the applicant SLA.

b\. The permit will be issued for an indefinite period of time, subject
to suspension or termination if either party does not comply with any of
the terms and conditions of the permit.

c\. The permit will provide that:

\(1\) No charge will be made by the FAA to the SLA for normal
maintenance and repair of the building, or for cleaning areas adjacent
to the designated vending facility boundaries, or for trash removal from
a designated collection point.

\(2\) The SLA will be responsible for cleaning and maintaining the
appearance of and for the security of the vending facility within the
designated boundaries of such facility and for all costs of every kind
in conjunction with vending facility equipment, merchandise and other
products to be sold except as provided in (5) below. SLA will be liable
for the loss of, or damage to, property of the U. S. Government when
such loss or damage is caused by the acts or omissions of SLA, the blind
vendor or the employees or agents of the blind vendor. The SLA will also
be responsible for the acts or omissions of the blind vendor, his
employee or agents.

\(3\) Articles sold at such vending facilities may consist of
newspapers, periodicals, publications, confections, tobacco products,
foods, nonalcoholic beverages, or other articles or services which are
determined by the SLA, in consultation with the Logistics Manager or the
Program Director for Acquisition at the Aeronautical Center to be
suitable for a particular location.

\(4\) Vending facilities will be operated in accordance with applicable
health, sanitation and building codes, ordinances and regulations.

\(5\) Installation, modification, relocation, removal, and renovation of
vending facilities will be subject to the prior approval of the
Logistics Manager and Program Director for Acquisition at the
Aeronautical Center, and the SLA. Costs of installation, modification,
removal, relocation or renovation will be paid by the initiating party.
In any case of suspension or termination noncompliance by either party,
the costs of removal from the building will be paid by the non-complying
party.

\(6\) The permit to the SLA will also contain, if applicable,
appropriate requirements for reimbursement or direct payment for support
services such as utilities and telephone service.

d\. If the blind licensee fails to provide satisfactory service or
otherwise fails, to comply with the requirements of the permit issued to
the SLA, the appropriate Logistics or Procurement Division Managers will
coordinate with legal counsel and then notify the SLA of the deficiency
in writing and request corrective action with a specified reasonable
time. The notice will indicate that failure to correct the deficiency
will result in temporary suspension or termination of the permit, as
appropriate. Any actual suspension or termination action will not be
taken without prior coordination with regional or center Legal Counsel.

e\. FAA and SLA may terminate the permit by mutual agreement after
providing ninety (90) day notice to the other party of the intended
termination, including the reason therefor and supporting documentation.

f\. Upon approval of the permit by a Logistics Division Manager or
AMQ-1, two copies of the approved permit shall be forwarded to the SLA.
The original permit will be retained in the region or center.

20\. OPERATION OF CAFETERIAS BY BLIND VENDORS.

a\. Definition. \"Cafeteria\" means a food dispensing facility capable
of providing a broad variety of prepared foods and beverages (including
hot meals) primarily through the use of a line where the customer serves
himself from displayed selections. A cafeteria may be fully automatic or
some limited waiter or waitress service may be available and provided
within a cafeteria. Table or booth seating facilities are always
provided.

b\. Priority afforded blind vendors. A priority will be afforded blind
vendors in operated cafeterias. This priority may be afforded by the
following methods pursuant to 34 CFR 395.33.

(1). FAA regions and centers may initially decide to competitively
negotiate the cafeteria contract and invite the SLA to respond to the
solicitation. The SLA\'s proposal will be evaluated in the same manner
as that of all other offerors. If the proposal is likely to be
considered for award by the Contracting Officer, the Secretary of
Education will be consulted as required by 34 CFR 395.33 (a), to
determine whether award to the SLA is proper.

\(2\) The Contracting Officer may award to other than the SLA when the
FAA believes that award to the SLA would adversely affect the interests
of the United States and the Secretary of Education has agreed and
issued a final determination to that effect. The Contracting Officer may
also award to other than the SLA if the Regional or Center Director
determines and the Secretary of Education agrees that the blind vendor
does not have the capacity to operate a cafeteria in such a manner as to
provide food service at a comparable cost and of comparable high quality
as that available from other providers of cafeteria services.

\(3\) If the SLA submits a proposal and it is not likely to be
considered for award by the Contracting Officer, award may be made to
another offeror following normal procurement procedures, but only after
consultations between the appropriate Logistics Division Manager, or
Program Director for Acquisition and Regional or Center legal counsel.

\(4\) FAA regions and centers may enter into direct negotiations with
the SLA to determine whether the SLA is capable of operating the
cafeteria in a manner comparable to-operation by a commercial food
service operator. If it is determined that the SLA has the capability
and can operate the cafeteria at a reasonable cost with food of high
quality, a contract will be awarded to the solicitation. If the
negotiations do not result in a contract awarded to the SLA, the
cafeteria contract will be placed by competitively negotiation and the
SLA will be invited to respond to the solicitation. Direct negotiations
with the SLA should be conducted at an early stage so that the cafeteria
contract can be competitively negotiated and awarded in a timely manner
if negotiations with the SLA fail.

c\. Terms of contract.

\(1\) The operation of a cafeteria by a blind vendor will be covered by
a contractual agreement and not by a permit.

\(2\) The SLA will be expected to perform under contractual
arrangements, applicable to commercial cafeteria operators. These may
include, but are not limited to, the following.

> a\. Submission of detailed quarterly income statements (see Figure
> 2-1).
>
> b\. Provision of all necessary supplemental cafeteria equipment and
> utensils.

c\. Performance of preventive maintenance on all Government-owned
equipment.

d\. Compliance with all applicable health, sanitation, and building
codes or ordinances.

\(3\) Termination actions will not be taken without prior coordination
with regional or center legal counsel.

\(4\) All contracts for the operation of cafeterias on FAA-controlled
property with other than SLA\'s will, upon expiration, be processed
under section 13, unless the State licensing agency informs the FAA that
it is not prepared to exercise its priority at that time.

21\. ARBITRATION OF STATE LICENSING AGENCY COMPLAINTS.

a\. If the SLA alleges that the FAA is in violation of the
Randolph-Sheppard Act as amended or Department of Education regulations,
and the matter cannot be resolved informally, the SLA may file a
complaint with the Secretary of Education to seek arbitration of the
matter. The procedures for administering SLA complaints and conducting
arbitration hearings will be pursuant to 34 CFR 395.37 and the
Department of Education \"Revised Interim Policies and Procedures for
Convening and Conducting an Arbitration pursuant to Sections 5 (b) and 6
of the Randolph-Sheppard Act as Amended.

b\. When it has been determined that an arbitration panel will be
convened, unless directed otherwise, the appropriate regional or center
director will appoint one FAA employee to serve as a panel member. In
addition, a regional or center attorney will represent the FAA before
the panel.

c\. The Secretary of Education will pay all reasonable costs of
arbitration.

22\. REPORTING REQUIREMENTS[.]{.underline}

a\. At the end of each fiscal year, the FAA is required to submit a
report to the Secretary of Education pursuant to Department of Education
regulations (34 CFR 395.38). In order to comply with this requirement,
each region and center will submit a report to ASU-100 on or before
November 1 of each year. The report will include the following data:

\(1\) Total number of applications received.

\(2\) Number of applications accepted.

\(3\) Number of applications denied.

\(4\) Number of applications pending.

b\. Vending machine income with the following breakdown:

\(1\) Total amount of vending machine income collected in each state.

\(2\) Amount of vending machine income distributed to each SLA.

23\. EMPLOYEE WELFARE AND RECREATION ASSOCIATIONS

AUTHORITY. The FAA may negotiate a vending facility agreement solely
with an

employee welfare and recreational association if: (a) the SLA is not
interested in establishing a vending facility, and (b) there are no
acceptable SEDB firms available to perform the services, and (c) after
solicitation of commercial concerns which might be interested in the
vending facility, all proposals received are unacceptable and not
susceptible to upgrading through further negotiations.

24\. DETERMINATION AND FINDING. A written determination which

justifies negotiations with an employee welfare by the Contracting
Officer, approved by the appropriate Logistics Division Manager or
AMQ-1, and placed in the contract file.

25\. REREQUISITES. Negotiations with an employee association will be
based upon

the following prerequisites:

a\. The association must conduct a continuing, self-supporting operation
with sales prices within the means of the employees at the facility.

b\. See paragraph 6b for the FAA policy concerning space rental and
utility charges to be assessed employee welfare and recreation
associations.

c\. Prior to commencement of negotiation with an employee association,
the association, the association will furnish the Contracting Officer a
copy of its constitution and bylaws.

d\. Any services rendered by the officers or members of the association
in connection with the vending facility operation will be without
remuneration of any kind.

e\. Vending machine income will be distributed to the SLA in accordance
with the criteria set forth in Paragraph 17.

f\. Any remaining income derived from the vending facility operation
will be used for the benefit of the employee association\' s welfare
activities.

g\. An agreement will be entered into between the association and the
Contracting Officer, which provides for all of the aforementioned
prerequisites and contains a commitment from the employee association
that it will comply with the applicable provisions of this guidance. The
agreement should be in format acceptable to both parties and concurred
with by Government counsel prior to submission to the association and
prior to execution by the Government.

26\. TYPES OF CONTRACT (see Figure 2-4, Sample Contract).

a\. Contracts may be of the following types, dependent on the nature of
the operation and what is in the best interest of the Government.

\(1\) Percentage of gross receipts. This type of contract provides that
revenues to the Government will be computed at a fixed percentage of the
operator\'s gross receipts received during a specified period of time.
It may also provide for a price adjustment clause to be included which
provides that revenues to the Government will be computed at
predetermined percentages (upward or downward) for various levels of
gross revenues received during a specified period of time.

\(2\) Fixed sums of money per month or other specified period. This type
of contract provides for a reasonable fixed sum for depreciation of
Government-owned equipment and charges for building services such as
space rental, utilities and cleaning in the vending facility area.

\(3\) A combination of (1) and (2) above.

b\. Contracting Officers, if circumstances so warrant, may utilize other
methods of determining return to the Government, provided that the
method is fair and

reasonable.

c\. The factual basis for determining the return to the Government will
be included in the contract file.

d\. The type of contract contemplated will be clearly set forth in the
solicitation which will not, however, bind the Government absolutely to
that contract type.

e\. Revocable permits may be used for the operation of vending
facilities other than cafeterias. The permit will set forth:

(1). location.

\(2\) amount of space necessary for the operation of the vending
facility.

(3). type of facility and equipment.

\(4\) number, location and type of vending machines and other terms and
conditions to be included in the permit

27\. REQUEST FOR OFFERS.

a\. Requests for offers will contain all information necessary to enable
a prospective offeror to prepare his proposal. The following elements
should be included:

\(1\) Location and type of facility, including types and number of
vending machines required. Specify the items permitted to be sold in the
vending machines.

\(2\) Days and hours of service.

\(3\) Estimated average number of persons to be employed on each shift.

\(4\) Terms of contract, including any options.

\(5\) Description of operational and storage space available for the
operation, including ingress and egress restrictions and security
requirements, include applicable drawings.

\(6\) Scope of proposed activity, standards of quality to be expected,
pricing policies, and minimum menu requirements.

\(7\) Statement of condition of premises, scope of utilities to be
provided by the FAA, listing of Government and operator furnished
equipment.

\(8\) Manner and types of payments required by the Government, bonding
and insurance requirements, if any, and accounting statements required
to be submitted to the Government.

\(9\) Garbage disposal and cleaning requirements.

\(10\) Statement that the contractor must comply with all applicable
health, sanitation and building codes of ordinances.

\(11\) Gross receipts from the activity for the current and past 3
years, and

\(12\) Any other information deemed necessary by the Contracting Office
to assure complete understanding of requirements.

b\. Factors other than price that will be given consideration in
evaluation proposals will be included in the SIR.

c\. The following is a suggested list of evaluation criteria which may
be used:

\(1\) Understanding of requirements.

\(2\) Approach to performance of contract

\(3\) Management.

\(4\) Experience in providing food services at offices or industrial
building comparable to those described in the proposed contract.

\(5\) Past compliance with all applicable health, sanitation and
building codes or ordinances.

\(6\) Level of proposed staffing, including manager and supervisors.

\(7\) Menu pricing, portion sizes and variety based on cyclical menus.

\(8\) Adequacy of accounting and inventory systems and procedures.

Figure 2-1. INCOME STATEMENT

PERIOD FROM \_\_\_\_\_\_\_\_\_\_\_\_\_TO \_\_\_\_\_\_\_\_\_\_\_\_\_\_

DATE DATE

SALES

Food

Vending Machines

TOTAL INCOME FROM SALES

COST OF GOODS SOLD

Inventory

Purchases

Total

Inventory

TOTAL COST OF GOODS SOLD

GROSS PROFIT

Less: OVERHEAD

Accounting & Legal

Depreciation

Interest & Penalties

Laundry

Miscellaneous

Payroll Taxes

Other Taxes- Unempl.Tax

Sales Tax

Repair & Maintenance

Rent

Salaries

Supplies - Office

Cleaning

Kitchen

Telephone

TOTAL OVERHEAD

NET INCOME, (LOSS) FROM OPERATIONS

Less: Bad Debt

NET INCOME, (LOSS)

Payments shall be mailed in accordance with the provisions of the
contract

Amount Due Federal Aviation Administration Paid by Check No.
\_\_\_\_\_\_\_\_\_

in the amount of \_\_\_\_\_\_\_\_\_\_\_\_\_

Figure 2-2. NOTICE OF THE FEDERAL AVIATION ADMINISTRATION\' S

INTENTION TO ACQUIRE OR OTHERWISE OCCUPY A BUILDING

NOTICE NO. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ DATE
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

This is to inform you that not less than 60 days from the date hereof,
the Federal Aviation
Administration[,\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(address
)\_\_\_\_\_\_\_\_\_\_]{.underline} intends to acquire or otherwise
occupy \_\_\_\_\_\_\_\_\_\_\_\_\_ square feet of space in which
\_\_\_\_\_ Federal Government employees are or will be located during
normal working hours, in
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

(If this is a lease action, just insert city and state.)

Accordingly, as provided by the Randolph-Sheppard Act (20 USC 107 et.
seq.) and regulations issued pursuant thereto, notice in hereby given
that a satisfactory site or sites for the location and operation of a
vending facility by a blind vendor is included in the plans for the
building to be acquired or otherwise occupied. Receipt of this notice
will be acknowledged in writing promptly but no later than within 30
days form the date of receipt. Indication will be made at that time
whether you are interested in establishing a vending facility. We assure
you that, in the event we receive written advice of your interest in
establishing a vending facility, you will be afforded the opportunity to
determine the suitability of the proposed site or sites. We further
assure you that, subject to the approval of this agency, you will be
given the opportunity to select the location and type of vending
facility to be operated by a blind vendor. An opportunity to make your
determination and selection, as indicated above, will be offered to you
prior to the completion of the final space layout but no later than
\_\_\_[date]{.underline}\_\_\_\_\_\_. Your prompt attention to this
matter will be appreciated.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Signer\'s Name (Type or Print) Signature

CHECK APPROPRIATE BOX

We are interested in establishing a vending facility in connection with
the proposed acquisition.

We are not interested in establishing a vending facility in connection
with the proposed acquisition, because in our estimation, the operation
would not be feasible. Therefor, we waive our priority right to a
satisfactory site in this building pursuant to 34 CFR 395.31 (d).

Receipt of Notice No. is hereby acknowledged.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Approval Official (Type or Print) Signature

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title (Type or Print) Date

Complete this form and return the Original to the Federal Aviation
Administration, ([regional or center address)]{.underline}
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

and one copy to the Division for the Blind and Visually Impaired,
Rehabilitation Services Administration, Department of Education,
Washington, DC 20201. Retain one copy for your records.

Figure 2-3. DEPARTMENT OF EDUCATION APPLICATION FOR PERMIT

DEPARTMENT OF EDUCATION

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

WASHINGTON, DC

APPLICATION AND PERMIT FOR THE ESTABLISHMENT OF A VENDING FACILITY ON
FEDERAL AND OTHER PROPERTY AS AUTHORlZED BY P.L. 74‑732, AS AMENDED BY
P.L. 83‑565 AND TITLE II OF P.L. 93‑516 (RANDOLPH-SHEPPARD ACT)

The \_\_\_\_\_\_\_\_\_\_\_\_\_(designated State Licensing Agency) of the
State of \_\_\_\_\_\_\_\_\_\_\_\_\_requests approval of
\_\_\_\_\_\_\_\_\_\_\_(Federal or other property Agency/Owner) to place
a vending facility on the property located
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

SATISFACTORY SITE: It has been determined that this location meets the
criteria of a satisfactory site as defined in 34 CFR 395.1 (q).

TYPE, LOCATION AND SIZE OF FACILITY: Type of
facility:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Facility location \_\_\_\_\_\_\_\_\_\_\_\_\_ . The facility will operate
days of the week from \_\_\_\_\_\_\_\_\_a.m. to
\_\_\_\_\_\_\_\_\_\_\_p.m. commencing on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

MACHINE INCOME SHARING: Both parties will comply with 34 CFR 395.35.
This permit will be issued for an indefinite period of time subject to
suspension or termination on the basis of noncompliance by either party
with any of the agreed upon terms and conditions of the permit. By
mutual agreement the State licensing agency and the FAA may terminate
the permit after providing notice of the intended termination, including
the reason therefor and supporting documentation to the other part. Both
parties will comply with all regulations issued in Title VI of the Civil
Rights Act of 1964. Reason for denial of the application will be set
forth in writing to the State.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Approving FAA Official Approving Licensing Agency

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title Date Title Date

Figure 2-4. SAMPLE CONTRACT.

1\. GENERAL. The following clauses are suggested for use in vending
facility contracts. It is intended that use of these suggested clauses
will distinguish vending facility contracts, in which revenue accrues to
the Government, from other contracting procedures which involve the
expenditure of Government funds, while adhering to generally accepted
business standards and practices.

2\. DEFINITIONS.

a\. The term \"Secretary\" means the Secretary of Transportation and the
term \"head of the agency\" means the Administrator, Federal Aviation
Administration. The term \"his duly authorized representative\" means
any person or persons or board (other than the Contracting Officer)
authorized to act for the head of the agency or the Secretary.

b\. The term \"Contracting Officer\" means the person executing this
contract on behalf of the Government, and any other officer or civilian
employee who is a properly designated contracting officer; and the term
includes, except as otherwise provided in this contract, the authorized
representative of a Contracting Officer acting within the limits of his
written authority

c\. The words \"Contractor,\" and \"Operator\" will be considered to be
synonymous, as are the words \"contract and \"agreement.\"

d\. \"Operating Facilities\" means furniture, furnishings, special
lighting fixtures, draperies, decorations, decorating or other special
finishing work, signs, appliances, and trade fixtures, etc., furnished
and installed or used by the Operator in its operations at the facility.

e\. \"Gross Receipts\" means the total amount received, realized by or
accruing to the Operator from all sales, for cash or credit, of
services, materials or other merchandise, made pursuant to the
privileges authorized by this contract rendered at or from the of
determination of the amount due the Operator for each transaction,
whether for cash or credit, and not at the time of billing or payment,
unless otherwise specifically stated in this contract; provided,
however, that any taxes imposed by law which are separately stated and
paid by the customer, and directly payable to the taxing authority by
the Operator, will be excluded from gross receipts.

3\. ASSIGNMENT. No sublease, transfer, subcontract, or assignment of any
part hereof or interest herein, directly or indirectly voluntarily or
involuntarily, will be made by the Operator of this contract, unless
such sublease, transfer, subcontract or assignment is first approved in
writing by the Contracting Officer and is subject to whatever
limitations the Government may wish to apply; provided, however, that
the Operator may, if specified elsewhere in this contract, install or
use equipment or other operating facilities which are owned by others
and leased to the Operator for its use under this contract.

4\. GOVERNMENT-OPERATOR RELATI0NSHIP. Nothing in this contract will be
construed as in any way creating or establishing a partnership
relationship between the parties hereto or as constituting the Operator
as an agent or representative of the Government for any purpose or in
any manner whatsoever.

5\. FEDERAL, STATE, AND LOCAL LAW. The Operator will, at its own cost
and expense: (a) comply with all Federal, State and local laws,
including but not limited to county and local ordinances, rules or
regulations now or hereafter in force, which are applicable to the
operation of its vending facility; (b) obtain and pay for all necessary
licenses and permits; (c) pay all fees and charges assessed under
Federal, State and local law insofar as they are applicable to its
vending facility.

6\. TERMINATION.

a\. Either party may terminate this contract without cause by giving the
other party written notice of its intention to do so. Other than a
termination by the government in the interests of the National Defense,
any such notice of termination will be given at least ninety (90) days
in advance of the effective date of termination.

b\. The Contracting Officer may, by written notice to the Operator,
terminate this contract. in whole or in part, for default upon the
happening of any of the following events:

\(1\) Filing by, or the final adjudication against, the Operator of any
petition in bankruptcy, or the making of any transfer or assignment for
the benefit of creditors, which transfer or assignment has not been
authorized previously by the Government.

\(2\) The abandonment of the vending facility or discontinuance thereof
Should this occur, the Government will not be responsible for the
protection of the Operator\'s merchandise, fixtures, supplies or
equipment, and may remove same from the premises for storage or
disposal.

\(3\) The failure of the Operator to perform or observe any of the
terms, covenants or conditions of the contract, after the expiration of
any period of warning or notice given by the Contracting Officer to the
operator concerning such failure.

c\. The Government\' s termination of this contract for default will be
deemed to be a decision of the Contracting Officer as to a dispute
concerning a question of fact within the meaning of the clause of this
contract entitled \"Disputes.\"

d\. In the event this contract is terminated for default, the Government
may retain as liquidated damages any monies which have been prepaid or
advanced to the Government, based on occupancy to the end of the
contract period.

e\. In the event of termination in accordance with paragraph a. clause
5, the Operator will be entitled to have any monies that have been
prepaid or advanced to the Government based on occupancy of the premises
to the end of the contract period refunded to it by the Government.

f\. If after notice of termination for default of this contract under
this Clause, it is determined for any reason that the Operator was not
at fault under this Clause, or that the default was excusable under this
clause, the termination will be deemed to have been properly effected
pursuant to paragraph a. of his Clause.

7\. WAIVER OF PERFORMANCE. The failure of the Government to insist in
any one or more instances upon a strict performance by the Operator of
any of the terms of this contract will not be construed as a waiver or
relinquishment thereof for the future, but rather, said terms will
continue and remain in full force and effect. No waiver by the
Government of any terms hereof will be deemed to have been made in any
instance unless specifically expressed in writing as an amendment to
this contract.

8\. WORK STOPPAGE OR STRIKE. Except as a result of damage to or
destruction of the premises by fire or other casualty, in the event
operation of the Operator are curtailed, interrupted, or otherwise
handicapped in whole or in part for any reason, including but not
limited to strikes and labor disputes, such conditions will not relieve
the Operator of its obligation to pay the revenue specified in this
contract nor to pay for utilities consumed under such conditions, unless
and except as otherwise specifically provided for elsewhere in this
contract.

9\. FAIR LABOR STANDARDS ACT. (Public Law 93A259, enacted April 8,1974,
amends the Fair Labor Standards Act of 1937, as amended (29 U.S.C. 201
et seq.).) The administration and enforcement of this Act are the
responsibility of the U. S. Department of Labor; any questions as to the
requirements of the Act or its applicability to the work required by
this contract should be addressed to the Administrator, Wage and Hour
Division, U. S. Department of Labor, Washington, DC. 20210 or to a Labor
Department Regional Office.

10\. SECURITY. The Operator and each of his employee engaged in work
under this contract will execute and submit to the Federal Aviation
Administration a Standard Form FDA258, (3 copies), and Standard Form 86,
(1 copy). The executed forms will be furnished to the Contracting
Officer\'s Representative (COR) not later than the first day Operator\'
s employees report to the facility to perform services under this
contract. Personnel of the Operator will not be allowed to perform
services under this contract until the Contracting Officer has received
the appropriate forms. The necessary forms will be furnished to the
Operator by the COR.

Personnel of the Operator who have previously submitted Standard Forms
86 and FDA258 for work under other: Federal Aviation Administration
contracts need not submit new forms if they have been continuously
employed at the same FAA facility since the original submission of the
forms.

All personnel of the Operator ,who are cleared for security purposes
will be allowed to continue to perform work under the contract; any
individual who is not so cleared may not be employed by the Operator
under this contract.

11\. FACILITY RULES AND REGULATIONS. The Operator will observe and obey
all rules, regulations, and implementations thereof promulgated as
authorized by law for the care, operation, maintenance and protection of
the facility, which rules, regulations and implementations thereof would
be applicable and valid irrespective of this clause. Failure of the
Operator, any of those persons under its control or its subcontractors
to observe such rules, regulations or implementations will, in addition
to assessment of any other penalty provided by law, because for
termination of this contract for default.

12\. RESTRICTIONS.

a\. Unless specifically authorized in writing by the Contracting
Officer, the Operator will not remove any Government-owned equipment
from premises, advertise the concession operations in any manner, or
prepare foods and beverages on the premises for sale at any location not
covered by the contract.

b\. Since the facilities to be provided hereunder are for the benefit
and convenience of Federal employees, patronage from other sources that
interfere with such purposes may be limited or prohibited by the
Government at is sole discretion.

13\. PROMOTION. The Operator agrees to use its best efforts in every
proper manner to maintain and develop the business conducted by it under
this contract, to increase same, and not to divert or cause or allow any
business to be diverted form the facility.

14\. SANITATION.

a\. All cafeteria operating under the contract will be conducted in
conformance with the requirements for a Grade A food establishment, as
set forth in the Food Service Sanitation Manual No. FDA-78-2081, of the
Food and Drug Administration (GPO Stock No. 017-012-00267-6) (or
revision thereof), or in conformance with local requirements for a
top-grade establishment, if the latter should be more stringent,
provided, however, that the Operator will not be responsible for any
structural deficiencies in the facility which are the responsibility of
the Government.

b\. Each food handler will be required to pass a medical examination
annually or as may be required by applicable local regulations,
whichever requirement is more stringent, to determine that he has no
communicable disease. Those found to be or suspected of suffering from a
communicable disease will be removed from duty immediately.

c\. Food handlers will not be permitted to operate the cash register or
handle money nor will any person operating the cash register or handling
money be permitted to handle food.

15\. INSPECTIONS

a\. Health. The facility operated under the contract may be inspected
periodically by the Contracting Officer, representatives of local health
departments, or the Regional Flight Surgeon. After each inspection, the
Operator will be advised of any unsatisfactory conditions for which he
is responsible. Deficiencies reported will be corrected promptly by the
Operator.

b\. Fire Prevention. Periodic inspections will be performed by a
FAA-appointed fire inspector; any unsafe conditions found by such
official will be immediately corrected by the Operator.

c\. Industrial Safety. Periodic inspections will be performed by an
FAA-appointed Safety Officer; and any unsafe conditions found by such
official will be immediately corrected by the operator

16\. ESTABLISHMENT AND CONTROL OF PRICES AND SERVICES.

a\. The Contracting Officer reserves the right to control the nature,
types, and quantities of merchandise and services which may be sold or
furnished by the Operator If the Operator refuses or fails within
forty-eight (48) hours after receipt of written notice form the
Contracting Officer to discontinue the sale of any product or service
which the Contracting Officer determines to be in violation of the
rights granted hereunder or which the Contract Officer determines should
not be dispensed, or if the Contracting Officer is forced to make
repeated and frequent demands upon the Operator to cease the sale of
such products or services, such refusal, failure or demands will be
cause for termination for default of this contract.

b\. The Operator will maintain and operate the vending facility to such
extent and in such manner as provided in the contract, sell the articles
and services authorized, and provide the management, personnel,
equipment, goods and commodities necessary therefor.

c\. All rates and prices established by the Operator for goods or
services sold hereunder will be reasonable and subject to approval by
the Contracting Officer.

d\. Reasonableness of prices will be judged primarily by comparison with
those currently charged for comparable goods or services furnished or
sold outside the facility under similar conditions, with due allowance
for accessibility, hours and time of operation, availability and cost of
labor and materials, type of patronage, and other conditions customarily
considered in determining charges, but due regard may also be given
other factors as the Contracting Officer may dream significant.

e\. Only quality foods, such as Grade A poultry, U. S. Choice grades of
beef U.S. No.1 grade pork, Grade A or fancy vegetables, and Grade A or B
canned goods may be used. All foods served will be wholesome and free
from spoilage and decay. Uncooked items, such as fresh fruits will be
clean and free from blemish. Salads and sandwiches will be made fresh
daily and all foods, will, when served, be attractive in appearance at
the proper temperature, and moist, dry, tender, etc., as appropriate.

f\. Prices will be posted by the Operator, preferably adjacent to the
item.

17\. RESPONSIBILITIES OF THE GOVERNMENT. The Government will provide
space for operation of the vending facility and such additional space as
it may deem necessary including a reasonable use of existing elevators,
corridors, passageways, driveways, and loading platforms. The Government
will, as it deems necessary provide lighting, ventilation, and the
utilities required for the operation of the vending facility. In
addition, the Government will:

a\. Make such improvements and alterations as it may deem necessary or
desirable to prepare or recondition assigned space for its intended
purpose, including improvements and alterations necessary to conform to
applicable health and sanitary requirements.

b\. Maintain and repair the following: (i) the building structure in
areas assigned, for the Operator\'s use, including painting and
redecoration; (ii) gas, water, steam. sewer, and electrical lines,
ventilation, and existing air conditioning lines, all to the point of
connection with food service equipment or to the point of outlet in
vending facility areas if not so connected; (iii) electrical lighting
fixtures (including relamping); space heating systems, floors and floor
coverings (except rugs and carpets) and wall and ceiling; provided that
Operator will bear the expense of all repairs necessary because of
damage caused by the fault or negligence of the Operator or any of his
employees.

18\. RESPONSIBILITES OF TO OPERATOR.

a\. The Operator will provide prompt, efficient, and courteous service.
He will obtain licenses and permits as required by State and local
authorities, and will observe all applicable building, health, sanitary,
and other regulations and laws. He will use reasonable care in the use
of space and Government-owned equipment, and, upon contract termination,
will yield up such space and equipment in the same condition as when
received, except for ordinary wear and tear and damage or destruction
beyond his control and not due to his fault or negligence.

b\. The Operator will maintain an effective program for the
extermination of rodents and vermin in areas assign›d for his use.
Although the Government will provide cleaning of the dining area floors
and waxing of the floor as specified in the contract, the Operator will
provide necessary intermittent cleaning of the dining area floors
between the cleanings provided by the Government. All cleaning and
mopping of the area behind the counter and all kitchen and storage
areas, as specified herein, will be done by the Operator.

c\. The Operator will employ sufficient and suitable personnel, secure
and maintain insurance, and observe other contract requirements? all as
more specifically set forth hereinafter. Except as otherwise stated
herein, he will pay each and every fee, cost, or other charge incident
to, or resulting from operations under the contract.

19\. EMPLOYEE OF OPERATOR.

a\. The Operator will employ a full-time qualified manager during the
hours of \_\_\_\_\_\_\_\_\_\_\_\_\_ days a week. In addition, the
Operator will employ \_\_\_\_\_\_\_\_\_ full-time working supervisors
during each shift, \_\_\_\_\_\_\_\_a day, \_\_\_\_\_\_\_\_days a week. A
representative of the Operator, other than one c If the above
supervisors, will visit the facility monthly for general supervisory
purposes at times agreed upon by the Contracting Officer and the
Operator. Upon 4\~8 hours advance notice from the Contracting Officer a
representative of executive status will visit the facilities to adjust
matters requiring attention.

b\. The Government may require the Operator to remove from the contract
operations any employee who is considered incompetent, careless,
insubordinate, unsuitable or otherwise objectionable or whose continued
employment is considered contrary to the public interest by the
Contracting Off1cer.

c\. The operator will require its employee to wear a uniform and badge
by which they may be known and distinguished as the employees of said
Operator. Uniforms will be clean. Hair nets, headbands or caps must be
used by employees engaged in the preparation and serving of food to keep
hair from food contact surfaces. The Operator will provide his employees
with frequent changes of uniforms to assure cleanliness.

d\. The Operator will require its employees to observe a strict
impartiality as to quantities and services and in all circumstances to
exercise courtesy and considerations in dealing with vending facility
patrons. Serving utensils will be used by the Operator\'s employees to
keep direct handling of food to a minimum

e\. Employees of the Operator hall not smoke or carry lighted cigarettes
or tobacco products in the food preparation or serving area.

f Each employee of the Operator will be a citizen of the United States
of America or an alien who has been lawfully admitted for permanent
residence, as evidenced by an Alien Registration Receipt Card, Form
1-151, or other evidence from the Immigration and Naturalization service
that employment will not affect his immigration status.

g\. The Operator will employ a full-time, on-site manager who possesses
the necessary qualifications to supervise the establishment effectively.
The on-site manager will have previously had, as a minimum, two years of
consecutive employment in a position with comparable responsibilities.
The proposed manager\'s qualifications (resume) will be subject to the
approval of the Contracting Officer. No one other than the person
approved by the Contracting Officer will be assigned to manage the
vending facility. These provisions also apply to any replacement of the
manager.

h\. The Operator\' s manager will be delegated the authority essential
to the day-to-­day effective operation of the cafeteria for personnel
supervision and training, menu planning, purchasing, cost control,
sanitation, etc. The Operator\'s manager will be replaced on 30 days
notice upon request of the Contracting Officer if he determines there
are operational deficiencies resulting from inferior management.

i\. The Operator will at all times provide an adequate staff of food
service employees to perform the varied and essential duties, inherent
in a successful food service operation. Except as otherwise provided in
this contract, staffing will be provided as submitted in the Operator\'s
proposal and any changes are subject to approval of the Contracting
Officer.

j\. The Operator will pay all employees not less frequently than once
every tow weeks, without deduction or rebate on any account, except as
provided or allowed by law.

k\. The Operator will provide adequate, trained relief personnel to
substitute for its regular employees when they are absent so that a high
quality concession service will be maintained at all time.

l\. The Operator will require its employees to comply with such
instructions pertaining to conduct and building regulations as are in
effect for the control of persons in the building or as may be issued
for that purpose by Government representatives.

m\. The Operator will schedule an employee training program that will
continue for the duration of this contract and any extensions thereof to
insure that its employees perform their jobs with highest standards of
efficiency and sanitation

n\. All articles found by the Operator, its agents or employees or found
by patrons and given to the Operator, will be turned in to the
Government as lost-and-­found items.

o\. Violations of the foregoing responsibilities may result in
termination of the Contract

20\. PAYMENT TO THE GOVERNMENT.

a\. Payment of \$\_\_\_\_\_\_\_\_\_\_ to the Government will be made
monthly, in accordance with the provisions of the contract. Payments
will be made not later than the day of each calendar month.

b\. All payments will be mailed to the Chief, Accounting Division,

located at \_\_\_\_\_\_\_\_\_\_\_\_\_\_.

Checks will be made payable to the Federal Aviation Administration and
will reference the contract number, period of time covered, and facility
served.

21\. EQUIPMENT.

a\. Equipment to be provided by the Government. The Government will
proved and the Operator may cause the equipment listed herein. The
Government will also:

\(1\) furnish and install replacement equipment when it determines that
the original equipment is worn out or beyond economical repair; and

\(2\) furnish and install such additional equipment of a similar type
which it may deem necessary in connection with an expansion of these
services, should any expansion be required.

b\. Title to all Government furnished equipment will remain in the
Government. No Government furnished equipment will be removed from the
premises for any purposes except by the Government or with the prior
approval of the COR. The Operator will acknowledge receipt of all
Government-owned equipment in writing.

c\. Minor repairs to Government Furnished Equipment. Throughout the
contract period or any extension thereof the Operator will maintain,
adjust, and repair the Government furnished equipment provided for his
use in a manner satisfactory to the COR; provided, that the
responsibility of the Operator for repairs to Government furnished
cafeteria equipment will be limited to repairs made at one time which
cost less then 10% of the original cost of equipment. The Operator will
also repair or replace any Government furnished equipment that may be
damaged as a result of his own or his employees fault or negligence,
regardless of cost: The Operator will:

\(1\) Service the dishwasher and care for it in accordance with the
instructions of the manufacturer.

\(2\) Keep the deep-fat-fryer and toaster clean and in serviceable
condition.

\(3\) Keep the canopy free form grease and thoroughly clean.

\(4\) Clean air filters daily and grease traps for the dishwasher and
sink when required.

c\. Replacement or Major Repairs to Government Furnished Equipment. If
the cost of repairing a piece of Government furnished equipment will
exceed the limitations specified in paragraph b. above or the equipment
has become obsolete or no longer useful for its original purpose, the
Operator will notify the Contracting Officer so that arrangements may be
made for appropriate repairs of replacements. The decision of the
Contracting Officer as to whether a piece of equipment is to be repaired
or replaced will be final.

d\. Equipment to be provided by the Operator. The Operator will provide
all required equipment not provided by the Government. The Operator will
repair, replace and supplement such equipment as necessary to insure
sanitary, efficient and satisfactory operation of the vending facility.

e\. Final Disposition of Equipment. At the end of the contract period or
extension thereof, all equipment will be disposed of as provided in the
contract.

22\. SURRENDER OF POSSESSION.

a\. As of the date this contract expires or is terminated as provided
for elsewhere in this contract, the Operator will immediately and
peaceably yield up to the Government the premises in good repair in all
respects, reasonable wear and tear excepted, and the Government may
without further notice take possession of the premises.

b\. Upon prior written notice to the Contracting Office the Operator
will have the right at any time during the term of this contract to
remove any operating facilities it may erect or install or use in the
premises, and any or all fixtures and equipment and other property
installed or placed by it at its expense in or about the leased
premises; subject, however, to any valid lien which the Government may
have thereon for unpaid charges and fees; and provided that, upon
removal of any such operating facilities, the Operator will restore the
premises to a condition satisfactory to the Contracting Officer.

c\. The Operator will be deemed to have abandoned to the Government any
operating facilities and other facilities, equipment and property of the
Operator which it has failed to remove from the premises or from the
possession of the Government within fifteen (15) calendar days after the
end of the period of this contract, or effective date of termination
thereof, unless the Contracting Officer grant additional time for this
purpose in writing; provided, however, that the Government may, prior to
the expiration of said fifteen (15) day period, remove same and restore
the premises to a satisfactory condition and hold the Operator liable
for all costs incident thereto. In the event it is necessary for the
Government to remove such facilities, equipment or property, the
Government will not be subject to any liability by reason of the removal
or the custodial care of same.

23\. ESTABLISHMENT OF OPERATING FACILITIES.

a\. The Operator will provide and install at its own costs and expense,
all operating facilities and furnish all supplies and materials required
for the proper and adequate operation of the vending facility under this
contract.

b\. All such installations will be subject to the Contracting Officer\'s
approval for conformity with safety standards and similar criteria and
with regulations established for the facility and for compatibility of
design, quality, conditions, or color arrangement with the architectural
and general character of the vending facility area and the facility. In
addition, all installations will conform to applicable state and Federal
building, plumbing, electrical, or similar codes or ordinances. The
Operator will provide all necessary maintenance for the operating
facilities.

24\. ACCOUNTING RECORDS OF THE OPERATOR.

a\. In the event this contract provides for payment of revenue to the
Government which is computed in any manner upon the gross receipts or
net receipts of the Operator derived from its operations, the Operator
will maintain accounting records, in accordance with accepted accounting
practices, of all its transactions that are connected with operations
under this contract. These records should be kept current during the
contract period at the business address of the current operator during
the contract period and be retained at that location for a period
extending 3 years from the date of termination or expiration of this
contract, unless a longer period of time specifically is started
elsewhere in this contract.

b\. The Operator will permit any verification, examination or audit of
these accounting records deemed advisable by the Government. In
addition, any verification, examination or audit of the accounting
records of any proprietary or affiliate concern during the term of this
contract, and for 3 years afterwards, during regular business hours will
be allowed.

c\. The Operator also will permit inspection by the officers, employees,
or representatives of the Government of any accounting, bookkeeping, or
similar equipment used by the Operator in the development and
maintenance of these accounting records.

25\. ACCOUNTING DATA. The Operator will submit a copy of its quarterly
incomes statement to the Contracting Officer through the Contracting
Officer\'s Representative.