**General Services Administration Acquisition Manual (GSAM)**

**APD 2800.12B**

**September 1, 1999**

U.S. General Services Administration

Office of Acquisition Policy

**INTRODUCTION**

The General Services Administration Acquisition Manual (GSAM)
consolidates the General Services Administration (GSA) agency
acquisition rules and guidance.

[Distinguishing Regulatory Material]{.underline}

The GSAM incorporates the General Services Administration Acquisition
Regulation (GSAR) as well as internal agency acquisition policy. GSAR
material is shaded. The shading helps users to distinguish and identify
those parts that are regulatory from those that apply internally to GSA.

The shaded parts are those subject to section 22 of the Office Federal
Procurement Policy Act, as amended (41 U.S.C. 418b). GSA must publish
these rules in the Federal Register and codify them in 48 CFR Chapter 5
in accordance with the Paperwork Reduction Act (44 U.S.C.3051 et seq.)
and the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The rules
that require publication fall into two major categories:

\(1\) Those that affect GSA's business partners (e.g., prospective
offerors, contractors).

\(2\) Those that apply to acquisition of leasehold interests in real
property. The Federal Acquisition Regulation (FAR) does not apply to
leasing actions. GSA establishes regulations for lease of real property
under the authority of 40 U.S.C. 490 note.

Separating regulatory material from internal directives decreases the
number of rules subject to publication in the Federal Register. It also
provides greater flexibility and responsiveness because an internal
directive is easier and quicker to update or change.

[Addressed to the Contracting Officer]{.underline}

Both the GSAR and GSAM address the contracting officer, except where
specifically indicated. \"You\" means the contracting officer.

[Compliance with Internal Directives]{.underline}

Non-shaded material is nonregulatory, but occasionally includes
requirements that are mandatory for GSA personnel. These requirements
are necessary to ensure uniformity or for other reasons.

[Consolidation of Acquisition Directives]{.underline}

To the extent practicable, acquisition directives have been integrated
into one document to eliminate the burden of checking multiple sources
for related acquisition guidance.

**GENERAL SERVICES ADMINISTRATION\
ACQUISITION MANUAL**

**STRUCTURE TO THE SECTION LEVEL**

**SUBCHAPTER A\--GENERAL**

**PART 501 GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION
SYSTEM**

**501.1 Purpose, Authority, Issuance**

501.101 Purpose.

501.103 Authority.

501.104 Applicability.

501.105 Issuance.

501.105-1 Publication and code arrangement.

501.105-2 Arrangement of regulations.

501.105-3 Copies.

501.106 OMB Approval under the Paperwork Reduction Act.

501.170 General Services Administration Acquisition Management System.

501.171 Other GSA publications.

501.171-1 GSA orders and handbooks.

501.171-2 Acquisition letters.

**501.4 Deviations From the FAR and GSAR**

501.402 Policy.

501.403 Individual deviations.

501.404 Class deviations.

**501.6 Career Development, Contracting Authority, and
Responsibilities**

501.601 General.

501.602 Contracting officers.

501.602-2 Responsibilities.

501.602-3 Ratification of unauthorized commitments.

501.603 Selection, appointment, and termination of appointment.

501.603-1 General.

501.603-2 Selection

501.603-3 Appointment.

501.603-4 Termination.

**501.7 Determinations and Findings**

501.707 Signatory authority.

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**PART 502 DEFINITIONS OF WORDS AND TERMS**

**502.1 Definitions**

502.101 Definitions.

**PART 503 IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST**

**503.1 Safeguards**

503.101 Standards of conduct.

503.101-3 Agency regulations.

503.104 Procurement integrity.

503.104-3 Definitions.

503.104-4 Statutory and related prohibitions, restrictions, and
requirements.

503.104-5 Disclosure, protection, and marking of contractor bid or
proposal information and source selection information.

503.104-9 Contract clauses.

503.104-10 Violations or possible violations.

**503.2 Contractor Gratuities To Government Personnel**

503.203 Reporting suspected violations of the Gratuities clause.

503.204 Treatment of violations.

**503.3 Reports of Suspected Antitrust Violations**

503.303 Reporting suspected antitrust violations.

**503.4 Contingent Fees**

503.404 Contract clause.

503.405 Misrepresentations or violations of the Covenant Against
Contingent Fees.

**503.5 Other Improper Business Practices**

503.570 Advertising.

503.570-1 Policy.

503.570-2 Contract clause.

**503.7 Voiding and Rescinding Contracts**

503.702 Definition.

503.705 Procedures.

**503.8 Limitations On Payment of Funds To Influence Federal
Transactions**

503.806 Processing suspected violations.

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**PART 504 ADMINISTRATIVE MATTERS**

**504.1 Contract Execution**

504.101 Contracting officer\'s signature.

504.103 Contract clause.

**504.2 Contract Distribution**

504.201 Procedures.

504.203 Taxpayer identification number information.

**504.4 Safeguarding Classified Information Within Industry**

504.402 General.

504.470 Requests for release of classified information.

504.470-1 Authorization for release.

504.470-2 Termination of authorization for release.

504.471 Processing security requirements checklist (DD Form 254).

504.472 Periodic review.

504.473 Recurring procurement.

504.474 Control of classified information.

504.475 Return of classified information.

504.476 Breaches of security.

**504.5 Electronic Commerce in Contracting**

504.500 Scope of Subpart.

504.502 Policy.

504.570 Procedures for using the EPS.

**504.6 Contract Reporting**

504.602-70 General Services Administration Procurement Data System
(GPDS).

**504.8 Government Contract Files**

504.800 Scope of subpart.

504.802 Contract files.

504.803 Contents of contract files.

504.804-5 Detailed procedures for closing out contract files.

504.805 Storage, handling, and disposal of contract files.

**504.9 Information Reporting To the Internal Revenue Service**

504.903 Payment information.

**504.70 Uniform Procurement Instrument Identification**

504.7001 Uniform procurement instrument identification.

504.7001-1 Policy.

504.7001-2 Basic procurement instrument identification number.

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504.7001-3 Order and call instrument identification number.

504.7001-4 Supplemental procurement instrument identification number.

504.7001-5 Codes for instrument identification numbers.

504.7002 Procurement contract register.

**APPENDIX 501A** Suggested Language For Certificates of Appointment For
Contracting Officer Warrant Program

**SUBCHAPTER B\--COMPETITION AND ACQUISITION PLANNING**

**PART 505 PUBLICIZING CONTRACT ACTIONS**

**505.1 Dissemination of Information**

505.101 Methods of disseminating information.

**505.2 Synopses of Proposed Contract Actions**

505.202 Exceptions

505.203 Publicizing and response time.

505.207 Preparation and transmittal of synopses.

505.270 Synopsis of amendments to solicitations.

**505.3 Synopses of Contract Awards**

505.303 Announcement of contract awards.

505.303-70 Notification of proposed substantial awards and awards
involving congressional interest.

**505.4 Release of Information**

505.403 Requests from Members of Congress.

**505.5 Paid Advertisements**

505.502 Authority.

505.503 Procedures.

505.504 Use of advertising agencies.

**PART 506 COMPETITION REQUIREMENTS**

**506.2 Full and Open Competition After Exclusion of Sources**

506.202 Establishing or maintaining alternative sources.

**506.3 Other Than Full and Open Competition**

506.303 Justifications.

506.303-1 Requirements.

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**PART 507 ACQUISITION PLANNING**

**507.1 Acquisition Plans**

507.101 Definitions.

507.102 Policy.

507.103 Agency-head responsibilities.

507.104 General procedures.

507.105 Contents of written acquisition plans.

**507.3 Contractor Versus Government Performance**

507.307 Appeals.

**507.5 Inherently Governmental Functions**

507.503 Policy.

**PART 508 REQUIRED SOURCES OF SUPPLIES AND SERVICES**

**508.6 Acquisition From Federal Prison Industries, Inc.**

508.604 Ordering procedures.

508.604-70 Delinquent delivery orders.

508.605 Clearances.

**508.7 Acquisition From Nonprofit Agencies Employing People Who Are
Blind Or Severely Disabled**

508.705 Procedures

508.705-4 Compliance with orders.

508.705-70 Adding items to the Procurement List.

508.705-71 Central non-profit agency performance capability.

508.706 Purchase exceptions.

**508.8 Acquisition of Printing and Related Supplies**

508.802 Policy.

**PART 509 CONTRACTOR QUALIFICATIONS**

**509.1 Responsible Prospective Contractors**

509.104 Standards.

509.104-3 Application of standards.

509.105 Procedures.

509.105-1 Obtaining information.

509.105-2 Determinations and documentation.

509.106 Preaward surveys.

509.106-2 Requests for preaward surveys.

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**509.2 Qualifications Requirements**

509.206 Acquisitions subject to qualification requirements.

509.206-2 Contract clause.

**509.3 First Article Testing and Approval**

509.302 General.

509.306 Solicitation requirements.

509.308 Contract clauses.

509.308-1 Testing performed by the contractor.

509.308-2 Testing performed by the Government.

**509.4 Debarment, Suspension, and Ineligibility**

509.401 Applicability.

509.403 Definitions.

509.405 Effect of listing.

509.405-1 Continuation of current contracts.

509.405-2 Restrictions on subcontracting.

509.406 Debarment.

509.406-1 General.

509.406-3 Procedures.

509.407 Suspension.

509.407-1 General.

509.407-3 Procedures.

**509.5 Organizational and Consultant Conflicts of Interest**

509.503 Waiver.

**PART 510 MARKET RESEARCH \[RESERVED\]**

**PART 511 DESCRIBING AGENCY NEEDS**

511.001 Definitions.

511.002 Policy.

511.002-70 GSA Metric Program.

511.002-71 Construction metrication ombudsman.

511.002-72 Procedures for procuring products containing recovered
materials and environmentally preferable products.

**511.1 Selecting and Developing Requirements Documents**

511.103 Market acceptance.

511.170 Use of brand name or equal product descriptions.

511.170-1 Policy.

511.170-2 General.

511.170-3 Solicitation provisions.

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**511.2 Using and Maintaining Requirements Documents**

511.204 Solicitation provisions and contract clauses.

**511.4 Delivery Or Performance Schedules**

511.401 General.

511.404 Contract clauses.

**PART 512 ACQUISITION OF COMMERCIAL ITEMS**

**512.2 Special Requirements For the Acquisition of Commercial Items**

512.203 Procedures for solicitation, evaluation, and award.

**512.3 Solicitation Provisions and Contract Clauses For the Acquisition
of Commercial Items**

512.301 Solicitation provisions and contract clauses for the acquisition
of commercial items.

512.302 Tailoring of provisions and clauses for the acquisition of
commercial items.

**APPENDIX 507A** Comprehensive Acquisition Planning, GSA Order APD
2800.13B

**SUBCHAPTER C\--CONTRACTING METHODS AND CONTRACT TYPES**

**PART 513 SIMPLIFIED ACQUISITION PROCEDURES**

513.003 Policy.

**513.1 Procedures**

513.106-1 Soliciting competition.

513.106-3 Award and documentation.

**513.3 Simplified Acquisition Methods**

513.301 Governmentwide commercial purchase card.

513.302 Purchase orders.

513.302-70 Purchase order and related forms.

513.303 Blanket purchase agreements (BPAs).

513.303-3 Preparation of BPAs.

513.305 Imprest funds and third party drafts.

513.305-2 Agency responsibilities.

513.305-3 Conditions for use.

513.305-4 Procedures.

513.307 Forms.

513.370 Certified invoice procedure.

513.370-1 Applicability.

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APD 2800.12B, 09-01-99 vii

513.370-2 Limitations.

513.370-3 Invoices.

**513.4 Fast Payment Procedure**

513.401 General.

**PART 514 SEALED BIDDING**

**514.2 Solicitation of Bids**

514.201 Preparation of invitations for bids.

514.201-1 Uniform contract format.

514.201-2 Part I - the Schedule.

514.201-6 Solicitation provisions.

514.201-7 Contract clauses.

514.201-70 GSA Form 1602.

514.202 General rules for solicitation of bids.

514.202-4 Bid samples.

514.203 Methods of soliciting bids

514.203-1 Transmittal to prospective bidders.

514.205 Solicitation mailing lists.

514.205-1 Establishment of lists.

514.211 Release of acquisition information.

514.213 Annual submission of representations and certifications.

514.270 Aggregate awards.

514.270-1 Definition.

514.270-2 Justification for use.

514.270-3 Evaluation factors for award.

514.270-4 Grouping line items for aggregate award.

514.270-5 Evaluation methodologies for aggregate awards.

514.270-6 Guidelines for using the weight factors method.

514.270-7 Guidelines for using the price list method.

**514.3 Submission of Bids**

514.303 Modification or withdrawal of bids.

514.304 Late bids, late modifications of bids, or late withdrawal of
bids.

514.304-1 General.

514.370 Copies of bids required.

**514.4 Opening of Bids and Award of Contract**

514.401 Receipt and safeguarding of bids.

514.402 Opening of bids.

514.402-1 Unclassified bids.

514.403 Recording of bids.

514.404 Rejection of bids.

514.404-1 Cancellation of invitations after opening.

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514.404-2 Rejection of individual bids.

514.407 Mistakes in bids.

514.407-3 Other mistakes disclosed before award.

514.407-4 Mistakes after award.

514.408 Award.

514.408-6 Equal low bids.

514.408-70 Awards involving related cases referred to higher authority.

514.408-71 Forms for recommending award(s).

514.409 Information to bidders.

514.409-1 Award of unclassified contracts.

514.409-70 Restriction on disclosure of inspection or test data.

514.470 Multiple bids.

**PART 515 CONTRACTING BY NEGOTIATION**

**515.2 Solicitation and Receipt of Proposals and Information**

515.204 Contract format.

515.204-1 Uniform contract format.

515.205 Issuing solicitations.

515.207 Handling proposals and information.

515.209 Solicitation provisions and contract clauses.

515.209-70 Examination of records by GSA clause.

515.210 Forms.

515.210-70 GSA Form 1602.

**515.3 Source Selection**

515.300 Scope of subpart.

515.305 Proposal evaluation.

515.305-70 Use of outside evaluators.

515.306 Exchanges with offerors after receipt of proposals.

Figure 515.3-1 Conflict of Interest Acknowledgment and Nondisclosure
Agreement

**515.4 Contract Pricing**

515.403 Obtaining cost or pricing data.

515.403-4 Requiring cost or pricing data (10 U.S.C. 2306a and 41 U.S.C.
254b).

515.404-2 Information to support proposal analysis.

515.404-4 Profit.

515.404-70 Nonprofit organizations.

515.405 Price negotiation.

515.408 Solicitation provisions and contract clauses.

Figure 515.4-2 Instructions for Commercial Sales Practices Format

**515.5 Preaward, Award, and Postaward Notifications, Protests, and
Mistakes**

515.506 Postaward debriefing of offerors.

515.570 Release of information concerning unsuccessful offerors.

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APD 2800.12B, 09-01-99 ix

**515.6 Unsolicited Proposals**

515.601 Definitions.

515.606 Agency procedures.

515.606-2 Evaluation.

515.609 Limited use of data.

**515.70 Use of Bid Samples**

515.7000 General.

515.7001 Policy.

515.7002 Procedures.

**PART 516 TYPES OF CONTRACTS**

**516.2 Fixed Price Contracts**

516.203 Fixed-price contracts with economic price adjustment.

516.203-3 Limitations.

516.203-4 Contract clauses.

**516.4 Incentive Contracts**

516.406 Contract clauses.

**516.5 Indefinite-Delivery Contracts**

516.506 Solicitation provisions and contract clauses.

**516.6 Time-and-Materials, Labor-Hour, and Letter Contracts**

516.603 Letter contracts.

516.603-3 Limitations.

**PART 517 SPECIAL CONTRACTING METHODS**

**517.1 Multiyear Contracting**

517.101 Authority.

517.109 Contract clauses.

**517.2 Options**

517.200 Scope of subpart.

517.202 Use of options.

517.203 Solicitations.

517.204 Contracts.

517.207 Exercise of options.

517.208 Solicitation provisions and contract clauses.

**PART 518 \[RESERVED\]**

**APPENDIX 515A** Source Selection Procedures

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**SUBCHAPTER D\--SOCIOECONOMIC PROGRAMS**

**PART 519 SMALL BUSINESS PROGRAMS**

519.001 Definitions.

**519.2 Policies**

519.201 General policy.

519.202 Specific policies.

519.202-2 Locating small business sources.

519.202-4 Solicitation.

**519.3 Determination of Status as a Small Business, HUBZone Small
Business, or Small Disadvantaged Business Concern**

519.302 Protesting a small business representation.

519.305 Protesting a representation of disadvantaged business status.

519.306 Protesting a firm\'s status as a HUBZone small business concern.

**519.4 Cooperation With the Small Business Administration**

**519.5 Set-Asides For Small Business**

519.502 Setting aside acquisitions.

519.502-1 Requirements for setting aside acquisitions.

519.502-70 Review of non-set-aside determinations.

519.503 Setting aside a class of acquisitions.

519.506 Withdrawing or modifying set-asides.

519.508 Solicitation provisions and contract clauses.

**519.6 Certificates of Competency and Determinations of
Responsibility**

519.602 Procedures.

519.602-3 Resolving differences between the agency and the Small
Business Administration.

**519.7 The Small Business Subcontracting Program**

519.708 Contract clauses.

519.708-70 Solicitation provisions

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APD 2800.12B, 09-01-99 xi

**519.8 Contracting With the Small Business Administration (The 8(a)
Program)**

519.803 Selecting acquisitions for the 8(a) program.

519.803-70 Contracting officer evaluation of recommendations for 8(a)
set-aside(s).

519.803-71 Withdrawing or modifying 8(a) set-asides.

519.870 Direct 8(a) contracting.

519.870-1 Authority and applicability.

519.870-2 Acquisitions at or under the SAT.

519.870-3 Acquisitions exceeding the SAT.

519.870-4 Sole source requirements.

519.870-5 Competitive requirements.

519.870-6 Contract administration.

519.870-7 Reporting.

519.870-8 Contract clauses.

**519.10 Small Business Competitiveness Demonstration Program**

519.1006 Procedures.

519.1006-70 Designated industry goals.

519.1006-71 Procedures for designated industry groups.

519.1006-72 Goal attainment for period: Fiscal Year 1998

519.1006-73 Procurement procedures for solicitations issued on or after
February 1, 1999

**519.11 Price Evaluation Adjustment for Small Disadvantaged Business
Concerns**

519.1102 Applicability

519.1103 Procedures

**519.12 Small Disadvantaged Business Participation Program**

519.1201 General.

519.1202 Evaluation factor or subfactor.

519.1202-2 Applicability

519.1202-4 Procedures.

519.1203 Incentive subcontracting with small disadvantaged business
concerns.

**519.13 Historically Underutilized Business Zone (HUBZone) Program**

519.1305 HUBZone set-aside procedures.

519.1307 Price evaluation preference for HUBZone small business
concerns.

**PART 520 \[RESERVED\]**

**PART 521 \[RESERVED\]**

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**PART 522 APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS**

522.001 Definition.

**522.1 Basic Labor Policies**

522.101 Labor relations.

522.101-1 General.

522.101-3 Reporting labor disputes.

522.103 Overtime.

522.103-4 Approvals.

522.103-5 Contract clauses.

**522.3 Contract Work Hours and Safety Standards Act**

522.302 Liquidated damages and overtime pay.

**522.4 Labor Standards For Contracts Involving Construction**

522.404 Davis-Bacon Act wage determinations.

522.404-6 Modifications of wage determinations.

522.406 Administration and enforcement.

522.406-6 Payrolls and statements.

522.406-7 Compliance checking.

522.406-8 Investigations.

522.406-9 Withholding from or suspension of contract payments.

522.406-11 Contract terminations.

522.406-13 Semiannual enforcement reports.

**522.6 Walsh-Healey Public Contracts Act**

522.608 Procedures.

**522.8 Equal Employment Opportunity**

522.803 Responsibilities.

522.804 Affirmative action programs.

522.804-1 Nonconstruction.

522.805 Procedures.

522.807 Exemptions.

**522.10 Service Contract Act of 1965, As Amended**

522.1003 Applicability.

522.1003-3 Statutory exemptions.

522.1003-4 Administrative limitations, variations, tolerances, and
exemptions.

522.1003-7 Questions concerning applicability of the Act.

522.1007 Requirement to submit Notice (SF98/98a).

522.1011 Response to notice by Department of Labor.

522.1011-2 Requests for status or expediting of response.

522.1021 Requests for hearing.

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**522.13 Disabled Veterans and Veterans of the Vietnam Era**

522.1303 Waivers.

**522.14 Employment of Workers With Disabilities**

522.1403 Waivers.

**PART 523 ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY AND DRUG-FREE
WORKPLACE**

**523.3 Hazardous Material Identification and Material Safety Data**

523.303 Contract clause.

523.370 Solicitation provision.

**523.4 Use of Recovered Materials**

523.403 Policy.

523.404 Procedures.

523.404-70 Preference programs for other than EPA designated products.

523.405 Solicitation provision and contract clause.

**PART 524 PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION**

**524.1 Protection of Individual Privacy**

524.103 Procedures.

**524.2 Freedom of Information Act**

524.203 Policy.

**PART 525 FOREIGN ACQUISITION**

**525.1 Buy American Act-Supplies**

525.105 Evaluating offers.

525.105-70 Procurement of hand or measuring tools or stainless steel
flatware for DOD.

525.109 Solicitation provisions and contract clause.

**525.2 Buy American Act - Construction Materials**

525.202 Policy.

**525.3 Balance of Payments Program**

525.302 Policy.

525.302-70 Procurements for agencies under the Foreign Assistance Act.

**525.4 Trade Agreements**

525.402 Policy.

525.408 Solicitation provision and contract clauses.

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**525.10 Implementation of Sanctions Against Countries that Discriminate
Against United States Products or Services in Government Procurement**

525.1002 Trade Sanctions.

**PART 526 OTHER SOCIOECONOMIC PROGRAMS \[RESERVED\]**

**APPENDIX 519A** Reports on Small Business Participation

**APPENDIX 519B** SDB Price Evaluation Adjustment Decision Charts

**APPENDIX 519 C** Examples: Applying The SDB Price Evaluation
Adjustment and HUBZone Price Evaluation Preference

**APPENDIX 523A** Affirmative Procurement Program For Recovered
Materials

**SUBCHAPTER E\--GENERAL CONTRACTING REQUIREMENTS**

**PART 527 PATENTS, DATA, AND COPYRIGHTS**

**527.4 Rights In Data and Copyrights**

527.409 Solicitation provisions and contract clauses.

**PART 528 BONDS AND INSURANCE**

**528.1 Bonds and Other Financial Protections**

528.101 Bid guarantees.

528.101-1 Policy on use.

528.102 Performance and payment bonds and alternative payment
protections for construction contracts.

528.102-1 General.

528.103 Performance and payment bonds for other than construction
contracts.

528.103-2 Performance bonds.

528.103-3 Payment bonds.

528.106 Administration.

528.106-6 Furnishing information.

**528.2 Sureties and Other Security For Bonds**

528.202 Acceptability of corporate sureties.

528.202-70 Acceptability of bonds and sureties.

528.203 Acceptability of individual sureties.

528.203-7 Exclusion of individual sureties.

528.204 Alternatives in lieu of corporate or individual sureties.

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APD 2800.12B, 09-01-99 xv

**528.3 Insurance**

528.30l Policy.

528.310 Contract clause for work on a Government installation.

**PART 529 TAXES**

**529.4 Contract Clauses**

529.401 Domestic contracts.

529.401-70 Purchases made using simplified acquisition procedures.

529.401-71 Contracts for supplies and services usable by the DC
Government.

**PART 530 COST ACCOUNTING STANDARDS ADMINISTRATION**

**530.2 CAS Program Requirements**

530.201-5 Waiver.

**PART 531 CONTRACT COST PRINCIPLES AND PROCEDURES**

**531.1 Applicability**

531.101 Objectives.

**PART 532 CONTRACT FINANCING**

**532.1 Non-Commercial Item Purchase Financing**

532.111 Contract clauses for non-commercial purchases.

532.112 Payment of subcontractors under contracts for non-commercial
items.

532.112-1 Subcontractor assertions of nonpayment.

**532.2 Commercial Item Purchase Financing**

532.206 Solicitation provisions and contract clauses.

**532.4 Advance Payments For Non-Commercial Items**

532.402 General.

532.407 Interest.

**532.5 Progress Payments Based On Costs**

532.501 General.

532.501-2 Unusual progress payments.

532.501-70 Use of benchmarks with progress payments based on costs.

532.502 Preaward matters.

532.502-2 Contract finance office clearance.

532.503-5 Administration of progress payments.

532.503-6 Suspension or reduction of payments.

532.503-9 Liquidation rates - alternate method.

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**532.6 Contract Debts**

532.606 Debt determination and collection.

532.606-70 Definitions.

532.606-71 Referral of delinquent debts.

**532.7 Contract Funding**

532.700 Scope of subpart.

532.705 Contract clauses.

532.705-1 Clauses for contracting in advance of funds.

**532.8 Assignment of Claims**

532.805 Procedure.

532.806 Contract clauses.

**532.9 Prompt Payment**

532.902 Definitions.

532.905 Invoice payments.

532.905-70 Certification of payment to subcontractors and suppliers
under fixed-price construction contracts.

532.905-71 Final payment - construction and building service contracts.

532.907 Interest penalties.

532.908 Contract clauses.

**532.11 Electronic Funds Transfer** \[Reserved\]

**532.70 Authorizing Payment By Governmentwide Commercial Purchase
Card**

532.7001 Definition.

532.7002 Solicitation requirements.

532.7003 Contract clause.

**532.71 Payments For Recurring Services**

532.7101 Definitions.

532.7102 Applicability.

532.7103 Procedures.

532.7104 Contract clauses.

**532.72 Payments Under Contracts Subject To Audit**

532.7201 General.

532.7202 Submission and processing of invoices or vouchers.

532.7203 Action upon receipt of an audit report.

532.7204 Suspension and disapproval of amounts claimed.

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**PART 533 PROTESTS, DISPUTES, AND APPEALS**

**533.1 Protests**

533.101 Definitions.

533.102 General.

533.103 Protests to the agency.

533.103-70 Policy.

533.103-71 Procedures.

533.103-72 Solicitation provisions.

533.104 Protests to GAO.

**533.2 Disputes and Appeals**

533.211 Contracting officer\'s decision.

533.214 Alternative dispute resolution (ADR).

**533.70 Processing Contract Appeals**

533.7001 Notice of appeal.

533.7002 Appeal file.

533.7002-1 Preparation of the appeal file.

533.7002-2 Transmittal of the appeal file.

533.7003 The contracting officer\'s memorandum of position.

533.7004 Action following decision of the GSA Board of Contract Appeals.

**SUBCHAPTER F \--SPECIAL CATEGORIES OF CONTRACTING**

**PART 534 MAJOR SYSTEM ACQUISITION \[RESERVED\]**

**PART 535 RESEARCH AND DEVELOPMENT CONTRACTING \[RESERVED\]**

**PART 536 CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS**

**536.1 General**

536.101 Applicability.

536.102 Definitions.

**536.2 Special Aspects of Contracting For Construction**

536.201 Evaluation of contractor performance.

536.202 Specifications.

536.203 Government estimate of construction cost.

536.204 Disclosure of the magnitude of construction projects.

536.213 Special procedures for sealed bidding in construction
contracting.

536.213-3 Invitations for bids.

536.213-370 Bids that include alternates.

GSAM\
xviii APD 2800.12B, 09-01-99

536.213-371 Bids that include options.

536.213-372 Bids that include both alternates and options.

536.270 Exercise of options.

536.271 Project labor agreements.

**536.5 Contract Clauses**

536.570 Supplemental provisions and clauses.

536.570-1 Definitions.

536.570-2 Authorities and limitations.

536.570-3 Specialist.

536.570-4 Basis of award---construction contract.

536.570-5 Working hours.

536.570-6 Use of premises.

536.570-7 Measurements.

536.570-8 Specifications and drawings.

536.570-9 Shop drawings, coordination drawings, and schedules.

536.570-10 Samples.

536.570-11 Heat.

536.570-12 Use of equipment by the Government.

536.570-13 Subcontracts.

536.570-14 Requirement for a project labor agreement.

**536.6 Architect-Engineer Services**

536.602 Selection of firms for architect-engineer contracts.
\[Reserved\]

**PART 537 SERVICE CONTRACTING**

**537.1 Service Contracts \-- General**

537.101 Definitions.

537.106 Funding and term of service contracts.

537.110 Solicitation provisions and contract clauses.

**537.2 Advisory and Assistance Services**

537.201 Definitions.

537.204 Guidelines for determining availability of personnel.

537.270 Contract clause.

GSAM\
APD 2800.12B, 09-01-99 xix

**PART 538 FEDERAL SUPPLY SCHEDULE CONTRACTING**

**538.2 Establishing and Administering Federal Supply Schedules**

538.270 Evaluation of multiple award schedule (MAS) offers.

538.271 MAS contract awards.

538.272 MAS price reductions.

538.273 Contract clauses.

**PART 539 ACQUISITION OF INFORMATION TECHNOLOGY \[RESERVED\]**

**PART 540 \[RESERVED\]**

**PART 541 ACQUISITION OF UTILITY SERVICES**

**541.4 Administration**

541.401 Monthly and annual review.

**SUBCHAPTER G\--CONTRACT MANAGEMENT**

**PART 542 CONTRACT ADMINISTRATION AND AUDIT SERVICES**

542.001 Definitions

**542.1 Contract Audit Services**

542.102 Assignment of contract audit services.

**542.2 Contract Administration Services**

542.202 Assignment of contract administration.

**542.3 Contract Administration office Functions**

542.302 Contract administration functions.

**542.9 Bankruptcy**

542.901 General.

542.902 Procedures.

**542.11 Production Surveillance and Reporting**

542.1107 Contract clause.

**542.12 Novation and Change-of-Name Agreements**

542.1203 Processing agreements.

**542.15 Contractor Performance Information**

542.1503 Procedures.

542.1503-3 Performance evaluation.

GSAM\
xx APD 2800.12B, 09-01-99

542.1503-70 Responsibilities.

542.1503-71 Information to collect.

**542.70 Audit of Contractor\'s Records**

542.7001 General.

542.7002 Purpose of audit.

542.7003 Additional internal controls.

542.7004 Releasing or withholding of audit reports.

**PART 543 CONTRACT MODIFICATIONS**

**543.1 General**

543.102 Policy.

543.170 Changes in designated subcontractors, inspection and/or
production points.

**543.2 Change Orders**

543.202 Authority to issue change orders.

543.205 Contract clauses.

**PART 544 SUBCONTRACTING POLICIES AND PROCEDURES \[RESERVED\]**

**PART 545 GOVERNMENT PROPERTY \[RESERVED\]**

**PART 546 QUALITY ASSURANCE**

**546.3 Contract Clauses**

546.302 Fixed-price supply contracts.

546.302-70 Source inspection by Quality Approved Manufacturer.

546.302-71 Source inspection.

546.312 Construction contracts.

**546.4 Government Contract Quality Assurance**

546.4-0070 Scope of subpart.

546.402 Government contract quality assurance at source.

546.403 Government contract quality assurance at destination.

546.470 Testing.

546.470-1 Acceptance testing.

546.470-2 Certification testing.

**546.7 Warranties**

546.704 Authority for use of warranties.

546.705 Limitations.

546.708 Warranties of data.

546.709 Warranties of commercial items.

546.710 Contract clauses.

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APD 2800.12B, 09-01-99 xxi

**PART 547 TRANSPORTATION**

**547.3 Transportation In Supply Contracts**

547.300 Scope of subpart.

547.303 Standard delivery terms and contract clauses.

547.303-1 F.o.b. origin.

547.304 Determination of delivery terms.

547.304-5 Exceptions.

547.305 Solicitation provisions, contract clauses, and transportation
factors.

547.370 Restrictions on transportation to military installations.

**PART 548 VALUE ENGINEERING**

**548.1 Policies and Procedures**

548.101 General.

**PART 549 TERMINATION OF CONTRACTS**

**549.1 General Principles**

549.111 Review of proposed settlements.

**549.4 Termination For Default**

549.402-6 Repurchase against contractor\'s account.

549.402-7 Other damages.

**549.5 Contract Termination Clauses**

549.502 Termination for convenience of the Government.

**PART 550 EXTRAORDINARY CONTRACTUAL ACTIONS**

550.001 Definitions.

**PART 551 USE OF GOVERNMENT SOURCES BY CONTRACTORS \[RESERVED\]**

**SUBCHAPTER H CLAUSES AND FORMS**

**PART 552 SOLICITATION PROVISIONS AND CONTRACT CLAUSES**

552.000 Scope of part.

**552.1 Instructions for using provisions and clauses**

**552.2 Text of provisions and clauses**

**552.3 Provision and clause matrixes**

GSAM\
xxii APD 2800.12B, 09-01-99

**PART 553 FORMS**

**553.1 General**

**553.3 Illustrations of Forms**

**SUBCHAPTER 570 SPECIAL CONTRACTING PROGRAMS**

**PART 570 ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY**

**570.1 General**

570.101 Applicability.

570.102 Definitions.

570.103 Authority to lease.

570.104 Competition.

570.105 Methods of contracting.

570.105-1 Contracting by negotiation.

570.105-2 Two-phase design-build selection procedures.

570.105-3 Sealed bidding.

570.106 Publicizing/Advertising.

570.107 Oral presentations.

570.108 Responsibility determination.

570.109 Certifications.

570.110 Cost or pricing data and information other than cost or pricing
data.

570.111 Inspection and acceptance.

570.112 Awards to Federal employees.

\` 570.113 Disclosure of mistakes after award.

570.114 Protests.

**570.2 Simplified Lease Acquisition Procedures**

570.201 Purpose.

570.202 Policy.

570.203 Procedures.

570.203-1 Market survey.

570.203-2 Competition.

570.203-3 Soliciting offers.

570.203-4 Negotiation, evaluation, and award.

**570.3 Contracting Procedures For Leasehold Interests In Real
Property**

570.301 Market survey.

570.302 Description of requirements.

570.303 Solicitation for offers.

570.303-1 Preparing the SFO.

570.303-2 Issuing the SFO.

GSAM\
APD 2800.12B, 09-01-99 xxiii

570.303-3 Late offers, modifications of offers, and withdrawals of
offers.

570.303-4 Changes to SFO\'s.

570.304 General source selection procedures.

570.305 Two-phase design-build selection procedures.

570.306 Evaluating offers.

570.307 Negotiations.

570.308 Award.

570.309 Debriefings.

**570.4 Special Aspects of Contracting For Continued Space
Requirements**

570.401 Renewal options.

570.402 Succeeding leases.

570.402-1 General.

570.402-2 Publicizing/Advertising.

570.402-3 Market survey.

570.402-4 No potential acceptable locations.

570.402-5 Potential acceptable locations.

570.402-6 Cost-benefit analysis.

570.403 Expansion requests.

570.404 Superseding leases.

570.405 Lease extensions.

**570.5 Special Aspects of Contracting For Lease Alterations**

570.501 General.

570.502 Alterations by the lessor.

570.502-1 Justification and approval requirements.

570.502-2 Procedures.

570.503 Alterations by the Government or through a separate contract.

**570.6 Solicitation Provisions and Contract Clauses**

570.601 FAR provisions and clauses.

570.602 GSAR solicitation provisions.

570.603 GSAR contract clauses.

570.604 Deviations to provisions and clauses.

**570.7 Forms**

570.701 Standard forms.

570.702 GSA forms.

GSAM\
xxiv APD 2800.12B, 09-01-99

**SUBCHAPTER A\--GENERAL**

**PART 501 GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION
SYSTEM**

**SUBPART 501.1 PURPOSE, AUTHORITY, ISSUANCE**

**501.101 Purpose.**

\(a\) The General Services Acquisition Regulation (GSAR) contains agency
acquisition policies and practices, contract clauses, solicitation
provisions, and forms that control the relationship between GSA and
contractors and prospective contractors.

\(b\) The GSAR addresses rules directly to you, the contracting officer,
unless otherwise indicated.

**501.103 Authority.**

GSA\'s Senior Procurement Executive issues the GSAR under the authority
of the Federal Property and Administrative Services Act of 1949, as
amended.

**501.104 Applicability.**

\(a\) [General]{.underline}. The GSAR applies to contracts for supplies
or services, including construction.

\(b\) [Acquisition of leasehold interests in real property]{.underline}.
Part 570 establishes rules for the acquisition of leasehold interests in
real property. Other provisions of 48 CFR Chapter 5 (GSAR) do not apply
to leases of real property unless specifically cross-referenced in Part
570.

\(c\) [Relationship to statute]{.underline}. Some GSAR rules implement
and interpret laws and other authorities affecting procurement. A GSAR
rule specifically directed by statute has the force and effect of law.

\(d\) [GSAR/FAR Relationship]{.underline}. The GSAR may deviate from the
Federal Acquisition Regulation (FAR) if authorized. If the GSAR does not
implement the FAR, the FAR alone governs.

**501.105 Issuance.**

**501.105-1 Publication and code arrangement.**

The GSAR is published in the following sources:

\(a\) Daily issue of the Federal Register.

GSAM\
APD 2800.12B, 09-01-99 A-1

\(b\) Annual Code of Federal Regulations (CFR), as Chapter 5 of Title
48.

\(c\) GSA Acquisition Manual distributed within GSA.

\(d\) GSA Home Page at http://www.gsa.gov. Click on either \"Government
Agencies\" or on \"Business and Industry,\" then click on
\"Acquisition.\"

**501.105-2 Arrangement of regulations.**

\(a\) The GSAR numbers and captions policies and procedures to
correspond to how they appear in the FAR, e.g., 1.104 in the FAR is
501.104 in the GSAR.

\(b\) GSAR rules not implementing the FAR have numbers beginning with
70, e.g., part 570, subsection 515.209-70.

\(c\) The GSAR may have gaps in its numbering scheme because a FAR rule
may not require GSAR implementation.

**501.105-3 Copies.**

The GSAR in CFR form may be purchased from: Superintendent of Documents,
Government Printing Office, Washington, DC 20402.

501.106 OMB Approval under the Paperwork Reduction Act.

  -------------------------- --------------------- -------------------------- --------------------
  **[GSAR                    **[OMB Control        **[GSAR                    **[OMB Control
  Reference]{.underline}**   No.]{.underline}**    Reference]{.underline}**   No.]{.underline}**

  509.105-1(a)               3090-0007             552.211-77                 3090-0246

  511.170-3(a)               3090-0203             552.211-78                 3090-0204

  511.170-3(c)               3090-0203             552.211-82                 3090-0204

  511.204(d)                 3090-0246             552.214-71                 3090-0200

  511.404(a)(1)              3090-0204             552.216-70                 3090-0243

  511.404(a)(2)              3090-0204             552.216-72                 3090-0248

  511.404(a)(5)              3090-0204             552.216-73                 3090-0248

  514.201-7(a)               3090-0200             552.219-72                 3090-0252

  516.203-4(a)(1)            3090-0243             552.223-72                 3090-0205

  516.506                    3090-0248             552.232-72                 3090-0080

  519.708(b)                 3090-0252             552.237-70                 3090-0197

  522.406-6                  1215-0149             552.237-71                 3090-0006

  523.370                    3090-0205             552.238-70                 3090-0250

  532.111(c)                 3090-0080             552.238-72                 3090-0262

  532.905-70                 9000-0102             552.238-74                 3090-0121

  532.905-71                 3090-0080             552.242-70                 3090-0027

  537.110(a)                 3090-0197             552.246-70                 3090-0027

  537.110(b)                 3090-0006             552.246-71                 3090-0027

  538.273(a)(1)              3090-0250             552.249-71                 3090-0227

  538.273(a)(3)              3090-0262             GSA-72-A                   3090-0121
  -------------------------- --------------------- -------------------------- --------------------

GSAM\
A-2 APD 2800.12B, 09-01-99

  ---------------- --------------------- ---------------- ---------------- --
  538.273(b)(1)    3090-0121             GSA-527          3090-0007        

  542.1107         3090-0027             GSA-618-D        1215-0149        

  546.302-70       3090-0027             GSA-1142         3090-0080        

  546.302-71       3090-0027             GSA-1364         3090-0086        

  549.502(b)       3090-0027             GSA-1678         3090-0027        

  552.211-8        3090-0204             GSA-2419         9000-0102        

  552.211-70       3090-0203             570.702(c)       3090-0086        
  ---------------- --------------------- ---------------- ---------------- --

**501.170 General Services Administration Acquisition Management
System.**

\(a\) [Description]{.underline}. The General Services Administration
Acquisition Management System consists of the General Services
Administration Acquisition Regulation (GSAR) and agency and Service
non-regulatory acquisition guidance documents.

\(b\) [Format]{.underline}. For users\' convenience, the General
Services Administration Acquisition Manual (GSAM) contains the GSAR and
nonregulatory agency acquisition guidance. The GSAM adheres to GSAR
numbering and drafting conventions. GSAR material is shaded. Non-shaded
material is non-regulatory. The shading distinguishes regulatory
material from material that applies internally to GSA.

\(c\) [Agency policy]{.underline}. Although GSAM requirements are not
all regulatory, occasionally the requirements are mandatory for GSA
personnel. The mandatory requirements reflect agency policy which must
be followed to ensure uniformity or for other reasons.

\(d\) [Applicability]{.underline}. The GSAM applies to contracts for
supplies or services, including construction.

\(e\) [Acquisition of leasehold interests in real property]{.underline}.
Part 570 establishes requirements for the acquisition of leasehold
interests in real property. Other provisions of the GSAM do not apply to
leases of real property unless specifically cross-referenced in Part
570.

\(f\) [Availability]{.underline}. The GSAM is available on the GSA Home
Page at http://www.gsa.gov. Click on either \"Government Agencies\" or
on \"Business and Industry,\" then click on \"Acquisition.\" You may
also link to the GSAM on Insite at http://insite.gsa.private. Click on
\"Business Hot Links,\" then on \"Acquisition.\"

**501.171 Other GSA publications.**

**501.171-1 GSA orders and handbooks.**

\(a\) Heads of contracting activities (HCA\'s) may issue internal agency
guidance, as described in FAR 1.301(a)(2), in the form of a GSA order or
handbook.

\(b\) GSA orders and handbooks must not unnecessarily repeat,
paraphrase, or otherwise restate the FAR, GSAR, or GSAM.

GSAM\
APD 2800.12B, 09-01-99 A-3

\(c\) The handbook, Writing GSA Internal Directives (OAD P 1832.3B),
prescribes policies and procedures for issuing GSA orders and handbooks.

**501.171-2 Acquisition letters.**

\(a\) Acquisition letters provide interim policies and procedures
pending incorporation in GSA orders or handbooks.

\(b\) Acquisition letters expire one year after issuance, unless the
letter indicates an earlier expiration date.

\(c\) The Senior Procurement Executive and HCAs, or designees, may issue
acquisition letters.

\(d\) The issuing official must coordinate each acquisition letter with
appropriate offices including Acquisition Policy, Counsel, and the
Inspector General. Any proposed policy or procedure that affects the
operation of the small business program, must be coordinated with the
Office of Enterprise Development (E).

\(e\) The issuing activity must identify each acquisition letter with an
assigned number. The number should begin with the issuing office
correspondence symbol, followed by the last two digits of the calendar
year when issued, then numbered consecutively beginning with 1. For
example, FC-97-5 would be the fifth acquisition letter issued by FSS in
fiscal year 1997).

\(f\) The body of an acquisition letter should contain the following
paragraphs, as appropriate:

\(1\) Purpose.

\(2\) Background.

\(3\) Effective date.

\(4\) Termination date.

\(5\) Cancellation.

\(6\) Applicability (offices to which the acquisition letter applies)

\(7\) Reference to regulations (FAR or GSAR), handbooks, or orders.

\(8\) Instructions/procedures.

\(g\) The issuing office is responsible for distributing its acquisition
letters to affected contracting activities and the Office of Acquisition
Policy. In addition copies should be distributed to:

\(1\) For acquisition letters issued by the Office of Acquisition Policy
or a Central Office Service:

GSAM\
A-4 APD 2800.12B, 09-01-99

\(i\) Associate General Counsel.

\(ii\) The Administrative Policy and Information Management Division
(CAI).

\(2\) For acquisition letters issued by a Region:

\(i\) Regional Counsel.

\(ii\) The regional clearance office as defined in the handbook, Writing
GSA Internal Directives (OAD P 1832.3B).

\(iii\) Central office contracting activities, if appropriate.

\(h\) If an acquisition letter is distributed only electronically, then
the issuing office may issue a notice to affected contracting
activities, the Office of Acquisition Policy, and Associate General
Counsel or Region Counsel in lieu of distributing paper copies. The
notice must identify the subject, number, and location of the letter.

\(i\) Each issuing office must report on acquisition letters issued and
canceled on a quarterly basis to the Office of Acquisition Policy. The
Office of Acquisition Policy will issue a consolidated index of all
acquisition letters issued or cancelled.

**SUBPART 501.4 DEVIATIONS FROM THE FAR AND GSAR**

**501.402 Policy.**

Uniformity is a goal of GSA\'s Acquisition Regulation System. Despite
this desire for uniformity, a contracting activity may take any of the
following actions:

\(a\) Develop and test new procedures and techniques.

\(b\) Adopt alternate procedures in the public interest for unique
programmatic or managerial requirements.

\(c\) Deviate from a regulatory provision implementing a statutory
requirement provided the deviation does not violate the underlying
statute. Deviations must not be used to defeat the FAR and GSAR approval
requirements.

**501.403 Individual deviations.**

\(a\) The Contracting Director approves individual deviations from the
FAR and GSAR.

\(b\) If GSA delegates authority to another agency and requires
compliance with the GSAR as a condition of the delegation, the
Contracting Director in the agency receiving the delegation may approve
individual deviations from the GSAR unless the agency head receiving the
delegation designates another official.

GSAM\
APD 2800.12B, 09-01-99 A-5

\(c\) Send a copy of each deviation to GSA\'s Senior Procurement
Executive (MV).

**501.404 Class deviations.**

\(a\) HCAs approve class deviations from the FAR and GSAR.

\(b\) If GSA delegates authority to another agency and requires
compliance with the GSAR as a condition of the delegation, the HCA in
the agency receiving the delegation may approve class deviations from
the GSAR unless the agency head receiving the delegation designates
another official.

\(c\) Send a copy of each deviation to GSA\'s Senior Procurement
Executive (MV).

\(d\) A request for class deviations must be supported by statements
that fully describe the need for and the nature of the deviation.

\(e\) Class deviations from the GSAR:

\(1\) Expire in 12 months if not extended.

\(2\) May be rescinded earlier by GSA\'s Senior Procurement Executive or
by officials designated under paragraph (a) above without prejudice to
any action taken previously.

**SUBPART 501.6 CAREER DEVELOPMENT, CONTRACTING AUTHORITY, AND
RESPONSIBILITIES**

**501.601 General.**

HCA\'s are contracting officers by virtue of their position. Other
contracting officers are appointed under FAR 1.603 and GSA\'s
contracting officer warrant program (See 501.603).

**501.602 Contracting officers.**

**501.602-2 Responsibilities.**

\(a\) [Fund sufficiency]{.underline}. A requisition or purchase request
signed by an authorized individual is evidence that sufficient money for
the purchase is available in the fund cited.

\(b\) [GSA revolving funds]{.underline}. A requisition for indefinite
delivery, indefinite quantity contracts requiring a guaranteed minimum
quantity must specify enough funds to pay for the guaranteed minimum.

\(c\) [GSA funds, other than revolving funds]{.underline}.

\(1\) The requisitioning activity must certify that additional funds are
available before contract or purchase order award if the purchase
exceeds the dollar amount on the requisition by 10 percent or \$50,
whichever is greater.

GSAM\
A-6 APD 2800.12B, 09-01-99

\(2\) If a requisition is not used, e.g., lease of real property, you
must ensure funds are available before awarding the contract.

\(d\) [Other Federal agencies\' funds]{.underline}. A GSA buying
activity must not exceed a fund limitation on a customer agency\'s
purchase request unless authorized by supply support agreements. If a
purchase request indicates insufficient funds to cover all costs, the
customer agency must provide additional funds. Regardless of which
Central Office or Regional buying activity will make the acquisition,
the office initially receiving the requirement requests the additional
funds.

**501.602-3 Ratification of unauthorized commitments.**

\(a\) [Authority to ratify]{.underline}. Under FAR 1.602-3, you may
ratify unauthorized contractual commitments if the HCA approves the
ratification action. An HCA may not redelegate approval authority.

\(b\) [Criminal investigation]{.underline}. Generally, the Government is
not bound by commitments made by persons with no contracting authority.
Unauthorized commitments may violate laws or regulations. They
constitute serious employee misconduct and may warrant disciplinary
action. If unauthorized commitments involve any type of misconduct that
might be punishable as a criminal offense, either you or the employee\'s
supervisor must report the matter immediately to the Office of the
Inspector General with a request for a complete investigation.

\(c\) [Documentation required for ratification]{.underline}. The
individual who made the unauthorized commitment gives the contracting
director all records and documents about the commitment and a complete
written statement of facts, including all the following:

\(1\) Why normal acquisition procedures were not followed.

\(2\) Why the contractor was selected.

\(3\) Other sources considered.

\(4\) Description of work or products.

\(5\) Estimated or agreed-upon contract price.

\(6\) Appropriation citation.

\(7\) Status of contract performance.

\(d\) [Documentation waivers]{.underline}. Under exceptional
circumstances, a contracting director may waive the requirement that the
individual who made the unauthorized commitment must initiate and
document the request for ratification. In such a case, the individual
who does initiate the request for ratification must provide a written
determination stating that an unauthorized

GSAM\
APD 2800.12B, 09-01-99 A-7

commitment was made and identifying the individual who made it. For
example, an exceptional circumstance may occur when the person who made
the unauthorized commitment is no longer available to attest to the
circumstances.

\(e\) [Processing a ratification]{.underline}.

\(1\) You must process the request for ratification. Prepare a summary
statement of facts addressing the limitations in FAR 1.602-3(c) and
recommend whether or not the procurement should be ratified. Include a
recommendation for other disposition if you advise against ratification.

\(2\) Submit to the HCA all the following:

\(i\) Request for ratification,.

\(ii\) Your statement of facts and recommendation(s).

\(iii\) Concurrence of assigned legal counsel (except when you recommend
payment based on quantum merit or quantum valebant).

\(iv\) If applicable, recommendation for payment on a quantum merit or
quantum valebant basis (see 501.602-3(f)).

\(v\) Recommendation for corrective action to prevent recurrence.

\(f\) [Payment based on quantum merit or quantum valebant.]{.underline}

\(1\) If ratification is not permissible due to legal improprieties, you
may recommend that payment be made under either:

\(i\) Services rendered on a quantum merit basis (the reasonable value
of work or labor).

\(ii\) Goods furnished on a quantum valebant basis (the reasonable value
of goods sold and delivered).

\(2\) To base payment on either of these conditions, there must be a
showing that the Government has received a benefit (See FAR 1.602-3(d)).

\(3\) You must obtain the approval of assigned counsel before making any
payment on a quantum merit or quantum valebant basis.

\(g\) [HCA action]{.underline}. The HCA either:

\(1\) Approves the ratification request in writing and sends the
approval to you for issuance of the necessary contractual documents.

GSAM\
A-8 APD 2800.12B, 09-01-99

\(2\) Forwards a recommendation for payment on a quantum merit or
quantum valebant basis to assigned counsel for approval.

\(3\) Returns an unjustified request or recommendation with a written
explanation why the request or recommendation is denied.

\(h\) [Files]{.underline}. The HCA maintains a separate file containing
a copy of each request to ratify an unauthorized contractual commitment
and the response. The HCA must make this file available for review by
the Senior Procurement Executive and the Inspector General.

**501.603 Selection, appointment, and termination of appointment.**

**501.603-1 General.**

\(a\) [Contracting officer warrant program (COWP]{.underline}). GSA\'s
COWP establishes criteria for the selection, appointment, and
termination of appointment of GSA contracting officers. It ensures that
a GSA organization has qualified individuals as contracting officers who
meet the organization\'s needs for contracting authority. Factors
considered in determining the number of contracting officers appropriate
for a given organization include volume of actions, work complexity, and
organizational structure.

\(b\) [Training and education]{.underline}. The COWP establishes
acquisition training requirements for all personnel who exercise
contracting officer authority consistent with the intent of the
Clinger-Cohen Act of 1996 and Governmentwide training requirements. COWP
incorporates the Governmentwide core curriculum and requires that
personnel warranted above the simplified acquisition level meet the same
educational standards that apply to personnel in the 1102 contracting
series

\(c\) [Deviations]{.underline}. The Senior Procurement Executive must
approve, in writing, any deviation from the policies, procedures, and
requirements of the COWP.

\(d\) [Definitions]{.underline}.

\"Contracting experience\" means personal and substantial involvement in
purchasing, renting, leasing, or otherwise obtaining goods or services
from nonfederal sources and includes any of the following functions:
preparing and issuing purchase orders including selection of sources,
issuing requests for quotations or solicitations, evaluating bids or
proposals, selecting sources, participating in price negotiations, and
all aspects of contract administration.

\"Contracting Officer Warrant Board\" means a group of senior-level
acquisition employees who receive, evaluate, and process requests for
appointment of contracting officers at the basic, simplified
acquisition, intermediate, and senior levels.

\"Test control officer\" means a GSA employee, designated by the Head of
the Contracting Activity, with responsibility for administering tests
for acquisition courses for GSA employees.

GSAM\
APD 2800.12B, 09-01-99 A-9

Designated test control officers must be employed in organizations that
are independent of operational activities with acquisition personnel.

\(e\) [Responsibilities]{.underline}.

\(1\) GSA\'s Senior Procurement Executive:

\(i\) Establishes the policies, procedures, and requirements that govern
COWP.

\(ii\) Approves/disapproves deviations from any of the COWP
requirements.

\(2\) Each HCA establishes procedures for administering COWP in his or
her organization. The HCA:

\(i\) Appoints contracting officers in accordance with FAR 1.603 and
designates officials to appoint contracting officers in accordance with
501.603-3(a).

\(ii\) Establishes and budgets for training plans for contracting
personnel.

\(iii\) Monitors contracting officers\' performance.

\(iv\) Establishes controls to ensure compliance with laws, regulations,
procedures, and good management practice.

\(v\) Appoints the chairperson of the Contracting Officer Warrant Board
(COWB) if a COWB has been established to process requests for
contracting officer appointments.

\(vi\) Determines the number of contracting officer warrants necessary
for a particular work unit and the grade levels at which the warrant
authority will be granted.

\(f\) [Applicability]{.underline} COWP applies to all contracting
officers except those appointed under the Inspector General Act (Pub. L.
95-452). Contracting authority is not required for any of the following:

\(1\) Using the imprest fund.

\(2\) Signing training authorizations for public course offerings.

\(3\) Signing travel documents.

\(4\) Ordering printing and duplicating services from Government
sources.

\(5\) Ordering supplies from GSA stock through GSA Advantage! or other
electronic means.

\(6\) Signing Government Bills of Lading.

GSAM\
A-10 APD 2800.12B, 09-01-99

\(7\) Signing machine-loaded orders to replenish warehouse stock or to
place orders under the Special Order Program.

\(8\) Signing system-generated delivery orders against definite quantity
contracts for motor vehicles.

\(9\) Signing memoranda of agreement with other Federal agencies.

\(10\) Authorizing interagency transfers of funds.

\(11\) Using the Government telephone systems for commercial long
distance and local service and/or approving payments for such services.

\(12\) Using the Federal Supply Service (FSS) nationwide contract for
express small package transportation services and/or approving payments
for such services.

\(13\) Certifying receipt and acceptance of goods or services (this does
not apply to certified invoices under 513.70).

\(14\) Submitting a Standard Form 145, Telephone Service Request (TSR),
to the Federal Technology Service (FTS).

\(g\) [Warrant levels]{.underline}. COWP warrant levels are based on the
dollar value of individual transactions (e.g., contract, modification,
supplemental agreement) and not the aggregate contract value. If the
basis of award involves evaluating options, the option periods are
included in the contract value to determine the warrant level required
for award. If an action includes both additions and deductions, the
aggregate, absolute value of the changes determines the warrant level
required for award (e.g., the value of an action that adds \$35,000 of
work and deducts \$80,000 is \$115,000). HCAs may further limit warrant
authorities.

  ------------------ ------------------------ ----------------------------
  **Warrant Level**  **Authority Per Order    **Open Market Contracting
                     Against Established      Authority**
                     Source Contract**        

  Micro-purchase     \$2,500                  \$2,500

  Basic              In accordance with (IAW) \$25,000
                     contract terms and       
                     conditions or \$25,000   
                     at HCA\'s discretion     

  Simplified         IAW contract terms and   \$100,000 using simplified
  Acquisition        conditions or \$100,000  acquisition procedures
                     at HCA\'s discretion     (\$100,000 average net
                                              annual rent for real
                                              property leases)

  Intermediate       IAW contract terms and   \$1,000,000 (\$1,000,000
                     conditions or            average net annual rent for
                     \$1,000,000 at HCA\'s    real property lease)
                     discretion               

  Senior             IAW contract terms and   Unlimited
                     conditions               

  Telephone services                          Unlimited
  (FTS employees                              
  only) \*                                    
  ------------------ ------------------------ ----------------------------

\*NOTE: For issuing TSR\'s for tariff services to regulated local
exchange carriers on, or in conjunction with, existing telephone
systems.

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APD 2800.12B, 09-01-99 A-11

**501.603-2 Selection.**

\(a\) [Experience requirements]{.underline}.

  -------------------------- --------------------------------------------
  **Warrant Level**          **Experience Required**

  Micro-purchase             Must possess clear understanding of policies
                             and procedures applicable to micro-purchases

  Basic                      At least 1 year of current (within last 3
                             years) contracting experience with
                             progressively broader assignments

  Simplified Acquisition     At least 2 years of current (within the last
                             5 years) contracting experience with
                             progressively broader assignments

  Intermediate               At least 3 years of current (within the last
                             7 years) contracting experience with
                             progressively broader assignments

  Senior                     At least 4 years of current (within the last
                             10 years) contracting experience with
                             progressively broader assignments
  -------------------------- --------------------------------------------

\(b\) [Training requirements]{.underline}.

\(1\) Contracting officer candidates must complete minimum training
requirements. The preferred source for training is the Governmentwide
contract for acquisition training established by the Federal Supply
Service. However, training may be provided by other Federal Government
training organizations, accredited colleges and universities, or the
private sector, provided that the course uses the approved student and
instructor textbooks and tests that are part of the Governmentwide
acquisition curriculum.

\(2\) Courses may be taught by qualified GSA employees. The HCA (or
his/her designee) is responsible for determining if an employee is
qualified to serve as an instructor. Courses to be taught by qualified
employees are subject to the following conditions:

\(i\) The course must use the approved training materials for student
and instructor texts and course tests for the Governmentwide curriculum.

\(ii\) The instructor must have completed a 4-year course of study
leading to a bachelor\'s degree that included at least 24 semester hours
in accounting, business, finance, law, contracts, purchasing, economics,
industrial management, marketing, quantitative methods, or organization
and management.

\(iii\) The instructor must have on-the-job experience in the course
subject.

\(iv\) The instructor must demonstrate good teaching skills, and have
experience in making presentations.

GSAM\
A-12 APD 2800.12B, 09-01-99

\(v\) Course tests must be administered by a GSA test control officer
and scored by the Office of Acquisition Policy (MV). Instructors may not
serve as test control officers for the same course. A current list of
GSA test control officers is contained on GSA Insite at:
http://insite.gsa.private/acqwork.

\(3\) Employees who complete courses in the Governmentwide acquisition
curriculum from sources other than contractors on the Federal Supply
Service acquisition training contract or an accredited college or
university are cautioned that such courses may not be eligible for
college credit unless the training organization has received a positive
credit recommendation from American Council of Education. This includes
training provided by designated GSA employees.

\(4\) The minimum training requirements apply to all contracting
officers appointed on or after the date when the Governmentwide
acquisition courses become available.

\(i\) Individuals holding a permanent warrant issued before the
Governmentwide acquisition courses became available are not required to
take additional training, other than the training required for
continuing education. However, such contracting officers should give
priority to completing any new COWP training requirements in fulfilling
the continuing education requirement.

\(ii\) Individuals holding an interim warrant issued before the
Governmentwide acquisition curriculum became available must complete the
new training requirements prior to receiving a permanent warrant. A
training course received before availablity of the Governmentwide
curriculum may be used to satisfy a new course requirement if it meets
both of the following conditions: the interim warrant holder completed
and received training credit from GSA for the course before availability
of the Governtwide acquisition curriculum, and the course is accepted as
equivalent to one of the new required training courses (see
501.603-2(f)).

\(c\) [Minimum training requirements]{.underline}.

\(1\) [Micro-Purchase]{.underline} level candidates must receive
on-the-job orientation or formal training in simplified acquisition
procedures. Personnel who have completed any of the following courses
meet the requirement: Small Purchases/Schedule Contracts, Simplified
Acquisitions, Introduction to Contracting, Interactive Customer
Assistance CD-ROM micro-purchase training, GSA disk titled \"GSA
Purchase Card Program, IMPAC (VISA).\"

\(2\) [Basic]{.underline} level candidates for:

\(i\) [Fleet manager warrants]{.underline} must complete the Basic Fleet
Management Procurement course (40 hours).

\(ii\) [Fleet sales warrants]{.underline} must complete only the Fleet
Sales course (40 hours) when commercial contractors will conduct fleet
sales.

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APD 2800.12B, 09-01-99 A-13

\(iii\) [Building manager warrants]{.underline} must complete the COR
Mentor training course in addition to other courses required at this
warrant level. The COR Mentor is a self-paced, on-line training course
available at: http://www.faionline.com.

\(3\) Candidates for [warrants at the simplified acquisition,
intermediate, or senior levels]{.underline} currently serving and
classified in 1102 or 1170 positions or in positions whose primary
responsibility involved contracting for an uninterrupted period of 3
years do not have to take the basic level courses.

\(4\) [Personal property sales warrant]{.underline} candidates who are
classified in 1104 positions, excluding marketing positions, for an
uninterrupted period of 3 years are not required to take the Personal
Property Utilization and Disposal course.

\(5\) [Construction contracting officer representative]{.underline}
(COR) candidates with authority:

\(i\) Limited to the issuance of change orders up to \$25,000 must
complete the COR Mentor training course (available at
http://www.faionline.com) and Construction Contracting.

\(ii\) Above the basic level must complete all courses required at the
higher level.

\(6\) [TSR-issuer]{.underline} candidates must receive on-the-job
orientation or formal training on the proper procedures for issuing TSRs
and on the responsibilities and obligations of contracting officers.

\(7\) [Contracting officers with dual warrant authority]{.underline}
(e.g., with authority to dispose of and to acquire goods and services)
must complete the mandatory training required for both types of warrant
authority, based on the appropriate warrant level.

\(8\) [Other warrant]{.underline} level training is outlined in Figure
501-1.

\(d\) [Testing out of a course]{.underline}. \[Reserved\]

GSAM\
A-14 APD 2800.12B, CHGE 1, 10-1-99

  ------------------------- ----- --------------- ---- -------------- ---- -------- ----------- ---- ----- ----
                                  **CONTRACTING                                     **WARRANT              
                                  OFFICER                                           LEVELS**               
                                  CATEGORIES**                                                             

  Courses                   Hrs   DP              DR                  R    All      B           SA   Int   Sr
                                                                           other                           
                                                                           CO's                            

  Acquisition or            40                                                                       XI    XI
  Procurement Planning I                                                                                   

  Simplified Acquisitions   40                                                      X           XI         

  Contract Formation I      40                                                                       XI    XI

  Contracting by Sealed     40                                                                       XI    XI
  Bidding                                                                                                  

  Contract Administration I 40                                                                  X    XI    XI

  Price Analysis            40                                                                       XI    XI

  Cost Analysis             40                                                                       XI    XI

  Negotiation Techniques    40                                                                       X     XI

  Acquisition or            40                                                                             X
  Procurement Planning II                                                                                  

  Contract Formation II     40                                                                             X

  Contract Administration   40                                                                       X     XI
  II                                                                                                       

  Contract Law              40                                                                       X     XI

  Intermediate Contract     40                                                                       X     X
  Pricing                                                                                                  

  Contracting for           40                                                                       XI    XI
  Architect/Engineer                                                                                       
  Services                                                                                                 

  Construction Contracting  40                                                                       XI    XI

  Federal Real Property     40                                                                  X    XI    XI
  Leasing or Basic Lease                                                                                   
  Contracting                                                                                              

  Cost and Price Analysis   40                                                                       XI    XI
  of Lease Proposals                                                                                       

  Real Estate Law or        40                                                                       X     XI
  Federal Real Property                                                                                    
  Lease Law                                                                                                

  Real Estate Appraisal     40                                                                             X
  Principles                                                                                               

  Techniques of Negotiating 40                                                                  X    XI    XI
  Federal Real Property                                                                                    
  Leases                                                                                                   

  Personal Property Sales   80                                                      X           X    X     X

  Personal Property         32                                                      X           X    X     X
  Utilization & Disposal                                                                                   

  Disposal by Negotiation   24                                                                       X     X

  Disposal Contract Law     40                                                                             X

  Utilization & Disposal of 32                                                                       X     X
  Real Property                                                                                            

  Fleet Sales (fleet sales  40                                                                             X
  personnel only)                                                                                          

  Indicates required                                   DP Personal                                         
  courses                                              property                                            
                                                       disposal                                            
                                                       contracting                                         
                                                       officer                                             

  Indicates the course is                              DR Real                                             
  required only for                                    property                                            
  personnel handling the                               disposal                                            
  type of contract                                     contracting                                         
  addressed in the training                            officer\                                            
                                                       R Realty                                            
                                                       leasing                                             
                                                       contracting                                         
                                                       officer\                                            
                                                       B Basic                                             
                                                       warrant                                             

  X Means the course is                                SA Simplified                                       
  required for a permanent                             acquisition                                         
  warrant                                              warrant\                                            
                                                       Int                                                 
                                                       Intermediate                                        
                                                       warrant                                             

  I Means the course is                                Sr Senior                                           
  required for an interim                              warrant                                             
  warrant                                                                                                  
  ------------------------- ----- --------------- ---- -------------- ---- -------- ----------- ---- ----- ----

**Figure 501-1. Warrant Course Requirements**

GSAM\
APD 2800.12B, CHGE 1, 10-1-99 A-15

\(e\) [Educational requirements]{.underline}. Effective January 1, 2000,
applicants for permanent warrants above the simplified acquisition level
must meet the stated education requirements prior to receiving a
warrant. HCAs may, at their discretion, make this requirement effective
prior to January 1, 2000. These requirements apply to all candidates for
permanent warrants, regardless of job series.

\(1\) [Applicants at grades 5 through 12.]{.underline} Applicants for
permanent warrants above the simplified acquisition level, who are at
grades 5 through 12, must either have completed a 4-year course of study
leading to a bachelor\'s degree or have completed 24 semester hours in
any combination of the designated fields.

\(2\) [Applicants at grades 13 and above]{.underline}. Applicants for
permanent warrants above the simplified acquisition level, who are at
grade 13 or above, must have completed a 4- year course of study leading
to a bachelor\'s degree that included or was supplemented by at least 24
semester hours in any combination of the designated fields. The Senior
Procurement Executive may waive one, but not both, of these educational
requirements (i.e., either the requirement for a 4-year course of study
[or]{.underline} the requirement for 24 semester hours in designated
fields), for applicants at grades 13 and above. The applicant must
demonstrate significant analytical and decision-making capabilities, an
acceptable job performance record, and qualifying experience.

\(3\) The designated educational fields are:

\(i\) Accounting.

\(ii\) Business.

\(iii\) Finance.

\(iv\) Law.

\(v\) Contracts

\(vi\) Purchasing

\(vii\) Economics.

\(viii\) Industrial management.

\(ix\) Marketing.

GSAM\
A-16 APD 2800.12B, CHGE 1, 10-1-99

\(x\) Quantitative methods.

\(xi\) Organization and management.

\(f\) [Course equivalencies]{.underline}.

\(1\) For employees who completed training prior to availability of the
Governmentwide core curriculum, the following is a list of the courses
contained in the Governmentwide curriculum and the course equivalencies
that GSA will recognize. GSA cannot guarantee that other Federal
agencies will accept the same substitutes.

  ------------------------------- ---------------------------------------
  **Governmentwide Curriculum     **Equivalent GSA Course**
  Course**                        

  Acquisition or Procurement      Introduction to Contracting plus\
  Planning I                      Procurement Planning

  Acquisition or Procurement      No equivalent
  Planning II                     

  Contract Formation I            Contracting by Negotiation

  Contract Formation II           Source Selection

  Contract Administration I       Contract Administration

  Contract Administration II      Advanced Contract Administration plus\
                                  Contract Termination

  Price Analysis                  Price Analysis

  Cost Analysis                   Cost Analysis

  Intermediate Contract Pricing   No equivalent

  Contract Law                    Contract Law

  Negotiation Techniques          Negotiation Techniques
  ------------------------------- ---------------------------------------

\(2\) GSA employees who have successfully completed a GSA approved
course are not required to complete the equivalent course in the
Governmentwide curriculum for warrant purposes in GSA. There are no GSA
courses considered equivalent to Acquisition or Procurement Planning II,
Intermediate Contract Pricing, or Contract Formation II.

\(3\) Acceptance of course equivalencies extends only to GSA-approved
courses successfully completed prior to availability of the
Governmentwide curriculum. Requests to consider course equivalencies for
training taken thereafter will not be considered or approved.

\(4\) Employees who attended courses approved as course equivalencies,
prior to availability of the Governmentwide curriculum, are not required
to complete the corresponding

GSAM\
APD 2800.12B, CHGE 1, 10-1-99 A-17

course in the Governmentwide curriculum. GSA Insite at:
http://insite.gsa.private/acqwork contains a list of course
equivalencies for GSA courses.

\(5\) Employees are cautioned that GSA\'s determination concerning the
acceptability of GSA-approved courses is not binding on other Federal
agencies. Employees who wish to qualify for senior 1102 positions in
other Federal agencies may want to complete the courses contained in the
Governmentwide core curriculum, as fulfillment of the mandatory training
requirements for 1102 positions at grades 13 and above, to ensure
acceptability across Government.

**501.603-3 Appointment.**

\(a\) [Authority to make micro-purchases or issue TSR\'s]{.underline}.

\(1\) HCAs may authorize division directors or higher level officials to
delegate contracting authority to employees to:

\(i\) Make purchases not to exceed \$2,500 (micro-purchases).

\(ii\) Issue TSRs for tariff services on, or in conjunction with,
existing telephone systems, to regulated local exchange telephone
companies.

(Officials so designated by the HCA may not redelegate their authority.)

\(2\) Memoranda delegating authority to issue TSRs must state that the
authority does not apply to Rate Stabilization Plans or orders for new
Centrex service on a site level basis, except for new locations that
require interim, temporary, small or emergency service.

\(3\) Branch chiefs or equivalent or Regional FTS Program Support Branch
Chiefs may request delegations of contracting authority for issuing
TSRs. The memorandum requesting appointment must include all the
following:

\(i\) Candidate\'s name, title, and organizational location.

\(ii\) Brief explanation of why authority is needed.

\(iii\) Brief description of the candidate\'s qualifications.

\(iv\) Statement that the candidate has received the required training.

\(b\) [Authority to make other purchases]{.underline}.

\(1\) [Nominations for appointment]{.underline}.

\(i\) The chairperson of COWB, or other designee established by the HCA,
submits nominations for appointment.

GSAM\
A-18 APD 2800.12B, CHGE 1, 10-1-99

\(ii\) Nominations are submitted on GSA Form 3410, Request for
Appointment and must be accompanied by one of the following: a GSA Form
3409, Personal Qualifications Statement for Appointment as a Contracting
Officer; a Standard Form 171, Personal Qualifications Statement,
prepared and signed by the candidate; or a resume detailing the
candidate\'s experience, education, and training relevant to the
position.

\(2\) [Certificate of Appointment]{.underline}.

\(i\) HCA\'s appoint contracting officers at the basic, simplified
acquisition, intermediate, or senior level using Standard Form 1402,
Certificate of Appointment. Appendix 501A provides suggested language
for use in preparing SF 1402\'s. The examples shown in Appendix 501A are
not meant to limit the issuance of warrants to only those contained in
the Appendix.

\(ii\) The HCA gives the original Certificate of Appointment to the
appointed contracting officer for display at his or her duty station.

\(3\) [Types of appointments]{.underline}. Candidates are nominated for
either an interim or permanent appointment.

\(i\) [Interim appointments]{.underline}. Interim appointments are for a
specified period of time. Personnel who hold interim simplified
acquisition warrants must complete all training required for a permanent
warrant within 1 year of the interim appointment. Personnel who hold
interim warrants above the simplified acquisition level must complete
all training and formal education required for a permanent warrant
within 3 years of the interim appointment. A candidate for an interim
warrant must have completed all courses required for an interim warrant
and have the necessary experience prior to appointment.

\(ii\) [Permanent appointments]{.underline}. A permanent appointment is
made to a candidate who meets all requirements for experience,
education, and training at the time the appointment is made. Permanent
appointments may be made for a specified period if the need for
contracting authority is limited to that time period.

\(c\) [Training required for continued appointment for other than
micro-purchase, TSR, or interim]{.underline} [warrants]{.underline}.

\(1\) To maintain competency, you must complete formal or informal
acquisition-related training as follows. The training may be
accomplished through completion of a training class or through any of
the examples cited in 501.603-3(c)(2) below.

\(i\) 16 hours every two years (for basic or simplified acquisition
level warrants).

\(ii\) 40 hours every 2 years (for intermediate or senior level
warrants).

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APD 2800.12B CHGE 1, 10-1-99 A-19

\(2\) To meet this requirement, you may attend:

\(i\) In-house training sessions.

\(ii\) Courses designed to broaden procurement knowledge (e.g., Contract
Quality Assurance, Evaluating Contractor Performance, Alternative
Dispute Resolution Procedures), including repeat courses taken for
refresher training.

\(iii\) Courses related to procurement (e.g., Ethics, Standards of
Conduct).

\(iv\) Lectures, seminars, or conferences conducted by
nationally-recognized acquisition organizations or professional
associations (e.g., National Contract Management Association, National
Institute of Governmental Purchasing) or write papers or articles for
these groups.

\(v\) Training to acquire knowledge of the product or service you are
responsible for procuring (i.e., courses and in-house training sessions;
attending contractor sponsored seminars, conferences, and trade shows;
and site visits to a contractor\'s place of manufacture/performance to
learn about manufacturing/operations processes).

\(3\) If you successfully complete a professional certification program
offered by a nationally-recognized acquisition organization such as
NCMA, NIGP, NAPM, or equivalent organization, you fulfill the continuing
education requirements for contracting officers for a period of 3 years.
The 3-year period begins on the effective date of your professional
certification.

\(d\) [Authority to make purchases for domestic and national security
emergencies]{.underline}.

\(1\) If you have already been appointed as a contracting officer, you
may enter into contracts on behalf of a GSA organization different from
the organization specified in your Certificate of Appointment in
response to a domestic or national security emergency (see GSA Order,
National Emergency Management Program (ADM P 2400.18)).

\(2\) An HCA may grant higher contracting authority for use during
emergencies in a basic or intermediate warrant.

\(3\) An HCA may appoint contracting officers with authority limited to
entering into contracts required to respond to domestic or national
security emergencies.

**501.603-4 Termination.**

\(a\) An appointing official may terminate your appointment at any time.
Return the terminated warrant document to the appointing official if
your appointment is terminated. At the HCA\'s discretion, a contracting
officer whose appointment is terminated may retain the original warrant
certificate.

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A-20 APD 2800.12B, CHGE 1, 10-1-99

\(b\) Your supervisor or other management official within your
organization must notify the HCA if you:

\(1\) Resign.

\(2\) Transfer to another agency or are reassigned to another office in
GSA.

\(3\) Are terminated, or otherwise disciplined, for malfeasance or
incompetence.

\(4\) No longer need your appointment.

\(5\) Failed to comply with any of the experience and training
requirements.

\(c\) Anyone within your supervisory chain-of-command may suspend your
appointment temporarily pending a final determination by the HCA:

\(1\) If there is reason to believe that you failed to exercise sound
business judgment.

\(2\) For other improprieties in carrying out your responsibilities as a
contracting officer.

**SUBPART 501.7 DETERMINATIONS AND FINDINGS**

**501.707 Signatory authority.**

\(a\) The FAR frequently refers to determinations made by the agency
head. Under section 309 of the Federal Property and Administrative
Services Act, the Administrator authorized HCA\'s to act as agency head
to facilitate procurement of property and services under Title III of
the Act. (See GSA Delegation of Authority Manual, ADM P 5450.39C.)

\(b\) An HCA normally signs a class D&F.

\(c\) If a statute precludes an agency head redelegating authority, the
Administrator must sign the D&F (See, for example, FAR 6.302-7).

**PART 502 DEFINITIONS OF WORDS AND TERMS**

**SUBPART 502.1 DEFINITIONS**

**502.101 Definitions.**

\"Agency competition advocate\" means the GSA Competition Advocate in
the Office of Acquisition Policy.

\"Assigned counsel\" means the attorney employed by the Office of
General Counsel (including offices of Regional Counsel) assigned to
provide legal review or assistance.

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APD 2800.12B, 09-01-99 A-21

\"Contracting activity competition advocate\" means the individual
designated in writing by the head of the contracting activity (HCA).
This authority may not be redelegated. The HCA must ensure that the
designated competition advocate is not assigned any duty or
responsibility that is inconsistent with the advocacy function. The
identity of the designated official shall be communicated to procuring
staff and the Senior Procurement Executive.

\"Contracting director\" means:

\(a\) Except in FSS, a director of a Central Office or Regional office
Division responsible for performing contracting or contract
administration functions.

\(b\) In FSS, a director of a Commodity Center or FSS Bureau.

\"Contracting officer\'s representative (COR), contracting officer\'s
technical representative (COTR), or contract administrator\" means a
Government employee designated in writing by the contracting officer to
perform specific limited activities for the contracting officer, such as
contract administration.

\"Debarring official\" or \"suspending official\" means the Senior
Procurement Executive or a designee.

\"Head of the contracting activity\" means the Deputy Associate
Administrator for Acquisition Policy (MV); Commissioners of the Federal
Technology Service (FTS); Federal Supply Service (FSS), or Public
Buildings Service (PBS); or Regional Administrators. The Deputy
Associate Administrator for Acquisition Policy serves as the HCA for
Central Office contracting activities outside of FTS, FSS, and PBS.

\"Senior procurement executive\" means the Deputy Associate
Administrator for Acquisition Policy.

\"Senior program official\" means a person reporting to, and designated
by, the HCA to have overall program responsibility for determining how
the agency will meet its needs. The official should have a position of
authority over the participating offices. Examples include Assistant
Regional Administrators or Deputy Commissioners.

**PART 503 IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST**

**SUBPART 503.1 SAFEGUARDS**

**503.101 Standards of conduct.**

**503.101-3 Agency regulations.**

GSA Standards of Conduct appear at 5 CFR 6701.

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A-22 APD 2800.12A, 09-01-99

**503.104 Procurement integrity.**

**503.104-3 Definitions.**

\"Federal agency procurement\" as used in FAR 3.104 and in this section,
also means acquisitions of leasehold interests in real property.

**503.104-4 Statutory and related prohibitions, restrictions, and
requirements.**

The supervisor must remind a departing employee of the post-employment
restrictions in FAR 3.104-4(d) and 3.104-8.

**503.104-5 Disclosure, protection, and marking of contractor bid or
proposal information** **and source selection information.**

\(a\) [Persons authorized access to information]{.underline}.

\(1\) The following persons may access contractor bid or proposal
information and source selection information to accomplish their
responsibilities in a procurement action:

\(i\) Requirements generators, including client agency representatives,
and program and technical experts who develop statements of work,
specifications or similar documents.

\(ii\) Contracting personnel supporting you.

\(iii\) Personnel serving on technical evaluation boards or source
selection evaluation boards.

\(iv\) Supervisors in your chain of command.

\(v\) Secretarial, clerical and administrative personnel of the
contracting activity responsible for the procurement.

\(vi\) Small Business Technical Advisors.

\(vii\) Small Business Administration (SBA) personnel who review
determinations not to set-aside acquisitions, determine the small
business status of offerors under FAR 19.302, process applications for
Certificates of Competency under FAR 19.6, review subcontracting plans,
or award contracts under the 8(a) program.

\(viii\) Personnel in the Credit and Finance Section of Region 6 and
other personnel who support you in making contractor responsibility
determinations.

\(ix\) Contract auditors in the Office of Inspector General and Regional
Inspector General\'s offices.

GSAM\
APD 2800.12B, 09-01-99 A-23

\(x\) Department of Labor (DOL) personnel who process preaward EEO
clearances under FAR 22.805.

\(xi\) Attorneys in the Office of General Counsel and Regional
Counsel\'s offices.

\(xii\) Personnel involved in contract approval.

\(2\) The Senior Procurement Executive may authorize additional classes
of persons access to contractor bid or proposal information or source
selection information.

\(3\) You may authorize access to contractor bid or proposal information
or source selection information if necessary to conduct the procurement.
This includes release of information to outside evaluators under
515.305-71. Limit access to only that information the person needs to do
his or her job.

\(4\) You may use GSA Form 3617, Record of Authorization of Access to
Contractor Bid or Proposal Information or Source Selection Information,
to maintain a list of individuals authorized access by the contracting
activity.

\(b\) [Procedures for marking and protecting information]{.underline}.
Any individual who prepares, makes, or controls contractor bid or
proposal information and source selection information must:

\(1\) Mark documents as prescribed in FAR 3.104-5(c). You may use GSA
Form 3611, Cover Page Source Selection Information, as the cover page
for a document that contains source selection information. Mark each
page of the document if you use this form.

\(2\) Provide physical security for documents in the office environment
during, and after, duty hours.

\(3\) Secure interoffice mailing of documents by using opaque envelopes,
\"double wrapping\" with more than one envelope, and sealing envelopes
securely.

\(4\) Maintain strict control over oral communications about the
acquisition.

\(c\) [Requests for information from Congress]{.underline}. For requests
from a member of Congress, see 505.403.

\(d\) [Responsibilities of departing employees]{.underline}. The
supervisor must advise each departing employee who participated
personally and significantly in a procurement of continuing
responsibilities under:

\(1\) Subsection 27(a) of the Office of Federal Procurement Policy
(OFPP) Act (41 U.S.C. 423), which prohibits disclosing procurement
information (see FAR 3.104-4(a)).

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\(2\) Subsection 27(d) of the OFPP Act, which establishes
post-employment restrictions (see FAR 3.104-4(d)).

\(3\) Other statutes and regulations concerning prohibited conduct (see
FAR 3.104-1(b)).

**503.104-9 Contract clauses.**

**[Acquisitions Of Leasehold Interests In Real Property,]{.underline}**

Insert a clause substantially the same as the clause at 552.203-70,
Price Adjustment for Illegal or Improper Activity, in solicitations and
contracts for and modifications to leasehold interests in real property
exceeding \$100,000.

**503.104-10 Violations or possible violations.**

\(a\) The contracting director is the individual designated under FAR
3.104-10(a)(1) to receive information related to a conclusion that a
reported or possible violation has no impact on a procurement.

\(b\) If the HCA receives information describing an actual or possible
violation, the HCA must take all the following actions:

\(1\) Refer the matter immediately to the Inspector General.

\(2\) Determine what action to take on the procurement under FAR
3.104-10(b) - (g).

\(3\) Notify the Administrator if he or she determines under FAR
3.104-10(f) that urgent and compelling circumstances, or other
Government interests, justify the award or modification.

\(c\) If a contracting officer has not been appointed, the contracting
director performs the contracting officer actions defined in FAR
3.104-10.

**SUBPART 503.2 CONTRACTOR GRATUITIES TO GOVERNMENT PERSONNEL**

**503.203 Reporting suspected violations of the Gratuities clause.**

\(a\) Under 5 CFR 6701.107 employees must report immediately a suspected
violation of the Gratuities clause to each of the following:

\(1\) You.

\(2\) Assistant Inspector General for Investigations or the Regional
Inspector General for Investigations.

\(3\) Deputy Standards of Conduct Counselor.

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\(b\) The report must describe the circumstances under which the
Gratuities clause has been violated and include all pertinent documents.

\(c\) The Office of Inspector General will investigate and, if
appropriate, forward a report and recommendation to the Department of
Justice, the Senior Procurement Executive, or the Office of General
Counsel.

**503.204 Treatment of violations.**

\(a\) The Senior Procurement Executive, or designee, makes
determinations under FAR 3.204. The Senior Procurement Executive, or
designee, takes all the following actions:

\(1\) Coordinates with legal counsel.

\(2\) Initiates proceedings under FAR 3.204(a) by notifying the
contractor that GSA is considering action against the contractor for a
violation of the Gratuities clause. Notice is sent by a certified letter
to the last known address of the party, its counsel, or agent for
service of process. In the case of a business, notice is sent to any
partner, principal officer, director, owner or co-owner, or joint
venture.

\(3\) Presumes receipt if no return receipt is received within 10
calendar days after mailing the notice.

\(b\) The contractor has 30 calendar days to exercise its rights under
FAR 3.204(b), unless the Senior Procurement Executive, or designee,
grants an extension.

\(c\) If there is a dispute of fact material to making a determination,
the Senior Procurement Executive, or designee, may refer the matter to
an agency fact-finding official designated by the Chairman of the GSA
Board of Contract Appeals. Referrals for fact-finding are not made in
cases arising from a conviction or indictment as defined in FAR 9.403.
If a referral is made, the fact-finding official takes all the following
actions:

\(1\) Gives the contractor an opportunity to dispute material facts
relating to the determinations under FAR 3.204(a)(1) and (2).

\(2\) Conducts proceedings under rules consistent with FAR 3.204(b).

\(3\) Schedules a hearing within 20 calendar days of receipt of the
referral. The contractor or GSA may request an extension for good cause.

\(4\) Delivers to the Senior Procurement Executive, or designee, written
findings of fact (together with a transcription of the proceedings, if
made) within 20 calendar days after the hearing record closes. The
findings must resolve any material disputes of fact by a preponderance
of the evidence.

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\(d\) The Senior Procurement Executive, or designee, may reject the
findings of the fact-finding official only if the findings are clearly
erroneous or arbitrary and capricious.

\(e\) In cases arising from conviction or indictment, or in which there
are no disputes of material fact, the Senior Procurement Executive, or
designee, conducts the hearing required by FAR 3.204(b).

\(f\) If the Gratuities clause was violated, the contractor may present
evidence of mitigating factors to the Senior Procurement Executive, or
designee, either orally or in writing, in accordance with a schedule the
Senior Procurement Executive, or designee, establishes. The Senior
Procurement Executive, or designee, exercises the Government\'s rights
under FAR 3.204(c) only after considering mitigating factors.

**SUBPART 503.3 REPORTS OF SUSPECTED ANTITRUST VIOLATIONS**

**503.303 Reporting suspected antitrust violations.**

Report evidence of suspected antitrust violations in acquisitions to the
Assistant Inspector General for Investigations or the Regional Inspector
General for Investigations. When appropriate, the Office of Inspector
General will investigate and prepare a report and recommendation to the
Attorney General and to the Senior Procurement Executive for suspension
or debarment consideration.

**SUBPART 503.4 CONTINGENT FEES**

**503.404 Contract clause.**

Insert 552.203-5, Covenant Against Contingent Fees, in solicitations and
contracts for the acquisition of leasehold interests in real property
expected to exceed \$100,000.

**503.405 Misrepresentations or violations of the Covenant Against
Contingent Fees.**

Employees who suspect or have evidence of violations of the Covenant
Against Contingent Fees clause must report the matter to you as well as
to the Office of Inspector General. If appropriate, the Office of
Inspector General will forward a report and recommendation to the
Department of Justice.

**SUBPART 503.5 OTHER IMPROPER BUSINESS PRACTICES**

**503.570 Advertising.**

**503.570-1 Policy.**

GSA policy precludes contractors from referring to GSA contracts in
commercial advertising in a manner that states or implies the Government
approves or endorses the product or service or

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APD 2800.12B, 09-01-99 A-27

considers it superior to other products or services. The intent of this
policy is to prevent the appearance of Government bias toward any
product or service.

**503.570-2 Contract clause.**

Insert the clause at 552.203-71, Restriction on Advertising, in
solicitations and contracts, including acquisitions of leasehold
interests in real property, if the contract amount is expected to exceed
the simplified acquisition threshold.

**SUBPART 503.7 VOIDING AND RESCINDING CONTRACTS**

**503.702 Definition.**

\"Notice\" means a letter sent by certified mail with a return receipt
requested to the last known address of a party, its counsel, or agent
for service of process. In the case of a business, such notice may be
sent to any partner, principal officer, director, owner or co-owner, or
joint venturer. If no return receipt is received within 10 calendar days
of mailing, receipt is presumed.

\"Voiding and rescinding official\" means the Senior Procurement
Executive or designee.

**503.705 Procedures.**

\(a\) [Contracting officer\'s actions]{.underline}:

\(1\) If a contract is tainted by misconduct, consult with assigned
counsel to determine if the Government has a common law remedy such as
avoidance, recision, or cancellation.

\(2\) If the contractor has a final conviction for a violation under 18
U.S.C. 201-224, you may refer the matter to the voiding and rescinding
official under FAR 3.705.

\(i\) In the referral, identify the final conviction and include the
information required by FAR 3.705(d)(2) through (5).

\(ii\) Coordinate the referral with the Office of Inspector General to
determine whether to recommend debarment.

\(3\) You may postpone a decision to exercise the Government\'s common
law right to void, rescind, or cancel a contract until completion of
legal proceedings against the contractor.

\(b\) [Voiding and rescinding official\'s actions:]{.underline}

\(1\) The voiding and rescinding official reviews the referral and
coordinates with assigned counsel and the contracting activity.

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\(2\) If the official decides to declare void and rescind a contract and
to recover the amounts expended and the property transferred, the
official takes both the following actions:

\(i\) Issues the notice required by FAR 3.705.

\(ii\) Conducts the hearing contemplated by FAR 3.705(c)(3).

\(3\) In case of a dispute of material fact about the agency decision,
the official refers the matter to the fact-finding official designated
by the Chairman of the GSA Board of

Contract Appeals. The voiding and rescinding official makes this
referral if the dispute of fact relates to any of the following:

\(i\) Contracts affected by the final conviction.

\(ii\) Amounts expended and property transferred by the Government under
the affected contracts.

\(iii\) Identity and value of any tangible benefits received by the
Government under the affected contracts.

\(4\) The voiding and rescinding official issues GSA\'s final decision
under FAR 3.705(e) after receiving the fact-finding official\'s report,
if a referral was made. The voiding and rescinding official may reject
the fact-finding official\'s findings only if they are clearly erroneous
or arbitrary and capricious.

\(5\) The official coordinates the final decision with the contracting
activity and provides the activity a copy of the decision.

\(c\) [Fact-finding official\'s actions:]{.underline} The fact-finding
official takes all the following actions:

\(1\) Gives the contractor an opportunity to dispute material facts.

\(2\) Conducts the proceedings under rules consistent with FAR
3.705(c)(3).

\(3\) Schedules a hearing within 20 calendar days after receiving the
referral. The official may grant extensions for good cause at the
request of the contractor or GSA.

\(4\) Delivers written findings of fact to the voiding and rescinding
official (together with a transcription of the proceeding, if made)
within 20 calendar days after the hearing record closes. The findings
must resolve any material disputes of fact by a preponderance of the
evidence.

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**SUBPART 503.8 LIMITATIONS ON PAYMENT OF FUNDS TO\
INFLUENCE FEDERAL TRANSACTIONS**

**503.806 Processing suspected violations.**

Submit evidence of suspected violations of 31 U.S.C. 1352, Limitation on
the Use of Appropriated Funds to Influence Certain Federal Contracting
and Financial Transactions, to the Assistant Inspector General for
Investigation or the Regional Inspector General for Investigation. When
appropriate, the Office of Inspector General will investigate and
prepare a report and recommendation to the Department of Justice.

**PART 504 ADMINISTRATIVE MATTERS**

**SUBPART 504.1 CONTRACT EXECUTION**

**504.101 Contracting officer\'s signature.**

You must sign contracts and contract modifications manually. In your
absence, another contracting officer may sign for you. Always type or
stamp the name and title of the person actually signing the document on
the document below the signature.

**504.103 Contract clause.**

Agency procedures do not require use of the clause at FAR 52.204-1,
Approval of Contract, in solicitations and contracts.

**SUBPART 504.2 CONTRACT DISTRIBUTION**

**504.201 Procedures.**

\(a\) Send documentation to the paying office on all contracts for which
GSA generates a delivery or task order.

\(1\) For Federal Supply Service contracts entered into the FSS-19
system, send a system generated contract listing.

\(2\) For all other contracts, send a \"Duplicate Original\" of the
entire contract or modification.

\(b\) Certify that the \"Duplicate Original\" is a true copy of the
contract or modification by writing your signature, in ink, on the award
or modification form (i.e., SF 26, 33, 1442, etc.). Certify all
contracts except:

\(1\) Leases of real property.

\(2\) Schedule contracts.

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A-30 APD 2800.12B, 09-01-99

\(3\) Standard or GSA multipage purchase/delivery/task order carbon
forms.

**504.203 Taxpayer identification number information.**

The FAR 4.203 procedure for attaching the completed FAR provision at
52.204-3 as the last page of the contract sent to the paying office does
not apply to leases of real property (See 504.903) or FSS schedule
contracts.

**SUBPART 504.4 SAFEGUARDING CLASSIFIED INFORMATION WITHIN INDUSTRY**

**504.402 General.**

\(a\) This subpart:

\(1\) Prescribes procedures for safeguarding classified information
required to be disclosed to contractors in connection with the
solicitation of offers, and the award, performance, and termination of
contracts.

\(2\) Implements the requirements of the Department of Defense\'s
Industrial Security Regulation (ISR) and Industrial Security Manual for
Safeguarding Classified Information (ISM). By agreement, the Department
of Defense (DOD) will act for, and on behalf of, GSA in rendering
security services required for safeguarding classified information
released by GSA to U.S. industry.

\(b\) As used in this subpart, the term:

\(1\) \"Contractor(s)\" means prospective contractors, subcontractors,
vendors, and suppliers.

\(2\) \"U.S. industry\" means those industries (including educational
and research institutions) located within the United States, its
possessions, and the Commonwealth of Puerto Rico.

**504.470 Requests for release of classified information.**

\(a\) Prepare, in triplicate, Section I of GSA Form 1720, Request for
Release of Classified Information to U.S. Industry (illustrated in
Subpart 553.3) before soliciting offers or negotiating with a contractor
if disclosing classified information.

\(b\) Sign the form as requesting officer and obtain approval from your
immediate supervisor.

\(c\) Forward all copies of the completed form to the Office of
Management Services (CA).

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**504.470-1 Authorization for release.**

\(a\) CA determines if a contractor has been issued a DOD facility
security clearance and completes the appropriate parts of Section 11, of
GSA Form 1720. CA returns the original and one copy of the completed
form to you.

\(b\) Do not disclose or make classified information accessible to a
contractor until CA gives you the completed form. If only Item 14b,
Section 11, of the form has been checked, follow the instructions on the
reverse side of the form. CA will advise you if a contractor is
ineligible for a security clearance.

**504.470-2 Termination of authorization for release.**

When circumstances support withdrawal or revocation of a security
clearance, CA informs you of the termination of authorization to release
classified information and provides instructions on actions required to
safeguard, withhold, or obtain the return of classified information.
Reasons for termination include any of the following:

\(a\) Failure of the contractor to maintain the physical standards
required by the ISM.

\(b\) Information indicating either that the contractor no longer:

\(1\) Is eligible for clearance.

\(2\) Requires access to classified information.

**504.471 Processing security requirements checklist (DD Form 254).**

\(a\) Prepare DD Form 254, Contract Security Classification
Specification (illustrated in FAR 53.303-DD-254), for contracts
involving contractor access to classified information. This identifies
for DOD and contractors the areas of classified information involved.
You may use written notice of classification for research or service
contracts.

\(b\) Obtain instructions or guidance on completing DD Form 254 from CA.

**504.472 Periodic review.**

\(a\) You must review DD Form 254 whenever a change in the phase of
performance occurs or at your discretion. Review the form at least once
a year to determine if the classified information can be downgraded or
declassified.

\(b\) Inform the contractor of the results of the review by one of the
following means:

\(1\) Issuance of a revised specification.

\(2\) Written instructions instead of DD Form 254, if authorized.

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\(3\) Written notification if the review results in no change in the
classification specifications.

\(c\) Prepare a final checklist upon termination or completion of the
contract.

**504.473 Recurring procurement.**

Prepare a new DD Form 254 only if a change occurs in either of the
following:

\(a\) End item.

\(b\) Previous security classification.

**504.474 Control of classified information.**

\(a\) Record, mark, handle, and transmit classified information in
accordance with instructions in the handbook, Information Security (ADM
P 1025.2D).

\(b\) Get the consent of the originating agency before releasing
classified information to a contractor.

**504.475 Return of classified information.**

\(a\) You must recover classified information unless it has been
destroyed as provided in paragraph 19 of the ISM. The Government agency
that provided classified information to a GSA contractor is responsible
for the return of the information.

\(b\) You must ensure that classified information furnished to
prospective offerors, offerors, or contractors is returned immediately
after any of the following:

\(1\) After bid opening or closing date for receipt of proposals by
non-responding offerors.

\(2\) After contract award by unsuccessful offerors.

\(3\) Upon termination or completion of the contract.

\(4\) Upon notification that authorization to release classified
information has been withdrawn.

\(5\) After notification that a facility:

\(i\) Does not have adequate means to safeguard classified information.

\(ii\) Has had its security clearance revoked or inactivated.

\(6\) Whenever otherwise instructed by the authority responsible for the
security classification.

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**504.476 Breaches of security.**

You or any other GSA employee responsible for the information must refer
the facts of an unauthorized disclosure of classified information
promptly to CA.

**SUBPART 504.5 ELECTRONIC COMMERCE IN CONTRACTING**

**504.500 Scope of Subpart.**

This subpart provides policy and procedure for use of GSA's Electronic
Posting System (EPS).

**504.502 Policy.**

\(a\) The EPS is GSA\'s primary vehicle for disseminating synopses and
written solicitations. GSA intends that the EPS will substitute for, not
supplement, paper copies of solicitations. (Note that FAR 2.101 defines
"in writing" or "written" to include "electronically transmitted and
stored information.")

\(b\) This policy does not apply to orders placed against existing
contracts, including Federal Supply Service schedule contracts.

\(c\) Nothing in this policy limits your authority to obtain oral
quotations or proposals as authorized by regulation (e.g., FAR 13.106-1
or FAR 15.203(f)).

**504.570 Procedures for using the EPS.**

\(a\) You must use the EPS to issue any synopsis required by FAR Part 5
or GSAR Part 505.

\(b\) You must issue each written solicitation on the EPS, except as
provided in paragraphs (c)(2) and (d) below.

\(c\) Although GSA intends that the EPS will substitute for paper copies
of solicitations, web-based transactions are not practical in some
industries or in some geographic areas at this time.

\(1\) If you expect that electronic access to a solicitation will result
in adequate competition, distribute the solicitation only through the
EPS. Include the following notice in the related synopsis:

GSA is issuing this solicitation only electronically. Interested parties
may access the solicitation at http://www.eps.gov. This site provides
instructions for downloading the solicitation file.

\(2\) If you believe that distribution of paper copies is necessary to
ensure adequate competition, document the file to justify distribution
of paper copies. Include the notice in paragraph (c)(1) above in the
related synopsis, leaving out the first sentence.

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\(d\) In some cases, release of construction drawings must be controlled
to ensure adequate security. In other cases, an exhibit or attachment
incorporated in a solicitation may not be available electronically. In
either of these cases, you must explain in both the synopsis and the
solicitation how interested parties may obtain a copy. In addition to
the notice required by paragraph (c), include a notice substantially the
same as below in both the synopsis and solicitation. Tailor the notice
as necessary for the particular acquisition.

This solicitation incorporates documents which are not available
electronically. See \[*Identify the solicitation section that lists the
subject documen*ts\]. Interested parties may request copies of these
documents by writing the Contracting Officer at the address in
\[*Identify address block in the solicitation*\].

\(e\) The *Electronic Posting System Manual* provides detailed
instructions for using the EPS. The Manual is available at
http://www.eps.gov/buyer.html.

**SUBPART 504.6 CONTRACT REPORTING**

**504.602-70 General Services Administration Procurement Data System
(GPDS).**

The GPDS is a computer-based information system developed to collect and
edit GSA procurement data prior to Federal Procurement Data System
(FPDS) submission. It also provides GSA managers with information about
GSA acquisition operations.

\(a\) [Reporting requirements]{.underline}. Since GPDS is a \"feeder
system\" to FPDS, its reporting requirements are almost identical to
those in the FPDS Reporting Manual. The following data reporting
requirements deviate from the FPDS Reporting Manual.

\(1\) Governmentwide commercial purchase card actions over the
micropurchase threshold must be reported, including modifications to
those actions.

\(2\) Either the Standard Form 279, Individual Contract Action Report
(ICAR) or the Standard Form 281, Summary Contract Action Report may be
used to report contract actions of \$25,000 or less, including
modifications to those actions, except for actions that must be reported
on ICAR.

\(b\) [Documentation]{.underline}. Documentation of information reported
to GPDS must be retained.

\(1\) A signed copy of ICAR or its computer-generated equivalent should
be retained in the contract file. If that is not feasible, the
information, either in written or automated form, must be filed in the
contract office.

\(2\) Copies of Summary Contract Action Reports must be on file in the
contract office.

\(c\) [Record disposition]{.underline}. Records of GPDS input are
disposed of as required by HB, GSA Records Maintenance and Disposition
System (OAD P 1820.2A).

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\(d\) [Senior Procurement Executive\'s responsibilities]{.underline}.
The Senior Procurement Executive:

\(1\) Provides policy and guidance to implement and update GPDS
reporting requirements.

\(2\) Approves and periodically reviews GPDS reporting procedures,
including those for automated systems.

\(3\) Maintains the GPDS and evaluates its completeness and accuracy
through information retrievals and also, for Central Office staff
offices, reviews data reported.

\(4\) Assist Heads of Services in establishing procedures and developing
training to ensure complete and accurate GPDS reporting.

\(5\) Provides GSA officials with information necessary to manage,
evaluate, and oversee GSA procurement actions.

\(6\) Ensures that GSA contracting activities comply with special FPDS
data reporting requirements not accomplished through GPDS reporting
requirements.

\(e\) [Heads of Services\' responsibilities]{.underline}. Each Head of
Service must:

\(1\) Establish procedures to ensure complete and accurate GPDS data
reporting within the Service and update the procedures as GPDS
requirements change.

\(2\) Inform all contracting activities that do not report through an
automated system of agencywide GPDS reporting procedures.

\(3\) Ensure that user manuals for automated reporting systems include
all required GPDS data elements.

\(4\) Designate GPDS Coordinators to manage and monitor GPDS reporting.

\(5\) Conduct training for contracting office personnel to ensure
complete and accurate GPDS reporting.

\(f\) [Regional Heads of Contracting Activities]{.underline} oversee and
periodically evaluate GPDS reporting activities for contracting offices
outside the responsibility of Heads of Services.

\(g\) [Heads of Staff Offices]{.underline} must ensure that staff
offices follow GPDS procedures in reporting procurement data.

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**SUBPART 504.8 GOVERNMENT CONTRACT FILES**

**504.800 Scope of subpart.**

This subpart prescribes a standard contract file format for all
contracts that exceed the simplified acquisition threshold, except
leases of real property. You may also apply this subpart to purchases
using simplified acquisition procedures.

**504.802 Contract files.**

\(a\) [File standardization]{.underline}. Place all information and
documentation required by FAR 4.802 and 4.803 in the contract file**.**
Organize the file in the standard contract file format in 504.803.

\(b\) [Responsibility for files]{.underline}**.** You are responsible
for the official file. Those initiating documents about the contract
must forward the documents to you for inclusion in the file. You are

accountable for contract files transferred to the records center and for
knowing where the National Archives and Records Administration placed
the files.

\(c\) [Transfer of responsibility for contract files]{.underline}.

\(1\) When responsibility for a contract transfers from you to another
contracting officer, e.g., transfer of assignments or redelegation of
contract administration (intraoffice or interoffice), you must prepare a
detailed listing by file number and name to identify the file(s) to be
transferred.

\(2\) Retain a copy of the listing and send a copy to your successor as
advance notice of the files to be transferred.

\(3\) Retain duplicates of the files transferred until your successor
acknowledges receipt of the files.

\(4\) Send the files to be transferred to your successor by certified
mail, return receipt requested, or by another method requiring your
successor\'s signature to acknowledge receipt. Send two copies of the
listing with the transferred files.

\(5\) Your successor must sign one copy of the listing, certifying
receipt of the files listed, and return the signed copy to you.

**504.803 Contents of contract files.**

\(a\) [Arrangement]{.underline}.

\(1\) Tab the contract file.

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\(2\) File items in reverse order starting with item (1) on the bottom
of the file and item (27) on the top.

\(3\) File documents within a tab chronologically with the most recent
document on top.

\(4\) Place documents too voluminous for an individual tab in a separate
file. Annotate the tab with the location of the file.

\(5\) Omit any tab not required for the contract.

\(b\) [Tab contents]{.underline}. The following instructions apply to
contract actions up to award. Contracting activities may develop further
guidance on tabbing postaward actions tailored to their requirements.
Tab the contract file as specified below:

\(1\) Requisition or request for contractual action. Include the
certification of the accuracy and completeness of data supporting a
recommendation by technical or requirements personnel to use other than
full and open competition. (See FAR 6.303-1(b))

\(2\) Specifications, drawings, and other technical documents.

\(3\) Acquisition plan including, if applicable, the determination
required by OMB Circular A-76 and concurrence of the cognizant
competition advocate.

\(4\) Determination and findings required by FAR 1.7 and 501.7, or
justification required by FAR 6.303, including the certification of
accuracy and completeness of the justification.

\(5\) Department of Labor Wage Determination.

\(6\) Small business determinations.

\(7\) Source list.

\(8\) Statement as to synopsis of proposed procurement under FAR 5.2 or
other required advertisements under 505.2.

\(9\) Presolicitation notice.

\(10\) IFB/RFP and amendments.

\(11\) Abstract of bids or proposals including identification of the low
bidder or offeror, discounted price, etc.

\(12\) Cost or pricing data and information other than cost or pricing
data. Include the waiver and documentation supporting the waiver if the
requirement for submission of cost or pricing data is waived, as
provided in FAR 15.403-1(b)(4).

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\(13\) Field pricing report (see FAR 15.404-2).

\(14\) Price or cost analysis report prepared under FAR 15.404. Include:

\(i\) Supporting technical analyses, other than those supporting an
audit report.

\(ii\) Profit or fee analysis required by FAR 15.404-4 and 515.404-4.

\(iii\) An independent Government estimate, if required.

\(15\) Documentation required by FAR 15.406, written to permit
reconstruction of the acquisition\'s major events.

\(16\) Certificate of current cost or pricing data, if applicable.

\(17\) Pre-award survey.

\(18\) EEO compliance review.

\(19\) \"No bid\" or \"no proposal\" correspondence.

\(20\) Unsuccessful bids or proposals. Include a copy of each rejected
bid and unacceptable proposal.

\(21\) Mistakes in bids and protests. Include all correspondence and
determinations relating to Mistakes in bids disclosed before award or
protests.

\(22\) Actions taken on late bids or proposals.

\(23\) Contract action. Include:

\(i\) Successful bid or proposal and all pertinent correspondence
applicable to the contract action, including evidence of submission of
contract award data to paying office (see 504.201).

\(ii\) Subcontracting plans incorporated in and made a material part of
a contract, as required by FAR 19.705-5(a)(5).

\(24\) Evidence of legal review, if required.

\(25\) Approvals. Include, as applicable:

\(i\) GSA Form 1535, Recommendation for Award.

\(ii\) Documentation of approval of subcontracting plan.

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\(iii\) Record of individuals authorized access to contractor bid or
proposal information or source selection information (see
503.104-5(a)(4)).

\(26\) Notices of award.

\(27\) SF 279, FPDS Individual Contract Action Report, or
system-generated equivalent.

\(c\) [Index]{.underline}.

\(1\) Place an index of the file tabs in the file. Mark items that do
not apply. If necessary, briefly explain why. You may use the GSA Form
3420, Contract/Modification File Checklist File Format (Award), for the
index.

\(2\) Include subheadings under a tab if required by your office.

**504.804-5 Detailed procedures for closing out contract files**.

The administrative contracting officer (ACO) must forward the statement
required by FAR 4.804-5(b) and the contract files to the cognizant
procuring contracting officer (PCO). The ACO must follow the procedures
outlined in 504.802(c) when transferring files to the PCO.

**504.805 Storage, handling, and disposal of contract files.**

Your accountability for contract files ends when the following three
conditions exist:

\(a\) The files\' retention period expires.

\(b\) You receive the notice of disposal from the National Archives and
Records Administration.

\(c\) The records liaison officer whose organization has functional
responsibility for the files approves disposal.

**SUBPART 504.9 INFORMATION REPORTING TO THE INTERNAL REVENUE SERVICE**

**504.903 Payment information.**

\(a\) The Office of Finance reports to IRS on payments made to certain
contractors for services performed and to lessors for providing space in
buildings. This is required by 26 U.S.C. 6041 and 6041A and implemented
in 26 CFR. To assist Finance, you must indicate on obligating documents
you send them (e.g., purchase, delivery, or task orders; contracts; the
GSA Form R-620 for leases; or certified invoices) all the following
information:

\(1\) Contractor\'s organizational structure (e.g. corporation,
partnership).

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A-40 APD 2800.12B, 09-01-99

\(2\) Contractor\'s taxpayer identification number (TIN).

\(b\) Make reports required by 26 U.S.C. 6050M through the FPDS.

**SUBPART 504.70 UNIFORM PROCUREMENT INSTRUMENT IDENTIFICATION**

**504.7001 Uniform procurement instrument identification.**

This subpart:

\(a\) Prescribes procedures for identifying contracts, orders, and other
procurement instruments regardless of dollar threshold.

\(b\) Applies to all contracting activities, except:

\(1\) FSS\'s procurement activities, except FSS Property Management
Division (FBP) which must comply with these procedures.

\(2\) Real property leasing.

**504.7001-1 Policy.**

\(a\) Use the uniform procurement instrument identification system for
procurement instruments listed in 504.7001-5(c). Do not use it for:

\(1\) Purchases made through certified invoice procedures (see 513.370).

\(2\) Imprest fund purchases.

\(3\) Purchases made with the Governmentwide commercial purchase card.

\(b\) Complete the contract number block provided on the applicable
forms. If a space is not reserved for the prescribed number, place the
number in the upper right-hand corner of the form.

\(c\) Each contracting office must maintain records to ensure continuity
and control of procurement instrument identification numbers. (See
504.7002.)

**504.7001-2 Basic procurement instrument identification number.**

The basic procurement instrument identification number normally is
assigned at award. The contracting office may assign a number when it
receives a procurement request to facilitate procurement tracking. The
basic procurement instrument identification number stays the same
throughout the life of the procurement instrument. It consists of 14
alphanumeric characters as follows:

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APD 2800.12B, 09-01-99 A-41

  ------------------ ------------------------------ ---------------------- -------------
  **Character(s)**   **Content**                    **Content Description  **Example**
                                                    Location**             

  1-2                Agency Designation Code        Always \"GS\"          GS

  3-4                Region/Central Office          504.7001-5(a)          02
                     Identification Code                                   

  5                  Service/Office Code            504.7001-5(b)          P

  6-7                Last Two Digits of Fiscal Year                        99
                     of Number Assignment                                  

  8-9                Preparing Contracting Office   Located in GPDS        PF
                     Code                           retrieval GCO          

  10                 Instrument Code                504.7001-5(c)          L

  11-14              Serial Number                  504.7001-5(d)          0002
  ------------------ ------------------------------ ---------------------- -------------

**504.7001-3 Order and call instrument identification number.**

Delivery or task orders under indefinite delivery contracts and schedule
contract orders are identified by placing an 11-character alphanumeric
identification number in the order number block of the order form as
shown in the table below. The basic indefinite delivery or schedule
contract number is placed in the contract number block of the order
form.

  ------------------ ------------------------------ ---------------------- -------------
  **Character(s)**   **Content**                    **Content Description  **Example**
                                                    Location**             

  1                  Service/Office Code            504.7001-5(b)          P

  2-3                Region/Central Office          504.7001-5(a)          01
                     Identification Code                                   

  4-5                Last Two Digits of Fiscal Year                        98
                     of Number Assignment                                  

  6-7                Preparing Contracting Office   Located in GPDS        PB
                     Code                           retrieval GCO          

  8-11               Serial Number (in sequence as  504.7001-5(d)          B096
                     issued by the contracting                             
                     office)                                               
  ------------------ ------------------------------ ---------------------- -------------

**504.7001-4 Supplemental procurement instrument identification
number.**

Modifications to the basic contract instrument and to calls/orders
against contracts are numbered with a four character alphanumeric
number. The supplemental identification numbering system applies to all
modifications to contracts and to call/orders against contracts.

GSAM\
A-42 APD 2800.12B, 09-01-99

+---------+-------------------+--------------------------------+-------+
| **      | **Content**       | **Description**                | *     |
| Charact |                   |                                | *Exam |
| er(s)** |                   |                                | ple** |
+---------+-------------------+--------------------------------+-------+
| 1       | Office Issuing    | A=Administrative Office        | A     |
|         | Modification      |                                |       |
|         |                   | P=Purchasing Office            |       |
+---------+-------------------+--------------------------------+-------+
| 2       | Action Type       | A=Administrative Change        | S     |
|         |                   |                                |       |
|         |                   | C=Change Order                 |       |
|         |                   |                                |       |
|         |                   | O=Other                        |       |
|         |                   |                                |       |
|         |                   | S=Supplemental Agreement       |       |
|         |                   | (bilateral signatures)         |       |
+---------+-------------------+--------------------------------+-------+
| 3-4     | Serial Number     | 01 - 99                        | B2    |
|         |                   |                                |       |
|         |                   | Al - A9 to ZI - Z9             |       |
|         |                   |                                |       |
|         |                   | AA - AZ to ZA - ZZ             |       |
+---------+-------------------+--------------------------------+-------+

**504.7001-5 Codes for instrument identification numbers.**

\(a\) [Region/Central Office Codes]{.underline}.

00 Central Office 04 Region 4 08 Region 8\
01 Region 1 05 Region 5 09 Region 9\
02 Region 2 06 Region 6 10 Region 10\
03 Region 3 07 Region 7 11 National Capital Region

\(b\) [Preparing Service/Office Codes]{.underline}.

B Office of the Chief Financial Officer\
F Federal Supply Service\
G GSA Board of Contract Appeals\
C Office of the Chief People Officer\
I Office of Chief Information Officer\
J Office of Inspector General\
L Office of General Counsel\
M Office of Governmentwide Policy\
P Public Buildings Service\
T Federal Technology Service

\(c\) [Procurement Instrument Type Codes]{.underline}.

A Agreements, including basic agreements, basic ordering agreements, and
blanket purchase agreements.

B Reserved.

C Contracts, including letter contracts; contracts referencing basic
agreements, or basic ordering agreements, excluding indefinite delivery
contracts.

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APD 2800.12B, 09-01-99 A-43

D Indefinite delivery contracts, including definite quantity,
requirements, and indefinite quantity.

E Sales contracts.

F-L Reserved.

M Purchase orders (open market simplified acquisition) - manual.

N Reserved.

P Purchase orders (open market simplified acquisition) - automated.

Q-R Reserved.

S Schedule contract.

T-Z Reserved.

\(d\) [Serial Number Codes]{.underline}.

\(1\) A separate series of numbers may be used for each basic instrument
type (see 504.7001-2 and 504.7001-5(c)).

\(2\) For delivery or task orders, each order issued by contracting
office must receive a consecutive serial number. That is, orders are
numbered in sequence as issued by the contracting office; not in
sequence under any individual contract.

\(3\) At the beginning of each fiscal year, the first number assigned is
0001.

\(4\) Alphanumeric characters are serially assigned after the numeric
series is exhausted.

\(5\) The allowable numeric and alphanumeric sequences, excluding alpha
I and O are:

\(i\) 0001 through 9999.

\(ii\) AOO1 through A999, BOO1 through B999.

\(iii\) and so on to ZOO1 through Z999.

\(6\) Each issuing office is responsible for controlling serial number
assignments.

**504.7002 Procurement contract register.**

GSA Form 2728, Procurement Contract Register, or an automated register,
is used to ensure continuity and control of procurement instrument
identification numbers.

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A-44 APD 2800.12B, 09-01-99

**APPENDIX 501A\
SUGGESTED LANGUAGE FOR CERTIFICATES OF APPOINTMENT FOR CONTRACTING
OFFICER WARRANT PROGRAM**

**BASIC ACQUISITION - \$25,000:**

\(1\) Making and administering purchases and contracts up to and
including \$25,000 per individual transaction and (2) placing and
administering orders against contracts established by GSA or another
Federal agency in accordance with the terms and conditions of such
contracts when the contract authorizes or requires GSA to place orders.

**CONTRACTING OFFICER\'S REPRESENTATIVE/COR - \$25,000:**

Issuing change orders under contracts if designated to act as
Contracting Officer\'s Representative for the contract provided the
dollar value of the individual transaction does not exceed \$25,000 and
is within the scope of the contract.

**CONTRACTING OFFICER\'S REPRESENTATIVE - \$25,000 WITH SPECIAL
\$25,000** **A/E ORDERING AUTHORITY:**

\(1\) Issuing change orders under contracts if designated to act as
Contracting Officer\'s Representative for the contract provided the
dollar value of the individual transaction does not exceed \$25,000 and
is within the scope of the contract, and (2) issuing orders and/or order
modifications against established A/E contracts not to exceed \$25,000
per individual order and/or order modification.

**TASK AND DELIVERY ORDERS:**

Placing and administering task and delivery orders against contracts
established by GSA and another Federal agency in accordance with the
terms and conditions when the contracts authorize or require GSA to
place orders.

**SIMPLIFIED ACQUISITION - \$100,000:**

\(1\) Awarding and administering purchases and contracts using
simplified acquisition procedures up to and including \$100,000 per
individual transaction, and (2) placing and administering orders against
contracts established by GSA or another Federal agency in accordance
with the terms and conditions of such contracts when the contract
authorizes or requires GSA to place orders.

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APD 2800.12B, 09-01-99 A-45

**LEASING/SIMPLIFIED ACQUISITION - \$100,000:**

Awarding and administering contracts for (1) the advertising of proposed
real estate transactions in newspapers, (2) the acquisition of leasehold
interests in real property provided the dollar value of individual
contract actions do not exceed \$100,000 average net annual rent, and
(3) the alteration of space in buildings which GSA has leased provided
the alterations do not exceed \$100,000 and are acquired from the
lessor.

**INTERMEDIATE ACQUISITION - \$1,000,000:**

\(1\) Awarding and administering contracts provided the dollar value of
individual contract actions do not exceed \$1,000,000, and (2) placing
and administering orders against contracts established by GSA or another
Federal agency in accordance with the terms and conditions of such
contracts when the contract authorizes or requires GSA to place orders.

**LEASING/INTERMEDIATE ACQUISITION - \$1,000,000:**

Awarding and administering contracts for (1) the advertising of proposed
real estate transactions in newspapers, (2) the acquisition of leasehold
interests in real property provided the dollar value of individual
contract actions do not exceed \$1,000,000 average net annual rent, and
(3) the alteration of space in buildings which GSA has leased provided
the alterations do not exceed \$1,000,000 and are acquired from the
lessor.

**SENIOR - UNLIMITED ACQUISITION:**

\(1\) Awarding and administering contracts without limitation as to the
dollar value of individual contract actions, and (2) placing and
administering orders against contracts established by GSA or another
Federal agency in accordance with the terms and conditions of such
contracts when the contracts authorize or require GSA to place orders.

**LEASING/SENIOR-UNLIMITED ACQUISITION:**

Awarding and administering contracts for (1) the advertising of proposed
real estate transactions in newspapers, (2) the acquisition of leasehold
interests in real property without limitation as to the dollar value of
individual contract actions, and (3) the alteration of space in
buildings which GSA has leased provided the alterations are acquired
from the lessor.

**LEASING/SPECIAL:**

Awarding and administering contracts for (1) the advertising of proposed
real estate transactions in newspapers, (2) the acquisition of leasehold
interests in real property without limitation as to

GSAM\
A-46 APD 2800.12B, 09-01-99

the dollar value of individual contract actions, (3) the alteration of
space in buildings which GSA has leased provided the alterations are
acquired from the lessor, (4) the acquisition of a building(s) and/or
site(s), and (5) the outleasing of space in buildings under GSA\'s
control.

**DISPOSAL-BASIC- \$25,000:**

Entering into and administering agreements for the disposal of property
not to exceed \$25,000 per individual transaction subject to the
limitations contained in the Federal Property Management Regulations and
awarding and administering contracts for advertising of proposed
disposal transactions in newspapers.

**DISPOSAL-INTERMEDIATE WITH INTERMEDIATE ACQUISITION:**

\(1\) Awarding and administering contracts provided the dollar value of
individual contract actions do not exceed \$1,000,000, (2) placing and
administering orders against contracts established by GSA or another
Federal agency in accordance with the terms and conditions of such
contracts when the contract authorizes or requires GSA to place orders,
(3) entering into and administering agreements for the disposal of
property not to exceed \$1,000,000 per individual transaction subject to
the limitations contained in the Federal Property Management
Regulations.

**DISPOSAL-SENIOR- BASIC ACQUISITION:**

\(1\) Making and administering purchases and contracts up to and
including \$25,000 per individual transaction, (2) placing and
administering orders against contracts established by GSA or another
Federal agency in accordance with the terms and conditions of such
contracts when the contract authorizes or requires GSA to place orders,
and (3) entering into and administering agreements for the disposal of
property without limitation as to the dollar value of individual
transactions subject to the limitations contained in the Federal
Property Management Regulations.

**DISPOSAL-SENIOR-INTERMEDIATE ACQUISITION**

\(1\) Making and administering purchases and contracts up to and
including \$1,000,000 per individual transaction, (2) placing and
administering orders against contracts established by GSA or another
Federal agency in accordance with the terms and conditions of such
contracts when the contract authorizes or requires GSA to place orders,
and (3) entering into and administering agreements for the disposal of
property without limitation as to the dollar value of individual
transactions subject to the limitations contained in the Federal
Property Management Regulations.

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APD 2800.12B, 09-01-99 A-47

**DISPOSAL-SENIOR-SENIOR ACQUISITION**

\(1\) Making and administering purchases and contracts without
limitation as to the dollar value of individual contract actions, (2)
placing and administering orders against contracts established by GSA or
another Federal agency in accordance with the terms and conditions of
such contracts when the contract authorizes or requires GSA to place
orders, and (3) entering into and administering agreements for the
disposal of property without limitation as to the dollar value of
individual transactions subject to the limitations contained in the
Federal Property Management Regulations.

**DISPOSAL-BASIC-FLEET SALES UTILIZING COMMERCIAL CONTRACTORS
\$25,000:**

Entering into and administering agreements for the sale of Government
vehicles not to exceed \$25,000 per individual transaction when the sale
will be conducted by a commercial contractor, subject to the limitations
contained in the Federal Property Management Regulations.

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A-48 APD 2800.12B, 09-01-99

**SUBCHAPTER B\--COMPETITION AND ACQUISITION PLANNING**

**PART 505 PUBLICIZING CONTRACT ACTIONS**

**SUBPART 505.1 DISSEMINATION OF INFORMATION**

**505.101 Methods of disseminating information.**

\(a\) In Regions with a Business Service Center (BSC), you may post the
notice required by FAR 5.101(a)(2) at the BSC.

\(b\) Use GSA's Electronic Posting System (EPS) to issue each synopsis
required by FAR Part 5 or GSAR 505. When synopsizing a solicitation,
include the appropriate notice(s) required by 504.570(c) and (d).

\(c\) For acquisitions involving real property:

+-----------------------------------+-----------------------------------+
| **If** the acquisition is not     | **Then** you must publicize the   |
| exempt under FAR 5.202 or GSAR    | proposed acquisition**. . .**     |
| 505.202, and . **. .**            |                                   |
+-----------------------------------+-----------------------------------+
| \(1\) The acquisition is for real | \(1\) Either:                     |
| property appraisal services       |                                   |
| estimated to cost \$25,000 or     | \(i\) In local newspapers.        |
| more.                             |                                   |
|                                   | \(ii\) In the Commerce Business   |
|                                   | Daily (CBD) through the EPS.      |
+-----------------------------------+-----------------------------------+
| \(2\) The acquisition is for      | \(2\) Either:                     |
| leasehold interests in real       |                                   |
| property estimated to exceed      | \(i\) In local newspapers.        |
| 10,000 square feet (except lease  |                                   |
| construction on a preselected     | \(ii\) In the CBD through the     |
| site).                            | EPS.                              |
+-----------------------------------+-----------------------------------+
| \(3\) The acquisition is for a    | \(3\) In the CBD through the EPS. |
| leasehold interest in a building  |                                   |
| to be constructed on a            |                                   |
| preselected site.                 |                                   |
+-----------------------------------+-----------------------------------+

\(d\) You may publicize proposed leases of 10,000 square feet or less in
local newspapers if it will serve to promote competition.

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APD 2800.12B, 09-01-99 B-1

**SUBPART 505.2 SYNOPSES OF PROPOSED CONTRACT ACTIONS**

**505.202 Exceptions.**

The Administrator has determined under section 18(c)(3) of the Office of
Federal Procurement Policy Act, as amended (41 U.S.C. 416 (c)(3)) and
Section 8(g)(3) of the Small Business Act, as amended (15 U.S.C.
644(g)(3)) that:

\(a\) Synopsizing in the CBD is not always appropriate for acquisitions
of leasehold interests in real property (except lease construction on a
designated site) or real property appraisal services. You may publicize
such contract actions following the procedures in 505.101 and 505.203.

\(b\) It is not appropriate or reasonable to publish an advance notice
of any of the following:

\(1\) Acquisitions of works of art, including the design, execution and
installation of the artwork, under the Art-in-Architecture Program.

\(2\) Supplemental agreements to leases of real property involving any
of the following:

\(i\) Expansion requests within the scope of a lease (See 570.403).

\(ii\) Lease extensions under the conditions defined in 570.405.

\(iii\) Building alterations within the scope of a lease (see 570.5).

**505.203 Publicizing and response time.**

\(a\) If you publicize in local newspapers under 505.101(c), ensure that
the notice appears in local newspapers at least 3 calendar days before
issuance of the solicitation. Except as provided in paragraph (b) of
this section, allow at least these minimum response times:

\(1\) For leasehold interests in real property, 20 calendar days between
solicitation issuance and the date established for receipt of initial
offers.

\(2\) For real property appraisal services valued at less than either
the Trade Agreements Act (TAA) threshold or the North American Free
Trade Agreement (NAFTA) threshold, 10 calendar days between solicitation
issuance and the date established for receipt of initial offers. The
lower of the two thresholds governs.

\(3\) For real property appraisal services valued at or over the TAA
threshold or the NAFTA threshold, 40 calendar days from when the notice
appears to receipt of initial offers. If the acquisition falls in a
general category identified in an annual forecast, the period may be
reduced to as few as 10 days. The lower of the two thresholds governs.

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B-2 APD 2800.12B, 09-01-99

\(b\) The following exceptions to the publicizing and response times in
paragraph (a) of this section apply only to proposed acquisitions of
leasehold interests in real property:

\(1\) For a proposed acquisition conducted using simplified lease
acquisition procedures (see 570.2), consider the individual acquisition
and establish a reasonable response time.

\(2\) In cases of urgency, provide as much time as possible and document
the file.

**505.270 Synopsis of amendments to solicitations.**

Synopsize in the CBD any solicitation amendment when the amendment
either:

\(a\) Increases the anticipated value of the proposed acquisition above
the dollar threshold requiring synopsis.

\(b\) Alters the scope of the proposed acquisition so that increased
interest of contractors can be reasonably anticipated.

**SUBPART 505.3 SYNOPSES OF CONTRACT AWARDS**

**505.303 Announcement of contract awards.**

Compliance with 505.303-70 fulfills the reporting requirements of FAR
5.303(a).

**505.303-70 Notification of proposed substantial awards and awards
involving\
congressional interest.**

\(a\) [Applicability]{.underline}. This subsection applies to any
proposed award exceeding or estimated to exceed:

\(1\) \$100,000 for a contract under the 8(a) program.

\(2\) \$500,000 for a supply contract unless it involves any of the
following:

\(i\) Motor vehicles.

\(ii\) Supplies with not readily identifiable points of origin.

\(iii\) Supplies with foreign production points.

\(3\) \$500,000 for a design (Architect/Engineer) or construction
contract.

\(4\) \$100,000 for any other contract, or class of contract, if a
Member of Congress has specifically requested notification of award to a
contractor in their district or State.

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APD 2800.12B, 09-01-99 B-3

\(b\) [Notification Procedures]{.underline}.

\(1\) The Office of Congressional and Intergovernmental Affairs (S) will
provide in writing to the HCA the names of Members of Congress who wish
to be notified of any award under subparagraph (a)(4) of this
subsection.

> \(2\) Notify S either by:
>
> \(i\) Electronic mail.
>
> \(ii\) Facsimile.
>
> \(iii\) Hand delivery.
>
> \(3\) Except for awards under urgent and compelling circumstances, you
> must provide the notice to S on the day of award and 24 hours before
> telephonic notice (if applicable) is provided to the contractor. If
> you cannot meet this timeframe, the contracting director must
> telephonically notify S.
>
> \(4\) For awards under subparagraph (a)(4) of this subsection, provide
> a copy of the notice to the Regional congressional liaison office.

\(c\) [Contents of notice]{.underline}.

\(1\) Identify the contractor by name and address (including county and
Congressional district, if known). Include the contractor's point of
contact and telephone number.

\(2\) Identify the type of contract and contractor by using these codes:

  -------------- --------------------------------------------------------
  DQ             For definite quantity contract

  SC             For schedule contract

  TC             For indefinite delivery contract other than schedules

  S              For small business concern, other than HUBZone

  HS             For HUBZone small business concern

  SD             For small disadvantaged business concern, other than
                 HUBZone

  WO             For women-owned small business concern

  O              For other than a small business concern
  -------------- --------------------------------------------------------

\(3\) Briefly describe the supplies or services acquired, the duration
of the contract period, and the dollar value of the award.

\(4\) Include your name and telephone number.

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B-4 APD 2800.12B, 09-01-99

\(5\) For definite quantity awards:

\(i\) Indicate the quantity and unit, in parentheses, and dollar value
for each production point. If items have multiple but unspecified
production points or the number of production points exceed 10, write
\"multiple\" and indicate immediately after, in parentheses, the total
number of production points.

\(ii\) If applicable, identify the receiving agency next to the
applicable quantity and state if any portion is for overseas use.

\(iii\) If available, identify by name and telephone number a
point-of-contact for each production point.

\(6\) If the award involves Congressional interest, include the
following statement:

\"CONGRESSIONAL INTEREST: [(Name of Congressman/Senator)]{.underline}

[(Indicate State/District)]{.underline}

[(Describe interest]{.underline})\"

\(7\) The notification to S will contain sensitive preaward information.
Label the notice accordingly. S and regional Congressional liaison
offices are responsible for the security of such information and will
establish procedures governing its release before official notification
of award. Unless otherwise authorized by you, the release of such
information before award is limited to Members of Congress and their
staff.

\(d\) [Release of awards]{.underline}.

\(1\) The Associate Administrator for Congressional and
Intergovernmental Affairs will identify notifications which require
priority processing. S will release such notices at the time and date
specified by the Associate Administrator.

\(2\) Unless notified to the contrary, you may release awards described
in (a) of this section, or information related to them, after two full
workdays (48 hours) from the time and date of notification to S. The
date/time stamp on the e-mail, facsimile transmission, or hand delivery
receipt establishes the time and date of notification.

**SUBPART 505.4 RELEASE OF INFORMATION**

**505.403 Requests from Members of Congress.**

\(a\) Consult with legal counsel if the response would disclose either:

\(1\) Classified material.

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APD 2800.12B, 09-01-99 B-5

\(2\) Confidential business information.

\(3\) Contractor bid or proposal information or source selection
information as defined in FAR 3.104-3.

\(4\) Information prejudicial to a competitive acquisition.

\(b\) If the response involves proprietary or source selection
information, include the caution notice prescribed in 503.104-5(b)(1).
Best practice is to use the GSA Form 3611 for clarity and visibility.

\(c\) Refer the proposed response to the HCA and inform the Office of
Congressional and Intergovernmental Affairs of the action taken.

**SUBPART 505.5 PAID ADVERTISEMENTS**

**505.502 Authority.**

\(a\) [Newspapers]{.underline}**.** The HCA, or designee, must approve
publication of paid newspaper advertisements. Approval is not required
if FAR 5.101 or 505.101 requires publication. Document the contract file
with the regulatory citation or written approval to support the use of
paid newspaper advertisements.

\(b\) [Other media]{.underline}. Advance approval is not required to
advertise in other media.

**505.503 Procedures.**

\(a\) [Substitute form]{.underline}. Unless you make an award or order
via electronic commerce or by using the Governmentwide commercial
purchase card, use GSA Form 300, Order for Supplies or Services, instead
of SF 1449.

\(b\) [Invoice receipt by contracting officer]{.underline}. Under a
class deviation from FAR 5.503(d), after receiving an invoice and proof
of advertising from a publisher, radio or television station, or
advertising agency, take all the following actions:

\(1\) Certify the invoice for payment.

\(2\) Submit the invoice to Finance.

\(3\) Retain the proof of advertising in the contract file.

\(c\) [Invoice receipt by receiving official]{.underline}. If a
receiving official receives an invoice from a publisher, radio or
television station, or advertising agency, he or she takes all the
following actions:

\(1\) Prepares a receiving report.

GSAM\
B-6 APD 2800.12B, 09-01-99

\(2\) Submits the invoice and receiving report to Finance for payment.

\(3\) Gives you a copy of the receiving report for retention in the
contract file.

**505.504 Use of advertising agencies.**

Use the services of commercial advertising agencies only if you
determine that the services rendered by those agencies can either:

\(a\) Increase competition for contracts.

\(b\) Improve the effectiveness of GSA advertising and marketing
programs.

**PART 506 COMPETITION REQUIREMENTS**

**SUBPART 506.2 FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES**

**506.202 Establishing or maintaining alternative sources.**

An HCA signs determinations and findings required by FAR 6.202.

**SUBPART 506.3 OTHER THAN FULL AND OPEN COMPETITION**

**506.303 Justifications.**

**506.303-1 Requirements.**

\(a\) [Proposing a class justification]{.underline}. If you determine
that the facts supporting other than full and open competition would be
present in other GSA contracting activities, you should propose a class
justification. Recommend through appropriate channels that the Senior
Procurement Executive approve a class justification for all GSA
contracting activities. This does not apply to justifications based on
the authority of 41 U.S.C. 253(c)(7), which does not permit class
justifications.

\(b\) [Justifications based on 41 U.S.C. 253(c)(7)]{.underline}. For a
justification based on the authority of 41 U.S.C. 253(c)(7) (see FAR
6.302-7), submit the justification for the Administrator\'s approval
through the Senior Procurement Executive.

\(c\) [Justifications for contract actions subject to the Agreement on
Government Procurement]{.underline}. When you acquire eligible products
without full and open competition using the authority in FAR
6.302-3(a)(2)(i) or 6.302-7, furnish a copy of the approved
justification to the Senior Procurement Executive. The Senior
Procurement Executive will transmit the justification to the U.S. Trade
Representative.

GSAM\
APD 2800.12B, 09-01-99 B-7

**PART 507 ACQUISITION PLANNING**

**SUBPART 507.1 ACQUISITION PLANS**

**507.101 Definitions.**

\"Comprehensive acquisition plan\" means a plan which covers the
acquisition process from identification of agency need through contract
performance and administration.

\"Limited acquisition plan\" means a detailed plan which covers the
acquisition process from receipt of a purchase request, or advanced
notice of the need by the contracting office, through contract award.

**507.102 Policy.**

\(a\) All acquisitions exceeding the simplified acquisition threshold
must have, at a minimum, a limited acquisition plan.

\(1\) Priced options are included when determining an acquisition's
dollar threshold.

\(2\) An acquisition plan must be prepared before exercising unpriced or
unevaluated options exceeding the simplified acquisition threshold.

\(b\) Do not issue a solicitation until either a comprehensive or a
limited acquisition plan is prepared or a waiver obtained under
507.104(d). Failure to do acquisition planning or concerns about funding
availability are not justification for entering into a contract without
full and open competition.

**507.103 Agency-head responsibilities.**

\(a\) The HCA must ensure that requirements personnel:

\(1\) Promote and provide for full and open competition by following the
procedures in:

\(i\) FAR part 10 for conducting market research.

\(ii\) FAR part 11 and 511 for describing agency needs.

\(2\) Through market research and description of agency needs as
described in FAR parts 10 and 11 and 511, encourage offers of commercial
items or, if suitable commercial items are not available,
nondevelopmental items, to meet agency needs.

\(3\) Follow the principles in FAR part 7 and 507, as appropriate, for
each acquisition that requires either a limited or comprehensive
acquisition plan.

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\(4\) Consider using metric measures consistent with 15 U.S.C. 205 et
seq. during the acquisition planning phase. See 511.002; GSA Order, GSA
Metric Program (ADM 8000.1B); and GSA Metric Transition Plan. Use metric
measures only when they are consistent with security, operational,
economic, technical, logistical, training, and safety requirements.

\(5\) Follow the procedures in FAR part 23, 523, and GSA\'s Affirmative
Procurement Program for Recovered Materials (see Appendix 523A) to
specify needs and develop plans, drawings, work statements,
specifications, or other product descriptions that promote use of
environmentally preferable and energy-efficient products and services.

\(6\) Do not initiate any purchase request for performance of an
inherently governmental function by a contractor (See FAR 7.5 and
507.5).

\(7\) Use knowledge gained from prior acquisitions to further refine
requirements and acquisition strategies. Seek increased use of
performance-based contracting methods and fixed-price contracts in
follow-on acquisitions for services.

\(8\) Coordinate with the contracting officer in performance of these
responsibilities.

\(b\) The HCA may designate an official to make the determination
required by FAR 37.204 and 537.2 prior to issuance of a solicitation for
advisory and assistance services involving the analysis and evaluation
of proposals submitted in response to a solicitation.

\(c\) You have responsibility for:

\(1\) Coordinating with requirements personnel to ensure effective
market research and description of agency needs that meet the objectives
in paragraph (a) above.

\(2\) Promoting and providing for full and open competition or, as
provided in FAR part 6, maximum practicable competition.

\(3\) Following the principles in FAR part 7 and 507, as appropriate,
for each acquisition that requires either a limited or comprehensive
acquisition plan.

\(4\) Reviewing, prior to contracting, both:

\(i\) The acquisition history of the supplies and services.

\(ii\) The description of the supplies, including, when necessary for
adequate description, a picture, drawing, diagram, or other graphic
representation.

\(5\) Unless the HCA designates another official, making the
determination required by FAR 37.204 and 537.2 prior to issuing to
issuing a solicitation for advisory and assistance services involving
the analysis and evaluation of proposals submitted in response to a
solicitation.

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\(6\) Not entering into any contract for performance of an inherently
governmental function by a contractor.

\(7\) Using knowledge gained from prior acquisitions to further refine
requirements and acquisition strategies. Seek to enable increased use of
performance-based contracting methods and fixed-price contracts in
follow-on acquisitions for services.

**507.104 General procedures.**

**[Comprehensive Acquisition Plans]{.underline}**

\(a\) GSA Order, Comprehensive Acquisition Planning (APD 2800.13B)
contains policies and procedures for comprehensive acquisition plans. It
also explains when a comprehensive plan is required and when you may use
a limited acquisition plan. The Order is included as Appendix 507A.

**[Limited Acquisition Plans]{.underline}**

\(b\) [Preparation]{.underline}. Limited acquisition plans must be in
writing, unless the contracting director grants a waiver.

\(c\) [Approval]{.underline}. You must approve the limited acquisition
plan. In addition:

\(1\) The contracting director must approve the acquisition plan for any
requirement received in the last month of the fiscal year if award is
anticipated that month.

\(2\) The contracting director may establish requirements for review and
approval at a higher level within a division (or, in FSS, a Commodity
Center or FSS Bureau).

\(3\) The HCA may designate contracts on a case-by-case for higher level
review and approval.

\(d\) [Waiver]{.underline}.

\(1\) The contracting director may waive the requirement for a written
limited acquisition plan for any of the following:

\(i\) Recurring annual acquisitions.

\(ii\) Cases of unusual or compelling urgency.

\(iii\) Acquisitions made under the authority of FAR 13.5, Test Program
for Certain Commercial Items.

\(2\) At a minimum, you must present an oral plan for approval to your
supervisor.

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\(3\) Document the contract file with a summary of the oral plan and the
name of the approving official. The summary:

\(i\) Must state the nature of the urgency in cases of unusual or
compelling urgency.

\(ii\) May be prepared after award when preparation before award would
unreasonably delay the acquisition.

\(iii\) May be included in the justification required by FAR 6.302-2(c).

**507.105 Contents of written acquisition plans.**

\(a\) [General content and variations]{.underline}. A plan's content
depends on an acquisition's nature and dollar value. HCA's may authorize
any of the following:

\(1\) Developing standard plan outlines for individual programs.

\(2\) Substituting automated plans that address individual elements.

\(3\) Modifying the content of limited acquisition plans.

\(b\) [Comprehensive acquisition plans]{.underline} use FAR 7.105 as
their basis.

\(c\) [Limited acquisition plans]{.underline} include the following
elements:

\(1\) [Acquisition background and objectives]{.underline}, i.e.,
statement of need, applicable conditions and delivery or
performance-period requirements. Include a description (See FAR
7.105(a)(1), (2) and (5)).

\(2\) [Plan of action]{.underline}, i.e., sources, competition,
contracting considerations, acquisition milestones, and individuals
preparing the plan. (See FAR 7.105(b)(1), (2), (4), (20) and (21).)

\(3\) [Acquisition Plans Involving Other Than Full And Open
Competition]{.underline}. For contracts proposing other than full and
open competition that require a written justification and approval,
state the basis for the justification and reference all the following:

\(i\) Justification document.

\(ii\) Approving official.

\(iii\) Date of approval.

\(4\) If you use the authority at FAR 6.302-5 and the contract does not
require a written justification and approval, cite the authorizing
statute.

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**SUBPART 507.3 CONTRACTOR VERSUS GOVERNMENT PERFORMANCE**

**507.307 Appeals.**

GSA Order, Implementation of the OMB Circular A-76 Productivity
Improvement Program (ADM P. 5400.40) contains appeal procedures.

**SUBPART 507.5 INHERENTLY GOVERNMENTAL FUNCTIONS**

**507.503 Policy.**

\(a\) Concurrent with the transmittal of each statement of work or any
modification to a statement of work, the requirements official must
provide you a written determination that none of the functions to be
performed are inherently governmental. The determination must address
the degree to which conditions and facts restrict the discretionary
authority, decision-making responsibility, or accountability of
Government officials using the contractor services or work products.

\(b\) The HCA resolves any disagreement regarding the requirements
official\'s determination, following the guidelines in FAR 7.5. The HCA
may delegate this authority to a level not lower than the contracting
director.

**PART 508 REQUIRED SOURCES OF SUPPLIES AND SERVICES**

**SUBPART 508.6 ACQUISITION FROM FEDERAL PRISON INDUSTRIES, INC.**

**508.604 Ordering procedures.**

**508.604-70 Delinquent delivery orders.**

\(a\) Establish delivery schedules based on the lead time required by
Federal Prison Industries (FPI).

\(b\) You may use delinquent orders as the reason for requesting
clearance to procure from other sources until FPI can make deliveries.

**508.605 Clearances.**

Cite FPI clearance numbers in solicitations and award documents.

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**SUBPART 508.7 ACQUISITION FROM NONPROFIT AGENCIES EMPLOYING PEOPLE WHO
ARE BLIND OR SEVERELY DISABLED**

**508.705 Procedures.**

**508.705-4 Compliance with orders.**

\(a\) Until all deliveries are made on a delinquent order, take one of
the following actions:

\(1\) For an excusable delay, extend the contract delivery schedule
without obtaining consideration.

\(2\) For an inexcusable delay, review and adjust contract prices
following normal procedures.

\(b\) If the central non-profit agency (CNA) delays acting on a request
for, or refuses to grant, a purchase exception, refer the matter to the
contracting director for resolution.

**508.705-70 Adding items to the Procurement List.**

\(a\) If a CNA expresses interest in adding an item to the Procurement
List, provide the CNA with both:

\(1\) The most recent solicitations issued for the commodity or service.

\(2\) The award price(s) for the commodity or service.

\(b\) The Committee for Purchase from People Who Are Blind or Severely
Disabled (the Committee), at the CNA's request may assign the supply or
service to the CNA for development by a workshop.

\(c\) Before issuing a solicitation, ask the CNA about the status of any
item in which the Committee has expressed interest.

\(d\) The Committee may request that a procurement be delayed pending
Committee action. The contracting activity must consult with the Office
of Enterprise Development (E) before rejecting such a request.

**508.705-71 Central non-profit agency performance capability.**

\(a\) Include on the purchase document both the annual requirement and
the estimated monthly requirement.

\(b\) With the permission of the Committee, you may verify the
workshop\'s ability to satisfy the Government\'s estimated monthly
requirement by requesting a preaward survey. If the CNA

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cannot satisfy the Government\'s requirement, you may request a purchase
exception only for those quantities the CNA cannot provide in a timely
manner.

**508.706 Purchase exceptions.**

Cite CNA purchase exception numbers in solicitations and award
documents.

**SUBPART 508.8 ACQUISITION OF PRINTING AND RELATED SUPPLIES**

**508.802 Policy.**

The Director of the Reproduction and Visual Arts Division in the Office
of Communications (X) is both GSA\'s:

\(a\) Central printing authority.

\(b\) Liaison with the Joint Committee on Printing and the Public
Printer on all matters related to printing.

**PART 509 CONTRACTOR QUALIFICATIONS**

**SUBPART 509.1 RESPONSIBLE PROSPECTIVE CONTRACTORS**

**509.104 Standards.**

**509.104-3 Application of standards.**

[Past performance on subcontracting plan goals]{.underline}. You can
obtain information to evaluate an offeror\'s past performance on
subcontracting plan goals from the following sources:

\(1\) The Small Business Administration

\(2\) Information on prior contracts from contracting officers and
administrative contracting officers.

\(3\) Offeror\'s references.

\(4\) Past performance information collected under FAR 42.1500.

**509.105 Procedures.**

**509.105-1 Obtaining information.**

\(a\) [From a prospective contractor.]{.underline} In making a
determination of responsibility, you may use the GSA Form 527,
Contractor\'s Qualifications and Financial Information, to obtain
information regarding financial capability from a prospective
contractor.

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\(b\) [From Government personnel]{.underline}. Solicit and consider
information from all appropriate activities, including legal counsel,
quality control, contract management, credit and finance, and the
auditor before determining that an offeror is responsible. "Auditor" is
either:

\(1\) The Assistant Inspector General for Auditing (Central Office
only).

\(2\) The Regional Inspector General for Auditing.

\(3\) Chief, Credit and Finance Section, the Heartland Region (for an
evaluation of a prospective contractor\'s financial competence and
credit).

**509.105-2 Determinations and documentation.**

\(a\) Provide written notification to a prospective contractor you
determine not responsible. Include the basis for the determination.
Notification provides the prospective contractor with the opportunity to
correct any problem for future solicitations.

\(b\) Due to the potential for de facto debarment, avoid making repeated
determinations of nonresponsibility based on the same past performance
information.

\(c\) To provide for timely consideration of the need to institute
action to debar a contractor, submit a copy of each nonresponsibility
determination, other than those based on capacity or financial
capability, to the debarring official.

**509.106 Preaward surveys.**

**509.106-2 Requests for preaward surveys.**

[Federal Supply Service (FSS).]{.underline} Contracting activities in
FSS may use GSA Form 353, Performance Evaluation & Facilities Report, in
lieu of SF 1403 through 1406. Complete Section I in accordance with
instructions in 553.370-353-I.

**SUBPART 509.2 QUALIFICATIONS REQUIREMENTS**

**509.206 Acquisitions subject to qualification requirements.**

**509.206-2 Contract clause.**

Insert 552.209-70, Product Removal from Qualified Products List, in
solicitations and contracts containing FAR 52.209-1, Qualification
Requirements.

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**SUBPART 509.3 FIRST ARTICLE TESTING AND APPROVAL**

**509.302 General.**

\(a\) If FSS requires first article testing and approval, it usually
requires that the contractor perform testing and that the first article:

\(1\) Be produced at the same facility where production quantities will
be produced.

\(2\) Serve as the manufacturing standard.

\(b\) In FSS, coordinate the need for first article testing and approval
with the Quality Assurance Division (FQA). FQA provides the information
to complete FAR 52.209-3 or 52.209-4.

**509.306 Solicitation requirements.**

\(a\) The clauses at FAR 52.209-3 and 52.209-4 do not cover all the
solicitation requirements described in FAR 9.306. If a solicitation
contains a testing and approval requirement, you must address the
requirements in FAR 9.306 paragraphs (d), (f), (g), (h), (i), and (j).
For FSS, the clauses prescribed in 509.308 address the requirement in
FAR 9.306(h).

\(b\) In FSS solicitations that contain FAR 52.209-3, First Article
Approval - Contractor Testing, or FAR 52.209-4, First Article
Approval-Government Testing, insert 552.209-71, Waiver of First Article
Testing and Approval Requirement.

**509.308 Contract clauses.**

**509.308-1 Testing performed by the contractor.**

In FSS solicitations and contracts that will require the contractor to
perform testing, insert 552.209-72, Supplemental Requirements for First
Article Approval - Contractor Testing, and FAR 52.209-3, Alternate I.

**509.308-2 Testing performed by the Government.**

In FSS solicitations and contracts that will have the Government
responsible for first article testing, insert 552.209-73, Supplemental
Requirements for First Article Approval - Government Testing, and FAR
52.209-4, Alternate I.

**SUBPART 509.4 DEBARMENT, SUSPENSION, AND INELIGIBILITY**

**509.401 Applicability.**

This subpart applies to all the following:

\(a\) Acquisitions of personal property, nonpersonal services (including
construction), space in buildings, transportation services (Federal
Property Management Regulation (FPMR) Subpart 101-40.4).

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\(b\) The purchase, sale, and disposal of real property.

\(c\) Contracts for disposal of personal property (FPMR Subpart
101-45.6).

\(d\) Covered transactions as defined at the General Services
Administration Property Management Regulations (GSPMR) 105-68.110(a).

**509.403 Definitions.**

\"Fact-finding official,\" means the Chairman of the Debarment and
Suspension Board within the GSA Board of Contract Appeals or a designee.

\"Notice\" means a letter sent by certified mail, return receipt
requested, to the last known address of a party, its counsel, or agent
for service of process. In the case of a business, such notice may be
sent to any partner, principal officer, director, owner or co-owner, or
joint venturer. If no return receipt is received within 10 calendar days
of mailing, receipt will then be presumed.

**509.405 Effect of listing.**

**509.405-1 Continuation of current contracts.**

\(a\) Consider terminating a current contract under any of the following
circumstances:

\(1\) Any of the circumstances giving rise to the debarment or
suspension also constitute a default in the contractor\'s performance of
the contract.

\(2\) The contractor presents a significant risk to the Government in
completing the contract.

\(3\) The conduct that provides the cause of the suspension, proposed
debarment, or debarment involved a GSA contract.

\(b\) Determine which of the following is in the Government's best
interest:

\(1\) Terminate the contract for either convenience or cause.

\(2\) Cancel under appropriate contract clauses (e.g., 552.238-73,
Cancellation).

\(3\) Use other available alternatives under:

\(i\) FAR 3.2 and 503.2.

\(ii\) FAR 3.7 and 503.7.

\(c\) Before making a decision, consult with legal counsel and consider
these factors:

\(1\) Seriousness of the cause for debarment or suspension.

\(2\) Extent of contract performance.

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\(3\) Potential costs of termination and reprocurement.

\(4\) Need for or urgency of the requirement, contract coverage, and the
impact of delay for reprocurement.

\(5\) Availability of other safeguards to protect the Government\'s
interest until completion of the contract.

\(6\) Availability of alternate competitive sources to meet the
requirement (e.g., other multiple award contracts, readily available
commercial items, etc.).

\(d\) The debarring official is the designee under FAR 9.405-1(c).

**509.405-2 Restrictions on subcontracting.**

The debarring official is the designee under FAR 9.405-2(a).

**509.406 Debarment.**

**509.406-1 General.**

The debarring official is the designee under FAR 9.406-1(c).

**509.406-3 Procedures.**

\(a\) [Investigation and referral]{.underline}.

\(1\) Refer to the debarring official matters involving serious contract
improprieties or performance deficiencies. Performance deficiencies that
continue over a period of time or apply to more than one contract may
warrant debarment consideration.

\(2\) Refer possible criminal or fraudulent activities to the Office of
the Inspector General (OIG). See 5 CFR 6701.107, Reporting Waste, Fraud,
Abuse, and Corruption. If, after investigation, the OIG believes a cause
for debarment exists, it will refer the matter to the debarring official
for consideration of debarment action.

\(b\) [Reports]{.underline}. Include in referrals to the debarring
official a report that contains at least the following:

\(1\) The recommendation and supporting rationale.

\(2\) A list of parties to be considered for possible debarment,
including the contractor, principals, and affiliates. Include last known
home and business addresses, zip codes, and DUNS Number.

\(3\) A statement of facts.

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\(4\) Copies of documentary evidence and a list of witnesses. Include
addresses and telephone numbers. Determine their availability to appear
at a fact-finding proceeding and identify the subject matter of their
testimony.

\(5\) GSA\'s acquisition history with the contractor. Include recent
experience, copies of the pertinent contracts, and an explanation of
impact debarment would have on GSA programs. OIG referrals do not
require this explanation; the debarring official will obtain the
information directly from the contracting activity(s).

\(6\) A list of any known active or potential criminal investigations,
criminal or civil proceedings, or administrative claims before the Board
of Contract Appeals.

\(7\) A statement regarding the impact of the debarment action on GSA
programs. This statement is not required for referrals by the Inspector
General; the debarring official will obtain a statement directly from
the contracting activity(s).

\(c\) [Review]{.underline}. The debarring official will review the
report, and after coordinating with assigned legal counsel, either:

\(1\) Initiate debarment action.

\(2\) Decline debarment action.

\(3\) Request additional information.

\(4\) Refer the matter to the OIG for further investigation and
development of a case file.

\(d\) [Decisionmaking process]{.underline}.

\(1\) The debarring official will provide:

\(i\) Notice of declinations, proposed debarments, and decisions to the
referring activity.

\(ii\) Notice of proposed debarment to each party being considered for
debarment.

\(iii\) Decision notices to each party after considering information in
the administrative record and information and argument submitted by the
affected party or parties.

\(2\) A party proposed for debarment:

\(i\) Has 30 calendar days after receipt of the notice to respond to the
debarring official or the debarment becomes final.

\(ii\) May request and receive a copy of the administrative record that
was the basis for the proposed debarment. If information is withheld,
the party will be notified and provided the reason.

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\(iii\) May request the opportunity to present information and argument
in person to the debarring official. The debarring official will
schedule an oral presentation within 20 calendar days of receipt of the
request, unless a longer period of time is requested by the party. An
oral presentation is informal and a transcript usually is not made. The
party may supplement the oral presentation with written information and
arguments.

\(iv\) May identify to the debarring official material facts in dispute
and the bases. For an action other than one based on a conviction or
civil judgment, a party may request review and a written finding by a
fact-finding official.

\(3\) The debarring official will determine whether there is a genuine
dispute of material fact. If so, the debarring official refers the
matter to a fact-finding official, who will take the following action as
appropriate:

\(i\) Schedule a hearing within 20 calendar days after receipt of a
request to resolve disputed facts.

\(ii\) Grant extensions for good cause.

\(iii\) Provide notice of scheduled hearing.

\(iv\) Conduct hearings under rules consistent with FAR 9.406-3(b)(2).

\(v\) Resolve facts in dispute and provide the debarring official with
written findings of fact based on a preponderance of the evidence. The
fact-finding official provides the written findings of fact (together
with a transcription of the proceeding, unless waived) within 20
calendar days after the hearing record closes.

**509.407 Suspension.**

**509.407-1 General.**

The suspending official is the designee under FAR 9.407-1(d).

**509.407-3 Procedures.**

\(a\) [General]{.underline}. The procedures in 509.406-3 apply to
suspension actions except as noted in paragraph (b) of this section.

\(b\) [Fact-finding]{.underline}.

\(1\) Fact-finding will not be conducted in an action:

\(i\) Based on an indictment.

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\(ii\) When the suspending official finds no genuine dispute of material
facts.

\(2\) If the action is not based on an indictment, the suspending
official must coordinate with the Department of Justice or state
prosecutorial authority through OIG. Based on the advice received, the
suspending official will determine if fact-finding would impair
substantial interests of the Federal or state Government. In an action
not based on an indictment, a suspended party may:

\(i\) Identify to the suspending official material facts in dispute and
the bases.

\(ii\) Request review and a written finding by a fact-finding official
to resolve genuine disputes of material fact. For procedures involving a
genuine dispute of material fact, see 509.406-3(d)(3).

**SUBPART 509.5 ORGANIZATIONAL AND CONSULTANT CONFLICTS OF INTEREST**

**509.503 Waiver.**

The Senior Procurement Executive is the designee under FAR 9.503.

**PART 510 MARKET RESEARCH**\
**RESERVED**

**PART 511 DESCRIBING AGENCY NEEDS**

**511.001 Definitions.**

\"Dual systems\" mean the use of both inch-pound and metric systems. For
example, an item is designed, produced, and described in inch-pound
values with soft metric values also shown for information or comparison
purposes.

"Hard metric" means measurement, design, and manufacture using the
metric system of measurement, but does not include measurement, design,
and manufacture using English system measurement units which are
subsequently expressed in the metric system of measurement.

\"Hybrid systems\" mean the use of both inch-pound and hard metric
values in specifications, standards, supplies, and services; e.g., an
engine with internal parts in metric dimensions and external fittings or
attachments in inch-pound dimensions.

\"Metric system\" means the International System of Units of the
International Bureau of Weights and Measures. The units are listed in
Federal Standard 376A, \"Preferred Metric Units for General Use by the
Federal Government.\"

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\"Soft metric\" means the result of mathematical conversion of
inch-pound measurements to metric equivalents in specifications,
standards, supplies, and services. The physical dimensions are not
changed.

**511.002 Policy.**

**511.002-70 GSA Metric Program.**

\(a\) FAR 11.002(b) and GSA Order, GSA Metric Program (ADM 8000.1B),
establish policy for using the metric system in procurements. Consistent
with this policy, use specifications and purchase descriptions stated in
metric units of measurement whenever metric is the accepted industry
system.

\(b\) Whenever possible adopt the following:

\(1\) Internationally or domestically developed voluntary standards that
use metric measurements.

\(2\) Commercially developed metric specifications.

\(c\) If metric is not the accepted industry system, use specifications
and purchase descriptions stated in soft metric, hybrid, or dual systems
during transition. Replace these with hard metric measurements as soon
as practical.

\(d\) For an industry in transition to metric, the head of each Central
Office Service responsible for nationwide programs must develop policies
promoting and encouraging the use of soft metric, hybrid, or dual
systems.

\(e\) [Construction]{.underline}: For construction of Federal
facilities, you may use specifications for concrete masonry units and
recessed lighting fixtures expressed in the metric system. However, you
may not use specifications for these that can be satisfied only by
hard-metric.

\(f\) [Exceptions]{.underline}.

\(1\) The head of each Central Office Service responsible for nationwide
programs may grant an exception to the use of metric system measurements
under any of the following conditions:

\(i\) Use of the metric system is impractical.

\(ii\) Use of the metric system is inefficient.

\(iii\) Use of the metric system would cause harm to the program
mission.

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(2) Exceptions to the use of metric system measurements may be made on
an individual or class basis. Exceptions for procurements over the
simplified acquisition threshold must be in writing and prepared in
accordance with GSA Order, GSA Metric Program (ADM 8000.1B).

\(3\) The Administrator of GSA may allow use of hard metric
specifications for concrete masonry units and recessed lighting fixtures
in accordance with GSA Order, GSA Metric Program (ADM 8000.1B).

**511.002-71 Construction metrication ombudsman.**

\(a\) GSA's Construction Metrication Ombudsman is in the Office of the
Senior Procurement Executive.

\(b\) The Construction Metrication Ombudsman:

\(1\) Reviews and responds to complaints from prospective bidders,
subcontractors, suppliers, or their designated representatives related
to GSA guidelines and regulations on any of the following:

\(i\) The use of the metric system in contracts for construction of
Federal buildings.

\(ii\) For services and materials required for incorporation in
individual projects to construct Federal Buildings.

\(2\) Ensures that GSA implements the metric system of measurement in a
manner consistent with both:

\(i\) Policy and guidance issued by the Secretary of Commerce.

\(ii\) The Metric Conversion Act of 1975, as amended.

\(c\) The Ombudsman's authority does not replace the authority of the
General Accounting Office.

**511.002-72 Procedures for procuring products containing recovered
materials and\
environmentally preferable products.**

Specification managers must follow the procedures in 523.4 and GSA\'s
Affirmative Action Plan for Recovered Materials (Appendix 523A) when
preparing plans, drawings, specifications, standards, and purchase
descriptions.

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**SUBPART 511.1 SELECTING AND DEVELOPING REQUIREMENTS DOCUMENTS**

**511.103 Market acceptance.**

You may require offerors to meet market acceptance criteria under FAR
11.103 to satisfy GSA needs.

**511.170 Use of brand name or equal product descriptions.**

**511.170-1 Policy.**

A \"brand name or equal\" purchase description must meet each of the
following conditions:

\(a\) Cite all known acceptable brand name products in current
manufacture.

\(b\) Provide a general description of those salient physical,
functional, or performance characteristics of the brand name item(s)
which an "equal" item must meet to be acceptable for award.

\(c\) Avoid specifying characteristics that do not materially affect the
intended end use and which unnecessarily restrict competition.

**511.170-2 General.**

\(a\) You may require samples for \"or equal\" offers, but not for
\"brand name\" offers.

\(b\) Provide for full consideration and evaluation of \"or equal\"
offers against the salient characteristics specified in the purchase
description. Do not reject offers for minor differences in design,
construction, or features which do not affect the suitability of the
product for its intended use.

**511.170-3 Solicitation provisions.**

\(a\) Include the following immediately after each brand name or equal
item description, with instructions for the offeror to complete the
information:

Offering on:\
Manufacturer\'s
Name\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
Brand\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
Model or Part
No.\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(b\) If the solicitation does not require samples for \"or equal\"
offers, include the following notice in the list of brand name or equal
items or component parts:

GSAM\
B-24 APD 2800.12B, 09-01-99

**[Notice]{.underline}**

If you offer other than brand name items identified in this
solicitation, you must provide adequate information for GSA to determine
the equality of the product(s) offered.

\(c\) Include a provision substantially the same as the one at
552.211-70, Brand Name or Equal, when you use a brand name or equal
purchase description.

\(d\) If you use brand name or equal descriptions for component parts of
an end item and the provision at 552.211-70 is impractical for some or
all of the components, you may either:

\(1\) Not use the provision.

\(2\) Limit its application to specified components.

**SUBPART 511.2 USING AND MAINTAINING REQUIREMENTS DOCUMENTS**

**511.204 Solicitation provisions and contract clauses.**

\(a\) [Construction services]{.underline}. Insert the clause at
552.211-71, Standard References, in solicitations and contracts for
construction services when you expect the contract amount to exceed the
simplified acquisition threshold, and the solicitation meets either of
the following conditions:

\(1\) The solicitation cites documents or publications not furnished
with the solicitation.

\(2\) The solicitation incorporates documents or publications by
reference.

\(b\) [Federal specifications]{.underline}. Insert the clause at
552.211-72, Reference to Specifications in Drawings, in solicitations
and contracts citing Federal specifications which contain drawings.

\(c\) [Supply contracts that exceed the simplified acquisition
threshold]{.underline}.

\(1\) Include the clause at 552.211-73, Marking, in solicitations and
contracts for supplies when deliveries may be made to both civilian and
military activities and the contract amount is expected to exceed the
simplified acquisition threshold.

(2) Include the clause at 552.211-74, Charges for Marking, in
solicitations and contracts that include the clause at 552.211-73 or a
similar clause.

\(3\) Include the clause at 552.211-75, Preservation, Packaging and
Packing, in solicitations and contracts for supplies expected to exceed
the simplified acquisition threshold. You may also include the clause in
contracts estimated to be at or below the simplified acquisition
threshold when appropriate.

GSAM\
APD 2800.12B, 09-01-99 B-25

(4) Insert a clause substantially the same as the clause at 552.211-76,
Charges for Packaging and Packing, in solicitations and contracts for
supplies to be delivered to GSA distribution centers.

\(d\) [Supply contracts]{.underline}. Include the clause at 552.211-77,
Packing List, in solicitations and contracts for supplies, including
purchases over the micropurchase threshold.

**SUBPART 511.4 DELIVERY OR PERFORMANCE SCHEDULES**

**511.401 General.**

\(a\) [Other than multiple award schedules]{.underline}. Preferred
practice is to state time of delivery in solicitations and contracts as
\"required\" time of delivery or shipment, expressed in specific periods
from receipt by the contractor of a notice of award or an order.

\(b\) [Multiple award schedules]{.underline}.

\(1\) In multiple award schedule solicitations, preferred practice is to
state delivery times as \"desired.\" Require offerors to indicate a
definite number of days for delivery.

\(2\) In negotiations, secure the best possible delivery time regardless
of the \"desired\" delivery time(s) in the solicitation. For example,
some offers comply with the Government\'s desired delivery time but
others cite substantially shorter delivery times. Negotiate with the
former to bring them in line with the latter. Negotiate variable
delivery time offers (e.g., 30-90 days) to keep the timespan to a
minimum. If the span applies to several items or several quantity breaks
for one item, you may segregate the items or item quantity breaks into
smaller groups and assign more specific delivery times.

\(c\) [Unusually short delivery times]{.underline}. A requisitioning
office that requests an unusually short delivery time must provide
satisfactory written justification. A sound justification is
particularly important where the time specified is so short that it may
limit competition and possibly result in higher prices. Examples of
justifications include:

\(1\) Furniture is required to outfit quarters scheduled for occupancy
on a specific date.

\(2\) Construction material is required to meet job progress schedules.

\(3\) Supplies are required at a port to meet scheduled ship departures.

\(d\) [Early delivery]{.underline}. When the requisitioning office needs
a portion of the total delivery early, consider whether to:

\(1\) Require that portion by the early date and the balance later.

GSAM\
B-26 APD 2800.12B, 09-01-99

\(2\) Include the portion required early and the balance as separate
items in the same solicitation.

\(3\) Procure the two portions separately.

\(e\) [Multiple delivery time requirements]{.underline}. If a
solicitation contains a mix of items that require different delivery
times, specify the delivery periods separately. When practical, group
items with similar delivery time requirements according to delivery
times in the solicitation.

**511.404 Contract clauses.**

\(a\) [Supply contracts]{.underline}.

(1) [Single award schedules]{.underline}. Insert 552.211-8, Time of
Delivery, in solicitations and contracts instead of the clause at FAR
52.211-8. If you need to show different delivery times for different
items or groups of items, use Alternate I.

\(2\) [Multiple award schedules]{.underline}. Insert 552.211-78,
Commercial Delivery Schedule (Multiple Award Schedule), in solicitations
issued and contracts awarded under the multiple award schedule program.

(3) [Shelf-life items]{.underline}. Use the following clauses in
solicitations and contracts that require delivery of shelf-life items
within a specified number of months from the date of manufacture or
production (see 101-27.206-2 of the Federal Property Management
Regulation):

\(i\) Insert 552.211-79, Acceptable Age of Supplies, if the required
shelf-life period is 12 months or less, and lengthy acceptance testing
may be involved. For items having a limited shelf-life, substitute
Alternate I when required by the director of the commodity center
concerned.

(ii) Insert 552.211-80, Age on Delivery, if the required shelf-life
period is more than 12 months, or when source inspection can be
performed within a short time period.

(4) [Stock replenishment contracts]{.underline}. Insert 552.211-81, Time
of Shipment, in solicitations and stock replenishment contracts that do
not include the Availability for Inspection, Testing and
Shipment/Delivery clause at 552.211-83 and require shipment within 45
calendar days after receipt of the order. If shipment is required in
more than 45 days, use Alternate I.

(5) [Notice of shipment]{.underline}. Include 552.211-82, Notice of
Shipment, in solicitation and contracts for supplies when you need to
have a notice of shipment from the contractor.

(6) [Indeterminate testing time]{.underline}. Insert 552.211-83,
Availability for Inspection, Testing and Shipment/Delivery, in
solicitations and contracts that provide for source inspection by

GSAM\
APD 2800.12B, 09-01-99 B-27

Government personnel and that require lengthy testing for which time
frames cannot be determined in advance. If the contract is for stock
items, use Alternate I.

\(b\) [Construction contracts]{.underline}. Insert the clause at
552.211-84, Non-Compliance with Contract Requirements, in solicitations
and contracts for construction when you expect the contract amount to
exceed the simplified acquisition threshold.

**PART 512 ACQUISITION OF COMMERCIAL ITEMS**

**SUBPART 512.2 SPECIAL REQUIREMENTS FOR THE ACQUISITION OF\
COMMERCIAL ITEMS**

**512.203 Procedures for solicitation, evaluation, and award.**

[Federal Supply Schedule contracts]{.underline}. For Federal Supply
Schedule contracts, use the policies in FAR Part 12 and Part 512 in
conjunction with the policies and procedures in FAR Part 38 and Part
538. Use 515.70 if you require samples.

**SUBPART 512.3 SOLICITATION PROVISIONS AND CONTRACT CLAUSES FOR THE
ACQUISITION OF COMMERCIAL ITEMS**

**512.301 Solicitation provisions and contract clauses for the
acquisition of commercial\
items.**

\(a\) [Solicitation provisions and clauses]{.underline}. Insert these
provisions or clauses in solicitations or solicitations and contracts,
respectively, in accordance with the instructions provided:

\(1\) 552.212-70, Preparation of Offer (Multiple Award Schedule), in
solicitations and contracts issued under the multiple award schedule
program.

\(2\) 552.212-71, Contract Terms and Conditions Applicable to GSA
Acquisition of Commercial Items, when listed clauses apply. The clause
provides for incorporation by reference of terms and conditions which
are, to the maximum extent practicable, consistent with customary
commercial practice. If necessary, tailor this clause.

\(3\) 552.212-72, Contract Terms and Conditions Required to Implement
Statutes or Executive Orders Applicable to GSA Acquisitions of
Commercial Items, when listed clauses apply.

\(i\) The clause provides for the incorporation by reference of terms
and conditions required to implement provisions of law or executive
orders that apply to commercial item acquisitions.

\(ii\) As a result of the General Services Administration Board of
Contract Appeals (GSBCA) decision in the protest of [International
Business Machines Corporation,]{.underline}

GSAM\
B-28 APD 2800.12B, 09-01-99

GSBCA 90-2 BCA P22,924, May 18, 1990, GSA solicitations and contracts
will deviate from FAR 52.225-8, Buy American Act-Trade
Agreements-Balance of Payments Program Certificate. Incorporate
552.225-8, Buy American Act-Trade Agreements-Balance of Payments Program
Certificate, and 552.225-9, Buy American Act-Trade Agreements-Balance of
Payments Program, in solicitations and contracts subject to the Trade
Agreements Act. Use them instead of FAR 52.225-8 and 52.225-9
(referenced in FAR 52.212-3 and 52.212-5 respectively).

\(4\) 552.212-73, Evaluation-Commercial Items (Multiple Award Schedule),
in multiple award schedule solicitations. Use this provision instead of
FAR 52.212-2.

\(b\) [Use of required provisions and clauses]{.underline}. Use only
those provisions and clauses prescribed in this part. Unless the use of
a provision or clause prescribed elsewhere in the GSAR is consistent
with customary commercial practice for the item being acquired,
disregard contrary instructions. Provisions and clauses prescribed in
this part will be revised to reflect the applicability of new statutes
and executive orders.

\(c\) [Discretionary use of GSAR provisions and clauses]{.underline}.
Consistent with the limitations contained in FAR 12.302(c), include in
solicitations and contracts by addendum other GSAR provisions and
clauses.

\(d\) [Use of additional provisions and clauses]{.underline}. The Senior
Procurement Executive must approve the use of a provision or clause that
is either not:

\(1\) Prescribed in the FAR or GSAR for use in contracts for commercial
items.

\(2\) Consistent with customary commercial practice.

**512.302 Tailoring of provisions and clauses for the acquisition of
commercial items.**

**[Waivers under FAR 12.302(c)]{.underline}.**

\(a\) [Individual contract]{.underline}. The contracting officer\'s
supervisor approves the request.

\(b\) [Class of contracts]{.underline}. The contracting director
approves the request.

GSAM\
APD 2800.12B, 09-01-99 B-29

**APPENDIX 507A\
COMPREHENSIVE ACQUISITION PLANNING\
GSA ORDER APD 2800.13B**

GENERAL SERVICES ADMINISTRATION\
Washington, DC 20405

APD 2800.13B\
May 4, 1999

GSA ORDER

SUBJECT: Comprehensive acquisition planning

1\. [Purpose]{.underline}. This Order establishes operating procedures
and assigns responsibilities for acquisition planning for complex, high
dollar and high visibility acquisitions.

2\. [Cancellation]{.underline}. APD 2800.13A is canceled.

3\. [Background]{.underline}.

a\. The Federal Property and Administrative Services Act requires
agencies to perform acquisition planning and conduct market surveys to
promote and provide for:

\(1\) Acquisition of commercial items or, to the extent that commercial
items suitable to meet the agency\'s needs are not available,
nondevelopmental items, to the maximum extent practicable (41 U.S.C.251,
*et seq*.)

\(2\) Full and open competition or, when full and open competition is
not required, to obtain competition to the maximum extent practical,
with due regard for the nature of supplies and services to be acquired
(41 U.S.C. 253a(a)(1)).

b\. The planning process must integrate the efforts of all personnel
responsible for significant aspects of an acquisition. Its purpose is to
ensure that the Government meets its needs in the most effective,
economical, and timely manner. Federal Acquisition Regulation (FAR) Part
7 implements the statutory requirement for planning. It requires
establishment of criteria and thresholds at which increasingly greater
detail and formality in the planning process is required as an
acquisition becomes more complex and costly. GSA has established two
levels of planning based on the complexity and the dollar value of a
particular acquisition:

\(1\) Limited acquisition plans are normally used for simpler, low
dollar value, low visibility, repetitive type acquisitions. The General
Services Administration Acquisition Manual (GSAM) Subpart 507.1 outlines
the requirements for limited acquisition plans.

GSAM\
B-30 APD 2800.12B, 09-01-99

\(2\) Comprehensive acquisition plans are more detailed and cover the
acquisition process from identification of agency need through contract
performance. These plans are normally used for complex, high dollar
value (\$50 million or more) and high visibility acquisitions. The
requirements for comprehensive plans are outlined in this Order.

4\. [Nature of revision]{.underline}. This revision updates statutory
authorities in the background section, updates organizational titles,
raises the dollar level for a full written comprehensive plan from \$10
million to \$50 million, establishes requirements for using
life-cycle-cost or design-to-cost techniques, and clarifies when a plan
must be coordinated with the cognizant competition advocate.

5\. [Applicability]{.underline}. This Order applies to all Central
Office and regional services and staff offices that are responsible for
acquiring personal property, nonpersonal services (including
construction) and leasehold interests in real property.

6\. [Definitions]{.underline}.

a\. [Competition advocate]{.underline}. See General Services
Administration Acquisition Regulation (GSAR) 502.1.

b\. [Comprehensive acquisition plan]{.underline}. A plan normally used
for complex, high dollar value (\$50 million or more),and high
visibility acquisitions, which covers the acquisition process from
identification of agency need through contract performance and
administration.

c\. [Limited acquisition plan]{.underline}. A detailed plan, normally
used for simpler, low dollar value (above the simplified acquisition
threshold and up to \$50 million), low visibility, repetitive type
acquisitions, which covers the acquisition process from receipt, by the
contracting officer, of a purchase request or advance notice of the need
through contract award.

d\. [Head of contracting activity (HCA)]{.underline}. See GSAR 502.1.

e\. [Participating offices]{.underline}. Offices that will provide
advice and assistance to the senior program official(s) selecting
candidates for comprehensive acquisition planning and which will have
representatives on the planning team.

f\. [Planner]{.underline}. The person(s) selected by the senior program
official to screen candidate acquisitions for comprehensive planning and
who initiates, coordinates, and prepares the comprehensive acquisition
plan. The person may be in an individual program office or have
responsibility for a number of such offices. This person must be
conversant with significant acquisitions planned within the senior
program official\'s area of responsibility.

g\. [Planning team]{.underline}. A team of individuals formed to prepare
the individual elements of a comprehensive acquisition plan. The team
must be composed of representatives from contracting, budget,
appropriate technical offices, and small business technical advisors.
The team may include representatives from other areas as well. Legal
advice should be obtained as appropriate. The planning team may be
preselected or formed on an ad hoc basis.

GSAM\
APD 2800.12B, 09-01-99 B-31

h\. [Senior program official]{.underline}. A person(s) reporting to the
HCA who has been designated by the HCA as the senior program official
and has overall program responsibility for determining how agency needs
will be met. The official(s) should be in a position of authority over
the participating offices in the planning. Some examples are:

\(1\) Regions - the Assistant Regional Administrators (ARA) for the
Federal Technology Service, Public Buildings Service, and Federal Supply
Service.

\(2\) Central Office - the Deputy Commissioners for the Federal
Technology Service, Public Buildings Service, and Federal Supply
Service.

7\. [Policy]{.underline}. All acquisitions exceeding the simplified
acquisition threshold must have either a limited acquisition plan or a
comprehensive acquisition plan, unless the requirement is waived under
GSAM 507.104(d) or par. 9a of this Order. This includes acquisitions
done under FAR Part 12, Acquisition of Commercial Items.

8\. [Implementation]{.underline}.

a\. A comprehensive acquisition plan should normally be prepared for
individual contracts or for total program requirements valued at \$50
million or more, including options, that meet one or more of the
following criteria:

\(1\) Requirements that are complex, critical, have high visibility or
are politically sensitive.

\(2\) Requirements that are unique or are first time acquisitions with
which the agency has little or no experience.

\(3\) Requirements to be supported by significantly changed methods;
e.g., methods of procurement such as lease versus purchase or methods of
performance such as contract versus Government personnel.

\(4\) New construction or repair and alteration prospectus budget line
items.

b\. The planner, not less than once per month, must report to the senior
program official, all proposed requirements that, in the planner\'s
judgment, meet the criteria in subpar. 8a for comprehensive acquisition
planning. The planner may recommend individual contracts or programs
valued at less than \$50 million as candidates for comprehensive
acquisition planning. The report must contain the following information:

\(1\) The candidates meeting the criteria for comprehensive acquisition
planning.

\(2\) The candidates not meeting the criteria for comprehensive
acquisition planning but which the planner believes should have a
comprehensive acquisition plan.

GSAM\
B-32 APD 2800.12B, 09-01-99

\(3\) All proposed acquisitions in excess of \$50 million that are not
considered candidates for comprehensive acquisition planning and the
reasons why.

c\. The senior program official shall review the planner\'s report and,
with the advice and assistance of the participating offices, as needed,
select the individual contracts or programs for which a comprehensive
acquisition plan will be prepared. The senior program official may
annotate the report with the reason other candidates were not selected
for comprehensive acquisition planning. If a candidate is selected for
planning, the planner shall begin the process by advising all offices
which are to send representatives to the planning team.

d\. The planner and planning team must consider the lead time required
to process a requirement through to contract award and subsequent
delivery when beginning the planning process, and establishing contract
milestones and delivery or performance schedules.

e\. The planning team must comply with FAR 7.105 requirements for
contents of written acquisition plans.

\(1\) The specific contents of plans will vary, depending on the nature
and circumstances of the acquisition. However, in addressing FAR
7.105(a)(3), Cost, each comprehensive acquisition plan must either:

\(a\) Explain how either life-cycle cost or design-to-cost techniques
will be used.

\(b\) Explain why the above techniques are not appropriate for the
acquisition and what techniques the team used to develop cost goals.

\(2\) For other items in the FAR outline, if the item does not apply,
the plan should include the paragraph title followed by the statement
"Not applicable."

\(3\) Additional requirements not addressed in the FAR outline may be
added to individual plans as needed.

9\. [Responsibilities]{.underline}.

a\. [Heads of Central Office Services or Staff Offices]{.underline}.

\(1\) Approve comprehensive acquisition plans.

\(2\) May waive the requirements of this Order, except for the
requirements outlined in subpar. 9e(4), for programs and classes of
contracts if they determine that the Service or Staff Office already has
a detailed acquisition planning system in place that generally meets the
requirements of this Order. Any waivers must be coordinated with the
Office of Acquisition Policy.

\(3\) May authorize the development of a standard comprehensive
acquisition plan outline for programs or classes of contracts.

GSAM\
APD 2800.12B, 09-01-99 B-33

b\. [Heads of contracting activities]{.underline}.

\(1\) Have overall responsibility for implementing and maintaining
acquisition planning to ensure adherence to this Order. They shall take
any necessary implementing actions.

\(2\) Have authority to approve or disapprove comprehensive acquisition
plans or major changes to them. This authority may not be delegated
below the level of the senior program official(s).

c\. [Senior program officials]{.underline}.

\(1\) Review the planner\'s report of candidates for comprehensive
acquisition planning, and with advice and assistance of the
participating offices, selects acquisitions that are to be planned under
this Order.

\(2\) Review proposed acquisitions exceeding the dollar threshold for
comprehensive planning that the planner declines to recommend as
candidates and concur or nonconcur.

\(3\) May waive requirements for a full written comprehensive plan in
cases of unusual or compelling urgency. In those cases, the individual
responsible for preparing the plan must present, as a minimum, an oral
plan to the senior program official for approval. Planning must be
performed to the extent possible in the circumstances and the file
documented. This documentation may be prepared after award when
preparation before award would unnecessarily delay the acquisition. As a
minimum, this documentation must address each of the following elements:

\(a\) The nature of the urgency.

\(b\) The extent and content of planning performed.

\(c\) The name of the individual that approved the plan.

\(4\) Review recommendations to reconvene the planning team to consider
major changes to the plan and concur or nonconcur.

\(5\) Take action on reported deficiencies in the planning process.

d\. [Heads of participating offices]{.underline}.

\(1\) Advise and assist the senior program official as needed in
selecting candidate acquisitions for comprehensive acquisition planning.

\(2\) Supply representatives to the planning team as requested.

\(3\) Coordinate aspects of the plan that relate to their areas of
responsibility.

GSAM\
B-34 APD 2800.12B, 09-01-99

e\. [Planners]{.underline}.

\(1\) Select candidates for comprehensive acquisition planning and
submit them to the senior program official.

\(2\) Begin the planning process after a decision by the senior program
official and notify members of the planning team.

\(3\) Coordinate the planning team work.

\(4\) Ensure all needed coordination is obtained. This includes
coordination with and concurrence of the contracting officer. If a plan
proposes using other than full and open competition, obtain the
coordination and concurrence of the cognizant competition advocate as
required by FAR 7.104(c). Coordination and concurrence of the cognizant
competition advocate is not required for contracts awarded under the
authority of FAR 6.302-5 or a class justification approved by the Senior
Procurement Executive.

\(5\) Monitor the planning process to ensure the timetables are met.

\(6\) Submit the plan to the HCA for approval.

\(7\) Distribute the approved plan as required.

\(8\) Follow up on approved plans to ensure the milestones are on
schedule. If major changes to plans are contemplated, the planner may
recommend to the senior program official that the planning team
reconvene to consider the changes.

f\. [Planning teams]{.underline}.

\(1\) Prepare the comprehensive acquisition plan.

\(2\) Coordinate the plan or elements of it with affected or interested
parties.

\(3\) Report possible or significant changes which may impact the plan
to the planner.

Ida M. Ustad\
Deputy Associate Administrator\
for Acquisition Policy

GSAM\
APD 2800.12B, 09-01-99 B-35

**SUBCHAPTER C\--CONTRACTING METHODS AND CONTRACT TYPES**

**PART 513 SIMPLIFIED ACQUISITION PROCEDURES**

**513.003 Policy.**

When you use an oral solicitation for an action over the micro-purchase
threshold and the Service Contract Act applies, provide information on
the Act and the applicable wage determination to potential contractors
as part of the oral solicitation.

**513.1 PROCEDURES**

**513.106-1 Soliciting competition.**

\(a\) "Urgency", as used in FAR 13.106-1(a)(1)(iii) and 13.106-1(b),
includes situations which, if not corrected immediately, will result in
unnecessary expenditure of funds, property damage, personal injury, or
interruption of agency functions.

\(b\) To avoid unnecessarily restricting competition for urgent
requirements, consider the following actions:

\(1\) Inviting prospective offerors to visit the site.

\(2\) Informing them orally of the exact requirements.

\(3\) Requesting them to prepare quotations.

**513.106-3 Award and documentation.**

\(a\) [File documentation and retention]{.underline}. You may use GSA
Form 2010, Small Purchase Tabulation Source List/Abstract, to document
written and oral quotations.

\(b\) [Special situations]{.underline}. Document the basis for rejecting
a lower quotation if quotes or offers were evaluated based on price
alone.

**SUBPART 513.3 SIMPLIFIED ACQUISITION METHODS**

**513.301 Governmentwide commercial purchase card.**

\(a\) GSA Order, Interim Guidance on Use of the Governmentwide
Commercial Purchase Card Service (OAD 4200.8), establishes procedures
for using the Governmentwide commercial purchase card to make purchases
and payments.

GSAM\
APD 2800.12B, CHGE 1, 10-1-99 C-1

\(b\) When you use the Governmentwide commercial card for a procurement
that exceeds the micropurchase threshold, the card is a payment method.
All procedures and documentation requirements that apply over the
micropurchase threshold apply to the procurment action.

**513.302 Purchase orders.**

**513.302-70 Purchase order and related forms.**

\(a\) See GSA Order, Interim Guidance on Use of the Governmentwide
Commercial Purchase Card Service (OAD 4200.8), for forms required for
purchase card actions.

\(b\) Use GSA Form 300 or 300-1 (pin-feed format), Order for Supplies
and Services, instead of OF 347, Order for Supplies or Services, when
making purchases payable through the National Electronic Accounting and
Reporting (NEAR) System.

\(1\) This form may also be used to make other purchases when a specific
form is not prescribed. It may be used as a delivery or task order
instead of SF 1449, Solicitation/Contract/Order for Commercial Items.

\(2\) Prepare and process GSA Form 300 following the instructions at
553.370-300-I. Use GSA Form 300A or 300-A(1) (pin-feed format), order
for Supplies or Services (continuation), if additional space is needed.

\(c\) Use GSA Form 1458, Motor Vehicle Shop Work Order, Repair and
Purchase Order, instead of the OF 347 when making purchases in
connection with the maintenance, servicing or repair of GSA fleet
management vehicles.

\(d\) Use GSA Form 3186, Order for Supplies or Services or GSA Form
3186-B, Order for Supplies or Services (EDI), instead of OF 347, Order
for Supplies or Services, when making simplified acquisitions or placing
orders against established contracts through the FSS-19 system.

\(1\) Use GSA Form 3186 for mail orders placed against established
contracts.

\(2\) Document the file for a delivery, task, or purchase order
transmitted to contractors electronically using Electronic Data
Interchange (EDI) procedures by generating a GSA Form 3186-B.

\(e\) Use GSA Form 8002B, Motor Vehicle Delivery Order, to order fleet
management vehicles. Do not use this form as a purchase order for
simplified acquisitions. Use GSA Form 8002A to notify the consignee of
the status of motor vehicle requisitions.

\(f\) The contracting director is responsible for safeguarding books of
Standard Form 44's and establishing procedures to account for purchases.
Do not authorize use of this form if the seller's accounting system
requires production of an invoice as a matter of routine. Consider other
authorized methods, giving preference to use of the Governmentwide
commercial purchase card.

GSAM\
C-2 APD 2800.12B, CHGE 1, 10-1-99

**513.303 Blanket purchase agreements (BPAs).**

**513.303-3 Preparation of BPAs.**

\(a\) [Description of agreement]{.underline}. Describe limitations, if
any, on the geographic area to be served.

\(b\) [Delivery tickets]{.underline}. Instruct the contractor to include
the name of the individual placing the order on the delivery ticket. The
individual receiving the item or service must sign and date the delivery
or service ticket. Both the supplier and the receiving office must
retain a copy of the delivery ticket.

\(c\) [Invoices]{.underline}. If you have exhausted all efforts to get a
supplier to accept one of the invoicing statements outlined in FAR
13.303-3(a)(6), you may deviate in order to permit the submission and
payment of invoices for each delivery under the BPA. Document your
efforts and the contractor's refusal.

\(d\) [Processing invoices]{.underline}. The designated billing office
must time-stamp invoices to indicate the date of receipt. The ordering
office must forward an invoice to the appropriate Finance Division
within 5 workdays of its receipt or acceptance of the supplies or
services. An exception applies if the BPA provides for the accumulation
of invoices for a specified period. If this exception applies, the
ordering office must forward the accumulated invoices within 5 workdays
after the specified period for accumulation. Mark all invoices to
indicate that purchases were made under a BPA.

**513.305 Imprest funds and third party drafts.**

**513.305-2 Agency responsibilities.**

Imprest fund cashiers must be designated and must operate in accordance
with GSA Order, GSA Imprest Fund Operations Policy (CFO 4268.1), and FAR
13.305.

**513.305-3 Conditions for use.**

An imprest fund cashier in Alaska may disburse up to \$600 for an
emergency transaction.

**513.305-4 Procedures.**

\(a\) If the office maintains its own imprest fund, use SF 1164, Claim
for Reimbursement for Expenditures on Official Business, or SF 1165,
Receipt for Cash - Subvoucher, for a written order.

\(b\) The GSA Form 49 may be used if required by contracting activity
directives. Include the endorsement required by FAR 13.305-4(d).

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**513.307 Forms.**

You may use the GSA Form 3521, Blanket Purchase Agreement, to prepare a
blanket purchase agreement.

**513.370 Certified invoice procedure.**

**513.370-1 Applicability.**

If advantageous to the Government, you may acquire supplies or services
on the open market from suppliers using a vendor's invoice instead of a
purchase order.

**513.370-2 Limitations.**

\(a\) Purchases are subject to FAR Part 13 and Part 513 and these
limitations:

\(1\) The amount of any one purchase must not exceed the micro-purchase
threshold.

\(2\) Neither the supplier nor the Government require a purchase order.

\(3\) The individual making the purchase does not have a Governmentwide
commercial purchase card or the card is not accepted by the supplier.

\(4\) Appropriate invoices can be obtained from the supplier.

\(b\) For purchases of hand and measuring tools and stainless steel
flatware, see also 525.105-70.

\(c\) If you use certified invoice procedures, you still must:

\(1\) Verify price reasonableness using the conditions contained in FAR
13.202(a).

\(2\) Certify that the quality and quantity of items/services furnished
comply with the verbal agreement made with the supplier.

\(d\) Authorized individuals without warrants may solicit quotations.
However, a contracting officer must approve in advance the placement of
an order. Approval must be in writing on GSA Form 2010 or other
documentation unless the geographic distance makes it impracticable. In
those cases, the contracting officer may provide telephonic approval.
The authorized individual must document the file accordingly.

**513.370-3 Invoices.**

\(a\) If you use these procedures, you must require the suppliers to
immediately submit properly prepared itemized invoices.

\(b\) Upon receipt of the invoice, the receiving office must take all
the following actions:

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C-4 APD 2800.12B, 09-01-99

\(1\) Time-stamp the invoice to indicate the date the invoice is
received.

\(2\) Verify the accuracy of the invoiced amount.

\(3\) Verify that the supplies or services have been received and
accepted. Whenever possible, require that inspection and acceptance or
rejection occur within 7 calendar days of delivery or completion.

\(c\) Before certifying the invoice and forwarding it to the appropriate
Finance Division, you or a designated representative must obtain a
certification of receipt and acceptance from the individual that
actually inspected and accepted the supplies or services.

\(d\) Within 5 workdays after receipt of the invoice or acceptance of
the supplies or services, whichever is later, forward the invoice
stamped with the Certified Invoice Stamp.

\(1\) Complete the accounting information, received and accepted dates,
taxpayer identification number (TIN), type of business (corporation,
sole proprietorship/partnership, or other), and certification, and affix
the ACT number label.

\(2\) If a Certified Invoice Stamp is not available, place the following
statement on the invoice along with the ACT number label, accounting
information, TIN, and the type of business. (Note: In some
organizations, the ACT number label is affixed by a budget or executive
office within the service or staff office.)

\"I certify that these goods and/or services were received on \[Date\]
and accepted on \[Date\]. An oral purchase was authorized and no
confirming order has been issued.\"

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
Signature of Contracting/Ordering Officer Date invoice received\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
Print name and telephone no.

**SUBPART 513.4 FAST PAYMENT PROCEDURE**

**513.401 General.**

GSA contracting activities are not authorized to use fast payment
procedures.

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APD 2800.12B, 09-01-99 C-5

**PART 514 SEALED BIDDING**

**SUBPART 514.2 SOLICITATION OF BIDS**

**514.201 Preparation of invitations for bids.**

**514.201-1 Uniform contract format.**

Include the following notice in each solicitation:

\"The information collection requirements contained in this
solicitation/contract, are either required by regulation or approved by
the Office of Management and Budget pursuant to the Paperwork Reduction
Act and assigned OMB Control No. 3090-0163.\"

**514.201-2 Part I - The Schedule.**

\(a\) When you use Standard Form 33, Solicitation, Offer and Award,
include the following cautionary notice:

\"Notice to Bidders - Use Item 13 of the Standard Form 33, Solicitation,
Offer and Award, to offer prompt payment discounts. The Prompt Payment
clause of this solicitation sets forth payment terms. Do not insert any
statement in Item 13 which requires payment sooner than the time
stipulated in the Prompt Payment clause. EXAMPLE: If you insert \"NET
20\" in Item 13, GSA will reject your offer as nonresponsive because the
entry contradicts the 30 day payment terms specified in the Prompt
Payment clause.\"

\(b\) When you use any other authorized form (e.g., Standard Form 1447,
Solicitation/Contract), include the notice in (a) above. Change the
reference to the form number, form title, and item number accordingly.

**514.201-6 Solicitation provisions.**

When you will consider all or none bids, insert the provision at
552.214-70, \"All or None\" Offers, in the solicitation. For
requirements or indefinite quantity contracts, use Alternate I. Do not
include this provision in solicitations when you require the bidder to
submit bids on all items and will make only one award.

**514.201-7 Contract clauses.**

\(a\) [Stock replenishment contracts.]{.underline} For some stock
replenishment contracts, individual contractors may be unable to furnish
the Government's monthly requirements. You may determine that
progressive awards will be more expedient. In such cases, insert a
clause substantially the same as the clause at 552.214-71, Progressive
Awards and Monthly Quantity Allocations, in the solicitation and
contract.

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\(b\) [Examination of Records.]{.underline}

\(1\) Insert 552.215-70, Examination of Records by GSA, in solicitations
and contracts for supplies or services that exceed \$100,000, and
acquisitions of leasehold interests in real property that exceed the
simplified lease acquisition threshold, that meet at least one of the
following conditions:

\(i\) Involve the use or disposition of Government-furnished property.

\(ii\) Provide for advance payments, progress payments based on cost, or
guaranteed loan.

\(iii\) Contain a price warranty or price reduction clause.

\(iv\) Include an economic price adjustment clause where the adjustment
is not based solely on an established, third party index.

\(v\) Are requirements, indefinite-quantity, or letter contracts as
defined in FAR part 16.

\(vi\) Contain the provision at FAR 52.223-4, Recovered Materials
Certification.

\(2\) You may modify the clause to define the specific area of audit
(e.g., the use or disposition of Government-furnished property). Legal
Counsel and the Assistant Inspector General-Auditing or Regional
Inspector General-Auditing, as appropriate, must concur in any
modifications to the clause.

**514.201-70 GSA Form 1602.**

You may use GSA Form 1602, Notice Concerning Solicitation, to do any of
the following:

\(a\) Describe the type of contract, the duration of the contract, and
the type of supplies or services being procured.

\(b\) Direct the attention of prospective bidders to special
requirements which, if overlooked, may result in rejection of the offer.

\(c\) Highlight significant changes from previous solicitations covering
the same supplies or services.

\(d\) Include other special notices, as appropriate.

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**514.202 General rules for solicitation of bids.**

**514.202-4 Bid samples.**

\(a\) [Solicitation requirements]{.underline}.

\(1\) When you require bid samples, require bidders to submit samples
produced by the manufacturer whose products will be supplied under the
contract.

\(2\) The FAR limits use of bid samples to cases where you cannot
describe some characteristics of a product adequately in the
specification or purchase description. This usually applies to
subjective characteristics. You may determine that you need to examine
objective characteristics of bid samples to determine the responsiveness
of a bid. Base your determination on past experience or other valid
considerations. In the solicitation, separately list \"Subjective
Characteristics\" and \"Objective Characteristics.\"

\(3\) A sample provision appears at 552.214-72, Bid Sample Requirements.
You may use this provision as shown or modify it to fit the
circumstances of a procurement.

\(b\) [Handling and disposition of samples]{.underline}.

\(1\) Retain samples from accepted bids for the period of contract
performance. If you have no outstanding claims regarding the contract,
dispose of the samples at the end of the contract term following the
bidder's instructions.

\(2\) If you anticipate a claim regarding the contract, retain the bid
samples until the claim is resolved.

\(3\) Retain samples from unsuccessful bids until you make award. After
award, dispose of these samples following the bidder's instructions.

\(c\) [Using bid samples.]{.underline} Include the information required
by FAR 14.202-4(e) in the solicitation. Provide the number, size, and
full description of samples with instructions on how to submit bids.
List the characteristics that you will examine. The list needs to
include any aspect of the bid sample the acquisition team will examine
to determine the product(s) acceptability.

**514.203 Methods of soliciting bids**

**514.203-1 Transmittal to prospective bidders.**

Prospective bidders, as used in FAR 14.203-1, include both of the
following:

\(a\) The incumbent contractor, except when its written response to the
notice of contract action under FAR subpart 5.2 states a negative
interest.

\(b\) Bidders that responded to recent solicitations for the same or
similar items.

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**514.205 Solicitation mailing lists.**

**514.205-1 Establishment of lists.**

FSS must use the computerized central solicitation mailing list
maintained by Region 7 for supplies and services for procurements
expected to exceed the simplified acquisition threshold. Other GSA
contracting activities may maintain local lists. Contracting activities
that maintain local mailing lists must inform their enterprise
development staff of the list and provide related information.

**514.211 Release of acquisition information.**

Before award, limit access to information concerning the Government cost
estimate to Government personnel whose official duties require knowledge
of the estimate. After award, you may reveal the total amount of the
Government estimate upon request. Do not release the basis for
calculating the estimate at any time.

**514.213 Annual submission of representations and certifications.**

The Commissioners of the Federal Supply Service, Public Building
Service, and Federal Technology Service may establish procedures for
contracting activities in their respective organizations. This includes
authority to assign responsibility for centrally requesting, receiving,
storing, verifying and updating offerors' annual submissions.

**514.270 Aggregate awards.**

**514.270-1 Definition.**

\"Aggregate award\" means an arrangement whereby two or more
separately-priced line items are combined for award to that bidder whose
bid will result in the lowest overall cost to the Government for the
line items as a group. The individual price for each item does not have
to be the lowest bid received. (See also the definition of a \"line
item\" in FAR 3.302.)

**514.270-2 Justification for use.**

\(a\) GSA usually solicits prices and reserves the right to make award
for individual line items. In some cases it serves GSA's best interest
to combine two or more line items for an aggregate award. Such cases
include when:

\(1\) Users desire uniformity of design, style, and finish, (e.g.,
suites of household furniture).

\(2\) The articles will be assembled and used as a unit, and different
manufacturers' components may not be interchangeable.

\(3\) Users have high demand for certain articles, but demand for
related articles is insufficient to attract competitive bids (e.g.,
various sizes of socket wrenches).

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Awarding the low-demand articles in conjunction with the high-demand
articles may encourage competition.

\(4\) One location (delivery point) has a large requirement, and another
location has a requirement too small to individually attract competitive
bids.

\(5\) Awarding and administering numerous small contracts for similar
articles or services is impractical.

\(b\) Before deciding to combine items for aggregate award, consider the
following factors:

\(1\) The capability of bidders to furnish the types and quantities of
supplies or services in the aggregate.

\(2\) How grouping delivery points will affect bidders.

\(3\) Which combinations will accurately project the lowest overall cost
to the Government.

\(c\) Do not use an aggregate award if it will significantly restrict
the number of eligible bidders.

**514.270-3** **Evaluation factors for award**.

Clearly state in the solicitation the basis for evaluating bids for
aggregate award. Require bidders to submit a price on each item within
the group or a percentage to be added or subtracted from a list price.
Advise bidders that failure to submit prices as required within a group
makes a bid ineligible for award for that group.

**514.270-4 Grouping line items for aggregate award.**

\(a\) [Type of contract.]{.underline} While this section addresses
supply contracts (articles and delivery points), the same principles
apply to service contracts (types of services and service areas).

\(b\) [Effect on competition.]{.underline} Provide for full and open
competition when you group items for award. Grouping items for award may
preclude a significant number of firms from bidding. This occurs if
firms are unable to provide all the types or quantities of supplies or
services, or make deliveries to the various delivery points included in
the prospective aggregate group.

\(c\) [Grouping different articles]{.underline}. Include only related
articles in an aggregate group. Related articles are those normally
manufactured or produced by a majority of prospective bidders. Grouping
unrelated articles often restricts competition unnecessarily.

\(d\) [Grouping geographic locations or delivery points]{.underline}.
Consider the following guidelines before deciding to group different
geographic locations or delivery points:

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C-10 APD 2800.12B, 09-01-99

\(1\) A delivery point may have sufficient requirements so that
individual shipments involve economic production runs and carload or
truckload quantities. In this case, list it as a separate line item.

\(2\) The types of bidders (i.e., small or large firms, manufacturers or
distributors, etc.) who respond to previous solicitations can provide
important information. For example, if previous bidders are distributors
with franchises in certain territories, grouping different territories
could tend to restrict competition.

\(3\) Transportation costs can affect competition and pricing. They may
constitute a significant portion of the total delivered cost. Obtain the
advice and assistance of transportation specialists before grouping
geographic locations or delivery points. Depending upon the supplies
being acquired:

\(i\) Grouping widespread geographic locations or delivery points may
reduce competition or result in higher prices. It can cause you to lose
\"area pricing\" advantages provided by a supplier with a single
production point.

\(ii\) Conversely, for many small commercial items (hand tools, locks,
etc.), manufacturers may quote the same price for delivery anywhere in
the U.S.

\(iii\) Tariff boundaries can also affect how manufacturers price
deliveries to different areas.

**514.270-5 Evaluation methodologies for aggregate awards.**

\(a\) [Definite quantity contracts without options.]{.underline} For
definite quantity contracts without options, the evaluated bid price is
the total bid price, as adjusted for any price-related factors
identified in the solicitation. This reflects the actual cost to the
Government and will identify the most advantageous bid.

\(b\) [Indefinite quantity contracts, requirements contracts, and
options.]{.underline} Indefinite quantity and requirements contracts use
estimated quantities. Options involve the probability of whether and
when the options will be exercised. These situations may result in
unbalanced bids (see FAR 15.404-1(g)), leading to inaccurate evaluation
of the projected cost and award to other than the most advantageous bid.
To avoid unbalanced bids, GSA has two preferred methods for evaluating
bids for aggregate awards: weight factors and price list.

\(1\) [Weight factors method.]{.underline} Assign a weight to each item
in a group. The weight is based on the portion of quantities that item
represents. To evaluate bids, multiply each unit price by its weight
factor, then total the results.

\(2\) [Price list method.]{.underline} Establish prices for bidders to
use as a base for preparing their bids. Prepare a list that identifies a
base price for each item in a group. Bidders bid a percentage factor to
add to or subtract from the base price.

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**514.270-6 Guidelines for using the weight factors method.**

\(a\) Use the weight factors method when you have reliable estimates for
the quantities needed in an acquisition. Reliable estimates of
quantities form the foundation for:

\(1\) Accurate evaluation of the projected cost of each bid.

\(2\) An appropriate determination of which bid is most advantageous to
the Government for the aggregate group.

\(b\) Assign a weight factor to each item in a group. Develop the weight
factor by calculating the portion of the total quantity in a defined
group that each item represents.

\(c\) To evaluate bid prices, first multiply the price bid for each item
(unit price X quantity) by its weight factor. Then, add the subtotals
together to project the cost for the aggregate group.

\(d\) You may reduce estimated quantities to smaller numbers by a common
denominator. This may help facilitate the computations involved in
evaluating bids.

\(e\) Consider all price-related factors you identified in the
solicitation. Award to the responsive and responsible bidder with the
lowest evaluated overall cost to the Government for the aggregate group.
This represents the most advantageous bid.

**514.270-7 Guidelines for using the price list method.**

\(a\) [General]{.underline}. The price list method helps avoid
unbalanced bidding when you need to make aggregate awards, but lack
accurate estimates of anticipated quantities. This method establishes
base prices for bidders to use in preparing their bids.

\(b\) [Solicitation requirements]{.underline}. When you use the price
list method, in the solicitation:

\(1\) Include the price list.

\(2\) Include an estimate of requirements.

\(3\) Require the bidder to express its price as \"net\" or as a
percentage added to or subtracted from the list prices for each group.
Require the bidder to quote only one percentage factor for each group.
This means that the bidder provides one percentage factor that applies
to every item in a group; not a separate percentage for each item. "Net"
indicates the bidder chooses to submit the list prices as its bid.

\(4\) Identify the percentage factor in (3) above as a price related
evaluation factor.

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\(c\) [Developing list prices]{.underline}. You may develop price lists
using one or more of the following sources:

\(1\) Industry published prices.

\(2\) Industry surveys.

\(3\) Government cost estimates based on knowledge of the supplies or
services and previous contract prices.

\(d\) [First time use for an item or service]{.underline}. The first
time you use list prices for an item or service, give prospective
bidders an opportunity to review the proposed list. Also provide
information on how GSA will use the list prices. You may provide this
information in a draft solicitation.

\(e\) [Balanced prices]{.underline}. Ensure that the list prices for the
grouped items bear a reasonable and balanced relationship to one
another. You may use prices from previous awards made using the weight
factors method to develop price lists. Review those prices first to
ensure they did not result from unbalanced bidding.

\(f\) [Evaluation and award]{.underline}. Consider all price-related
factors identified in the solicitation. Award to the responsive and
responsible bidder whose percentage factor produces the most favorable
price to the Government. This represents the most advantageous bid.

\(g\) [Example]{.underline}. The following illustrates a bidding
schedule arrangement for a group of items for aggregate award under the
price list method:

  ---------------------- ------------------- ------- ------------- --------- ------------
  Drills, Twist, High                                                        
  Speed, under Federal                                                       
  Specification [(no.                                                        
  and                                                                        
  date)]{.underline}\_                                                       
  and Amendment [(no.                                                        
  and                                                                        
  date)]{.underline},                                                        
  Wire gauge sizes,                                                          
  straight shank, short                                                      
  length, Type C                                                             

  Item No.               National Stock      Drill   Est. Quantity Unit      List Price
                         Number              Size                            

  Group 1 (Items 1                                                           
  through 5)                                                                 

  1                      5133-00-189-9246    1       2,800         Pkg       \$11.16

  2                      5133-00-189-9247    2       2,400         Pkg       \$11.16

  3                      5133-00-189-9248    3       2,800         Pkg       \$10.44

  4                      5133-00-189-9249    4       1,600         Pkg       \$10.80

  5                      5133-00-189-9250    5       2,000         Pkg       \$10.80

  The bid on each item                                                       
  above is the list                                                          
  price shown minus/plus                                                     
  \_\_\_\_ percent.                                                          
  (Bidder, insert                                                            
  \"net\" or a single                                                        
  percentage amount in                                                       
  the blank space and                                                        
  cross out minus or                                                         
  plus, as appropriate.)                                                     
  ---------------------- ------------------- ------- ------------- --------- ------------

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\(h\) [Special considerations for contracts for store stock
items.]{.underline} Show estimated quantities only if estimates of
demand for each item within a group can be derived from Government
records or verified contractor sales reports. Use only current
estimates. If you cannot estimate the Government\'s needs, the
solicitation may include past orders. (See CG Decision, B-209037, 82-2
CPD para 323 (1982).)

\(i\) [Special considerations for repair and alteration
contracts.]{.underline} In the solicitation:

\(1\) List the estimated quantities for work to be performed during both
normal working hours and outside of normal working hours.

\(2\) State the percent of work anticipated to be performed during
normal working hours.

\(3\) List the unit prices for work to be performed during both normal
working hours and outside of normal working hours.

\(4\) Define \"normal\" in terms of hours and days of the week.

\(5\) Advise bidders of the previous year\'s total expenditures or
portions of that total attributable to the listed items.

\(6\) If you provide quantity estimates, state that the estimates are
for information only and do not constitute guarantees or commitments to
order items under the contract.

\(7\) Solicit two percentage factors for the line item unit prices
listed: one for the unit prices for work performed during normal working
hours and the second for the unit prices for work performed outside of
normal working hours.

\(8\) You may require multiple percentages when the solicitation further
groups unit prices by trade or business category.

\(9\) For the evaluated bid price, add together (i) and (ii):

\(i\) The percentage of work performed during normal work hours
multiplied by the total estimate adjusted by the bidder\'s percentage
factor for that portion of the work, plus

\(ii\) The percentage of work performed during other than normal working
hours multiplied by the total estimate adjusted by the bidder\'s
percentage factor for that portion of the work.

\(10\) Consider other price-related factors identified in the
solicitation. Make award to the responsible and responsive bidder
submitting the lowest overall evaluated bid price for the aggregate
group. This represents the most advantageous bid.

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**SUBPART 514.3 SUBMISSION OF BIDS**

**514.303 Modification or withdrawal of bids.**

\(a\) If you receive a telegraphic modification or withdrawal of a bid
by telephone under the circumstances in FAR 14.303(a), record the
identity of the telegraph office employee telephoning the message.

\(b\) The receipt required by FAR 14.303(b) for withdrawal of a bid in
person should read:

I am a bona fide agent for or representative of \_\_\_\_[(Bidder\'s name
and address)]{.underline}\_\_\_\_. I am authorized to withdraw the bid
on IFB No.\_\_\_\_\_\_\_\_\_\_\_\_\_\_ scheduled for opening
on\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, and acknowledge receipt of the
unopened bid.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\
Name and telephone no. Date

**514.304 Late bids, late modifications of bids, or late withdrawal of
bids.**

**514.304-1 General.**

Upon receiving a late bid, the bid custodian records it on the duplicate
copy of the list of bidders. The bid custodian then immediately notifies
the responsible contracting officer of the bid. You must arrange for
pick-up or delivery of the bid.

**514.370 Copies of bids required.**

Require each bidder to submit an original and at least one copy of its
bid. This requirement does not apply to bids transmitted and received
through an electronic commerce method authorized by the solicitation.

**SUBPART 514.4 OPENING OF BIDS AND AWARD OF CONTRACT**

**514.401 Receipt and safeguarding of bids.**

\(a\) You may designate the Regional BSC to receive and safeguard bids
and modifications until the time specified for opening. Handle bids as
follows:

\(1\) Authorized personnel mark the envelope (or other covering) of each
package identified as a bid or modification with a time-stamp or the
place, date, and time of receipt. They then deliver the bid by special
handling to the bid custodian.

\(2\) Deposit hand-carried bids into the designated locked bid box,
safe, or secured, restricted-access electronic bid box. At least once
daily and immediately preceding the time scheduled for bid opening, the
bid custodian removes and time stamps the bids. If

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a bidder hands a bid to the bid custodian or other GSA employee, the
custodian or employee time stamps the bid immediately.

\(3\) When the solicitation authorizes telegraphic or facsimile bids and
modifications, the bid custodian seals each in an envelope immediately
upon receipt. The custodian labels the envelope with appropriate
identification.

\(4\) For each invitation, the bid custodian prepares a bidders' list
using GSA Form 1378, Record of, and Receipt for, Bids and Responses, or
the appropriate bid abstract form. The list includes the name and
address of all responses, including any bid modifications, received
before bid opening time. The list also indicates withdrawn bids.

\(5\) The bid custodian records each bid and modification delivered
before bid opening on the bidders' list on the day of receipt. The
custodian stores bids and modifications in a suitable secured cabinet.

\(b\) At the scheduled bid opening time, the bid custodian delivers all
bids received in response to the invitation, with the original and one
copy of the bidders' list, to the bid opening official or designee. The
bid opening official or designee acknowledges receipt of the bids by
signing the copy of the form and returning it to the bid custodian. The
original list becomes part of the contract file.

\(c\) When a BSC is designated to receive bids, the BSC Director may
designate an individual(s) working at a PBS Field Office as a bid
custodian, provided all the following conditions are met:

\(1\) The Field Office has adequate space and facilities.

\(2\) The individual(s) designated as a bid custodian has been trained.

\(3\) The Field Office has a Small Business Technical Advisor.

\(4\) The bid custodian(s) must submit monthly reports to the BSC
Director. The BSC Director forwards these reports to the Office of
Enterprise Development (E).

**514.402 Opening of bids.**

**514.402-1 Unclassified bids.**

\(a\) [Location of bid openings.]{.underline} Public bid openings take
place in the BSC if the bid custodian is in the BSC. If the bid opening
occurs elsewhere, inform your BSC. Give the BSC the invitation number
and the location of the bid opening.

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\(b\) [Bid opening officer.]{.underline}

\(1\) You may appoint a qualified employee of the contracting office as
assistant bid opening officer as provided in FAR 14.402-1(b).

\(2\) The distance between the BSC and the contracting office may make
it impracticable for you to conduct bid opening. In this case, you may
request the HCA and the Associate Administrator for Enterprise
Development (E) in Central Office, or the BSC Director in the Region, to
authorize a qualified BSC employee to open, read, and record bids.

\(c\) Bid openings are open to business representatives, members of the
press, and the general public.

\(d\) [Preferred practices for conducting bid openings.]{.underline}

\(1\) To ensure that bid opening occurs at the exact time specified,
verify the accuracy of the timepiece to be used.

\(2\) For the information of bidders present, provide an audible
announcement approximately one-minute prior to bid opening.

\(3\) Announce audibly when the exact time of opening arrives. In the
announcement, identify the invitation(s) scheduled for opening.

\(4\) For construction contracts that provide for bid alternates,
announce the amount of funds available for the award before opening
bids.

\(5\) Open the bids in full view of the parties present.

\(6\) When practicable and feasible, announce the following information
from each bid: the bidder\'s name, item and unit price bid, and other
pertinent information, such as delivery and discount terms.

\(7\) For bids submitted in multiple copies, one copy remains in the bid
opening room for public examination until the bid abstract is
substituted. The contracting activity uses the original. For bids
submitted in original only, see FAR 14.402-1(c). The contracting
activity retains all supplemental financial forms or other information
submitted with a bid. Do not provide supplemental information for public
examination.

\(8\) Forward any negotiable instruments submitted as bid guarantees to
the Finance Division following procedures established by the Chief
Financial Officer. After award, cancellation of the solicitation, or
rejection of all bids, direct the Finance Division to refund the amount
of the bid guarantee to unsuccessful bidders. You may authorize return
of a bid guarantee before award when requested by a bidder who is not in
contention for the award. Retain other forms of bid guarantees (e.g.,
bid bonds, letters of credit, corporate and individual sureties, etc.)
in the contract file.

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\(9\) Prepare a record of the opening for the contract file. Include the
names of persons attending the bid opening and the firms or
organizations they represent.

\(10\) Verify the entries on all copies of a bid. Resolve any suspected
mistake(s) following the procedures in FAR 14.407.

\(11\) Retain the envelopes in which bids and bid modifications are
received until all awards are made. After award, retain those with
notations concerning abnormal receipt or opening for identification in
the solicitation file. You may destroy the remainder.

**514.403 Recording of bids.**

\(a\) As soon as practicable, make a copy of the abstract of bids and
any amendments available for public examination at the location of the
bid opening. Make the abstract available for public examination for at
least 30 calendar days. Include late bids determined eligible for
consideration on the bid abstract or, if necessary, in an amendment.

\(b\) In abstracts for aggregate awards, record: unit prices, weight
factors, totals for each aggregate group, and any other information
required for bid evaluation.

\(c\) For building services, contracting activities in PBS may use GSA
Form 3471, Abstract of Offers, instead of the Standard Form 1409,
Abstract of Offers.

**514.404 Rejection of bids.**

**514.404-1 Cancellation of invitations after opening.**

The HCA, or designee, makes any determinations required by FAR 14.404-1.

**514.404-2 Rejection of individual bids.**

\(a\) You may use the \"Remarks\" Item on GSA Form 1535, Recommendation
for Award(s), or other appropriate documentation to record findings with
respect to rejected bids.

\(b\) Document any bid rejected for nonresponsiveness,
nonresponsibility, ineligibility, or because the bid after evaluation is
no longer low. Examples of bids which may no longer be low after
evaluation include aggregate bids, \"all or none\" bids, bids evaluated
for freight costs, and bids evaluated using Buy American differentials.

\(c\) For sensitive or controversial bid rejections, include all
supporting documentation to justify awards. This includes copies of the
bid to be rejected and the proposed awardee, statements from or records
of conversations with the requisitioning activity, plant facilities and
financial responsibility reports, and other relevant correspondence or
reports (Certificates of Competency, copies of Congressional
correspondence or other high level interest, etc.).

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C-18 APD 2800.12B, 09-01-99

**514.407 Mistakes in bids.**

**514.407-3 Other mistakes disclosed before award.**

\(a\) [Delegation of authority by head of the agency]{.underline}. Under
FAR 14.407-3(e), contracting directors (see 502.101) are authorized,
without power of redelegation, to make:

\(1\) The determinations regarding corrections and withdrawals under FAR
14.407-3(a), (b), and (c).

\(2\) The corollary determinations not to permit withdrawal or
correction under\
FAR 14.407-3(d).

\(b\) [Legal review and approval]{.underline}. Assigned counsel must
approve determinations by the contracting director and contracting
officer regarding mistakes in bid.

**514.407-4 Mistakes after award.**

The contracting director and assigned counsel review and approve your
determinations under FAR 14.407-4(b) and (c).

**514.408 Award.**

**514.408-6 Equal low bids.**

To determine the status of bidders (small/large/labor surplus area) in a
tie-bid situation, use the bidders' status as of the date they signed
their bids.

**514.408-70 Awards involving related cases referred to higher
authority.**

Avoid any action which might prejudice the freedom of the higher
authority to act on any case referred for review. This includes partial
awards to the same bidder under the same solicitation.

**514.408-71 Forms for recommending award(s).**

Contracting activities may use GSA Form l535, Recommendation for
Award(s), and GSA Form l535-A, Recommendation for Award(s), Continuation
Sheet, to document proposed awards. One or more awards may be set forth
on each form. Contracting activities have the discretion to use other
means of documentation that meet their needs for information to support
an award recommendation.

**514.409 Information to bidders.**

**514.409-1 Award of unclassified contracts.**

You may use GSA Form 3577, Notice to Unsuccessful Offeror of Contract
Award, to notify unsuccessful bidders other than either of the
following:

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APD 2800.12B, 09-01-99 C-19

\(a\) Any apparent low bidders not selected for award.

\(b\) Unsuccessful bidders from designated countries for acquisitions
subject to the Trade Agreements Act or North American Free Trade
Agreement Implementation Act (NAFTA) Implementation Act.

**514.409-70 Restriction on disclosure of inspection or test data.**

Before award, disclose inspection or test data only to Government
officials that require the information for bid evaluation. This applies
whether the data was prepared by the Government or an outside inspection
or testing agency. For requests received after award, see FAR 24.2.

**514.470 Multiple bids.**

\(a\) You must consider all bids received from a person, firm, or its
affiliates for award if responsive and otherwise acceptable.

\(b\) You may accept a bid offering two or more products for the same
item if it is the lowest cost responsible and responsive bid.

**PART 515 CONTRACTING BY NEGOTIATION**

**SUBPART 515.2 SOLICITATION AND RECEIPT OF PROPOSALS AND INFORMATION**

**515.204 Contract format.**

**515.204-1 Uniform contract format.**

\(a\) The uniform contract format is not required for leases of real
property.

\(b\) Each solicitation and contract must include the two notices in
(b)(1) and (b)(2) below, except that acquisitions of leasehold interests
in real property, must include only the notice in (b)(1):

\(1\) \"The information collection requirements contained in this
solicitation/contract are either required by regulation or approved by
the Office of Management and Budget pursuant to the Paperwork Reduction
Act and assigned OMB Control No. 3090-0163.\"

\(2\) \"GSA's hours of operation are 8:00 a.m. to 4:30 p.m. Requests for
preaward debriefings postmarked or otherwise submitted after 4:30 p.m.
will be considered submitted the following business day. Requests for
postaward debriefings delivered after 4:30 p.m. will be considered
received and filed the following business day.\"

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C-20 APD 2800.12B, 09-01-99

**515.205 Issuing solicitations.**

Potential sources, as used in FAR 15.205, include both of the following:

\(a\) The incumbent contractor, except when its written response to the
notice of contract action under FAR Subpart 5.2 states a negative
interest.

\(b\) Offerors that responded to recent solicitations for the same or
similar items.

**515.207 Handling proposals and information.**

\(a\) [Unclassified Proposals]{.underline}. In most cases, the best
practice is to require offerors to submit proposals and modifications to
the issuing contracting office. You may chose to use the local Business
Service Center (BSC) for receipt and safeguarding of proposals. If so,
make appropriate arrangements with the BSC.

\(b\) [Classified Proposals]{.underline}. Handle classified proposals
and quotations according to 504.4 and GSA Order, Freedom of Information
Act procedures (ADM 1035.11B).

\(c\) [Recording of offers]{.underline}. Abstracts help to summarize key
aspects of proposals when you receive multiple responses to a
solicitation (see FAR 4.803(a)(10)).

\(1\) You may use GSA or Standard Forms prescribed for abstracting bids
in sealed bidding to abstract proposals or quotations in competitively
negotiated procurements. You may modify the forms to include the
information necessary for evaluation.

\(2\) Abstracts contain contractor bid or proposal information and
source selection information. See FAR 15.201, 15.207, 15.306, 15.5, and
24.2 about disclosing information.

**515.209 Solicitation provisions and contract clauses.**

**515.209-70 Examination of records by GSA clause.**

**[Clause for other than multiple award schedules]{.underline}**

\(a\) For other than multiple award schedule (MAS) contracts, insert the
clause at 552.215-70, Examination of Records by GSA, in solicitations
and contracts over \$100,000, including acquisitions of leasehold
interests in real property, that meet any of the conditions listed
below:

\(1\) Involve the use or disposition of Government-furnished property.

\(2\) Provide for advance payments, progress payments based on cost, or
guaranteed loan.

\(3\) Contain a price warranty or price reduction clause.

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APD 2800.12B, 09-01-99 C-21

\(4\) Involve income to the Government where income is based on
operations under the control of the contractor.

\(5\) Include an economic price adjustment clause where the adjustment
is not based solely on an established, third party index.

\(6\) Are requirements, indefinite-quantity, or letter type contracts as
defined in FAR Part 16.

\(7\) Are subject to adjustment based on a negotiated cost escalation
base.

\(8\) Contain the provision at FAR 52.223-4, Recovered Material
Certification.

\(b\) You may modify the clause at 552.215-70 to define the specific
area of audit (e.g., the use or disposition of Government-furnished
property, compliance with the price reduction clause). Counsel and the
Assistant Inspector General\--Auditing or Regional Inspector
General\--Auditing, as appropriate, must concur in any modifications to
the clause.

**[Clause for multiple award schedules]{.underline}**

\(c\) Insert the clause at 552.215-71, Examination of Records by GSA
(Multiple Award Schedule), in solicitations and contracts for MAS
contracts.

\(d\) With the Senior Procurement\'s Executive approval, you may modify
the clause at 552.215-71 to provide for post-award access to and the
right to examine records to verify that the pre-award/modification
pricing, sales or other data related to the supplies or services offered
under the contract which formed the basis for the award/modification was
accurate, current, and complete. The following procedures apply:

\(1\) Such a modification of the clause must provide for the right of
access to expire 2 years after award or modification.

\(2\) Before modifying the clause, you must make a determination that
absent such access there is a likelihood of significant harm to the
Government and submit it to the Senior Procurement Executive for
approval.

\(3\) The determinations under (d)(2) must be made on a
schedule-by-schedule basis.

**515.210 Forms.**

**515.210-70 GSA Form 1602.**

You may use GSA Form 1602, Notice Concerning Solicitation, to do any of
the following:

\(a\) Describe the type of contract, the duration of the contract, and
the type of supplies or services being procured.

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C-22 APD 2800.12B, 09-01-99

\(b\) Direct the attention of prospective offerors to special
requirements which, if overlooked, may result in rejection of the offer.

\(c\) Highlight significant changes from previous solicitations covering
the same supplies or services.

\(d\) Include other special notices as appropriate.

**SUBPART 515.3 SOURCE SELECTION**

**515.300 Scope of subpart**

In addition to the policies and procedures of FAR 15.3, Appendix 515A,
Source Selection Procedures, provides guidance and advice on various
source selection techniques.

**515.305 Proposal evaluation.**

\(a\) [Restrictions placed on a proposal by the submitter]{.underline}.
If you receive a proposal with more restrictive conditions than those in
the provision at FAR 52.215-1(e), ask whether the submitter is willing
to accept the conditions of the paragraph at FAR 52.215-1(e). If the
submitter refuses, consult with legal counsel on whether to accept the
proposal as marked or return it.

\(b\) [Actions before releasing proposals]{.underline}. Before releasing
any proposal to an evaluator you must take all the following actions:

\(1\) Obtain the signed original "Conflict of Interest Acknowledgment
and Nondisclosure Agreement" from each Government and nongovernment
individual serving as an evaluator. Use the Acknowledgment/Agreement in
Figure 515.3-1.

\(i\) For employees of other Executive agencies, replace the reference
in paragraph (c) of the Acknowledgement/Agreement to GSA\'s supplemental
standards with a reference to the applicable agency.

\(ii\) For nongovernment evaluators, substitute paragraph (c) of the
Acknowlegement/Agreement with the language below and delete paragraph
(h):

\"(c) I have read and understand the requirements of subsection 27(a)
and 27(b) of the Office of Federal Procurement Policy Act (41 U.S.C.
423).

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APD 2800.12B, 09-01-99 C-23

+-----------------------------------------------------------------------+
| **Conflict of Interest Acknowledgment and Nondisclosure Agreement**   |
|                                                                       |
| For proposals submitted in response to GSA solicitation no.           |
| \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, I agree to the following:         |
|                                                                       |
| \(a\) To the best of my knowledge and belief, no conflict of interest |
| exists that may either:                                               |
|                                                                       |
| \(1\) Diminish my capacity to impartially review the proposals        |
| submitted.                                                            |
|                                                                       |
| \(2\) Or result in a biased opinion or unfair advantage.              |
|                                                                       |
| \(b\) In making the above statement, I have considered all the        |
| following factors that might place me in a position of conflict, real |
| or apparent, with the evaluation proceedings:                         |
|                                                                       |
| \(1\) All my stocks, bonds, other outstanding financial interests or  |
| commitments.                                                          |
|                                                                       |
| \(2\) All my employment arrangements (past, present, and under        |
| consideration).                                                       |
|                                                                       |
| \(3\) As far as I know, all financial interests and employment        |
| arrangements of my spouse, minor children, and other members of my    |
| immediate household.                                                  |
|                                                                       |
| \(c\) I have read and understand the requirements of the Standards of |
| Ethical Conduct for Employees of the Executive Branch (5 C.F.R. Part  |
| 2635) and Supplemental Standards of Ethical Conduct for Employees of  |
| the General Services Administration (5 C.F.R. Part 6701).             |
|                                                                       |
| \(d\) I have a continuing obligation to disclose any circumstances    |
| that may create an actual or apparent conflict of interest. If I      |
| learn of any such conflict, I will report it immediately to the       |
| Contracting Officer. I will perform no more duties related to         |
| evaluating proposals until I receive instructions on the matter.      |
|                                                                       |
| \(e\) I will use proposal information for evaluation purposes only. I |
| understand that any authorized restriction on disclosure placed on    |
| the proposal by the prospective contractor, prospective               |
| subcontractor, or the Government applies to any reproduction or       |
| abstracted information of the proposal.                               |
|                                                                       |
| \(f\) I will use my best efforts to safeguard proposal information    |
| physically. I will not disclose the contents of, nor release any      |
| information about, the proposals to anyone other than:                |
|                                                                       |
| \(1\) The Source Selection Evaluation Board or other panel assembled  |
| to evaluate proposals submitted in response to the solicitation       |
| identified above.                                                     |
|                                                                       |
| \(2\) Other individuals designated by the Contracting Officer.        |
|                                                                       |
| \(g\) After completing evaluation, I will return to the Government    |
| all copies of the proposals and any abstracts.                        |
|                                                                       |
| \(h\) GSA Appropriations Act restriction: These restrictions are      |
| consistent with and do not supersede, conflict with, or otherwise     |
| alter the employee obligations, rights, or liabilities created by     |
| Executive Order No. 12958; section 7211 of title 5, United States     |
| Code (governing disclosures to Congress); section 1034 of title 10,   |
| United States Code, as amended by the Military Whistleblower          |
| Protection Act (governing disclosure to Congress by members of the    |
| military); section 2302(b)(8) of title 5, United States Codes, as     |
| amended by the Whistleblower Protection Act (governing disclosures of |
| illegality, waste, fraud, abuse or public health or safety threats);  |
| the Intelligence Identities Protection Act of 1982 (50 U.S.C. 421 et  |
| seq.) (governing disclosures that could expose confidential           |
| Government agents); and the statutes which protect against disclosure |
| that may compromise the national security, including sections 641,    |
| 793, 794, 798, and 952 of title 18, United States Code, and section   |
| 4(b) of the Subversive Activities Act of 1950 (50 U.S.C. 783(b). The  |
| definitions, requirements, obligations, rights, sanctions, and        |
| liabilities created by said Executive order and listed statutes are   |
| incorporated into this agreement and are controlling.                 |
|                                                                       |
| \_\_\_\_\_\_\_\_\_\_\_\_\_\_\                                         |
| _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ |
| \_\_\_\_\_\_\_\_\_\_\_\                                               |
| (Enter name of evaluator and organization) Date                       |
+-----------------------------------------------------------------------+

**\
Figure 515.3-1. Conflict of Interest Acknowledgment and Nondisclosure
Agreement**

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C-24 APD 2800.12B, 09-01-99

\(2\) Attach to each proposal a cover page bearing the following notice:

+-----------------------------------------------------------------------+
| **Government Notice for Handling Proposals**                          |
|                                                                       |
| To anyone receiving this proposal or proposal abstract:               |
|                                                                       |
| \(1\) This proposal must be used and disclosed for evaluation         |
| purposes only.                                                        |
|                                                                       |
| \(2\) You must apply a copy of this Government notice to any          |
| reproduction or abstract of this proposal.                            |
|                                                                       |
| \(3\) You must comply strictly with any authorized restrictive        |
| notices which the submitter places on this proposal.                  |
|                                                                       |
| \(4\) You must **[not]{.underline}** disclose this proposal outside   |
| the Government for evaluation purposes except to the extent           |
| authorized by, and in accordance with, the procedures in 48 CFR       |
| 515.305-71.                                                           |
+-----------------------------------------------------------------------+

\(c\) [Cost or price evaluation - MAS]{.underline}. When evaluating
prices under MAS, compare an offeror's price to GSA with its price to
other customers. In this comparison, consider discounts for early
payment to the extent provided in 552.232-8, Discounts for Prompt
Payment.

\(d\) [Past performance on subcontracting plan goals and small
disadvantaged business participation program]{.underline}. You can
obtain information to evaluate an offeror\'s past performance on
subcontracting plan goals, monetary targets, and notifications under FAR
19.1202-4(b) from the following sources:

\(1\) The Small Business Administration

\(2\) Information on prior contracts from contracting officers and
administrative contracting officers.

\(3\) Offeror\'s references.

\(4\) Past performance information collected under FAR 42.1500.

**515.305-70 Use of outside evaluators.**

\(a\) [Conditions]{.underline}. To use outside evaluators, you must meet
the restrictions in FAR 37.203 and 537.2.

\(b\) [Limitations on disclosing proposal information]{.underline}. You
may disclose proposal information outside the Government before the
Government\'s decision as to contract award only to the extent
authorized in this section. Disclosure and handling must comply with FAR
3.1 and 503.1.

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APD 2800.12B, 09-01-99 C-25

\(c\) [Solicitation notice]{.underline}. Include in the solicitation a
notice substantially as follows:

+-----------------------------------------------------------------------+
| **Notice About Releasing Proposals**                                  |
|                                                                       |
| \(1\) The Government intends to disclose proposals received in        |
| response to this solicitation to nongovernment evaluators.            |
|                                                                       |
| \(2\) Each evaluator will sign and provide to GSA a "Conflict of      |
| Interest Acknowledgment and Nondisclosure Agreement."                 |
+-----------------------------------------------------------------------+

\(f\) [Relationship to the Freedom of Information Act]{.underline}.
Release of a proposal outside the Government for evaluation does not
constitute the release of information under the Freedom of Information
Act (5 U.S.C. 552).

**515.306 Exchanges with offerors after receipt of proposals.**

Limit access to Government cost estimates to Government personnel whose
official duties require knowledge of the estimate. During negotiations,
you may disclose part or all of the Government estimate under FAR
15.306(e) when necessary to arrive at a fair and reasonable price. After
award, you may reveal the total amount of the independent Government
estimate.

**SUBPART 515.4 CONTRACT PRICING**

**515.403 Obtaining cost or pricing data.**

**515.403-4 Requiring cost or pricing data (10 U.S.C. 2306a and 41
U.S.C. 254b).**

To determine if a contract action meets the threshold at FAR 15.403-4
for requesting cost and pricing data, consider the value of the action
plus any priced options. Exercise of a priced option is not a price
adjustment and does not require submission of cost and pricing data.

**515.404-2 Information to support proposal analysis.**

\(a\) \"Field pricing assistance\" is provided by the Assistant
Inspector General-Auditing, or the Regional Inspector General-Auditing,
as appropriate.

\(b\) Follow the procedures in GSA Order, Audit resolution and follow-up
system, Ch. 3 (ADM P 2030.2B) for handling contract audit reports.

**515.404-4 Profit.**

\(a\) [Structured approach for determining profit or fee
objectives]{.underline}. Base the analysis of profit factors on
information available to the Government before negotiations. Obtain such
information from proposals, audit data, performance reports, preaward
surveys and the like. The structured approach helps establish a profit
objective. It also provides a basis for

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C-26 APD 2800.12B, 09-01-99

documenting the objective, including an explanation of any significant
departure from this objective in reaching a final agreement. Prepare
documentation commensurate with the dollar value and complexity of the
proposed procurement.

\(b\) [Exemptions from requirement to use the structured
approach]{.underline}.

\(1\) The following types of procurements are exempt from the structured
approach:

\(i\) Management contracts for operation and/or maintenance of
Government facilities.

\(ii\) Contracts primarily requiring delivery of material supplied by
subcontractors.

\(iii\) Termination settlements.

\(iv\) Cost-plus-award-fee contracts.

\(v\) Contracts and contract modifications of \$100,000 or less in
value.

\(vi\) Architect-engineer and construction contracts.

\(2\) You may request exemptions for other contracts having unusual
pricing situations where you determine the structured approach is
unsuitable. Document your justification in writing. The HCA must approve
all such exemptions.

\(c\) [Other methods for exempted procurements]{.underline}. Under
exempted procurements, you may use other methods for establishing profit
objectives. In general, use methods supported in a manner similar to the
structured approach (profit factor breakdown and documentation of profit
objective). Exclude factors within the structured approach that do not
apply to the procurement.

\(d\) [Profit-analysis factors]{.underline}. Consider the following
factors when you negotiate profit. Use the weight ranges listed after
each factor when you use the structured approach.

  ---------------- ---------------------------- ----------- -------------------------
  **Profit                                      **Weight    
  Factors**                                     Ranges in   
                                                Percent**   

  **Contractor     Material acquisition                     1 to 4
  Effort**                                                  

                   Conversion direct labor                  4 to 12

                   Conversion related indirect              1 to 3\
                   cost:\                                   2 to 5
                   Other costs\                             
                   General management                       
  ---------------- ---------------------------- ----------- -------------------------

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APD 2800.12B, 09-01-99 C-27

  ---------------- ---------------------------- -------------------------
  **Other          Contract cost risk           0 to 7
  Factors**                                     

                   Capital investments          -2 to +2

                   Federal socioeconomic        -.5 to +.5
                   programs                     

                   Cost-control and other past  -2 to +2
                   accomplishments              

                   Independent development and  -2 to +2
                   additional factors           
  ---------------- ---------------------------- -------------------------

\(e\) [GSA Form 1766]{.underline}. You may use GSA Form 1766, Structured
Approach Profit/Fee Objective, to help compute the profit objective.
Measure the Contractor Effort by assigning a profit percentage within
the designated weight ranges to each element of cost recognized.

\(f\) [Facilities capital cost of money]{.underline}. If you allow
facilities capital cost of money as an item of cost, either as a part of
your price/cost objective in a firm fixed price type contract or as an
allowable cost in a flexibly priced type contract, e.g., cost
reimbursement or fixed price incentive type contract, reduce the
profit/fee objective as follows. After you develop a dollar profit/fee
amount for the requirement, subtract from that aggregate dollar
profit/fee amount any dollar amount allowed for facilities capital cost
of money. The remainder is the profit/fee objective.

\(g\) [Calculating profit dollars]{.underline}. After computing a total
dollar profit for Contractor Effort, calculate the specific profit
dollars for the categories under Other Factors. Do this by multiplying
the total Government cost objective, excluding any cost of money for
facilities capital, by the specific weights assigned to the elements in
Other Factors.

\(h\) [Common factors]{.underline}. In determining the value of each
factor, consider the definition, description, and purpose of the factors
prescribed in FAR 15.404-4(d) and this subsection.

\(1\) [General management]{.underline}. Management problems surface in
various degrees. Consider the management expertise exercised to solve
them as an element of profit. For example, a new program for an item
that involves advanced state of the art techniques may involve more
problems and require more managerial time and abilities of a higher
order than a follow-on contract. If an initial contract creates more
problems and merits a higher profit weight, then a follow-on should
merit a downward adjustment, as many of the problems should have been
solved. Evaluate the underlying managerial effort involved on a
case-by-case basis.

\(2\) [Other costs]{.underline}. Include all other direct costs of
contractor performance under this item (e.g., travel and relocation,
direct support, and consultants). When you analyze these costs,
consider:

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C-28 APD 2800.12B, 09-01-99

\(i\) Their significance.

\(ii\) Their nature.

\(iii\) How much they contribute to contract performance.

\(3\) [Contract cost risk]{.underline}. When you select the proper
contract type, the reward for risk by contract type will usually fall
into the ranges below.

\(i\) [Cost-reimbursement type contracts]{.underline}. 0 - 3 percent. A
cost-plus-a-fixed-fee contract does not normally justify a reward for
risk in excess of 0 percent. Only a contract that contains cost risk
features such as ceilings on overhead might merit a higher weight. Such
cases may justify up to 1 percent. Cost-plus-incentive-fee contracts
fill the remaining portion of the 0 to 3 percent range. For these,
assign weightings based on such factors as confidence in target cost,
share ratio of fee(s), etc.

\(ii\) [Fixed-price type contracts]{.underline}. 3 - 7 percent. This
weight range is wide enough to accommodate the many types of fixed-price
arrangements. Assign weightings based on the cost risk assumed. Only
firm fixed-price contracts should reach the top end of the range.

\(iii\) [Subcontracting program]{.underline}. The contractor\'s
subcontracting program may significantly impact the contractor\'s risk
under a contract. It could affect risk in terms of both cost and
performance. Consider this in selecting a weight for cost risk. The
prime contractor may effectively transfer cost risk to a subcontractor.
This merits a risk evaluation below the range that would otherwise apply
for the contract type proposed. However, you should not evaluate risk
lower when a substantial portion of the contract cost represents
subcontracts, but without any substantial transfer of contractor\'s
risk.

\(iv\) [Definitizing letter contracts, unpriced change orders, and
unpriced orders under basic ordering agreements]{.underline}. Consider
the effect on risk as a result of partial performance before
definitization. Some circumstances may effectively reduce the
contractor's total risk, while others may have no effect. Determine an
equitable profit weight for all recognized costs, both those incurred
and future costs. Consider all attendant circumstances, not just the
portion of costs incurred or percentage of work completed before
definitization.

\(v\) [Service contracts]{.underline}. Apply a weight range of 0 to 4
percent for cost risk. A firm fixed-price contract, not priced on a
labor-hour method, may warrant high consideration for contractor cost
risk. It may merit a weight up to 4 percent. Conversely, a
cost-plus-fixed-fee service contract normally warrants a zero cost risk
factor.

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APD 2800.12B, 09-01-99 C-29

\(4\) [Capital investments]{.underline}. In evaluating this factor for
profit weights, consider the following:

\(i\) [Facilities]{.underline}.

\(A\) To evaluate how this factor contributes to the profit objective,
you need to know the level of facilities use needed for contract
performance, the source of financing for the facilities, and the overall
cost effectiveness of the facilities offered.

\(B\) Contractors who furnish their own facilities that significantly
contribute to lower total contract costs, warrant additional profit.
Contractors who rely on the Government to provide or finance facilities
warrant less profit. Evaluate situations between the above examples on
their merits and make either a positive or negative profit weight
adjustment, as appropriate.

\(C\) You do not need to adjust the profit when a contractor who owns a
large quantity of facilities will perform a contract that does not
benefit from these facilities, or when a contractor\'s use of its
facilities has a minimum cost impact on the contract.

\(ii\) [Payments]{.underline}. Consider the frequency of payments by the
Government to the contractor. Assess the impact the contract will have
on the contractor\'s cash flow. Generally, payments more frequent than
monthly merit negative consideration, with maximum reduction as the
contractor\'s working capital approaches zero. Payments less frequent
than monthly merit positive consideration, with additional consideration
for payments less frequent than the contractor\'s or the industry\'s
normal practice.

**515.404-70 Nonprofit organizations.**

\(a\) The structured approach for determining profit or fee objectives
was designed for other than nonprofit organizations. However, if
modified as below, you may use it to establish fee objectives for
nonprofit organizations (See FAR 31.701). Do not apply the modifications
as a deduction to historical fee levels. Instead apply them as a
reduction in the fee objective calculated under the structured approach.

\(b\) For contracts with nonprofit organizations, subtract an adjustment
of up to 3 percent from the total profit-fee objective. In developing
this adjustment, consider each of the following factors:

\(1\) Tax position benefits.

\(2\) Granting of financing through letters of credit.

\(3\) Facility requirements of the nonprofit organization.

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C-30 APD 2800.12B, 09-01-99

\(4\) Other factors that may work to the advantage or disadvantage of
the contractor as a nonprofit organization.

**515.405 Price negotiation.**

If a contractor insists on a price or demands a profit or fee that you
consider unreasonable as outlined in FAR 15.405(d), refer the matter to
one level above the contracting officer for resolution.

**515.408 Solicitation provisions and contract clauses.**

**[MAS Requests for Information Other Than Cost or Pricing
Data]{.underline}**

\(a\) You should use Alternate IV of the FAR provision at 52.215-20,
Requirements for Cost or Pricing Data or Information Other Than Cost or
Pricing Data, for MAS contracts to provide the format for submission of
information other than cost or pricing data for MAS contracts. To
provide uniformity in requests under the MAS program, you should insert
the following in paragraph (b) of the provision:

\(1\) An offer prepared and submitted in accordance with the clause at
552.212-70, Preparation of Offer (Multiple Award Schedule).

\(2\) Commercial sales practices. The Offeror shall submit information
in the format provided in this solicitation in accordance with the
instructions at Figure 515.4-2 of the GSA Acquisition Regulation (48 CFR
515.4-2), or submit information in the Offeror's own format.

\(3\) Any additional supporting information requested by the Contracting
Officer. The Contracting Officer may require additional supporting
information, but only to the extent necessary to determine whether the
price(s) offered is fair and reasonable.

\(4\) By submission of an offer in response to this solicitation, the
Offeror grants the Contracting Officer or an authorized representative
the right to examine, at any time before initial award, books, records,
documents, papers, and other directly pertinent records to verify the
pricing, sales and other data related to the supplies or services
proposed in order to determine the reasonableness of price(s). Access
does not extend to Offeror's cost or profit information or other data
relevant solely to the Offeror's determination of the prices to be
offered in the catalog or marketplace.

\(b\) Insert the following format for commercial sales practices in the
exhibits or attachments section of the solicitation and resulting
contract (see FAR 12.303).

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APD 2800.12B, 09-01-99 C-31

**COMMERCIAL SALES PRACTICES FORMAT**

**Name of Offeror \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
SIN(s)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**NOTE**: Please refer to Clause 552.212-70, Preparation of Offer
(Multiple Award Schedule), for additional information concerning your
offer. Provide the following information for each SIN (or group of SINs
or SubSIN for which information is the same).

\(1\) Provide the dollar value of sales to the general public at or
based on an established catalog or market price during the previous
12-month period or the offerors last fiscal year:
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. State beginning and ending of the 12
month period. Beginning \_\_\_\_\_\_\_\_\_\_ ending
\_\_\_\_\_\_\_\_\_\_. In the event that a dollar value is not an
appropriate measure of the sales, provide and describe your own measure
of the sales of the item(s).

\(2\) Show your total projected annual sales to the Government under
this contract for the contract term, excluding options, for each SIN
offered. If you currently hold a Federal Supply Schedule contract for
the SIN the total projected annual sales should be based on your most
recent 12 months of sales under that contract.

SIN \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
SIN \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
SIN \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(3\) Based on your written discounting policies (standard commercial
sales practices in the event you do not have written discounting
policies), are the discounts and any concessions which you offer the
Government equal to or better than your best price (discount and
concessions in any combination) offered to any customer acquiring the
same items regardless of quantity or terms and conditions? YES
\_\_\_\_NO \_\_\_\_ (See definition of "concession" and \"discount\" in
552.212-70.)

\(4\) (a) Based on your written discounting policies (standard
commercial sales practices in the event you do not have written
discounting policies), provide information as requested for each SIN (or
group of SINs for which the information is the same) in accordance with
the instructions at Figure 515.4-2, which is provided in this
solicitation for your convenience. The information should be provided in
the chart below or in an equivalent format developed by the offeror.
Rows should be added to accommodate as many customers as required.

  ------------- ------------ ----------------- ------------ ------------------
  Column 1\     Column 2\    Column 3\         Column 4\    Column 5\
  Customer      Discount     Quantity/Volume   FOB Term     Concessions

                                                            

                                                            

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

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C-32 APD 2800.12B, 09-01-99

\(b\) Do any deviations from your written policies or standard
commercial sales practices disclosed in the above chart ever result in
better discounts (lower prices) or concessions than indicated?
YES\_\_\_\_ NO\_\_\_\_*.* If YES, explain deviations in accordance with
the instructions at Figure 515.4-2, which is provided in this
solicitation for your convenience.

\(5\) If you are a dealer/reseller without significant sales to the
general public, you should provide manufacturers' information required
by paragraphs (1) through (4) above for each item/SIN offered, if the
manufacturer's sales under any resulting contract are expected to exceed
\$500,000. You must also obtain written authorization from the
manufacturer(s) for Government access, at any time before award or
before agreeing to a modification, to the manufacturer's sales records
for the purpose of verifying the information submitted by the
manufacturer. The information is required in order to enable the
Government to make a determination that the offered price is fair and
reasonable. To expedite the review and processing of offers, you should
advise the manufacturer(s) of this requirement. The contracting officer
may require the information be submitted on electronic media with
commercially available spreadsheet(s). The information may be provided
by the manufacturer directly to the Government. If the manufacturer's
item(s) is being offered by multiple dealers/resellers, only one copy of
the requested information should be submitted to the Government. In
addition, you must submit the following information along with a listing
of contact information regarding each of the manufacturers whose
products and/or services are included in the offer (include the
manufacturer's name, address, the manufacturer's contact point,
telephone number, and FAX number) for each model offered by SIN:

\(a\) Manufacturer\'s Name.

\(b\) Manufacturer\'s Part Number.

\(c\) Dealer\'s/Reseller\'s Part Number.

\(d\) Product Description.

\(e\) Manufacturer\'s List Price.

\(f\) Dealer\'s/Reseller\'s percentage discount from list price or net
prices.

**(End of Format)**

\(c\) Include the instructions for completing the commercial sales
practices format in Figure 515.4-.2 in solicitations issued under the
MAS program.

**FIGURE 515.4-2**\
**INSTRUCTIONS FOR COMMERCIAL SALES PRACTICES FORMAT**

If you responded \"YES\" to question (3), on the COMMERCIAL SALES
PRACTICES FORMAT, complete the chart in question (4)(a) for the
customer(s) who receive your best

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APD 2800.12B, 09-01-99 C-33

discount. If you responded \"NO\", complete the chart in question (4)(a)
showing your written policies or standard sales practices for all
customers or customer categories to whom you sell at a price (discounts
and concessions in combination) that is equal to or better than the
price(s) offered to the Government under this solicitation or with which
the Offeror has a current agreement to sell at a discount which equals
or exceeds the discount(s) offered under this solicitation. Such
agreement shall be in effect on the date the offer is submitted or
contain an effective date during the proposed multiple award schedule
contract period. If your offer is lower than your price to other
customers or customer categories, you will be aligned with the customer
or category of customer that receives your best price for purposes of
the Price Reductions clause at 552.238-75. The Government expects you to
provide information required by the format in accordance with these
instructions that is, to the best of your knowledge and belief, current,
accurate, and complete as of 14 calendar days prior to its submission.
You must also disclose any changes in your price list(s), discounts
and/or discounting policies which occur after the offer is submitted,
but before the close of negotiations. If your discount practices vary by
model or product line, the discount information should be by model or
product line as appropriate. You may limit the number of models or
product lines reported to those which exceed 75% of actual historical
Government sales (commercial sales may be substituted if Government
sales are unavailable) value of the special item number (SIN).

**Column 1 \-- Identify the applicable customer or category of
customer.**

A \"customer\" is any entity, except the Federal Government, which
acquires supplies or services from the Offeror. The term customer
includes, but is not limited to original equipment manufacturers, value
added resellers, state and local Governments, distributors, educational
institutions (an elementary, junior high, or degree granting school
which maintains a regular faculty and established curriculum and an
organized body of students), dealers, national accounts, and end users.
In any instance where the Offeror is asked to disclose information for a
customer, the Offeror may disclose information by category of customer
if the Offeror's discount policies or practices are the same for all
customers in the category. (Use a separate line for each customer or
category of customer.)

**Column 2 \-- Identify the discount.**

The term \"discount\" is as defined in solicitation clause 552.212-70,
Preparation of Offer (Multiple Award Schedule). Indicate the best
discount (based on your written discounting policies or standard
commercial discounting practices if you do not have written discounting
policies) at which you sell to the customer or category of customer
identified in column 1, without regard to quantity; terms and conditions
of the agreements under which the discounts are given; and whether the
agreements are written or oral. Net prices or discounts off of other
price lists should be expressed as percentage discounts from the price
list which is the basis of your offer. If the discount disclosed is a
combination of various discounts (prompt payment, quantity, etc.), the
percentage should be broken out for each type of discount. If the price
lists which are the basis of the discounts given to the customers
identified in the chart are different than the price list submitted upon
which your offer is based, identify the type or title and date of each
price list.

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C-34 APD 2800.12B, 09-01-99

The contracting officer may require submission of these price lists. To
expedite evaluation, offerors may provide these price lists at the time
of submission.

**Column 3 \-- Identify the quantity or volume of sales.**

Insert the minimum quantity or sales volume which the identified
customer or category of customer must either purchase/order, per order
or within a specified period, to earn the discount. When
purchases/orders must be placed within a specified period to earn a
discount indicate the time period.

**Column 4 \-- Indicate the FOB delivery term for each identified
customer.**

See FAR 47.3 for an explanation of FOB delivery terms.

**Column 5 \-- Indicate concessions regardless of quantity granted to
the identified customer or category of customer.**

Concessions are defined in solicitation clause 552.212-70, Preparation
of Offers (Multiple Award Schedule). If the space provided is
inadequate, the disclosure should be made on a separate sheet by
reference.

If you respond "YES" to question 4(b) in the Commercial Sales Practices
Format, provide an explanation of the circumstances under which you
deviate from your written policies or standard commercial sales
practices disclosed in the chart on the Commercial Sales Practices
Format and explain how often they occur. Your explanation should include
a discussion of situations that lead to deviations from standard
practice, an explanation of how often they occur, and the controls you
employ to assure the integrity of your pricing. Examples of typical
deviations may include, but are not limited to, one time goodwill
discounts to charity organizations or to compensate an otherwise
disgruntled customer; a limited sale of obsolete or damaged goods; the
sale of sample goods to a new customer; or the sales of prototype goods
for testing purposes.

If deviations from your written policies or standard commercial sales
practices disclosed in the chart on the Commercial Sales Practices
Format are so significant and/or frequent that the Contracting Officer
cannot establish whether the price(s) offered is fair and reasonable,
then you may be asked to provide additional information. The Contracting
Officer may ask for information to demonstrate that you have made
substantial sales of the item(s) in the commercial market consistent
with the information reflected on the chart on the Commercial Sales
Practices Format, a description of the conditions surrounding those
sales deviations, or other information that may be necessary in order
for the Contracting Officer to determine whether your offered price(s)
is fair and reasonable. In cases where additional information is
requested, the Contracting Officer will target the request in order to
limit the submission of data to that needed to establish the
reasonableness of the offered price.

**(End of Figure)**

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APD 2800.12B, 09-01-99 C-35

\(d\) Insert the clause at 552.215-72, Price Adjustment \-- Failure to
Provide Accurate Information, in solicitations and contracts under the
MAS program.

\(e\) You should use Alternate IV of FAR 52.215-21, Requirements for
Cost or Pricing Data or Information Other Than Cost or Pricing Data \--
Modifications, to provide for submission of information other than cost
or pricing data for MAS contracts. To provide for uniformity in requests
under the MAS program, you should insert the following in paragraph (b)
of the clause:

\(1\) Information required by the clause at 552.243-72, Modifications
(Multiple Award Schedule).

\(2\) Any additional supporting information requested by the Contracting
Officer. The Contracting Officer may require additional supporting
information, but only to the extent necessary to determine whether the
price(s) offered is fair and reasonable.

\(3\) By submitting a request for modification, the Contractor grants
the Contracting Officer or an authorized representative the right to
examine, at any time before agreeing to a modification, books, records,
documents, papers, and other directly pertinent records to verify the
pricing, sales and other data related to the supplies or services
proposed in order to determine the reasonableness of price(s). Access
does not extend to Contractor's cost or profit information or other data
relevant solely to the Contractor's determination of the prices to be
offered in the catalog or marketplace.

**SUBPART 515.5 PREAWARD, AWARD, AND POSTAWARD NOTIFICATIONS, PROTESTS,
AND MISTAKES**

**515.506 Postaward debriefing of offerors.**

For purposes of determining the date of receipt of a request for a
postaward debriefing, GSA\'s hours of operation are 8:00 a.m. to 4:30
p.m. Requests received after 4:30 p.m. will be considered received the
following business day.

**515.570 Release of information concerning unsuccessful offerors.**

Consult GSA Order, GSA Freedom of Information Act procedures (ADM
1035.11B), and FAR 24.2 to determine what information you may disclose.

**SUBPART 515.6 UNSOLICITED PROPOSALS**

**515.601 Definitions.**

\"Coordinating office,\" as used in this subpart, means:

\(a\) The Senior Procurement Executive for all Central Office
activities.

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C-36 APD 2800.12B, 09-01-99

\(b\) The office designated in writing by the Regional Administrator in
the Regions.

**515.606 Agency procedures.**

Coordinating offices serve as agency points of contact and establish
procedures for controlling the receipt, evaluation, and timely
disposition of proposals consistent with FAR 15.6.

**515.606-2 Evaluation.**

Complete the evaluation as soon as practicable, normally within 45
calendar days. Communicate the results of the evaluation to the
submitter.

**515.609 Limited use of data.**

When you release an unsolicited proposal for evaluation, use the
"Conflict of Interest Acknowledgment and Nondisclosure Agreement" in
Figure 515.3-1.

**SUBPART 515.70 USE OF BID SAMPLES**

**515.7000 General.**

Except as provided in 515.7002 and 515.7003, the policy and procedures
in FAR 14.202-4 and 514.202-4 apply to negotiated acquisitions. When
referring to FAR 14.202-4 and 514.202-4, the term \"bid\" means
\"offer\" or \"proposal.\" The terms \"bidder\" and \"invitation\" or
\"invitation for bids\" are used synonymously with \"offeror\" and
\"solicitation\" or \"RFP".

**515.7001 Policy.**

\(a\) The terms \"responsiveness\" and \"nonresponsive\" do not apply to
negotiated acquisitions. FAR 14.202-4(b)(2) and (4) do not apply to the
use of bid samples under this subpart.

\(b\) Instead of FAR 14.202-4(b)(2) and (4), apply the following:

\(1\) Use bid samples in the technical evaluation of proposals to both:

\(i\) Determine the acceptability of the samples to meet GSA\'s
requirement.

\(ii\) Ensure compliance with all subjective and objective
characteristics listed in the solicitation.

\(2\) If you conduct written or oral discussions, you may exclude a
proposal from further consideration for award only if you meet all the
following conditions:

\(i\) You discussed with the offeror any deficiencies found in the
samples.

\(ii\) You gave the offeror an opportunity to correct those
deficiencies.

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\(iii\) The sample still fails to conform to each of the characteristics
listed in the solicitation. (See FAR 15.609 and 15.610).

**515.7002 Procedures.**

\(a\) [Unsolicited samples]{.underline}. The reference to FAR
14.404-2(d) in FAR 14.202-4(g) does not apply. Use the following when
contracting by negotiation:

\"However, qualifications in the proposal that are at variance with the
Government\'s requirements, constitute deficiencies. Resolve these as
provided in FAR 15.306.\"

\(b\) [Solicitation requirements]{.underline}.

\(1\) Use the clause at FAR 52.214-20. The second sentence in paragraph
(c) of the clause does not apply. Substitute a sentence substantially as
follows:

\"Failure of the bid samples to conform to all the required
characteristics listed in the solicitation constitutes a deficiency in
the proposal (see FAR 15.306).\"

\(2\) In addition to listing subjective characteristics that you cannot
adequately describe in the specification, you may list and evaluate
objective characteristics. To include objective characteristics, you
must determine that examination of such characteristics is essential to
the acquisition of an acceptable product. Base your determination on
past experience or other valid considerations.

\(c\) FAR 52.215-1(c)(3) applies to samples received after the time set
for receipt of offers.

**PART 516 TYPES OF CONTRACTS**

**SUBPART 516.2 FIXED PRICE CONTRACTS**

**516.203 Fixed-price contracts with economic price adjustment.**

**516.203-3 Limitations.**

\(a\) For multiple award schedule contracts, you should:

\(1\) Include an economic price adjustment (EPA) clause only in
multiyear solicitations and contracts.

\(2\) Document in the acquisition plan the determination required by FAR
16.203-3.

\(3\) Provide supporting rationale in the contract file to include an
EPA clause in a 1-year solicitation or contract.

\(b\) The contracting director must approve any of the following
actions:

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C-38 APD 2800.12B, 09-01-99

\(1\) A determination to include an EPA clause in a 1-year solicitation
or contract or to provide for price increases during the first 12 months
of a multiyear contract.

\(2\) The use in a contract of any EPA clause that you did not include
in the initial solicitation. This includes any clause that provides for
price adjustment during the first 12 months of a multiyear contract.

\(c\) The contracting director may raise the price ceiling (the
aggregate of permitted price increases during a 12-month period) during
the contract period when both of the following conditions are met:

\(1\) A supplier or suppliers request that the ceiling be raised.

\(2\) Analysis of current market conditions reveals that most suppliers
of similar supplies or services are affected. If the price ceiling is
raised, you must amend the contract to reflect the revised ceiling.

**516.203-4 Contract clauses.**

\(a\) [Multiple award schedules]{.underline}. Do not use FAR 52.216-2,
52.216-3, or 52.216-4 in negotiated acquisitions based on discounts from
established commercial catalogs or pricelists. Instead, use:

\(1\) 552.216-70, Economic Price Adjustment - FSS Multiple Award
Schedule Contracts, in a 1-year solicitation or contract.

\(2\) 552.216-70 (Alternate I) in multiyear solicitations and contracts.

\(b\) [Stock or Special Order Program Contracts]{.underline}. In
multiyear solicitations and contracts, after making the determination
required by FAR 16.203-2, use 552.216-71, Economic Price
Adjustment-Stock and Special Order Program Contracts, or a clause
prepared as authorized in (a)(2)(ii) of this subsection.

\(1\) If the contract includes one or more options to extend the term of
the contract, use the clause with its Alternate I or a clause
substantially the same as 552.216-71 with its Alternate I suitably
modified.

\(2\) In a contract requiring a minimum adjustment before the price
adjustment mechanism is effectuated, use the basic clause with Alternate
II or with Alternate I and Alternate II.

\(3\) If the Producer Price Index is not an appropriate indicator for
price adjustment, modify the clause to use an alternate indicator for
adjusting prices. Similarly, if other aspects of 552.216-71 are not
appropriate, use an alternate clause following established procedures.

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APD 2800.12B, 09-01-99 C-39

\(c\) [Adjustments based on cost indexes of labor or
material]{.underline}.

\(1\) If you decide to provide for adjustments based on cost indexes of
labor or material, prepare a clause that defines each of the following
elements:

\(i\) The type of labor and/or material subject to adjustment.

\(ii\) The labor rates, including any fringe benefits and/or unit prices
of materials that may be increased or decreased.

\(iii\) The index(es) that will be used to measure changes in price
levels and the base period or reference point from which changes will be
measured.

\(iv\) The period during which the price(s) will be subject to
adjustment.

\(2\) The contracting director must approve use of this clause.

**SUBPART 516.4 INCENTIVE CONTRACTS**

**516.406 Contract clauses.**

The contracting director must approve any award fee clause.

**SUBPART 516.5 INDEFINITE-DELIVERY CONTRACTS**

**516.506 Solicitation provisions and contract clauses.**

\(a\) In solicitations and contracts for stock or special order program
items, when the contract authorizes FSS and other activities to issue
delivery or task orders, insert the clause at 552.216-72, Placement of
Orders. If only FSS will issue delivery or task orders, insert the
clause with its Alternate I.

\(b\) In solicitations and contracts for single or multiple award
schedule program items, insert the clause at 552.216-72, Placement of
Orders, with its Alternate II.

\(c\) If the clause at 552.216-72 is prescribed, insert the provision at
552.216-73, Ordering Information, in solicitations for stock items and
in other FSS solicitations. Use 552.216-73 Alternate I when 552.216-72
Alternate I is prescribed. Use 552.216-73 Alternate II when 552.216-72
Alternate II is prescribed.

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C-40 APD 2800.12B, 09-01-99

**SUBPART 516.6 TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS**

**516.603 Letter contracts.**

**516.603-3 Limitations.**

**[Architect-engineer (A-E) services]{.underline}.**

\(a\) [Requirement for a price proposal]{.underline}. Before you award a
letter contract, the proposed A-E must provide a price proposal for the
non-design effort.

\(b\) [Contents of each letter contract]{.underline}. You must include
the following information in the letter contract:

\(1\) The scope. If you include the design effort, only authorize the
A-E to perform those services that are independent of the design effort
(for example, feasibility studies, existing facility surveys or site
investigation, etc.). Do not authorize the A-E to begin the design
effort before the letter contract is definitized.

\(2\) A definitization schedule. Include dates for each of the
following:

\(i\) Submission of the design fee proposal.

\(ii\) Start of negotiations.

\(iii\) Definitization. This date must be no later than 90 days after
the date of the letter contract.

\(3\) A limitation on the Government\'s liability for the non-design
effort to be performed under the contract. Insert this amount in FAR
52.216-24, Limitation of Government Liability.

\(c\) [Unilateral price decision]{.underline}. If you must issue a
unilateral price decision, the maximum contract amount must not exceed a
reasonable price for the excludable items plus the 6 percent statutory
fee limitation for the project.

**PART 517 SPECIAL CONTRACTING METHODS**

**SUBPART 517.1 MULTIYEAR CONTRACTING**

**517.101 Authority.**

\(a\) In addition to the multiyear authority described in FAR 17.101,
GSA is authorized to enter into contracts for periods not to exceed:

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\(1\) Five years for the inspection, maintenance, and repair of fixed
building equipment in federally owned buildings (40 U.S.C. 490(a)(14)).

\(2\) Ten years for public utility services (40 U.S.C. 481(a)(3)).

\(3\) Five years for contracts awarded under the Information Technology
Fund (40 U.S.C. 757(c)).

\(b\) You may award contracts under the authority of (a)(1) or (a)(2)
above without a cancellation clause.

**517.109 Contract clauses.**

Use of FAR 52.217-2, Cancellation Under Multi-year Contracts, is
optional in multiyear contracts authorized by 40 U.S.C. 490 (a)(14) for
maintenance and repair of fixed equipment in federally-owned buildings
and services and 40 U.S.C. 481(a)(3) for public utility services.

**SUBPART 517.2 OPTIONS**.

**517.200 Scope of subpart.**

\(a\) This subpart applies to all GSA contracts for supplies and
services, including:

\(1\) Services involving construction, alteration, or repair (including
dredging, excavating, and painting) of buildings, bridges, roads, or
other kinds of real property.

\(2\) Architect-engineer services.

\(b\) If a requirement in this subpart is inconsistent with FAR 17.2,
this subpart takes precedence.

**517.202 Use of options.**

\(a\) [Supplies or services]{.underline}.

\(1\) You should use options when they meet one or more of the following
objectives:

\(i\) Reduce procurement lead time and associated costs.

\(ii\) Ensure continuity of contract support.

\(iii\) Improve overall contractor performance.

\(iv\) Facilitate longer term contractual relationships with those
contractors that continually meet or exceed quality performance
expectations.

\(2\) An option is normally in the Government\'s interest in the
following circumstances:

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\(i\) You anticipate a need for additional supplies or services during
the contract term.

\(ii\) Multiyear contracting authority is not available or its use is
inappropriate and you anticipate a need for additional supplies or
services beyond the initial contract term.

\(iii\) There is a need for continuity of supply or service support.

\(iv\) Funds are not available for the entirety of the Government\'s
needs, but are likely to become available during the contract term.

\(v\) The initial contract will be used to evaluate the performance of
an emerging small business.

\(3\) Do not use an option if the market price is likely to change
substantially and an economic price adjustment clause inadequately
protects the Government\'s interest.

\(b\) [Construction]{.underline}. For limitations on the use of options,
see 536.213 and 536.270.

**517.203 Solicitations.**

A solicitation that includes an option to extend should inform offerors
that the contract could result in a long term contractual relationship
subject to both of the following conditions:

\(a\) Continuing need by GSA.

\(b\) Level of contract performance that at least meets GSA\'s quality
performance expectations.

**517.204 Contracts.**

\(a\) [Information technology contracts]{.underline}. Notwithstanding
FAR 17.204(e), the 5 year limitations apply also to information
technology contracts unless a longer period is authorized by statute.

\(b\) [Requests to exceed 5-year limitation]{.underline}. A request to
exceed the 5-year limitation specified in FAR 17.204(e) must provide all
the following information:

\(1\) Clearly explain the contract(s) and organization(s) covered by the
request.

\(2\) Support the need for and reasonableness of the extension. Consider
factors such as the following:

\(i\) The results of market research.

\(ii\) Stability of the requirement(s).

\(iii\) Benefits to the Government.

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\(iv\) Use of a performance-based contracting approach.

\(v\) Availability of funds to cover estimated cancellation costs as
well as costs for the first contract period.

\(vi\) Customary commercial practice.

\(vii\) Mechanisms to adjust for economic fluctuations.

\(c\) [Approval authority]{.underline}. Requests to exceed the 5-year
limitations specified in FAR 17.204(e) must be approved by:

\(1\) The head of the contracting activity for individual contracts.

\(2\) GSA's Senior Procurement Executive for classes of contracts.

**517.207 Exercise of options**.

Before exercising an option, you must:

\(a\) Synopsize it unless you meet of the following conditions:

\(1\) The option was evaluated as part of the original competition.

\(2\) The contract action meets an exception in FAR 5.202.

\(b\) Conclude that the contractor\'s performance under the contract met
or exceeded the Government\'s expectation for quality performance,
unless another circumstance justifies an extended contractual
relationship.

\(c\) Determine that the option price is fair and reasonable.

**517.208 Solicitation provisions and contract clauses.**

\(a\) For solicitations under FSS's Stock or Special Order Program,
insert a provision substantially the same as the provision at
552.217-70, Evaluation of Options, if both of the following conditions
apply:

\(1\) The solicitation contains an option to extend the term of the
contract.

\(2\) The contract will be fixed price and contain an economic price
adjustment clause.

\(b\) Insert the provision at 552.217-71, Notice Regarding Option(s), or
a similar provision, in solicitations that include an option for
increased quantities of supplies or services or an option to extend.

**PART 518 RESERVED**

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C-44 APD 2800.12B, 09-01-99

**APPENDIX 515A\
SOURCE SELECTION PROCEDURES**

**\[This Appendix will replace GSA Order, Source Selection Procedures
(APD P 2800.2). The source selection procedures are being updated based
on the FAR Part 15 rewrite.\]**

GSAM\
APD 2800.12B, 09-01-99 C-45

**SUBCHAPTER D\--SOCIOECONOMIC PROGRAMS**

**PART 519 SMALL BUSINESS PROGRAMS**

**519.001 Definitions.**

\"Enterprise development staff\" means the group with responsibility for
supporting small business outreach activities, developing contracting
opportunities for small business, and similar activities. In Central
Office, this is the Office of Enterprise Development (E). In Regions,
this group may be a separate office (e.g., Office of Enterprise
Development) or part of a broader office (e.g., Small Business Center or
Program Support Division).

**SUBPART 519.2 POLICIES**

**519.201 General policy.**

\(a\) The Associate Administrator of the Office of Enterprise
Development (AAOED) is the Director of Small and Disadvantaged Business
Utilization in GSA.

\(b\) The Office of Enterprise Development (E) appoints small business
technical advisors (SBTAs) in writing after consultation with HCAs. Each
Central Office Service and each Region has at least one SBTA. All
references to SBTA in this part refer to the SBTA designated to support
the particular contracting activity.

\(c\) The Associate Administrator of the Office of Enterprise
Development is the official designated to determine whether, in order to
achieve GSA's goal for Small Disadvantaged Business (SDB) concerns, the
use of the SDB mechanism in FAR 19.11 has resulted in an undue burden on
non-SDB firms. The following procedures apply to making such a
determination:

\(1\) You prepare the determination required by FAR 19.201(f)(1).
Forward the determination through appropriate channels, including the
SBTA, for signature by the HCA. The HCA will forward the determination
to E for review.

\(2\) If the Associate Administrator of the Office of Enterprise
Development makes an affirmative determination that the SDB mechanism
results in an undue burden or is otherwise inappropriate, E will concur
and forward the determination to the Office of Federal Procurement
Policy (OFPP).

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APD 2800.12B, 09-01-99 D-1

**519.202 Specific policies.**

**519.202-2 Locating small business sources.**

\(a\) Confer with your SBTA when you need help to identify additional
small business sources to solicit for a requirement. The SBTA will
coordinate with the Small Business Administration (SBA) Procurement
Center Representative (PCR).

\(b\) At a minimum, the SBTA should query SBA's PRO-*Net* database
(http://www.sba.gov), the Department of Commerce Profiles database,
Solicitation Mailing List files, and vendor capability statements on
hand to identify sources.

\(c\) If the SBTA is unable to identify small, HUBZone small, small
disadvantaged, or women-owned small business sources for an acquisition,
the SBTA must consult with the enterprise development staff.

**519.202-4 Solicitation.**

To encourage small business participation in an acquisition,
particularly if subcontracting or teaming arrangements are feasible, you
may issue a copy of the solicitation mailing list (if one is developed
for the acquisition) concurrently with the solicitation.

**SUBPART 519.3 DETERMINATION OF STATUS AS A SMALL BUSINESS, HUBZONE
SMALL BUSINESS, OR SMALL DISADVANTAGED BUSINESS CONCERN**

**519.302 Protesting a small business representation.**

If SBA determines that an offeror is not a small business concern and
there is evidence that the offeror knowingly misrepresented itself as a
small business concern, refer the matter as follows:

\(a\) Contracting activities in Central Office must refer the matter to
the Inspector General (J).

\(b\) Regional contracting activities must refer the matter to the
Regional Inspector General.

**519.305 Protesting a representation of disadvantaged business
status.**

If SBA determines that a small business concern is not disadvantaged and
there is evidence that the offeror knowingly misrepresented it\'s
disadvantaged status, refer the matter as follows:

\(a\) Contracting activities in Central Office must refer the matter to
the Inspector General (J).

\(b\) Regional contracting activities must refer the matter to the
Regional Inspector General.

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D-2 APD 2800.12B, 09-01-99

**519.306 Protesting a firm\'s status as a HUBZone small business
concern.**

If SBA determines that an offeror is not a HUBZone small business
concern and there is evidence that the offeror knowingly misrepresented
itself as such, refer the matter as follows:

\(a\) Contracting activities in Central Office must refer the matter to
the Inspector General (J).

\(b\) Regional contracting activities must refer the matter to the
Regional Inspector General.

**SUBPART 519.4 COOPERATION WITH THE SMALL BUSINESS ADMINISTRATION**

The Associate Administrator for Enterprise Development is the focal
point for interfacing with SBA. Refer issues relating to small business
programs through the designated SBTA.

**SUBPART 519.5 SET-ASIDES FOR SMALL BUSINESS**

**519.502 Setting aside acquisitions.**

**519.502-1 Requirements for setting aside acquisitions.**

\(a\) A contracting activity that is meeting goals under the Small
Business Competitiveness Demonstration Program must contract for
construction, architectural and engineering, or trash/garbage collection
services estimated to exceed \$25,000 using unrestricted procedures (See
FAR 19.10 and 519.10.). If this circumstance applies, do not use the
procedures in 519.502-70. You may make awards under the 8(a) program.

\(b\) Once a contracting activity acquires a product or service
successfully on the basis of a set-aside, the activity must acquire all
future requirements for that product or service using set-aside
procedures. If you determine that you no longer can reasonably expect to
receive offers from at least two responsible small business concerns and
make awards at fair market prices, use the procedures in FAR 19.506 to
withdraw a repetitive set-aside.

**519.502-70 Review of non-set-aside determinations.**

**[Acquisition expected to exceed \$100,000.]{.underline}**

\(a\) [GSA Form 2689, Procurement Not Set Aside]{.underline}. If you
decide that an acquisition expected to exceed \$100,000 cannot be set
aside for small business, record your decision on GSA Form 2689. Submit
the form to the SBTA for review.

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APD 2800.12B, 09-01-99 D-3

\(b\) [Reviews and timeframes]{.underline}.

+-----------------------------------+-----------------------------------+
| **If . . .**                      | **Then . . .**                    |
+-----------------------------------+-----------------------------------+
| \(1\) The acquisition meets any   | The SBTA provides a copy of the   |
| one of the following conditions:  | GSA Form 2689 to the SBA          |
|                                   | representative for review. The    |
| \(i\) It will be a multiple award | SBTA and the SBA representative   |
| schedule contract.                | must complete their review within |
|                                   | 5 workdays after the SBTA         |
| \(ii\) The estimated value does   | receives the Form, or request an  |
| not exceed \$500 million,         | extension from you.               |
| including options.                |                                   |
|                                   |                                   |
| \(iii\) The contract will cover   |                                   |
| only one region or designated     |                                   |
| locations in one region (at any   |                                   |
| dollar value).                    |                                   |
+-----------------------------------+-----------------------------------+
| \(2\) The acquisition, excluding  | The SBTA provides a copy of the   |
| multiple award schedule           | GSA Form 2689 to the AAOED for    |
| contracts, meets either one of    | review and comment on the         |
| the following conditions:         | decision. After the AAOED review, |
|                                   | the SBTA submits the GSA Form     |
| \(i\) The estimated value exceeds | 2689 to the SBA representative    |
| \$500 million (including options) | for review. The AAOED and SBTA    |
| [and]{.underline} contract        | each have 5 workdays to review    |
| performance will occur in two or  | the decision. All reviews and     |
| more regions.                     | comments must be completed within |
|                                   | 10 workdays after the SBTA        |
| \(ii\) Based on political         | receives the Form, or the SBTA    |
| sensitivity or importance to GSA, | must request a time extension     |
| the Associate Administrator for   | from you.                         |
| Enterprise Development designates |                                   |
| the acquisition for review.       |                                   |
+-----------------------------------+-----------------------------------+

\(c\) [Disagreements]{.underline}. If a reviewing official disagrees
with your decision not to set-aside an acquisition, the SBTA must
provide you the rationale for the disagreement or provide you with
additional small business sources that are interested in and capable of
fulfilling the requirement. Review and consider any information provided
by the SBTA before making a decision.

\(d\) [Resolving disagreements]{.underline}. The Contracting Director
resolves disagreements between you and the SBTA. To resolve
disagreements with the SBA representative, see FAR 19.505.

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D-4 APD 2800.12B, 09-01-99

**519.503 Setting aside a class of acquisitions.**

\(a\) [Definition]{.underline}. A class set-aside is an item (or
service), a group of related items under a Federal Supply Class (FSC),
or a whole FSC set aside for exclusive small business participation on
more than a one-time basis. If the item or group of items constitute
only a small portion of an FSC, this definition still applies.

\(b\) [Determinations]{.underline}. If you have procurement
responsibility for the class of items or services involved, prepare the
determination required by FAR 19.503(b). The determination can apply to
either a total or partial set-aside.

**519.506 Withdrawing or modifying set-asides.**

If you and the SBTA disagree over the withdrawal or modification of a
set-aside, the SBTA must notify the AAOED at the same time the matter is
referred to the SBA PCR.

**519.508 Solicitation provisions and contract clauses.**

Insert 552.219-70, Allocation of Orders-Partially Set-Aside Items, in
solicitations and requirements type supply contracts that are partially
set aside for small business.

**SUBPART 519.6 CERTIFICATES OF COMPETENCY AND DETERMINATIONS OF
RESPONSIBILITY**

**519.602 Procedures.**

**519.602-3 Resolving differences between the agency and the Small
Business\
Administration.**

\(a\) Within 5 business days after requesting the SBA Area Office to
refer an intention to issue a Certificate of Competency to SBA
Headquarters for review, forward the information in (a)(1) and (a)(2) of
this subsection to the Associate Administrator for Enterprise
Development. This period may be extended by mutual agreement.

\(1\) Copies of all correspondence between GSA and SBA concerning the
case. Include the initial referral notice of nonresponsibility.

\(2\) Copies of all technical documents sent to SBA (for example, the
solicitation, preaward surveys, or any abstract of offers). Include any
new information and justify your decision to continue the appeal.

\(b\) After considering all the facts and conferring with the applicable
contracting activity, the Associate Administrator will decide whether or
not to file a formal appeal. Before deciding not to appeal, the
Associate Administrator must notify the concerned activity. The
Associate Administrator also must notify you of the decision regarding
the appeal.

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APD 2800.12B, 09-01-99 D-5

\(c\) For decisions on cases over \$25,000,000, the Associate
Administrator for Enterprise Development will confer with the
contracting activity before responding to SBA regarding either of the
options in FAR 19.602-3(b)(1)(i) and (ii).

**SUBPART 519.7 THE SMALL BUSINESS SUBCONTRACTING PROGRAM**

**519.708 Contract clauses.**

**519.708-70 Solicitation provisions.**

Insert the following provisions as directed:

\(a\) 552.219-71, Notice to Offerors of Subcontracting Plan
Requirements, on the cover page of solicitations containing the clause
at FAR 52.219-9, Small Business Subcontracting Plan.

\(b\) 552.219-72, Preparation, Submission, and Negotiation of
Subcontracting Plans, in solicitations requiring submission of the
subcontracting plan with initial offers.

\(c\) 552.219-73, Goals for Subcontracting Plan as follows:

\(1\) Use the basic provision in sealed bid solicitations containing FAR
52.219-9 if you are able to establish realistic target goals.

\(2\) Use Alternate I in:

\(i\) Sealed bid solicitations if you cannot establish target goals.

\(ii\) Negotiated solicitations that include FAR 52.219-9, but do not
include 552.219-72.

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D-6 APD 2800.12B, 09-01-99 \[next page is D-15\]

**SUBPART 519.8 CONTRACTING WITH THE SMALL BUSINESS ADMINISTRATION (THE
8(a) PROGRAM)**

**519.803 Selecting acquisitions for the 8(a) program.**

**519.803-70 Contracting officer evaluation of recommendations for 8(a)
set-aside(s).**

\(a\) If you disagree with a recommendation by the Associate
Administrator for Enterprise Development or the SBTA to set aside a
procurement for award under the 8(a) program, discuss the matter with
the official who made the recommendation. If you decide not to award the
contract under the 8(a) program, forward a copy of the documentation
required by FAR 19.202-1(e)(4) to the Office of Enterprise Development
(E) within 10 working days.

\(b\) Once a contracting activity acquires a product or service
successfully on the basis of an 8(a) set-aside, the activity must
acquire all future requirements for that product or service using 8(a)
set-aside procedures. If you determine that acquiring the product or
service as an 8(a) set-aside is no longer in the Government\'s best
interest, use the procedures in FAR 19.506 to withdraw a repetitive
set-aside.

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APD 2800.12B, 09-01-99 D-15

**519.803-71 Withdrawing or modifying 8(a) set-asides.**

If you and the SBTA disagree over the withdrawal or modification of a
set-aside, the SBTA must notify the Associate Administrator for
Enterprise Development at the same time the matter is referred to the
SBA PCR.

**519.870 Direct 8(a) contracting.**

**519.870-1 Authority and applicability.**

\(a\) Under a May 6, 1998, Memorandum of Understanding (MOU) between GSA
and SBA, SBA delegated to GSA its authority under Section 8(a)(1)(a) of
the Small Business Act to enter into prime contracts and Section
8(a)(1)(B) to subcontract the performance of the contracts to eligible
8(a) participants. To implement the MOU, GSA obtained a class deviation
to the Federal Acquisition Regulation (FAR) permitting direct 8(a)
contracting. This authority is effective through January 31, 2000.

\(b\) The delegation streamlines the acquisition process for
requirements not exceeding the simplified acquisition threshold (SAT*)*
by eliminating offering letters and acceptance letters. For acquisitions
over the SAT, this delegation expedites the contracting process by
shortening the period of SBA\'s acceptance of the requirement for the
8(a) program from 15 working days to 5 working days, and eliminating the
requirement for multiple copies of the award document, SBA\'s signature,
and the tripartite agreement.

\(c\) This authority applies to all 8(a) acquisitions conducted by FSS,
FTS, and PBS. It does not apply to FSS's multiple award schedule
program.

**519.870-2 Acquisitions at or under the SAT.**

\(a\) For acquisitions over the micropurchase threshold but not over the
SAT, use the simplified acquisition procedures of FAR Part 13 to issue
purchase orders or contracts to 8(a) participants.

\(b\) You are not required to send offering letters to, nor obtain
acceptance letters from, SBA.

\(c\) Use PRO-*Net* to establish that the selected 8(a) firm is a
current program participant.

\(d\) Establish the price with the selected 8(a) firm and prepare and
issue a purchase order or contract in accordance with FAR Part 13.

\(e\) Forward to the SBA District Office serving the 8(a) firm a copy of
the purchase order or contract within 5 days after the order is issued.

**519.870-3 Acquisitions exceeding the SAT.**

\(a\) In addition to the requirements of FAR 19.804-2, the offering
letter must:

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D-16 APD 2800.12B, CHGE 1, 10-1-99

\(1\) State that the requirement is being offered under the GSA/SBA
Memorandum of Understanding.

\(2\) Ask SBA to fax or e-mail its acceptance letter to you.

\(b\) SBA will determine the eligibility of the firm(s) and advise you
within 5 working days of the receipt of the request. If SBA determines
the firm is ineligible, then submit information on the next low offeror
or next apparent successful offeror (as applicable) to the cognizant SBA
district office.

\(c\) SBA must transmit its decision whether to accept the requirement
to you in writing within 5 working days of receipt of the offering
letter.

\(d\) If you do not receive an acceptance or rejection of the offering
from SBA within 5 days of SBA\'s receipt of the offering letter, you may
assume that SBA has accepted the requirement and proceed with the
acquisition.

\(e\) The acceptance letter includes all elements of eligibility (e.g.,
determination of adverse impact, Standard Industrial Classification code
appropriateness, and program eligibility) of the recommended 8(a)
contractor. SBA will make a final determination of size eligibility for
the procurement as of the date of the 8(a) concern\'s initial offer
which includes price.

\(f\) When required by FAR 15.4, obtain cost or pricing data directly
from the 8(a) contractor.

**519.870-4 Sole source requirements.**

\(a\) For a sole source 8(a) requirement over the simplified acquisition
threshold, the selected contractor is responsible for negotiating with
you within the time you establish. If the 8(a) contractor does not
negotiate within the established time and you cannot allow additional
time, notify SBA. When you receive SBA's approval, proceed with the
acquisition from other sources.

\(b\) You have authority to negotiate directly with the 8(a)
participant. However, if requested by the 8(a) participant, the SBA may
participate in negotiations.

\(c\) Prepare the contract award or order to the 8(a) firm using your
contracting activity\'s normal, non-8(a) procedures for similar
acquisitions (e.g., contract type and dollar amount), except for the
following:

\(1\) The award form must cite 41 U.S.C. 253(c)(5) and 15 U.S.C. 637(a)
as the authority for use of other than full and open competition.

\(2\) Include SBA\'s requirement number on the contract for acquisitions
exceeding the SAT.

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APD 2800.12B, 09-01-99 D-17

\(3\) Use a single award document between GSA and the 8(a) contractor.
As such, a single signature by the Contracting Officer who is identified
as having concurrent authority under the MOU to enter into 8(a)
contracts will suffice (i.e., an SBA signature is not required). The
\"Issued by\" block must identify the awarding GSA office. Your title
must include SBA and the appropriate GSA business line, as illustrated
below:

Contracting Officer for

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
SBA and GSA/(*Name of Business Line*)

\(4\) For a contract, have the 8(a) contractor sign the award document
as the prime contractor. Place the 8(a) contractor\'s name and address
in the "awarded to" or "contractor name" block on the appropriate forms.
At your discretion, you may also have the contractor sign a purchase
order (See FAR 13.302-3).

**519.870-5 Competitive requirements.**

\(a\) Advertise competitive 8(a) acquisitions in the *Commerce Business
Daily* through the Electronic Posting System (EPS) in accordance with
FAR 5.101(a)(1) and GSAR 505.101. Provide a copy of the announcement to
the SBA\'s coordinating office.

\(b\) Prepare the contract or order, and signatures, using the
procedures in 519.870-4(c).

**519.870-6 Contract administration.**

\(a\) Awards under the MOU are subject to 15 U.S.C. 637(a)(21). These
contracts and orders contain the clause at 552.219-74, Section 8(a)
Direct Award, that requires the 8(a) contractor to notify the SBA and
the Contracting Officer when ownership of the firm is being transferred.

\(b\) For any contract or purchase order awarded pursuant to this MOU.
you must coordinate contract termination and novation proceedings with
SBA prior to initiating action.

**519.870-7 Reporting.**

\(a\) Under the MOU, GSA must report quarterly to SBA on direct (8)
actions. GSA will make these reports to SBA through the Office of
Enterprise Development (E).

\(b\) Each business line (FSS, FTS, PBS)) will be responsible for
electronically reporting to E within 10 days at the close of each fiscal
year quarter the following information for each direct 8(a) contract,
order, and modification:

\(1\) Contractor\'s name.

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D-18 APD 2800.12B, 09-01-99

\(2\) Contract number.

\(3\) SBA requirement number (for new contract awards only).

\(4\) Dollar amount obligated.

\(5\) Contract type.

\(6\) Contract period.

\(7\) If applicable, the modification number, modification award date,
modification dollar amount.

\(c\) To facilitate reporting and avoid duplication of effort, GSA has
developed a pre-programmed retrieval from the GSA Procurement Data
System (GPDS). Each business line must designate a point of contact to
access the system and retrieve the report. The report will have all of
the required data fields except the \"requirement number\" which is
provided by SBA to the contracting officer for new contract awards (not
modifications or orders) over the SAT. The designated point of contact
will need to obtain the \"requirement number\" for new actions that
appear on the report and add the \"requirement number\" in the blank
field provided for any new contracts over the SAT.

**519.870-8 Contract clauses.**

\(a\) Insert the following clauses in solicitations, contracts, and
orders issued under the MOU:

\(1\) Insert the clause at 552.219-74, Section 8(a) Direct Award.

\(2\) Insert the clause at FAR 52.219-14, Limitation on Subcontracting.

\(3\) Insert the clause at FAR 52.219-18, Notification of Competition
Limited to Eligible 8(a) Concerns. Substitute the paragraph below for
paragraph (c) of the clause. Add the word \"Deviation\" at the end of
the clause title.

"(c) Any award resulting from this solicitation will be made directly by
the Contracting Officer to the successful 8(a) offeror selected through
the evaluation criteria set forth in this solicitation."

\(b\) Do [not]{.underline} use the clauses at FAR 52.219-11, Special
8(a) Contract Conditions, FAR 52.219-12, Special 8(a) Subcontract
Conditions, or FAR 52.219-17, Section 8(a) Award.

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APD 2800.12B, 09-01-99 D-19

**SUBPART 519.10 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**519.1006 Procedures.**

**519.1006-70 Designated industry goals.**

\(a\) [GSA goals]{.underline}. GSA goals for designated industry groups
are as follows:

  -------------------------------------------- ------------ --------------
  **\                                          **Small      **Emerging
  Designated Industry**                        Business     Small Business
                                               Goal**       Goal**

  Construction under standard industrial       40%          15%
  classification (SIC) codes that comprise                  
  major groups 15, 16, and 17 (excluding                    
  dredging)                                                 

  Architect-Engineer (A-E) services (including 40%          15%
  surveying and mapping) under SIC codes 7389,              
  8711, 8712, or 8713 (limited to FPDS service              
  codes C111 through C216, C219, T002, T004,                
  T008, T009, T014, and R404) awarded under                 
  the Brooks A-E Act selection procedures                   

  Refuse systems and related services,         40%          15%
  including portable sanitation services,                   
  under SIC codes 4212 or 4953, limited to                  
  FPDS service code S205                                    
  -------------------------------------------- ------------ --------------

\(b\) [Calculating goal achievement]{.underline}. All prime contract
awards to small business or emerging small business, including awards
under the 8(a) program, sole source and the HUBZone Act of 1997, count
toward goal attainment. Contract awards made to fulfill the 15 percent
goal for emerging small business also count toward attainment of the 40
percent goals for small business.

\(c\) [Good faith effort for emerging small business
awards]{.underline}. GSA must make a good faith effort to award not less
than 15 percent of the value of awards in the designated industry groups
to emerging small business.

\(d\) [Monitoring goal achievement]{.underline}. The Senior Procurement
Executive will monitor goal achievement on an annual basis through the
GSA Procurement Data System (GPDS). The Senior Procurement Executive
will provide reports to the Office of Enterprise Development (E) for
forwarding to the Small Business Administration (SBA). These annual
reviews and reports are due to SBA no later than January 31 of each
year. GSA will measure goal achievement for the preceding 12 month
period.

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D-20 APD 2800.12B, 09-01-99

\(e\) [Notification of changes to procedures]{.underline}. The Senior
Procurement Executive will provide notice of changes to agency
solicitation procedures based on goal attainment through changes to the
GSAM. The Senior Procurement Executive will also publish public notice
of changes to solicitation procedures in the Commerce Business Daily and
the Federal Register under procedures established by OFPP.

\(f\) [Failure to attain goals]{.underline}. If goal attainment for any
designated industry group falls below 40 percent, GSA shall reinstate
set-asides for that designated industry group at organizational unit(s)
within the agency that failed to achieve the 40 percent goal.

**519.1006-71 Procedures for designated industry groups.**

\(a\) [Emerging small business procurements]{.underline}.

\(1\) Reserve the following for emerging small businesses:

\(i\) Procurements of construction or trash/garbage collections with an
estimated value of \$25,000 or less if you have a reasonable expectation
of obtaining offers from two or more sources that will be competitive in
terms of market price, quality, and delivery.

\(ii\) Procurements of A-E services with an estimated value of \$50,000
or less if you have a reasonable expectation of obtaining offers from
three or more sources that will be competitive in terms of market price,
quality, and delivery.

\(2\) You may use any procurement method under the reserve program, not
just simplified acquisition procedures.

\(3\) The reserve program applies only to new awards. Modifications
within the scope of work of contracts having an initial award value in
excess of the \$25,000 for construction and trash/garbage collection
service or \$50,000 for A-E service are not subject to the reserve
program.

\(4\) If you cannot reserve a procurement for emerging small businesses,
process it as a small business set aside under FAR 13.105 or in
accordance with FAR 19.5 or 19.8.

\(5\) If you determine that a procurement cannot be set aside for small
business under FAR 19.5 or 19.8, you may make the procurement using
unrestricted procedures.

\(b\) [Unrestricted procurements]{.underline}. You may make procurements
of construction or trash/garbage collection services with an estimated
value in excess of \$25,000 and procurements of A-E services with an
estimated value in excess of \$50,000 on an unrestricted basis as long
as quarterly reviews show that GSA, as an agency, has attained the 40
percent goals.

\(1\) The 40 percent goal applies to each of the 3 major groups in
construction (group 15, 16, and 17), to trash/garbage collection, and to
A-E services.

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APD 2800.12B, 09-01-99 D-21

\(2\) If goal attainment, for GSA as an agency, in any individual SIC
code or FPDS service code drops below 40 percent, the Senior Procurement
Executive will reinstate small business set-asides even if the major
group met the 40 percent goal. Competition will be restricted to small
business, in accordance with FAR 19.5, on future procurements by the GSA
contracting activities (e.g., Regions) that failed to attain the goal.
Other GSA contracting activities that meet the goals will continue to
use unrestricted procedures.

\(3\) You may continue to use unrestricted procedures if GSA fails to
meet the 15 percent goal for emerging small businesses.

\(4\) You may set aside procurements in the designated industry groups,
under the HUBZone Empowerment Contracting Program, that exceed the
emerging small business reserve amount even though GSA is attaining its
40 percent small business goal. This is consistent with the Small
Business Regulations implementing the HUBZone Act.

\(5\) Notwithstanding the Small Business Competitiveness Demonstration
Program, you may award contracts under the 8(a) program at any time.

\(c\) [Contract award documents]{.underline}. For each procurement
awarded under the program, include the following statement on the award
document:

\"This procurement is being made under the Small Business
Competitiveness Demonstration Program.\"

\(d\) [Reporting]{.underline}. Report contract awards under the program
that exceed \$500 on Standard Form 279 using standard GPDS reporting
procedures (See 504.602-70).

**519.1006-72 Goal attainment for period: Fiscal Year 1998.**

\(a\) Appendix 519A provides the Report on Small Business Participation
Under the Small Business Competitiveness Demonstration Program for
Designated Industry Groups for all of PBS and a separate report for each
PBS region. These reports reflect performance during the period from
October 1, 1997 through September 30, 1998.

\(b\) Review of cumulative award data from the GSA Procurement Data
System for the period beginning October 1, 1997 through September 30,
1998, indicates that GSA met the 40 percent goal for construction
industry groups 16 and 17. GSA did not meet goals in construction
industry group 15 (General Building Contractors), trash/garbage
collection services and A-E services.

\(c\) GSA exceeded the 15 percent goal for emerging small business
concerns in construction industry groups 16 and 17. GSA did not meet
goals in construction industry group 15 (General Building Contractors),
trash/garbage collection services and A-E services.

GSAM\
D-22 APD 2800.12B, 09-01-99

**519.1006-73 Procurement procedures for solicitations issued on or
after February 1, 1999.**

\(a\) [Construction or trash/garbage collection services with an
estimated value of \$25,000 or less and procurement of A-E services with
an estimated value of \$50,000 or less]{.underline}. Follow the
procedures in 519.1006-71 for these procurements.

\(b\) [Procurements above the reserve levels in
519.1006-71(a)]{.underline}. Use the following procedures for
construction or trash/garbage collection services estimated to exceed
\$25,000 and A-E services estimated to exceed \$50,000.

\(1\) [Construction services in SIC Groups 15, 16, and 17]{.underline}.

\(i\) Contracting activities in Region 4, 7, and 9 must set-aside for
small business procurements for construction services in SIC group 15
when there is a reasonable expectation of obtaining competition from two
or more small businesses. If no such expectation exists, you may conduct
the procurement on an unrestricted basis.

\(ii\) All Regions other than 4, 7, and 9 must procure construction
services in SIC group 15 on an unrestricted basis.

\(iii\) All Regions must procure construction services in SIC groups 16
and 17 on an unrestricted basis.

\(2\) [Trash/garbage collection services in PSC S205]{.underline}.

\(i\) Contracting activities in Regions 4 and 6 must be set aside for
small business procurements for trash/garbage collection services when
there is a reasonable expectation of obtaining competition from two or
more small businesses. If no such expectation exists, you may conduct
the procurement on an unrestricted basis.

\(ii\) All other Regions must procure these services on an unrestricted
basis.

\(3\) [Architect-Engineer services (all PSC codes under the
Program)]{.underline}.

\(i\) Contracting activities in Regions 2, 4, 7, 10, and the National
Capitol Region must set aside for small business A-E procurements when
there is a reasonable expectation of obtaining competition from two or
more small businesses. If no such expectation exists, you may conduct
the procurement on an unrestricted basis.

\(ii\) All other Regions must procure A-E services on an unrestricted
basis.

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APD 2800.12B, 09-01-99 D-23

**519.11 PRICE EVALUATION ADJUSTMENT FOR SMALL DISADVANTAGED BUSINESS
CONCERNS**

**519.1102 Applicability.**

In addition to the exceptions listed in FAR 19.1102(b), the price
evaluation adjustment (PEA) does not apply to:

\(a\) Acquisitions of leasehold interests in real property.

\(b\) Orders placed under a Federal Supply Schedule.

**519.1103 Procedures.**

\(a\) [Decision chart]{.underline}. Appendix 519B provides a decision
chart to help you determine whether a PEA applies and how to apply it to
a specific acquisition. Appendix 519C provides examples of how to apply
both the PEA and the HUBZone price evaluation preference.

\(b\) [Total contract amount]{.underline}. The PEA applies across the
total contract amount, not just that portion proposed to be performed by
the small business concern. For example, if the small business concern
proposes to perform 80% of the work and subcontract 20% to large
business concern, then the 10% adjustment applies to 100%.

\(c\) [Single and multiple awards]{.underline}. Apply the PEA to each
group of items on which you will make award. That is, if you will make
one award, the PEA applies to 100% of the items. If you will make more
than one award, the PEA applies to each group where the predominant SIC
code and region, if applicable, is listed. Add other evaluation factors
(e.g., transportation costs or rent-free use of Government facilities)
to the offers before applying the PEA.

\(d\) [Industries eligible by region]{.underline}. In a SIC major group
authorized by region, the offeror's address governs whether the PEA
applies (i.e., not the place of performance or contract office
location).

\(e\) [Example]{.underline}. The following provides an example of how to
apply the PEA. Assume you have an acquisition affected by the PEA and
the PEA is 10%. You receive two offers; one from an SDB, and one from a
non-SDB (e.g., a small or other than small business concern). The SDB's
price for the acquisition is \$105,000, while the non-SDB\'s price is
\$100,000. You apply the PEA of 10% to the non-SDB's price, making the
evaluated price \$110,000. The SDB wins the award because its price of
\$105,000 is less than the non-SDB's evaluated price of \$110,000. Note
that you must still determine that the price (\$105,000) proposed for
award is considered fair and reasonable under the guidelines in FAR
15.404-1(b). Also note that the PEA does not necessarily apply to all
other offerors (see FAR 19.1103(a)).

GSAM\
D-24 APD 2800.12B, CHGE 1, 10-1-99

\(f\) [Equal low offers or tie bids.]{.underline} Follow the procedures
in FAR 14.408-6 to resolve equal low offers or tie bid situations. If
you have an offer from a HUBZone small business, see 519.13 and the
examples in Appendix 519C.

+-----------------------------------+-----------------------------------+
| **If**, after applying the PEA,   | **Then** ...                      |
| you have a tie between ...        |                                   |
+-----------------------------------+-----------------------------------+
| \(1\) Two SDBs.                   | FAR 14.408-6(a)(1) requires award |
|                                   | to the firm that is also a labor  |
| \(2\) An SDB and an other small   | surplus area concern. If both or  |
| business concern.                 | neither are a labor surplus area  |
|                                   | concern, then use FAR 14.408-6(b) |
|                                   | to determine which offeror to     |
|                                   | select.                           |
+-----------------------------------+-----------------------------------+
| \(3\) An SDB and a large business | FAR 14.408-6(a)(2) requires award |
| concern.                          | to the SDB, not because it is an  |
|                                   | SDB, but because it is a small    |
|                                   | business concern.                 |
+-----------------------------------+-----------------------------------+

**519.12 SMALL DISADVANTAGED BUSINESS PARTICIPATION PROGRAM**

**519.1201 General.**

A solicitation may separately contain source selection evaluation
factors or subfactors for small and women-owned small business concerns.
However, any factor or subfactor for SDB concerns must comply with FAR
19.12 and this subpart.

**519.1202 Evaluation factor or subfactor.**

**519.1202-2 Applicability**

In addition to the exceptions in FAR 19.1202-2, do not evaluate the
extent of participation of SDB concerns in performance of multiple award
schedule contracts when all fair and reasonable offers from responsible
sources are accepted.

**519.1202-4 Procedures.**

An offeror may receive credit under the evaluation factor only for
proposed SDB participation by a prime contractor, joint venture partner,
teaming arrangement member, or subcontractor in the authorized Standard
Industrial Classification (SIC) Major Groups. At this time these are the
same SIC Major Groups authorized for the PEA (see FAR 19.201(b)).

**519.1203 Incentive subcontracting with small disadvantaged business
concerns.**

\(a\) To include monetary incentives in a contract under FAR 19.1203,
you must have funds available for the incentives and obligate these at
the time of contract award.

GSAM\
APD 2800.12B, 09-01-99 D-25

\(b\) Do not provide for monetary incentives under FAR 19.1203 in a
contract that includes an award fee.

**519.13 HISTORICALLY UNDERUTILIZED BUSINESS ZONE\
(HUBZONE) PROGRAM**

**519.1305 HUBZone set-aside procedures.**

\(a\) [Reviews and timeframes]{.underline}. For an acquisition that
exceeds the simplified acquisition threshold, if you decide not to set
the acquisition aside for HUBZone Small Businesses, submit your written
decision to the SBTA for review. The following reviews and timeframes
apply:

+-----------------------------------+-----------------------------------+
| **If . . .**                      | **Then . . .**                    |
+-----------------------------------+-----------------------------------+
| \(1\) The acquisition meets any   | The SBTA provides a copy of the   |
| one of the following conditions:  | decision not to set aside for     |
|                                   | HUBZone small business concerns   |
| \(i\) It will be a multiple award | to the SBA representative for     |
| schedule contract.                | review. The SBTA and the SBA      |
|                                   | representative must complete      |
| \(ii\) The estimated value does   | their review within 5 workdays    |
| not exceed \$500 million,         | after the SBTA receives the       |
| including options.                | decision, or request an extension |
|                                   | from you.                         |
| \(iii\) The contract will cover   |                                   |
| only one region or designated     |                                   |
| locations in one region (at any   |                                   |
| dollar value).                    |                                   |
+-----------------------------------+-----------------------------------+
| \(2\) The acquisition, excluding  | The SBTA provides a copy of the   |
| multiple award schedule           | decision to the AAOED for review  |
| contracts, meets either one of    | and comment. After the AAOED      |
| the following conditions:         | review, the SBTA submits the      |
|                                   | decision to the SBA               |
| \(i\) The estimated value exceeds | representative for review. The    |
| \$500 million (including options) | AAOED and SBTA each have 5        |
| [and]{.underline} contract        | workdays to review the decision.  |
| performance will occur in two or  | All reviews and comments must be  |
| more regions.                     | completed within 10 workdays      |
|                                   | after the SBTA receives the       |
| \(ii\) Based on political         | decision, or the SBTA must        |
| sensitivity or importance to GSA, | request a time extension from     |
| the Associate Administrator for   | you.                              |
| Enterprise Development designates |                                   |
| the acquisition for review.       |                                   |
+-----------------------------------+-----------------------------------+

GSAM\
D-26 APD 2800.12B, 09-01-99

\(b\) [Disagreements]{.underline}. If a reviewing official disagrees
with your decision not to set-aside an acquisition, the SBTA must
provide you the rationale for the disagreement or provide you with
additional HUBZone small business sources that are interested in and
capable of fulfilling the requirement. Review and consider any
information provided by the SBTA before making a decision.

\(c\) [Resolving disagreements]{.underline}. The Contracting Director
resolves disagreements between you and the SBTA. To resolve
disagreements with the SBA representative, see FAR 19.1305(e).

\(d\) [Setting aside a class of acquisitions]{.underline}.

\(1\) [Definition]{.underline}. A HUBZone small business class set-aside
means an item, a group of related items under a Federal Supply Class
(FSC), or a whole FSC set aside for exclusive HUBZone small business
participation on more than a one-time basis. If the item or group of
items constitute only a small portion of an FSC, this definition still
applies.

\(2\) [Determination]{.underline}. If you have procurement
responsibility for the class of items involved, prepare the
determination required by FAR 19.503(b).

\(3\) [Withdrawing or modifying HUBZone small business concern
set-asides]{.underline}: If you and the SBTA disagree over the
withdrawal or modification of a HUBZone small business set-aside, the
SBTA must notify the AAOED at the same time the matter is referred to
the SBA PCR.

**519.1307 Price evaluation preference for HUBZone small business
concerns.**

Appendix 519C provides examples of how to apply both the PEA and the
HUBZone price evaluation preference (PEP).

**PART 520 RESERVED**

**PART 521 RESERVED**

GSAM\
APD 2800.12B, 09-01-99 D-27

**PART 522 APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS**

**522.001 Definition.**

\"Agency labor advisor,\" as used in this part, means the Director of
the GSA Acquisition Policy Division, Office of Acquisition Policy.

**SUBPART 522.1 BASIC LABOR POLICIES**

**522.101 Labor relations.**

**522.101-1 General.**

\(a\) GSA personnel performing official duties must maintain GSA's
impartiality in disputes between labor and contractor management by
refraining from involvement in or expressing a position on:

\(1\) Labor negotiations between contractors and unions.

\(2\) The merits of any dispute between labor and a contractor\'s
management.

\(b\) The Office of General Counsel (OGC) and the agency labor advisor:

\(1\) Serve as focal points on contractor labor relations.

\(2\) Initiate contact on contractor labor relations matters with
national offices of labor organizations, Government departments,
agencies or other governmental organizations.

\(3\) Serve as a clearinghouse for information on labor laws applicable
to Government acquisitions.

\(4\) Respond to questions involving FAR Part 22, this part, or other
contractor labor relations matters concerning GSA acquisition programs.
OGC determines the agency\'s legal position.

**522.101-3 Reporting labor disputes.**

Submit reports to the agency labor advisor.

**522.103 Overtime.**

**522.103-4 Approvals.**

You are the "agency approving official."

GSAM\
D-28 APD 2800.12B, 09-01-99

**522.103-5 Contract clauses.**

Insert FAR 52.222-1, Notice to the Government of Labor Disputes, in
solicitations and contracts for items on the DoD Master Urgency List.

**SUBPART 522.3 CONTRACT WORK HOURS AND SAFETY STANDARDS ACT**

**522.302 Liquidated damages and overtime pay.**

\(a\) [Your responsibilities]{.underline}.

\(1\) Provide instructions to the appropriate Finance Office whether or
not to withhold funds from contract payments pending your final
administrative determination.

\(2\) Notify the Finance Office of your final decision to assess
liquidated damages.

\(3\) After your final decision, provide instructions to either
immediately release to the contractor any funds in excess of the amount
specified in your decision or initiate the collection of additional
funds (see paragraph (c) of this section).

\(b\) [Procedures for the collection of liquidated damages]{.underline}.

\(1\) Initiate collection action by either:

\(i\) Withholding funds from payments due on the contract.

\(ii\) Issuing a demand for payment, if no funds were withheld or the
amount withheld was less than the liquidated damages.

\(2\) Indicate in your demand letter your intent to offset from the
contractor's other Government contracts if payment is not made.

\(3\) Provide the Finance Office with a:

\(i\) Copy of the demand letter.

\(ii\) Request that it initiate collection action under 41 CFR Part
105-55, Collection of Claims Owed the United States, if payment is not
made in accordance with the demand letter.

GSAM\
APD 2800.12B, 09-01-99 D-29

**SUBPART 522.4 LABOR STANDARDS FOR CONTRACTS INVOLVING CONSTRUCTION**

**522.404 Davis-Bacon Act wage determinations.**

**522.404-6 Modifications of wage determinations.**

The contracting director may request extensions under FAR
22.404-6(b)(6).

**522.406 Administration and enforcement.**

**522.406-6 Payrolls and statements.**

**[Statements from Prime Contractors or Subcontractors that Personally
Perform Work]{.underline}**

\(a\) Weekly payrolls and statements of compliance with respect to
payment of wages are not required from a prime contractor or a
subcontractor that personally performs work.

\(b\) Instead, a prime contractor or a subcontractor that personally
performs work must submit weekly certified statements clearly showing
the following information:

\(1\) The individual's contractual relationship.

\(2\) The scope and date(s) the individual performed the work.

\(3\) The individual received no wages for the labor performed.

\(4\) No mechanics or laborers were employed in the prosecution of the
work.

\(c\) Use GSA Form 618-D, Statement to be Submitted When Work is
Performed Personally, to furnish this information.

**522.406-7 Compliance checking.**

At a minimum, you must assure that a compliance check is made before
making final payment.

**522.406-8 Investigations.**

If a compliance check uncovers information warranting a labor standards
investigation, submit a request to the Regional Inspector General for
Investigations.

**522.406-9 Withholding from or suspension of contract payments.**

If you decide to assess liquidated damages, follow the procedures in
522.302.

GSAM\
D-30 APD 2800.12B, 09-01-99

**522.406-11 Contract terminations.**

If you terminate a contract or subcontract for labor standards
violations, submit the report required by FAR 22.406-11.

**522.406-13 Semiannual enforcement reports.**

Contracting activities must submit semiannual enforcement reports to the
agency labor advisor. Submit reports within 15 calendar days after the
end of the reporting period.

**SUBPART 522.6 WALSH-HEALEY PUBLIC CONTRACTS ACT**

**522.608 Procedures.**

Before notifying or furnishing information to DOL under FAR 22.608(b),
coordinate with legal counsel.

**SUBPART 522.8 EQUAL EMPLOYMENT OPPORTUNITY**

**522.803 Responsibilities.**

Submit questions on the applicability of EO 11246 and implementing
regulations to assigned legal counsel.

**522.804 Affirmative action programs.**

**522.804-1 Nonconstruction.**

\(a\) The requirements of FAR 22.804 also apply to each contractor and
subcontractor with 50 or more employees who either:

\(1\) Serves as a depository of Government funds.

\(2\) Is a financial institution serving as an issuing and paying agent
for U.S. savings bonds and savings notes.

\(b\) Contractors, subcontractors, and financial institutions must
develop a written affirmative action compliance program for each of its
establishments even if the amount held is less than \$50,000.

**522.805 Procedures.**

\(a\) To determine whether the contract meets the threshold in FAR
22.805(a), include the value of the basic contract plus priced options.
A contract modification exercising a priced option is not a contract
award under FAR 22.805(a)(1)(ii) and does not require a preaward
clearance.

GSAM\
APD 2800.12B, 09-01-99 D-31

\(b\) Submit preaward review requests directly.

**[Furnishing information to contractors]{.underline}**

\(c\) In addition to the poster required by FAR 22.805(b), provide each
nonexempt contractor a copy of SF 100.

**522.807 Exemptions.**

The agency labor advisor submits a request for exemption.

**SUBPART 522.10 SERVICE CONTRACT ACT OF 1965, AS AMENDED**

**522.1003 Applicability.**

**522.1003-3 Statutory exemptions.**

The Service Contract Act of 1965, as amended, applies to local office
relocation moves if transportation costs are incidental to the principal
purpose of the contract. Such contracts do not meet the statutory
exemption cited in FAR 22.1003-3(c). (See Federal Property Management
Regulation 101-40.109-2(b)(2).)

**522.1003-4 Administrative limitations, variations, tolerances, and
exemptions.**

Coordinate with assigned legal counsel before submitting a request under
FAR 22.1003-4 to the agency labor advisor.

**522.1003-7 Questions concerning applicability of the Act.**

You may submit a question regarding the applicability of the Act to
assigned legal counsel. If the question cannot be answered, the agency
labor advisor will forward it to the Administrator, Wage and Hour
Division.

**522.1007 Requirement to submit Notice (SF98/98a).**

Authorized GSA personnel may access wage determinations on-line. See
your Regional or Service, Service Contract Act (SCA) Wage Rate Liaison
for information on using the on-line capability.

**522.1011 Response to notice by Department of Labor.**

**522.1011-2 Requests for status or expediting of response.**

You may request an expedited wage determination or check on the status
of a request by contacting the Administrator, Wage and Hour Division,
directly.

GSAM\
D-32 APD 2800.12B, 09-01-99

**522.1021 Requests for hearing.**

If you are considering requesting a substantial variance, you should
coordinate with assigned legal counsel and the agency labor advisor. The
agency labor advisor submits any request.

**SUBPART 522.13 DISABLED VETERANS AND VETERANS OF THE VIETNAM ERA**

**522.1303 Waivers.**

Submit each waiver request to the agency labor advisor. The agency labor
advisor forwards the request to the appropriate office for concurrence
and approval.

**SUBPART 522.14 EMPLOYMENT OF WORKERS WITH DISABILITIES**

**522.1403 Waivers.**

Submit each waiver request to the agency labor advisor. The agency labor
advisor forwards the request to the appropriate office for concurrence
and approval.

**PART 523 ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY AND DRUG-FREE
WORKPLACE**

**SUBPART 523.3 HAZARDOUS MATERIALS IDENTIFICATION AND MATERIAL SAFETY
DATA**

**523.303 Contract clause.**

\(a\) Insert 552.223-70, Hazardous Substances, in solicitations and
contracts for packaged items subject to the Federal Hazardous Substances
Act and the Hazardous Materials Transportation Act.

\(b\) Insert 552.223-71, Nonconforming Hazardous Materials, in
solicitations and contracts for supplies that contain hazardous
materials.

**523.370 Solicitation provision.**

Insert 552.223-72, Hazardous Material Information, in any solicitation
that provides for delivery of hazardous materials on an f.o.b. origin
basis.

GSAM\
APD 2800.12B, 09-01-99 D-33

**SUBPART 523.4\--USE OF RECOVERED MATERIALS**

**523.403 Policy.**

\(a\) GSA's Affirmative Procurement Program for Recovered Materials
(Appendix 523A) establishes agency policy and procedures for the
procurement of products containing recovered materials. In implementing
the Program, contracting activities will:

\(1\) Communicate to industry that markets exist for environmentally
preferable products (See FAR 23.7), including products containing
recovered materials.

\(2\) Ensure that product specifications do not impede the acquisition
of products containing recovered materials.

\(3\) Purchase EPA designated products to the maximum extent
practicable.

\(4\) Identify other product categories that offer opportunities for the
purchase of environmentally preferable products. To the maximum extent
practicable, and consistent with applicable provisions of Federal
procurement law, acquire these products before non-environmentally
preferable products.

\(b\) To the extent permitted by law, and where economically feasible,
E.O. 13101 applies to the acquisition and management of federally owned
and leased space.

\(1\) Solicitations for services, leased space, and construction must
include environmental and recycling provisions.

\(2\) These provisions should include specifications promoting, and
maximizing, the use of environmentally preferable products, including
products containing recovered materials, by contractors and
subcontractors.

\(c\) Purchases by construction contractors or their subcontractors are
included in this program.

\(d\) You must use applicable minimum content standards in all
acquisitions that include an EPA designated product. In addition to new
acquisitions, this includes:

\(1\) Delivery orders placed against established source contracts that
identify environmentally preferable products.

\(2\) Orders from such sources as the GSA/Federal Supply Service
Environmental Products Guide or GSA Supply Catalog.

**523.404 Procedures.**

Under FAR 23.404(b)(3), the HCA must approve any purchase of designated
products that does not meet or exceed EPA guidelines and standards.

GSAM\
D-34 APD 2800.12B, 09-01-99

**523.404-70 Preference programs for other than EPA designated
products.**

\(a\) The statutory requirements associated with affirmative procurement
programs only apply to products covered by EPA guidelines. GSA must also
meet goals established under E.O. 13101 to maximize the number of
recycled products purchased. Contracting activities should conduct
market research and analysis for routinely procured products to identify
additional opportunities to establish product preferences through:

\(1\) Minimum material content requirements in applicable product
descriptions.

\(2\) Description of services to be performed.

\(b\) Alternatively, the contracting activity may require that offerors
provide a product incorporating some recovered material, without
specifying a percentage, that will allow the product to meet the
required standard of performance. Do this only if market research
indicates that industry is capable of producing a product with recovered
material, but the specification manager cannot identify an appropriate
minimum content requirement.

**523.405 Solicitation provision and contract clause.**

In FAR clause 52.223-9, instruct the contractor to submit the required
certification to you. The contracting activity must forward a copy to
the agency Environmental Executive, by November 1 of each year, of each
certification received in the preceding fiscal year.

**PART 524 PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION**

**SUBPART 524.1 PROTECTION OF INDIVIDUAL PRIVACY**

**524.103 Procedures.**

See 41 CFR Part 105-64 and GSA Order, Privacy Act Program (OAD P
1878.8), when contracting for the design, development, or operation of a
system of records on individuals.

**SUBPART 524.2 FREEDOM OF INFORMATION ACT**

**524.203 Policy.**

See 41 CFR Part 105-60 and GSA Order, Freedom of Information Act
procedures (ADM 1035.11B), for requirements on making records available
under the Freedom of Information Act.

GSAM\
APD 2800.12B, 09-01-99 D-35

**PART 525 FOREIGN ACQUISITION**

**SUBPART 525.1 BUY AMERICAN ACT-SUPPLIES**

**525.105 Evaluating offers.**

**525.105-70 Procurement of hand or measuring tools or stainless steel
flatware for DOD.**

\(a\) \"Stainless steel flatware\" means special order and stock items
of stainless steel flatware purchased for DOD, including, but not
limited to, the following National Stock Numbers (NSN):

7340-00-060-6057 7340-00-241-8171\
7340-00-205-3340 7340-00-559-8357\
7340-00-205-3341 7340-00-688-1055\
7340-00-241-8169 7340-00-721-6316\
7340-00-241-8170 7340-00-721-6971

\(b\) Purchases of hand or measuring tools or stainless steel flatware
exceeding the simplified acquisition threshold by DOD must be domestic
end products. In the case of stainless steel flatware, the Secretary of
the Department concerned can make an exception. The individual must
determine that a satisfactory quality and sufficient quantity produced
in the United States or its possessions are not available when needed at
domestic market prices.

\(c\) If GSA solicitations of hand or measuring tools or stainless steel
flatware include DOD requirements, GSA will apply the DOD restrictions.
The bases for applying the DOD restriction to GSA acquisitions are:

\(1\) DOD's restrictions apply to requisitions of such items from the
GSA stock program.

\(2\) The impracticality of establishing a dual supply system to satisfy
the requirements of civilian and military agencies.

\(3\) GSA may reject any offer when it is considered necessary for
reasons of national interest.

**525.109 Solicitation provisions and contract clause.**

If you include DOD requirements for hand or measuring tools or stainless
steel flatware in the solicitation for an acquisition estimated to
exceed the simplified acquisition threshold, insert 552.225-70, Notice
of Procurement Restriction - Hand or Measuring Tools or Stainless Steel
Flatware, in the solicitation and resulting contract(s).

GSAM\
D-36 APD 2800.12B, 09-01-99

**SUBPART 525.2 BUY AMERICAN ACT - CONSTRUCTION MATERIALS**

**525.202 Policy.**

\(a\) The HCA may not redelegate authority to make determinations under
FAR 25.202(a)(2) when the cost of the materials is estimated to exceed
\$100,000.

\(b\) The HCA is authorized to make the determinations required by FAR
25.202(a)(3) and (4). The HCA may not redelegate this authority.

**SUBPART 525.3 BALANCE OF PAYMENTS PROGRAM**

**525.302 Policy.**

**525.302-70 Procurements for agencies under the Foreign Assistance
Act.**

GSA procurements made directly for other agencies of items to be used
outside the United States are made under the Balance of Payments
Program. The only exception is if GSA contracts as the agent for an
agency governed by the Foreign Assistance Act (22 U.S.C. 2151
[et]{.underline} [seq]{.underline}.). If this exception applies, the
contract will be governed by the policies and procedures of the agency
instead of FAR 25.3 and 525.3. For example, GSA sometimes acts as agent
for the Agency for International Development and the Bureau of
International Narcotics Matters.

**SUBPART 525.4 TRADE AGREEMENTS**

**525.402 Policy.**

As a result of the General Services Administration Board of Contract
Appeals (GSBCA) decision in the protest of [International Business
Machines Corporation,]{.underline} 90-2 BCA 22,924, May 18, 1990, GSA
solicitations and contracts will deviate from FAR 52.225-8, Buy American
Act-Trade Agreements-Balance of Payments Program Certificate, and FAR
52.225-9, Buy American Act-Trade Agreements-Balance of Payments Program.

**525.408 Solicitation provision and contract clauses.**

Insert 552.225-8, Buy American Act-Trade Agreements-Balance of Payments
Program Certificate, and 552.225-9, Buy American Act-Trade
Agreements-Balance of Payments Program, in solicitations and contracts
subject to the Trade Agreements Act. Use them instead of FAR 52.225-8
and 52.225-9.

GSAM\
APD 2800.12B, 09-01-99 D-37

**SUBPART 525.10 IMPLEMENTATION OF SANCTIONS AGAINST COUNTRIES THAT
DISCRIMINATE AGAINST UNITED STATES PRODUCTS OR SERVICES IN GOVERNMENT
PROCUREMENT**

**525.1002 Trade sanctions.**

Forward any determination under FAR 25.1002(c) to the Office of
Acquisition Policy, GSA Acquisition Policy Division, for forwarding to
the United States Trade Representative.

**PART 526 OTHER SOCIOECONOMIC PROGRAMS**

**RESERVED**

GSAM\
D-38 APD 2800.12B, 09-01-99

**APPENDIX 519A\
REPORTS ON SMALL BUSINESS PARTICIPATION**

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**NATIONWIDE PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521 1 5,000 1 5,000 100.00 1 5,000 100.00 1 5,000 100.00**

**1522 3 188,000 0.00 0.00 0.00**

**1531**

**1541 10 237,000 8 222,000 93.67 1 3,000 1.26 3 137,000 57.80**

**1542 4533 497,055,525 2864 124,490,992 25.04 586 39,380,018 7.92 1184
45,879,758 9.23**

**SUBTOTAL**

**4547 497,485,525 2873 124,717,992 25.06 588 39,388,018 7.91 1188
46,021,758 9.25**

**SIC GROUP 16**

**1611 9 859,000 9 859,000 100.00 8 858,000 99.88 6 768,000 89.40**

**1622**

**1623 5 123,000 5 123,000 100.00 3 86,000 69.91 4 122,000 99.18**

**1629**

**SUBTOTAL**

**14 982,000 14 982,000 100.00 11 944,000 96.13 10 890,000 90.63**

**SIC GROUP 17**

**1711 302 11,524,050 265 9,309,634 80.78 49 2,705,000 23.47 114
4,539,151 39.38**

**1721 54 371,824 53 369,824 99.46 4 8,000 2.15 25 83,824 22.54**

**1731 442 16,221,400 370 9,630,400 59.36 94 3,171,622 19.55 189
4,585,542 28.26**

**1741 20 651,800 16 -247,200 -37.92 2 -5,000 -0.76 6 130,800 20.06**

**1742 16 165,000 15 158,000 95.75 0.00 6 67,000 40.60**

**1743 6 15,000 6 15,000 100.00 0.00 1 9,000 60.00**

**1751 154 1,789,359 153 1,785,359 99.77 35 380,000 21.23 54 539,360
30.14**

**1752 24 163,000 22 106,000 65.03 2 12,000 7.36 9 61,000 37.42**

**1761 55 1,662,329 50 920,329 55.36 9 248,000 14.91 25 642,000 38.62**

**1771 36 1,363,280 35 1,343,280 98.53 3 134,000 9.82 22 193,280 14.17**

**1781 1 20,000 1 20,000 100.00 0.00 0.00**

**1791 2 25,000 2 25,000 100.00 1 18,000 72.00 0.00**

**1793 15 360,000 14 356,000 98.88 1 5,000 1.38 5 232,000 64.44**

**1794 15 639,000 15 639,000 100.00 11 632,000 98.90 12 636,000 99.53**

**1795 9 366,000 8 360,000 98.36 2 3,000 0.81 0.00**

**1796 47 5,121,715 28 2,215,000 43.24 2 51,000 0.99 13 1,125,000
21.96**

**1799 222 6,163,397 217 5,660,397 91.83 29 1,775,000 28.79 111
2,617,397 42.46**

**SUBTOTAL**

**1420 46,622,154 1270 32,666,023 70.06 244 9,137,622 19.59 592
15,461,354 33.16**

**CATEGORY TOTAL**

**5981 545,089,679 4157 158,366,015 29.05 843 49,469,640 9.07 1790
62,373,112 11.44**

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205 17 275,000 10 98,000 35.63 1 12,000 4.36 5 17,000 6.18**

**CATEGORY TOTAL**

**17 275,000 10 98,000 35.63 1 12,000 4.36 5 17,000 6.18**

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**T002**

**T004**

**T008**

**T009**

**T014**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 630 19,555,206 369 9,159,252 46.83 51 376,313 1.92 190 4,253,939
21.75**

**C112 1 29,000 1 29,000 100.00 0.00 0.00**

**C113**

**C114**

**C115**

**C116**

**C117**

GSAM\
APD 2800.12B, 09-01-99 D-39

**C118 1 21,000 0.00 0.00 0.00**

**C119 174 67,132,000 41 2,238,000 3.33 9 36,000 0.05 11 429,000 0.63**

**C121**

**C122 1 4,000 1 4,000 100.00 0.00 0.00**

**C123**

**C124**

**C129**

**C130**

**C211 136 9,799,358 39 1,825,000 18.62 8 123,000 1.25 6 86,000 0.87**

**C212**

**C213**

**C214 2 43,000 2 43,000 100.00 0.00 1 45,000 104.65**

**C215**

**C216**

**C219 15 359,000 2 8,000 2.22 0.00 0.00**

**R404**

**CATEGORY TOTAL**

**960 96,942,564 455 13,306,252 13.72 68 535,313 0.55 208 4,813,939
4.96**

**GRAND TOTAL**

**6958 642,307,243 4622 171,770,267 26.74 912 50,016,953 7.78 2003
67,204,051 10.46**

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**REGION 1 - PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521**

**1522**

**1531**

**1541**

**1542 81 5,952,148 48 4,307,148 72.36 0.00 18 3,038,148 51.04**

**SUBTOTAL**

**81 5,952,148 48 4,307,148 72.36 0 0.00 18 3,038,148 51.04**

**SIC GROUP 16**

**1611**

**1622**

**1623**

**1629**

**SIC GROUP 17**

**1711 13 682,288 12 550,288 80.65 1 17,000 2.49 11 61,288 8.98**

**1721 4 4,824 4 4,824 100.00 0.00 4 4,824 100.00**

**1731 43 683,220 41 457,220 66.92 0.00 38 60,220 8.81**

**1741 1 13,800 1 13,800 100.00 0.00 1 13,800 100.00**

**1742 1 21,000 1 21,000 100.00 0.00 0.00**

**1743**

**1751 3 7,000 3 7,000 100.00 0.00 3 7,000 100.00**

**1752 1 2,000 1 2,000 100.00 0.00 1 2,000 100.00**

**1761 4 225,000 3 -2,000 -0.88 0.00 1 2,000 0.88**

**1771 9 1,009,280 9 1,009,280 100.00 0.00 4 18,280 1.81**

**1781**

**1791**

**1793 1 2,000 1 2,000 100.00 0.00 1 2,000 100.00**

**1794**

**1795**

**1796**

**1799 36 634,407 36 634,407 100.00 0.00 36 634,407 100.00**

**SUBTOTAL**

**116 3,284,819 112 2,699,819 82.19 1 17,000 0.51 100 805,819 24.53**

**CATEGORY TOTAL**

**197 9,236,967 160 7,006,967 75.85 1 17,000 0.18 118 3,843,967 41.61**

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205 4 80,000 4 80,000 100.00 0.00 0.00**

**CATEGORY TOTAL**

**4 80,000 4 80,000 100.00 0 0.00 0 0.00**

GSAM\
D-40 APD 2800.12B, 09-01-99

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 46 796,000 30 387,000 48.61 0.00 0.00**

**C112**

**C113**

**C114**

**C115**

**C116**

**C117**

**C118**

**C119**

**C121**

**C122**

**C123**

**C124**

**C129**

**C130**

**C211**

**C212**

**C213**

**C214**

**C215**

**C216**

**C219**

**R404**

**CATEGORY TOTAL**

**46 796,000 30 387,000 48.61 0 0.00 0 0.00**

**GRAND TOTAL**

**247 10,112,967 194 7,473,967 73.90 1 17,000 0.16 118 3,843,967 38.01**

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**REGION 2 - PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521**

**1522**

**1531**

**1541**

**1542 149 10,372,606 95 6,775,129 65.31 4 361,000 3.48 70 4,218,129
40.66**

**SUBTOTAL**

**149 10,372,606 95 6,775,129 65.31 4 361,000 3.48 70 4,218,129 40.66**

**SIC GROUP 16**

**1611**

**1622**

**1623**

**1629**

**SIC GROUP 17**

**1711 7 393,863 7 393,863 100.00 2 165,000 41.89 4 225,450 57.24**

**1721**

**1731 8 121,558 4 121,558 100.00 3 119,000 97.89 0.00**

**1741**

**1742**

**1743**

**1751 4 25,359 4 25,359 100.00 0.00 3 19,360 76.34**

**1752**

**1761**

**1771**

**1781**

**1791**

**1793**

**1794**

**1795**

**1796 3 837,000 3 837,000 100.00 0.00 0.00**

**1799 10 545,990 10 545,990 100.00 2 13,000 2.38 4 70,990 13.00**

**SUBTOTAL**

**32 1,923,770 28 1,923,770 100.00 7 297,000 15.43 11 315,800 16.41**

**CATEGORY TOTAL**

**181 12,296,376 123 8,698,899 70.74 11 658,000 5.35 81 4,533,929
36.87**

GSAM\
APD 2800.12B, 09-01-99 D-41

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205**

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 6 589,681 1 17,000 2.88 1 17,000 2.88 1 17,000 2.88**

**C112**

**C113**

**C114**

**C115**

**C116**

**C117**

**C118**

**C119**

**C121**

**C122**

**C123**

**C124**

**C129**

**C130**

**C211 1 17,000 0.00 0.00 0.00**

**C212**

**C213**

**C214**

**C215**

**C216**

**C219**

**R404**

**CATEGORY TOTAL**

**7 606,681 1 17,000 2.80 1 17,000 2.80 1 17,000 2.80**

**GRAND TOTAL**

**188 12,903,057 124 8,715,899 67.54 12 675,000 5.23 82 4,550,929
35.27**

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**REGION 3 - PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521**

**1522**

**1531**

**1541**

**1542 283 8,920,000 209 4,129,000 46.28 59 962,000 10.78 89 3,081,000
34.54**

**SUBTOTAL**

**283 8,920,000 209 4,129,000 46.28 59 962,000 10.78 89 3,081,000
34.54**

**SIC GROUP 16**

**1611**

**1622**

**1623**

**1629**

**SIC GROUP 17**

**1711 36 1,441,000 35 1,436,000 99.65 8 1,179,000 81.81 22 1,334,000
92.57**

**1721 8 94,000 8 94,000 100.00 3 5,000 5.31 3 11,000 11.70**

**1731 33 1,543,300 30 1,542,300 99.93 12 267,300 17.32 19 1,500,000
97.19**

**1741 6 1,059,000 3 161,000 15.20 0.00 1 28,000 2.64**

**1742 2 10,000 2 10,000 100.00 0.00 0.00**

**1743**

**1751 60 631,000 60 631,000 100.00 35 380,000 60.22 36 345,000 54.67**

**1752 4 10,000 4 10,000 100.00 0.00 3 9,000 90.00**

**1761 12 156,000 9 141,000 90.38 2 4,000 2.56 6 101,000 64.74**

**1771 5 140,000 5 140,000 100.00 0.00 5 140,000 100.00**

**1781**

**1791**

**1793 1 196,000 1 196,000 100.00 0.00 1 196,000 100.00**

**1794 1 4,000 1 4,000 100.00 0.00 1 4,000 100.00**

**1795**

**1796 6 2,073,000 1 4,000 0.19 0.00 0.00**

**1799 5 18,000 4 8,000 44.44 1 0.00 2 6,000 33.33**

**SUBTOTAL**

**179 7,375,300 163 4,377,300 59.35 61 1,835,300 24.88 99 3,674,000
49.81**

GSAM\
D-42 APD 2800.12B, 09-01-99

**CATEGORY TOTAL**

**462 16,295,300 372 8,506,300 52.20 120 2,797,300 17.16 188 6,755,000
41.45**

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205 1 1,000 1 1,000 100.00 0.00 1 1,000 100.00**

**CATEGORY TOTAL**

**1 1,000 1 1,000 100.00 0 0.00 1 1,000 100.00**

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 59 1,606,500 51 1,466,000 91.25 15 376,000 23.40 14 276,000
17.18**

**C112**

**C113**

**C114**

**C115**

**C116**

**C117**

**C118**

**C119**

**C121**

**C122**

**C123**

**C124**

**C129**

**C130**

**C211 4 26,000 3 14,000 53.84 1 5,000 19.23 1 5,000 19.23**

**C212**

**C213**

**C214**

**C215**

**C216**

**C219**

**R404**

**CATEGORY TOTAL**

**63 1,632,500 54 1,480,000 90.65 16 381,000 23.33 15 281,000 17.21**

**GRAND TOTAL**

**526 17,928,800 427 9,987,300 55.70 136 3,178,300 17.72 204 7,037,000
39.24**

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**REGION 4 - PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521**

**1522 3 188,000 0.00 0.00 0.00**

**1531**

**1541 2 15,000 0.00 0.00 0.00**

**1542 733 157,728,000 538 13,457,000 8.53 84 5,101,000 3.23 61
3,499,000 2.21**

**SUBTOTAL**

**738 157,931,000 538 13,457,000 8.52 84 5,101,000 3.22 61 3,499,000
2.21**

**SIC GROUP 16**

**1611 1 1,000 1 1,000 100.00 0.00 0.00**

**1622**

**1623 1 1,000 1 1,000 100.00 0.00 0.00**

**1629**

**SUBTOTAL**

**2 2,000 2 2,000 100.00 0 0.00 0 0.00**

**SIC GROUP 17**

**1711 82 469,000 78 424,000 90.40 3 7,000 1.49 6 39,000 8.31**

**1721 15 128,000 14 126,000 98.43 0.00 0.00**

**1731 111 1,464,582 103 1,043,582 71.25 4 102,582 7.00 20 562,582
38.41**

**1741 1 5,000 1 5,000 100.00 1 5,000 100.00 1 5,000 100.00**

**1742 7 88,000 6 81,000 92.04 0.00 3 60,000 68.18**

**1743 5 6,000 5 6,000 100.00 0.00 0.00**

**1751 74 920,000 73 916,000 99.56 0.00 3 22,000 2.39**

**1752 12 46,000 12 46,000 100.00 2 12,000 26.08 1 4,000 8.69**

**1761 12 41,000 12 41,000 100.00 2 2,000 4.87 3 16,000 39.02**

**1771 4 21,000 4 21,000 100.00 0.00 0.00**

**1781 1 20,000 1 20,000 100.00 0.00 0.00**

GSAM\
APD 2800.12B, 09-01-99 D-43

**1791 2 25,000 2 25,000 100.00 1 18,000 72.00 0.00**

**1793 6 26,000 6 26,000 100.00 0.00 0.00**

**1794**

**1795 4 42,000 3 36,000 85.71 2 3,000 7.14 0.00**

**1796 9 90,000 4 8,000 8.88 0.00 0.00**

**1799 46 660,000 45 487,000 73.78 5 48,000 7.27 2 64,000 9.69**

**SUBTOTAL**

**391 4,051,582 369 3,311,582 81.73 20 197,582 4.87 39 772,582 19.06**

**CATEGORY TOTAL**

**1131 161,984,582 909 16,770,582 10.35 104 5,298,582 3.27 100 4,271,582
2.63**

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205 6 82,000 2 3,000 3.65 0.00 1 2,000 2.43**

**CATEGORY TOTAL**

**6 82,000 2 3,000 3.65 0 0.00 1 2,000 2.43**

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 19 107,000 5 18,000 16.82 1 2,000 1.86 0.00**

**C112**

**C113**

**C114**

**C115**

**C116**

**C117**

**C118 1 21,000 0.00 0.00 0.00**

**C119 174 67,132,000 41 2,238,000 3.33 9 36,000 0.05 11 429,000 0.63**

**C121**

**C122**

**C123**

**C124**

**C129**

**C130**

**C211 11 181,666 0.00 0.00 0.00**

**C212**

**C213**

**C214**

**C215**

**C216**

**C219 10 299,000 0.00 0.00 0.00**

**R404**

**CATEGORY TOTAL**

**215 67,740,666 46 2,256,000 3.33 10 38,000 0.05 11 429,000 0.63**

**GRAND TOTAL**

**1352 229,807,248 957 19,029,582 8.28 114 5,336,582 2.32 112 4,702,582
2.04**

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**REGION 5 - PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521**

**1522**

**1531**

**1541**

**1542 34 1,017,529 21 737,756 72.50 4 -553,487 -54.39 6 -99,642 -9.79**

**SUBTOTAL**

**34 1,017,529 21 737,756 72.50 4 -553,487 -54.39 6 -99,642 -9.79**

**SIC GROUP 16**

**1611**

**1622**

**1623**

**1629**

**SIC GROUP 17**

**1711 6 1,067,899 5 823,483 77.11 1 1,000 0.09 2 90,413 8.46**

**1721**

**1731 1 47,000 1 47,000 100.00 0.00 1 47,000 100.00**

**1741 3 -523,000 3 -523,000 100.00 0.00 0.00**

GSAM\
D-44 APD 2800.12B, 09-01-99

**1742**

**1743**

**1751**

**1752**

**1761 5 22,329 5 22,329 100.00 3 8,000 35.82 0.00**

**1771**

**1781**

**1791**

**1793**

**1794**

**1795 1 3,000 1 3,000 100.00 0.00 0.00**

**1796 3 48,715 2 7,000 14.36 0.00 0.00**

**1799 1 147,000 0.00 0.00 0.00**

**SUBTOTAL**

**20 812,943 17 379,812 46.72 4 9,000 1.10 3 137,413 16.90**

**CATEGORY TOTAL**

**54 1,830,472 38 1,117,568 61.05 8 -544,487 -29.74 9 37,771 2.06**

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205**

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 12 889,086 4 202,313 22.75 1 19,313 2.17 0.00**

**C112 1 29,000 1 29,000 100.00 0.00 0.00**

**C113**

**C114**

**C115**

**C116**

**C117**

**C118**

**C119**

**C121**

**C122**

**C123**

**C124**

**C129**

**C130**

**C211 3 257,000 2 250,000 97.27 0.00 0.00**

**C212**

**C213**

**C214**

**C215**

**C216**

**C219**

**R404**

**CATEGORY TOTAL**

**16 1,175,086 7 481,313 40.95 1 19,313 1.64 0 0.00**

**GRAND TOTAL**

**70 3,005,558 45 1,598,881 53.19 9 -525,174 -17.47 9 37,771 1.25**

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**REGION 6 - PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521**

**1522**

**1531**

**1541**

**1542 736 18,298,160 273 7,380,527 40.33 3 35,000 0.19 163 1,558,000
8.51**

**SUBTOTAL**

**736 18,298,160 273 7,380,527 40.33 3 35,000 0.19 163 1,558,000 8.51**

**SIC GROUP 16**

**1611**

**1622**

**1623**

**1629**

GSAM\
APD 2800.12B, 09-01-99 D-45

**SIC GROUP 17**

**1711 21 100,000 18 80,000 80.00 0.00 11 49,000 49.00**

**1721 7 34,000 7 34,000 100.00 0.00 5 14,000 41.17**

**1731 25 266,000 25 266,000 100.00 0.00 9 155,000 58.27**

**1741 1 1,000 1 1,000 100.00 0.00 0.00**

**1742 2 36,000 2 36,000 100.00 0.00 0.00**

**1743**

**1751 2 13,000 2 13,000 100.00 0.00 1 1,000 7.69**

**1752 3 59,000 1 2,000 3.38 0.00 0.00**

**1761**

**1771**

**1781**

**1791**

**1793**

**1794 2 2,000 2 2,000 100.00 0.00 0.00**

**1795**

**1796 3 37,000 3 37,000 100.00 0.00 3 37,000 100.00**

**1799 25 317,000 25 317,000 100.00 1 17,000 5.36 16 251,000 79.17**

**SUBTOTAL**

**91 865,000 86 788,000 91.09 1 17,000 1.96 45 507,000 58.61**

**CATEGORY TOTAL**

**827 19,163,160 359 8,168,527 42.62 4 52,000 0.27 208 2,065,000 10.77**

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205 4 98,000 1 0.00 0.00 1 0.00**

**CATEGORY TOTAL**

**4 98,000 1 0.00 0 0.00 1 0.00**

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 123 3,611,939 95 2,675,939 74.08 0.00 95 2,675,939 74.08**

**C112**

**C113**

**C114**

**C115**

**C116**

**C117**

**C118**

**C119**

**C121**

**C122**

**C123**

**C124**

**C129**

**C130**

**C211**

**C212**

**C213**

**C214**

**C215**

**C216**

**C219**

**R404**

**CATEGORY TOTAL**

**123 3,611,939 95 2,675,939 74.08 0 0.00 95 2,675,939 74.08**

**GRAND TOTAL**

**954 22,873,099 455 10,844,466 47.41 4 52,000 0.22 304 4,740,939
20.72**

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**REGION 7 - PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521**

**1522**

**1531**

**1541**

**1542 791 67,466,584 520 23,026,584 34.13 89 3,471,000 5.14 349
8,782,584 13.01**

**SUBTOTAL**

**791 67,466,584 520 23,026,584 34.13 89 3,471,000 5.14 349 8,782,584
13.01**

GSAM\
D-46 APD 2800.12B, 09-01-99

**SIC GROUP 16**

**1611 3 49,000 3 49,000 100.00 3 49,000 100.00 3 49,000 100.00**

**1622**

**1623**

**1629**

**SUBTOTAL**

**3 49,000 3 49,000 100.00 3 49,000 100.00 3 49,000 100.00**

**SIC GROUP 17**

**1711 25 1,840,000 16 1,344,000 73.04 2 15,000 0.81 14 1,005,000
54.61**

**1721**

**1731 77 6,725,740 29 860,740 12.79 4 -11,260 -0.16 24 830,740 12.35**

**1741 2 41,000 1 40,000 97.56 0.00 1 40,000 97.56**

**1742 2 5,000 2 5,000 100.00 0.00 2 5,000 100.00**

**1743**

**1751 2 2,000 2 2,000 100.00 0.00 2 2,000 100.00**

**1752**

**1761 9 265,000 8 -235,000 -88.67 1 -373,000 -140.75 6 -245,000
-92.45**

**1771 1 20,000 0.00 0.00 0.00**

**1781**

**1791**

**1793**

**1794**

**1795**

**1796 8 1,989,000 4 1,251,000 62.89 0.00 3 1,027,000 51.63**

**1799 30 969,000 30 969,000 100.00 2 43,000 4.43 6 115,000 11.86**

**SUBTOTAL**

**156 11,856,740 92 4,236,740 35.73 9 -326,260 -2.75 58 2,779,740
23.44**

**CATEGORY TOTAL**

**950 79,372,324 615 27,312,324 34.41 101 3,193,740 4.02 410 11,611,324
14.62**

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205 1 12,000 1 12,000 100.00 1 12,000 100.00 1 12,000 100.00**

**CATEGORY TOTAL**

**1 12,000 1 12,000 100.00 1 12,000 100.00 1 12,000 100.00**

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 143 3,422,000 43 489,000 14.28 9 -288,000 -8.41 15 -213,000
-6.22**

**C112**

**C113**

**C114**

**C115**

**C116**

**C117**

**C118**

**C119**

**C121**

**C122**

**C123**

**C124**

**C129**

**C130**

**C211 7 890,000 3 549,000 61.68 0.00 0.00**

**C212**

**C213**

**C214**

**C215**

**C216**

**C219 2 5,000 0.00 0.00 0.00**

**R404**

**CATEGORY TOTAL**

**152 4,317,000 46 1,038,000 24.04 9 -288,000 -6.67 15 -213,000 -4.93**

**GRAND TOTAL**

**1103 83,701,324 662 28,362,324 33.88 111 2,917,740 3.48 426 11,410,324
13.63**

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**REGION 8 - PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521**

GSAM\
APD 2800.12B, 09-01-99 D-47

**1522**

**1531**

**1541**

**1542 162 4,564,539 160 4,560,539 99.91 19 2,746,000 60.15 44 1,780,039
38.99**

**SUBTOTAL**

**162 4,564,539 160 4,560,539 99.91 19 2,746,000 60.15 44 1,780,039
38.99**

**SIC GROUP 16**

**1611 2 90,000 2 90,000 100.00 2 90,000 100.00 0.00**

**1622**

**1623**

**1629**

**SUBTOTAL**

**2 90,000 2 90,000 100.00 2 90,000 100.00 0 0.00**

**SIC GROUP 17**

**1711 21 1,646,000 10 1,554,000 94.41 7 637,000 38.69 3 917,000 55.71**

**1721 2 43,000 2 43,000 100.00 0.00 1 19,000 44.18**

**1731 17 224,000 17 224,000 100.00 1 76,000 33.92 15 140,000 62.50**

**1741**

**1742 1 2,000 1 2,000 100.00 0.00 1 2,000 100.00**

**1743**

**1751**

**1752**

**1761 2 -5,000 2 -5,000 100.00 0.00 2 -5,000 100.00**

**1771**

**1781**

**1791**

**1793**

**1794**

**1795**

**1796 1 3,000 1 3,000 100.00 0.00 0.00**

**1799 2 34,000 2 34,000 100.00 0.00 2 34,000 100.00**

**SUBTOTAL**

**46 1,947,000 35 1,855,000 95.27 8 713,000 36.62 24 1,107,000 56.85**

**CATEGORY TOTAL**

**210 6,601,539 197 6,505,539 98.54 29 3,549,000 53.76 68 2,887,039
43.73**

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205**

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 11 299,000 11 299,000 100.00 0.00 9 237,000 79.26**

**C112**

**C113**

**C114**

**C115**

**C116**

**C117**

**C118**

**C119**

**C121**

**C122**

**C123**

**C124**

**C129**

**C130**

**C211 1 62,000 1 62,000 100.00 0.00 0.00**

**C212**

**C213**

**C214 2 43,000 2 43,000 100.00 0.00 1 45,000 104.65**

**C215**

**C216**

**C219 3 55,000 2 8,000 14.54 0.00 0.00**

**R404**

**CATEGORY TOTAL**

**17 459,000 16 412,000 89.76 0 0.00 10 282,000 61.43**

**GRAND TOTAL**

**227 7,060,539 213 6,917,539 97.97 29 3,549,000 50.26 78 3,169,039
44.88**

GSAM\
D-48 APD 2800.12B, 09-01-99

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**REGION 9 - PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521 1 5,000 1 5,000 100.00 1 5,000 100.00 1 5,000 100.00**

**1522**

**1531**

**1541**

**1542 643 151,895,500 389 23,287,500 15.33 94 8,732,500 5.74 155
9,385,500 6.17**

**SUBTOTAL**

**644 151,900,500 390 23,292,500 15.33 95 8,737,500 5.75 156 9,390,500
6.18**

**SIC GROUP 16**

**1611**

**1622**

**1623**

**1629**

**SIC GROUP 17**

**1711 43 646,000 41 627,000 97.05 23 511,000 79.10 23 508,000 78.63**

**1721 9 31,000 9 31,000 100.00 1 3,000 9.67 6 14,000 45.16**

**1731 60 1,332,000 58 1,271,000 95.42 40 1,073,000 80.55 50 1,213,000
91.06**

**1741**

**1742**

**1743 1 9,000 1 9,000 100.00 0.00 1 9,000 100.00**

**1751**

**1752**

**1761 6 750,000 6 750,000 100.00 1 607,000 80.93 6 750,000 100.00**

**1771**

**1781**

**1791**

**1793 4 38,000 3 34,000 89.47 1 5,000 13.15 3 34,000 89.47**

**1794**

**1795**

**1796 12 40,000 8 64,000 160.00 1 51,000 127.50 7 61,000 152.50**

**1799 23 1,981,000 22 1,826,000 92.17 10 1,497,000 75.56 10 1,017,000
51.33**

**SUBTOTAL**

**158 4,827,000 148 4,612,000 95.54 77 3,747,000 77.62 106 3,606,000
74.70**

**CATEGORY TOTAL**

**802 156,727,500 538 27,904,500 17.80 172 12,484,500 7.96 262
12,996,500 8.29**

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205 1 2,000 1 2,000 100.00 0.00 1 2,000 100.00**

**CATEGORY TOTAL**

**1 2,000 1 2,000 100.00 0 0.00 1 2,000 100.00**

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 130 4,786,000 65 2,345,000 48.99 17 155,000 3.23 50 1,130,000
23.61**

**C112**

**C113**

**C114**

**C115**

**C116**

**C117**

**C118**

**C119**

**C121**

**C122**

**C123**

**C124**

**C129**

**C130**

**C211 5 81,000 5 81,000 100.00 5 81,000 100.00 5 81,000 100.00**

**C212**

**C213**

**C214**

**C215**

**C216**

**C219**

**R404**

GSAM\
APD 2800.12B, 09-01-99 D-49

**CATEGORY TOTAL**

**135 4,867,000 70 2,426,000 49.84 22 236,000 4.84 55 1,211,000 24.88**

**GRAND TOTAL**

**938 161,596,500 609 30,332,500 18.77 194 12,720,500 7.87 318
14,209,500 8.79**

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**REGION 10 - PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521**

**1522**

**1531**

**1541 7 211,000 7 211,000 100.00 1 3,000 1.42 3 137,000 64.92**

**1542 521 24,914,005 385 9,993,005 40.10 199 6,101,005 24.48 209
4,899,000 19.66**

**SUBTOTAL**

**528 25,125,005 392 10,204,005 40.61 200 6,104,005 24.29 212 5,036,000
20.04**

**SIC GROUP 16**

**1611 3 719,000 3 719,000 100.00 3 719,000 100.00 3 719,000 100.00**

**1622**

**1623 4 122,000 4 122,000 100.00 3 86,000 70.49 4 122,000 100.00**

**1629**

**SUBTOTAL**

**7 841,000 7 841,000 100.00 6 805,000 95.71 7 841,000 100.00**

**SIC GROUP 17**

**1711 20 835,000 17 719,000 86.10 1 5,000 0.59 12 66,000 7.90**

**1721 8 35,000 8 35,000 100.00 0.00 5 19,000 54.28**

**1731 47 1,682,000 43 1,642,000 97.62 30 1,545,000 91.85 10 53,000
3.15**

**1741 4 62,000 4 62,000 100.00 0.00 1 41,000 66.12**

**1742 1 3,000 1 3,000 100.00 0.00 0.00**

**1743**

**1751**

**1752 1 9,000 1 9,000 100.00 0.00 1 9,000 100.00**

**1761 5 208,000 5 208,000 100.00 0.00 1 23,000 11.05**

**1771 16 173,000 16 173,000 100.00 3 134,000 77.45 12 35,000 20.23**

**1781**

**1791**

**1793 3 98,000 3 98,000 100.00 0.00 0.00**

**1794 12 633,000 12 633,000 100.00 11 632,000 99.84 11 632,000 99.84**

**1795**

**1796 1 4,000 1 4,000 100.00 0.00 0.00**

**1799 22 366,000 22 366,000 100.00 6 150,000 40.98 18 261,000 71.31**

**SUBTOTAL**

**140 4,108,000 133 3,952,000 96.20 51 2,466,000 60.02 71 1,139,000
27.72**

**CATEGORY TOTAL**

**675 30,074,005 532 14,997,005 49.86 257 9,375,005 31.17 290 7,016,000
23.32**

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205**

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 80 3,441,000 63 1,253,000 36.41 7 95,000 2.76 5 124,000 3.60**

**C112**

**C113**

**C114**

**C115**

**C116**

**C117**

**C118**

**C119**

**C121**

**C122**

**C123**

**C124**

**C129**

**C130**

**C211**

**C212**

GSAM\
D-50 APD 2800.12B, 09-01-99

**C213**

**C214**

**C215**

**C216**

**C219**

**R404**

**CATEGORY TOTAL**

**80 3,441,000 63 1,253,000 36.41 7 95,000 2.76 5 124,000 3.60**

**GRAND TOTAL**

**755 33,515,005 595 16,250,005 48.48 264 9,470,005 28.25 295 7,140,000
21.30**

**08 JAN 99 REPORT ON SMALL BUSINESS PARTICIPATION UNDER THE**

**REPORT: D1 SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM**

**FOR DESIGNATED INDUSTRY GROUPS**

**REGION 11 - PBS**

**TOTAL US BUSINESS SM BUSINESS SM DIS BUSINESS EMERG SM BUSINESS**

**ACTIONS DOLLARS ACTIONS DOLLARS PERCENT ACTIONS DOLLARS PERCENT
ACTIONS DOLLARS PERCENT**

**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--**

**I. CONSTRUCTION (EXCLUDING DREDGING)**

**SIC GROUP 15**

**1521**

**1522**

**1531**

**1541 1 11,000 1 11,000 100.00 0.00 0.00**

**1542 400 45,926,454 226 26,836,804 58.43 31 12,424,000 27.05 20
5,738,000 12.49**

**SUBTOTAL**

**401 45,937,454 227 26,847,804 58.44 31 12,424,000 27.04 20 5,738,000
12.49**

**SIC GROUP 16**

**1611**

**1622**

**1623**

**1629**

**SIC GROUP 17**

**1711 28 2,403,000 26 1,358,000 56.51 1 168,000 6.99 6 244,000 10.15**

**1721 1 2,000 1 2,000 100.00 0.00 1 2,000 100.00**

**1731 19 2,121,000 18 2,144,000 101.08 0.00 3 24,000 1.13**

**1741 2 -7,000 2 -7,000 100.00 1 -10,000 142.85 1 3,000 -42.85**

**1742**

**1743**

**1751 9 191,000 9 191,000 100.00 0.00 6 143,000 74.86**

**1752 3 37,000 3 37,000 100.00 0.00 3 37,000 100.00**

**1761**

**1771 1 1 1**

**1781**

**1791**

**1793**

**1794**

**1795 4 321,000 4 321,000 100.00 0.00 0.00**

**1796 1 1 1**

**1799 22 491,000 21 473,000 96.33 2 7,000 1.42 15 164,000 33.40**

**SUBTOTAL**

**90 5,559,000 86 4,519,000 81.29 5 165,000 2.96 36 617,000 11.09**

**CATEGORY TOTAL**

**491 51,496,454 313 31,366,804 60.91 36 12,589,000 24.44 56 6,355,000
12.34**

**II. REFUSE SYSTEMS AND RELATED SERVICES**

**S205**

**III. ARCHITECTURAL AND ENGINEERING SERVICES (INCLUDING MAPPING AND
SURVEYING)**

**SIC 7389:**

**SIC 8711: OR SIC 8712: OR SIC 8713:**

**C111 1 7,000 1 7,000 100.00 0.00 1 7,000 100.00**

**C112**

**C113**

**C114**

**C115**

**C116**

**C117**

**C118**

**C119**

**C121**

**C122 1 4,000 1 4,000 100.00 0.00 0.00**

**C123**

**C124**

**C129**

GSAM\
APD 2800.12B, 09-01-99 D-51

**C130**

**C211 104 8,284,692 25 869,000 10.48 2 37,000 0.44 0.00**

**C212**

**C213**

**C214**

**C215**

**C216**

**C219**

**R404**

**CATEGORY TOTAL**

**106 8,295,692 27 880,000 10.60 2 37,000 0.44 1 7,000 0.08**

**GRAND TOTAL**

**597 59,792,146 340 32,246,804 53.93 38 12,626,000 21.11 57 6,362,000
10.64**

GSAM\
D-52 APD 2800.12B, 09-01-99

**APPENDIX 519B\
SDB PRICE EVALUATION ADJUSTMENT DECISION CHARTS**

**Chart 1: Does the PEA Apply?**

GSAM\
APD 2800.12B, 09-01-99 D-53

**Chart 2: How Do I Apply the PEA When Evaluating Offers?**

GSAM\
D-54 APD 2800.12B, 09-01-99

**APPENDIX 519C\
EXAMPLES: APPLYING THE SDB PRICE EVALUATION ADJUSTMENT AND HUBZONE PRICE
EVALUATION PREFERENCE**

The evaluation of HUBZone small business and small disadvantaged
business concerns depends on the type of acquisition. The examples in
this Appendix illustrate some different scenarios.

For most acquisitions, the following guidelines apply:

\(a\) First evaluate all offers without considering the Price Evaluation
Preference (PEP), but considering the Price Evaluation Adjustment (PEA)
factors to determine the otherwise successful offer.

\(b\) Continue the evaluation using the PEP.

\(c\) You must always consider price reasonableness.

The examples involve the following firms:

**HD** = a HUBZone small disadvantaged business concern

**HS** = a HUBZone small business concern

**SD** = a small disadvantaged business concern

**SB** = a small business concern

**LB** = a large business concern

**Eval Price (1)** means the evaluated price before consideration of the
PEP (these examples assume that the only other consideration is the PEA)

**Eval Price (2)** means the evaluated price after consideration of the
PEP.

The otherwise or apparent successful offeror at each step is highlighted
in **BOLD**.

Assume that both the PEP and the PEA apply to the acquisition in each
example.

GSAM\
APD 2800.12B, 09-01-99 D-55

**Example 1.**

  -------------- ------------------- ------------------- -------------------
  **Business**   **Price offered**   **Eval Price (1)**  **Eval Price (2)**

  **HD**         110,000             110,000             **110,000**

  **SD**         105,000             105,000             115,500

  **SB**         100,000             110,000             120,000

  **LB**         **93,000**          **102,300**         111,600
  -------------- ------------------- ------------------- -------------------

[Explanation]{.underline}: In this example, a small business concern is
not the otherwise successful offeror after application of factors other
than the PEP. Therefore, you apply the PEP. As a result, the HUBZone SDB
is the apparent successful offeror.

**Example 2.**

  -------------- ------------------- ------------------- -------------------
  **Business**   **Price offered**   **Eval Price (1)**  **Eval Price (2)**

  **HD**         110,000             110,000             

  **HS**         101,000             111,100             

  **SD**         105,000             **105,000**         

  **SB**         **100,000**         110,000             

  **LB**         102,000             112,200             
  -------------- ------------------- ------------------- -------------------

[Explanation]{.underline}: In this example, the non-HUBZone small
disadvantaged business concern is the otherwise successful offeror, so
you do not apply the PEP to its offer. It is pointless to apply the PEP
to any of the offers at this point, since it will not change the outcome
of the competition.

GSAM\
D-56 APD 2800.12B, 09-01-99

**Example 3.**

  -------------- ------------------- ------------------- -------------------
  **Business**   **Price offered**   **Eval Price (1)**  **Eval Price (2)**

  **HD**         111,000             111,000             111,000

  **HS**         100,000             110,000             **110,000**

  **SD**         105,000             105,000             115,000

  **SB**         104,000             114,400             124,800

  **LB**         **95,000**          **104,500**         114,000
  -------------- ------------------- ------------------- -------------------

[Explanation]{.underline}: Both the PEA and the PEP are applied,
resulting in the HUBZone being the apparently successful offeror.

**Example 4.**

  -------------- --------------- --------------- --------------- ---------------
  **Business**   **Price         **Eval Price    **Eval Price    **Eval Price\
                 offered**       (1)**           (2)**           (PEP only)**

  **HD**         119,900         119,900         **119,900**     119,900

  **LB1**        **100,000**     **110,000**     120,000         **110,000**

  **LB2**        101,000         111,100         121,200         111,100

  **LB3**        100,500         110,550         120,600         110,550

  **LB4**        100,600         110,660         120,720         110,660

  **LB5**        100,300         110,330         120,360         110,330
  -------------- --------------- --------------- --------------- ---------------

[Explanation]{.underline}: In this case (based on knowledge of the item
being acquired, market research, and Government records) you determined
that \$119,900 is not a reasonable price. Therefore, you re‑evaluated
the offers using only the PEP (which is statutory). FAR 19.1103(c)
provides that the contracting officer may not evaluate offers using the
PEA if it would cause award to be made at a price that exceeds fair
market value by more than 10%.

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APD 2800.12B, 09-01-99 D-57

**Example 5**. For this example, assume negotiated trade-off procedures
are used and that technical and price are equal weight

  -------------- -------------- -------------- --------------- ---------------
  **Business**   **Price        **Eval Price   **Tech          **Eval Price
                 offered**      (1)**          evaluation**    (2)**

  **HD**         118,000        118,000        80              

  **SB**         102,000        112,200        **95**          

  **LB**         **101,000**    **111,100**    75              
  -------------- -------------- -------------- --------------- ---------------

[Explanation]{.underline}: In this case, the offer from the small
business concern is the otherwise successful offer (considering both
price and technical aspects). Therefore, you do not apply the PEP.

**NOTE: In each of the above cases where offers were received from
HUBZone small business, small disadvantaged business, and small business
concerns, the contracting officer may not have done adequate market
research. These acquisitions should have been set aside for small
business because two or more small business** **concerns could have
responded.**

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D-58 APD 2800.12B, 09-01-99

**APPENDIX 523A\
AFFIRMATIVE PROCUREMENT PROGRAM FOR RECOVERED MATERIALS**

The GSA Affirmative Procurement Program for Recovered Materials is being
updated. The updated plan will be incorporated as soon as it is
available.

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APD 2800.12B, 09-01-99 D-59

**SUBCHAPTER E\--GENERAL CONTRACTING REQUIREMENTS**

**PART 527 PATENTS, DATA, AND COPYRIGHTS**

**SUBPART 527.4 RIGHTS IN DATA AND COPYRIGHTS**

**527.409 Solicitation provisions and contract clauses.**

[Architect-engineer services and construction contracts involving
architect-engineer services]{.underline}.

Insert the following in solicitations and contracts for
architect-engineer services and construction contracts involving
architect-engineer services:

\(a\) Insert 552.227-70, Government Rights (Unlimited), instead of FAR
52.227-17, Rights in Data-Special Works, in contracts, except if
552.227-71 is prescribed.

\(b\) If the Government requires sole property rights and exclusive
control over the design and data, insert 552.227-71, Drawings and Other
Data to Become Property of Government, instead of FAR 52.227-17.

**PART 528 BONDS AND INSURANCE**

**SUBPART 528.1 BONDS AND OTHER FINANCIAL PROTECTIONS**

**528.101 Bid guarantees.**

**528.101-1 Policy on use.**

\(a\) [Construction contracts]{.underline}. Do not require bid
guarantees for contracts awarded under Section 8(a) of the Small
Business Act, as amended (15 U.S.C. 637(a)).

\(b\) [Building service contracts]{.underline}. Require bid guarantees
for building service contracts over \$100,000 if you determine under
528.103-2 that a performance bond is essential to protect the
Government\'s interest.

\(c\) [All other contracts]{.underline}. Refer to FAR 28.101 for
guidance on the use of bid guarantees.

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**528.102 Performance and payment bonds and alternative payment
protections for construction contracts.**

**528.102-1 General.**

The performance and payment bond requirements in FAR 28.102-1 apply to
contracts awarded under Section 8(a) of the Small Business Act unless
the requirement has been waived by SBA under Section 8(a)(2) of the
Small Business Act, as amended.

**528.103 Performance and payment bonds for other than construction
contracts.**

**528.103-2 Performance bonds.**

\(a\) Do not require performance bonds for building service contracts
unless you make a written determination explaining why the bond is
essential to protect the Government\'s interest and justifying the
additional cost of the bonding requirement.

\(b\) Do not require a performance bond for building service contracts
awarded under Section 8(a) of the Small Business Act as amended (15
U.S.C. 637(a)), or contracts awarded to workshops for the blind or other
severely handicapped under the Javits-Wagner-O\'Day Act, as amended (41
U.S.C. 46-48c).

\(c\) Consider the circumstances and determine the penal amount of the
performance bond on a case-by-case basis.

**528.103-3 Payment bonds.**

\(a\) You may require payment bonds for other than construction
contracts if the contracting director determines, under FAR 28.103-3,
that such a requirement is in the Government\'s interest.

\(b\) Consider the circumstances and determine the penal amount of the
payment bond on a case-by-case basis.

**528.106 Administration.**

**528.106-6 Furnishing information.**

The HCA or designee performs the functions outlined in FAR 28.106‑6(c).

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E-2 APD 2800.12B, 09-01-99

**SUBPART 528.2 SURETIES AND OTHER SECURITY FOR BONDS**

**528.202 Acceptability of corporate sureties.**

Corporate surety bonds must be manually signed by the Attorney-in-Fact
or officer of the surety company and the corporate seal affixed. You may
waive failure of the surety to affix the corporate seal as a minor
informality. (See B-184120, July 2, 1975, 75-2 CPD 9.)

**528.202-70 Acceptability of bonds and sureties.**

Verify the acceptability of the surety on a bond by placing the words
\"Acceptability of Bond Verified,\" and sign immediately thereunder, on
the bond or on a properly identified attachment. Retain the bond with
the original of the contract. You may use the Notice to Proceed to
notify the contractor that the bond(s) has been accepted.

**528.203 Acceptability of individual sureties.**

Refer evidence of possible criminal or fraudulent activities by an
individual surety first to the Assistant Inspector General for
Investigations or to the appropriate Regional Inspector General for
Investigations. The Office of Inspector General may conduct an
investigation and, when appropriate, refer the matter to the Senior
Procurement Executive. Include in referrals the information required by
528.203-7.

**528.203-7 Exclusion of individual sureties.**

\(a\) The Senior Procurement Executive or designee excludes individuals
from acting as a surety on bonds under FAR 28.203-7.

\(b\) Include the following, as a minimum, in referrals for
consideration of exclusion:

\(1\) The basis for exclusion (see FAR 28.203-7(b)).

\(2\) A statement of facts.

\(3\) Copies of supporting documentary evidence.

\(4\) The individuals' names and current or last known home and or
business addresses, including zip codes.

\(5\) A statement of GSA\'s history with such individuals, if any.

\(6\) A statement concerning any known active or potential criminal
investigations or court proceedings.

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APD 2800.12B, 09-01-99 E-3

**528.204 Alternatives in lieu of corporate or individual sureties.**

Security deposited instead of corporate or individual sureties on bonds
must be safeguarded immediately after they are received, as provided in
procedures issued by the Office of the Chief Financial Officer (see GSA
Order, Accounting Operations - Accounts Receivable and Credit and
Finance Operations, and Related Activities (PFM P 4253.1)). United
States bonds or notes received in the District of Columbia must be
deposited with the Treasurer of the United States, as provided in FAR
28.204-1.

**SUBPART 528.3 INSURANCE**

**528.30l Policy.**

Insurance requirements must be adequate, just, and reasonable. They
should be predicated on potential loss or damage, not necessarily on the
value of the contract.

**528.310 Contract clause for work on a Government installation.**

\(a\) Insert the clause at 552.228-70, Workers\' Compensation Laws, in
each solicitation and contract that meets all the following conditions:

\(1\) The contract amount is expected to exceed the simplified
acquisition threshold.

\(2\) The contract will require work to be performed on Government
property.

\(b\) In the case of an owner-controlled insurance program, or wrap-up
insurance, the clause will be a part of the policy holder's
requirements.

**PART 529 TAXES**

**SUBPART 529.4 CONTRACT CLAUSES**

**529.401 Domestic contracts.**

**529.401-70 Purchases at or under the simplified acquisition
threshold.**

Insert 552.229-70, Federal, State, and Local Taxes, in purchases and
contracts estimated to exceed the micropurchase threshold, but not the
simplified acquisition threshold.

**529.401-71 Contracts for supplies and services usable by the DC
Government**.

Insert 552.229-71, Federal Excise Tax - DC Government, in solicitations
and contracts that permit the District of Columbia Government to place
orders.

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E-4 APD 2800.12B, 09-01-99

**PART 530 COST ACCOUNTING STANDARDS ADMINISTRATION**

**SUBPART 530.2 CAS PROGRAM REQUIREMENTS**

**530.201-5 Waiver.**

Submit waiver requests to the Senior Procurement Executive.

**PART 531 CONTRACT COST PRINCIPLES AND PROCEDURES**

**SUBPART 531.1 APPLICABILITY**

**531.101 Objectives.**

The Senior Procurement Executive is the designee under FAR 31.101.

**PART 532 CONTRACT FINANCING**

**SUBPART 532.1 NON-COMMERCIAL ITEM PURCHASE FINANCING**

**532.111** **Contract clauses for non-commercial purchases.**

(a) [Invoice requirements]{.underline}. Insert 552.232-70, Invoice
Requirements, or something substantially the same, in all solicitations
and contracts for supplies, services, construction, architect-engineer
services, or the acquisition of leasehold interests in real property
that require the submission of invoices for payment. Delete subparagraph
(b) of the clause if an Accounting Control Transaction (ACT) number is
not required for payment.

\(b\) [Adjusting payments]{.underline}. Insert 552.232-71, Adjusting
Payments, in all solicitations and contracts for recurring building
services expected to exceed the simplified acquisition threshold.

\(c\) [Final payment]{.underline}. Insert 552.232-72, Final Payment, in
all solicitations and contracts for recurring building services expected
to exceed the simplified acquisition threshold.

**532.112 Payment of subcontractors under contracts for non-commercial
items.**

**532.112-1 Subcontractor assertions of nonpayment.**

If you determine under FAR 32.112-1 that a contractor's certification of
payment is inaccurate in any material respect, report the matter to the
Office of Inspector General. If appropriate, the Office of Inspector
General will forward a report and recommendation to the Department of
Justice.

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APD 2800.12B, 09-01-99 E-5

**SUBPART 532.2 COMMERCIAL ITEM PURCHASE FINANCING**

**532.206 Solicitation provisions and contract clauses.**

[Discounts for prompt payment]{.underline}. Include 552.232-8, Discounts
for Prompt Payments, in multiple award schedule solicitations and
contracts instead of the clause at FAR 52.232-8.

**SUBPART 532.4 ADVANCE PAYMENTS FOR NON-COMMERCIAL ITEMS**

**532.402 General.**

Prepare the findings and determinations required by FAR 32.402(e) in
coordination with the contract finance office. The HCA approves the
findings, determinations and authorization for advance payments.

**532.407 Interest.**

The contract finance office will give you the interest rate to be
charged on the unliquidated balance of advance payments.

**SUBPART 532.5 PROGRESS PAYMENTS BASED ON COSTS**

**532.501 General.**

**532.501-2 Unusual progress payments.**

The HCA must approve or disapprove requests for \"unusual\" progress
payments.

**532.501-70 Use of benchmarks with progress payments based on costs.**

\(a\) In unusual circumstances, you may request that specified
benchmarks, such as submission and acceptance of a preproduction or
pilot model, be achieved before making progress payments based on costs.
If you do this, the HCA must make a written determination that use of
benchmarks is in the best interest of the Government. The solicitation
and each resulting contract must then include a provision specifying
which benchmarks must be achieved before progress payments are made.

\(b\) Do not use benchmarks in a manner that will convert progress
payments based on costs into progress payments based on a percentage or
stage of completion.

**532.502 Preaward matters.**

**532.502-2 Contract finance office clearance.**

\(a\) The contract finance office director provides the approval
required by FAR 32.502-2.

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E-6 APD 2800.12B, 09-01-99

\(b\) Before providing for progress payments based on costs, request the
Credit and Finance Section, the Heartland Region, to provide advice and
assistance about a contractor\'s financial condition and the adequacy of
his accounting system and controls.

**532.503-5 Administration of progress payments.**

Ensure that the contract finance office:

\(a\) Has adequate administrative and fiscal procedures to accomplish
the fiscal aspects of FAR 32.503-5.

\(b\) Gives you the date and amount of each progress payment to a
contractor.

\(c\) Provides you written recommendations if findings warrant action by
the Government.

**532.503-6 Suspension or reduction of payments.**

The HCA must approve any action recommended under FAR 32.503-6. Upon
approval, request the contract finance office to suspend or reduce
payments.

**532.503-9 Liquidation rates - alternate method.**

Reduction of the liquidation rates specified in paragraph (b) of FAR
52.232-16 may be made only with your approval after coordination with
the contract finance office. Upon approval, request the finance office
to reduce the rate.

**SUBPART 532.6 CONTRACT DEBTS**

**532.606 Debt determination and collection.**

**532.606-70 Definitions.**

\"Debt\" means an amount of money or property that a responsible
official has determined is owed to the United States by any person or
entity except that the term does not apply to amounts owed by another
Federal agency.

\"Delinquent debt\" means an amount that has not been paid or otherwise
collected by the date specified (usually 30 days) in your initial
written demand for payment (i.e., contracting officer's final decision
letter).

\"Responsible official\" means you, the contracting officer. However,
the contract finance office is responsible for the administration of
debt collection under the Accounting Operations - Accounts Receivable
and Credit and Finance Operations, and Related Activities Handbook (PFM
P 4253.1).

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**532.606-71 Referral of delinquent debts.**

\(a\) If you determine that a debt in excess of \$100 is delinquent,
notify the applicable finance office for collection in accordance with
the Debt Collection Act of 1982, and possible forwarding to a credit
reporting agency.

\(b\) If the contractor appeals your demand for payment pursuant to the
Disputes clause of its contract, advise the Finance Office whether to
suspend collection efforts pending resolution of the dispute.

**SUBPART 532.7 CONTRACT FUNDING**

**532.700 Scope of subpart.**

GSA fiscal regulations are in the Budget Administration Handbook (CFO
4251.4), Accounting Classification Handbook (CFO P 4240.1), and
Accounting Operations - Voucher Examination Payment Handbook (CFO P
4252.1).

**532.705 Contract clauses.**

**532.705-1 Clauses for contracting in advance of funds.**

Insert 552.232-73, Availability of Funds, in solicitations and contracts
for services which are \"severable\" when both of the following
conditions apply:

\(a\) The contract, or a portion of the contract, will be chargeable to
funds of the new fiscal year.

\(b\) The circumstances described in the prescriptions for FAR 52.232-18
or 52.232-19 do not apply.

**SUBPART 532.8 ASSIGNMENT OF CLAIMS**

**532.805 Procedure.**

\(a\) When acknowledging receipt of the notice of assignment, notify the
contractor that all future invoices or other requests for payment under
the contract must specify the name and address of the assignee and
include a notation that payments due thereunder have been duly assigned.
You must send a copy of the acknowledgment to the contract finance
office.

\(b\) When payments under requirements or indefinite quantity contracts
that are for the sole use of GSA have been assigned, provide all GSA
offices that will place orders against the contract the name and address
of the assignee that will receive amounts due under the contract. The
notification should also state that you requested the contractor to
specify the name and address of the assignee on future invoices.

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E-8 APD 2800.12B, 09-01-99

**532.806 Contract clauses.**

Insert the clause at 552.232-23, Assignment of Claims, in solicitations
and requirements or indefinite quantity contracts under which more than
one agency may place orders.

**SUBPART 532.9 PROMPT PAYMENT**

**532.902 Definitions.**

\"Full cycle electronic commerce\" means the use of electronic data
interchange (EDI), Internet-based invoice processing, and electronic
funds transfer (EFT):

\(a\) By the Government, to place purchase, delivery, or task orders,
receive invoices, and pay invoices.

\(b\) By the Contractor, to accept and fill orders, submit invoices, and
receive payment.

**532.905 Invoice payments.**

\(a\) [General and architect-engineer contracts]{.underline}. Before
exercising the authority to modify the date for constructive acceptance
or constructive approval of progress payments in the clauses listed
below, you must prepare a written justification explaining why a longer
period is necessary. An official one level above you must approve your
justification. Determine the time needed on a case-by-case basis.

\(1\) In subdivision (a)(6)(i) of the clause at FAR 52.232-25, Prompt
Payment, do not specify a constructive acceptance period that exceeds 30
days.

\(2\) In subdivision (a)(4)(i)(A) of the clause at FAR 52.232-26, Prompt
Payment for Fixed-Price Architect-Engineer Contracts, do not specify a
constructive acceptance period that exceeds 30 days.

\(3\) In subdivision (a)(4)(i)(B) of the clause at FAR 52.232-26, Prompt
Payment for Fixed-Price Architect-Engineer Contracts, do not specify a
period for constructive approval of progress payments that exceeds 7
days.

\(b\) [Construction contracts]{.underline}.

\(1\) Determine on a case-by-case basis the time specified for payment
of progress payments in subdivision (a)(1)(i)(A) of the clause at FAR
52.232-27, Prompt Payment for Construction Contracts. Justify in writing
periods longer than 14 days. An official one level above you must
approve your justification. Under no circumstances may more than 30 days
be specified.

\(2\) Determine the time to be specified in subdivision (a)(4)(i) of FAR
clause 52.232-27, for constructive acceptance or approval, on a
case-by-case basis. This time may not exceed

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APD 2800.12B, 09-01-99 E-9

7 days unless you justify a longer period in writing, and obtain the
approval of an official one level above you. Under no circumstances may
more than 30 days be specified.

\(c\) [Federal Supply Service]{.underline}.

\(1\) To increase efficiency and reduce costs to the Government, Federal
Supply Service contracts under the Stock, Special Order, and Schedules
Programs may authorize payment within 10 days of receipt of a proper
invoice. The contract must meet all the following conditions:

\(i\) The contractor agrees to full cycle electronic commerce.

\(ii\) The contract includes FAR 52.232-33, Mandatory Information for
Electronic Funds Transfer Payment.

\(2\) The 10 day payment terms apply to each order that meets all the
following conditions:

\(i\) FSS places the order using EDI in accordance with the Trading
Partner Agreement.

\(ii\) The contractor submits EDI invoices in accordance with the
Trading Partner Agreement or invoices through the GSA Finance Center
Internet-based invoice process.

\(iii\) A GSA Finance Center pays the invoices using EFT.

\(3\) The 10 day payment terms do not apply to any order:

\(i\) Placed by a GSA contracting activity other than FSS.

\(ii\) Placed by or paid by another agency.

**532.905-70 Certification of payment to subcontractors and suppliers
under fixed-price\
construction contracts.**

The contractor may use GSA Form 2419, Certification of Progress Payments
Under Fixed-Price Construction Contracts, for the certification required
by FAR 52.232-5.

**532.905-71 Final payment - construction and building service
contracts.**

The following procedures apply to construction and building service
contracts.

\(a\) Do not process the final payment on construction or building
service contracts until the contractor submits a properly executed GSA
Form 1142, Release of Claims. If, after repeated attempts, you are
unable to obtain a release of claims from the contractor, you may
process the final payment with the approval of assigned legal counsel.

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E-10 APD 2800.12B, 09-01-99

\(b\) The amount of final payment must include, as appropriate,
deductions to cover any of the following:

\(1\) Liquidated damages for late completion.

\(2\) Liquidated damages for labor violations.

\(3\) Amounts withheld for improper payment of labor wages.

\(4\) The amount of unilateral change orders covering defects and
omissions.

**532.907 Interest Penalties**

You can access the interest rate applicable to late payments under the
Prompt Payment Act through ARNet at http://www.arnet.gov. Click on
\"Reference Corner\" then on \"Laws, Regulations, Executive Orders, and
Policy.\" This link provides the current interest rate and a list of
past rates also.

**532.908 Contract clauses.**

\(a\) [Federal Supply Service]{.underline}. For FSS Stock, Special
Order, and Schedules solicitations and contracts that provide payment in
10 days under 532.905(c):

\(1\) If the contract will include FAR 52.212-4, insert the clause at
552.232-74, Invoice Payments. GSA received a class deviation to allow
use of 552.232-74 for commercial items.

\(2\) If the contract will not include FAR 52.212-4, insert 552.232-25,
Prompt Payment, instead of FAR 52.232-25.

\(b\) [Leasehold Interests in Real Property]{.underline}.

\(1\) Insert 552.232-75, Prompt Payment, in solicitations and contracts
for acquiring leasehold interests in real property.

\(i\) You may modify the date for constructive acceptance in
subparagraph (b)(2) of the clause to specify a period longer than 7
calendar days (but not to exceed 30 days) if necessary because of the
nature of the services to be received, inspected or accepted by the
Government. Prepare a written justification for specifying the longer
period and obtain your contracting director's approval.

\(ii\) Use Alternate I if the lease contract does not contain provisions
for ordering alterations or overtime utility services.

\(2\) Insert 552.232-76, Electronic Funds Transfer Payment, in
solicitations and contracts for acquisition of leasehold interests in
real property.

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**SUBPART 532.11 ELECTRONIC FUNDS TRANSFER**

**\[Reserved\]**

**SUBPART 532.70 AUTHORIZING PAYMENT BY GOVERNMENTWIDE\
COMMERCIAL PURCHASE CARD**

**532.7001 Definition.**

\"Governmentwide commercial purchase card\" has the same meaning as in
FAR 13.101.

**532.7002 Solicitation requirements.**

\(a\) In solicitations for supplies and services except
telecommunications services (i.e., major systems such as the Federal
Telecommunications System or DSN) and multiple award schedule
solicitations, request offerors to indicate if they will accept payment
by Government commercial credit card. Identify the credit card brand(s)
under the GSA SmartPay program that may be used to make payments under
the contract, on the cover page or in Section L of the solicitation.

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\(b\) For multiple award schedule contracts, identify the credit card
brand(s) under the GSA SmartPay program that may be used to make
payments under the contract in the contract award letter.

\(c\) For orders placed by GSA, you may authorize payment by Government
commercial credit card only for orders that do not exceed \$100,000 (see
GSA Order, Interim Guidance on Use of the Governmentwide Commercial
Purchase Card Service (OAD 4200.8)).

\(d\) Consider requesting offerors to designate different levels for
which they may accept payment by Government commercial credit card, for
example:

\"If awarded a contract under this solicitation, the offeror agrees to
accept payment by commercial credit card for orders of:

\_\_\_\_ \$2,500 or less \_\_\_\_ \$25,000 or less

\_\_\_\_ \$50,000 or less \_\_\_\_ \$100,000 or less\"

**532.7003 Contract clause.**

Insert the clause at 552.232-77, Payment By Credit Card, in
solicitations and resultant contracts for supplies and services except
telecommunications services (i.e., major systems such as the Federal
Telecommunications System or DSN) to provide for payment by
Governmentwide commercial purchase card as an alternative method of
payment for orders.

\(a\) Use the basic clause when only GSA will place orders under the
contract.

\(b\) Use Alternate I for solicitations and contracts under which other
agencies may place orders directly.

**SUBPART 532.71 PAYMENTS FOR RECURRING SERVICES**

**532.7101 Definitions.**

"Fixed roll payment" means automatic payment of fixed amounts at regular
intervals without submission of an invoice or receiving report.

**532.7102 Applicability.**

You may use fixed roll payments in any contract that meets all four of
the following conditions:

\(a\) The contract provides for recurring services at a constant level
for a period of at least two months.

\(b\) The contract does not contain any discount terms.

\(c\) Payment is due 30 days following completion of the service month.

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\(d\) For a commercial item acquisition, fixed roll payments are
consistent with customary commercial practice.

**532.7103 Procedures.**

\(a\) [Payment]{.underline}**.**

\(1\) [Process]{.underline}. Finance processes payment automatically,
without submission of an invoice or receiving report, 30 days from the
last day of service. Finance pays the monthly amount authorized in the
original contract provided to Finance with the ACT label, or contract
modification, less any deductions (see 532.7102(d)).

\(2\) [Vendor payment identification]{.underline}. Finance generates the
12 digit invoice number using the ACT number followed by an abbreviated
month and year of service (e.g., 84261554JUN7, for June 1997). Ensure
that the ACT number appears on the contract award document so that the
contractor can identify payments.

\(b\) [Contract deductions]{.underline}. Any contract that provides for
fixed roll payment requires effective monitoring to ensure satisfactory
performance and identify any deductions to which the Government is
entitled. If the Government is entitled to a deduction (e.g., as
consideration for nonperformance or late performance), notify the Fort
Worth Finance Division promptly. Prompt notice is critical to avoiding
more burdensome action later to recover an overpayment. Use the
following procedures.

\(1\) To make a deduction from the payment due a contractor, notify the
Fort Worth Finance Division. You may provide the notice by any of the
following means:

\(i\) Mail, addressed to:\
Chief, Accounts Payable Branch\
GSA Finance Division (7BCP)\
PO Box 17181\
Fort Worth, TX 76102

\(ii\) Facsimile (receiving report or letter format) to:\
Chief, Accounts Payable Branch\
(817) 978-7413

\(iii\) cc:Mail to:\
#R7 FINANCE VCPC VENDORS A-I\
#R7 FINANCE VCPC VENDORS J-Z

\(2\) Provide all the following information in the notice:

\(i\) ACT number.

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APD 2800.12B, 09-01-99 E-15

\(ii\) Specific multiple distribution line (MDL) coding affected by the
deduction, unless the deduction is prorated among all accounting coding
according to the existing distribution.

\(iii\) Contract number.

\(iv\) Vendor name.

\(v\) Month of service.

\(vi\) Original monthly amount.

\(vii\) Amount of deduction.

\(viii\) Amount authorized for payment.

\(ix\) Your phone number.

\(3\) Provide deduction notices no later than the 20th day of the month
following service. For notices received after the 20th, Finance will
subtract the deduction from the next month's payment.

\(c\) [Final Payment]{.underline}. Based on the contract expiration
date, Finance will automatically remove contracts from the fixed roll
system in the month prior to expiration. Finance will request a final
receiving report in the usual manner to ensure all requirements for
contract close-out have been met. Finance will not make final payment
until it receives the final receiving report or like authorization from
you.

**532.7104 Contract clauses.**

\(a\) [Noncommercial item acquisitions]{.underline}. For solicitations
and contracts to be paid by fixed roll payment, include the clause at
552.232-1, Payments. Do not include the clauses at FAR 52.232-1,
Payments, or 552.232-70, Invoice Requirements.

\(b\) [Commercial item acquisitions]{.underline}. For solicitations and
contracts to be paid by fixed roll payment, tailor the clause at FAR
52.212-4 by an addendum as noted in (1) and (2) below. This tailoring is
authorized by a deviation approved on January 5, 1999.

\(1\) Delete paragraph FAR 52.212-4(g), Invoice.

\(2\) Add the following to paragraph FAR 52.212-4(i), Payment:

The Government shall pay the Contractor, without submission of invoices
or vouchers, 30 days after the service period, the prices stipulated in
this contract for services rendered and accepted, less any deductions
provided in this contract.

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E-16 APD 2800.12B, 09-01-99

**SUBPART 532.72 PAYMENTS UNDER CONTRACTS SUBJECT TO AUDIT**

**532.7201 General.**

\(a\) Do not approve an initial invoice or voucher before consulting
with the Assistant Inspector General - Auditing or the Field Audit
Office regarding cost or other supporting data as required under:

\(1\) Cost-reimbursement type contracts.

\(2\) The cost-reimbursement portion of fixed-price type contracts.

\(3\) Time and materials or labor-hour contracts.

\(4\) Fixed-price contracts providing for any of the following:

\(i\) Progress payments based on costs.

\(ii\) Advance payments.

\(iii\) Guaranteed loans.

\(iv\) Incentives or redetermination.

\(b\) Except for fixed-price contracts with redetermination where no
price revision (upward or downward) is to be made, do not approve the
final payment invoice or voucher for contracts specified in 532.7201(a),
nor the final payment or settlement of other contracts subject to audit
prior to:

\(1\) Receipt and review of the contract audit report.

\(2\) Consultation with the Assistant Inspector General for Auditing or
the Field Audit Office if no audit is to be conducted.

**532.7202 Submission and processing of invoices or vouchers.**

\(a\) Require contractors to submit invoices or vouchers to you.
Annotate invoices with the date of receipt, as required by FAR 32.905.
That date will be used to determine interest penalties for late
payments. You, or your designee, must review the processing of invoices
or vouchers before payment to determine if the items and amounts claimed
are in consonance with the contract terms and represent prudent business
transactions. You must ensure that these payments are commensurate with
physical and technical progress under the contract. If the contractor
has not deducted questionable amounts from the invoice or amounts
required to be withheld, you must make the required deduction, except as
provided in 532.7203.

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APD 2800.12B, 09-01-99 E-17

\(b\) Subject to 532.7201, note your approval of any payment on (or
attached to) the invoice or voucher submitted by the contractor. Forward
the invoice or voucher to the appropriate contract finance office for
retention after certification and scheduling for payment by a disbursing
office.

**532.7203 Action upon receipt of an audit report.**

Audit reports will be furnished to you, with a copy to the appropriate
contract finance office. Upon receipt of an audit report, pursuant to
contract terms, determine the allowability of all costs covered by
audit. Give full consideration to the auditor\'s recommendations, but
make an independent business judgment before taking any action based on
the audit report. If you doubt or question any of the auditor's
recommendations, you need not make deductions from invoices or vouchers
for provisional payments. In these cases, confer with the auditor and
other appropriate Government personnel (such as a price specialist and
assigned counsel) to determine what action to take. If you disagree with
the auditor\'s recommendations, document the contract file and furnish
the auditor with a copy of the statement.

**532.7204 Suspension and disapproval of amounts claimed.**

\(a\) Notify the appropriate contract finance office in writing when
amounts claimed for payment are either:

\(1\) Suspended.

\(2\) Disapproved as not being allowable according to contract terms.

\(3\) Not allocable to the contract.

\(b\) Your notice forms the basis for the contract finance office to
issue GSA Form 533, Administrative Difference Statement. Finance will
attach a copy of GSA Form 533 to each copy of the invoice or voucher
from which the deduction has been made, and will include an explanation
of the deduction.

**PART 533 PROTESTS, DISPUTES, AND APPEALS**

**SUBPART 533.1 PROTESTS**

**533.101 Definitions.**

\"Associate General Counsel\" means the Associate General Counsel of the
General Law Division, Personal Property Division, or Real Property
Division.

"Agency Protest Official for GSA" means the official in the Office of
Acquisition Policy designated to review and decide procurement protests
filed with GSA.

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E-18 APD 2800.12B, 09-01-99

"Deciding official" means the person chosen by the protester to decide
the agency protest; it may be either you or the Agency Protest Official
for GSA.

**533.102 General.**

\(a\) The Office of General Counsel (OGC) normally contacts anyone
outside of GSA involved in protests of GSA contract actions filed with
the Comptroller General or in a Federal Court.

\(b\) OGC, or GSA directives, may authorize other GSA officials to
contact those involved in protests of GSA contract actions.

**533.103 Protests to the agency.**

**533.103-70 Policy.**

\(a\) Use your best efforts to resolve concerns through frank and open
discussions, as required by FAR 33.103(b).

\(b\) If an agency protest is filed, the deciding official uses the
procedures in FAR 33.103 and this section to resolve the protest. The
deciding official will provide a fair and quick review of any protest
filed with the agency, when a protester contends that it has been
prejudiced by alleged violations of statute or regulation.

**533.103-71 Procedures.**

\(a\) The filing time frames in FAR 33.103(e) apply. An agency protest
is filed when the complete protest is received at the location the
solicitation designates for serving protests. GSA's hours of operation
are 8:00 a.m. to 4:30 p.m. Protests delivered after 4:30 p.m. will be
considered received and filed the following business day.

\(b\) An interested party filing an agency protest has the choice of
requesting either that you or the Agency Protest Official for GSA decide
the protest.

\(c\) If the protester requests that the Agency Protest Official for GSA
decide the protest, you must ensure that the Protest Official and
assigned legal counsel receive a copy of the materials served on you
within one business day after the filing date.

\(d\) In addition to the information required by FAR 33.103(d)(2), the
protest must meet all the following conditions:

\(1\) Indicate that it is a protest to the agency.

\(2\) Be filed in writing with you, the Contracting Officer.

\(3\) State whether the protester chooses to have you or the Agency
Protest Official for GSA decide the protest. If the protest is silent on
this matter, you will decide the protest.

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APD 2800.12B, 09-01-99 E-19

\(4\) Indicate whether the protester prefers to make an oral
presentation, a written presentation, or an oral presentation confirmed
in writing, of arguments in support of the protest to the deciding
official.

\(e\) The decision by the Agency Protest Official for GSA is an
alternative to a decision by you on a protest. The Agency Protest
Official for GSA will not consider appeals to your decision on an agency
protest.

\(f\) The deciding official must obtain legal review as required by GSA
Order, Legal Services (ADM 5000.4A).

\(g\) The deciding official must conduct a scheduling conference with
the protester within three (3) days after the protest is filed (see
533.103-71(a)). The scheduling conference will establish deadlines for
oral or written arguments in support of the agency protest and for
agency officials to present information in response to the protest
issues. The deciding official may hear oral arguments in support of the
agency protest at the same time as the scheduling conference, depending
on availability of the necessary parties.

\(h\) Oral conferences may take place either by telephone or in person.
Other parties (e.g., representatives of the program office) may attend
at the discretion of the deciding official.

\(i\) The following procedures apply to information submitted in support
of or in response to an agency protest:

\(1\) The protester and the agency have only one opportunity to support
or explain the substance of the protest (either orally, in writing, or
orally confirmed in writing).

\(2\) GSA procedures do not provide for any discovery.

\(3\) The deciding official has discretion to request additional
information from either the agency or the protester. However, the
deciding official will normally decide protests on the basis of
information provided by the protester and the agency.

\(4\) The parties are encouraged, but not required, to exchange
information submitted to the Agency Protest Official for GSA.

\(5\) Any written response by the agency to the protest must be filed
with the deciding official within five (5) days after the filing of the
protest.

\(6\) Any additional information that either party wants to submit in
writing after one-time oral arguments in support of the agency protest,
must be received by the deciding official within two (2) days after the
date of the oral arguments.

\(j\) Preferred practice in GSA is to resolve protests through informal
oral discussions.

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E-20 APD 2800.12B, 09-01-99

\(k\) An interested party may represent itself or be represented by
legal counsel. GSA will not reimburse the protester for any legal fees
related to the agency protest.

\(l\) If GSA receives an agency protest before contract award, do not
make award unless the HCA makes a determination to proceed under FAR
33.103(f)(1). Similarly, if GSA receives an agency protest within ten
(10) days after award or within five (5) days after a debriefing date
offered to the protester under a timely debriefing request under FAR
15.505 or 15.506, whichever is later, you must stay contract performance
unless the HCA makes a determination to proceed under FAR 33.103(f)(3).
Any stay of award or suspension of performance remains in effect until
the protest is decided, dismissed, or withdrawn.

\(m\) The deciding official must make a best effort to issue a decision
on the protest within twenty-eight (28) days after the filing date. The
decision may be oral or written. If oral, the deciding official must
send a confirming letter within three (3) days after the decision using
a means that provides receipt (e.g., facsimile or return-receipt). The
confirming letter must include the following information:

\(1\) State whether the protest was denied, sustained, or dismissed.

\(2\) Indicate the date the decision was provided.

\(n\) If the deciding official sustains the protest, relief may consist
of any of the following recommendations:

\(1\) Terminating the contract.

\(2\) Recompeting the requirement.

\(3\) Amending the solicitation.

\(4\) Refraining from exercising contract options.

\(5\) Reevaluating the offers or bids and awarding a contract consistent
with statute, regulation, and the terms of the solicitation.

\(6\) Other action that the deciding official determines is appropriate.

\(o\) If the Agency Protest Official for GSA sustains a protest, within
thirty (30) days after receiving the Official's recommendations for
relief, you must either:

\(1\) Fully implement the recommended relief.

\(2\) Notify the Agency Protest Official for GSA in writing if any
recommendations have not been implemented and explain why.

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APD 2800.12B, 09-01-99 E-21

\(p\) GSA may dismiss or stay proceedings on an agency protest if a
protest on the same or similar basis is filed with a protest forum
outside of GSA.

**533.103-72 Solicitation provisions.**

Include the provision at 552.233-70, Protests Filed Directly With the
General Services Administration, in each solicitation for either:

\(a\) Supplies, services, construction, or architect-engineer services
expected to exceed the simplified acquisition threshold.

\(b\) Acquisition of leasehold interests in real property expected to
exceed the simplified lease acquisition threshold.

**533.104 Protests to GAO.**

\(a\) [General procedures.]{.underline}

\(1\) OGC furnishes GAO with the name, title, and telephone number of
one or more officials whom GAO may contact regarding protests. OGC
promptly advises GAO of any change in the designated officials.

\(2\) GAO protests are handled on a priority basis. The Associate
General Counsel (AGC) prepares a report responding to a protest. The
report is based on a statement of fact and position you prepare and your
contracting director approves.

**[Content of Report to GAO]{.underline}**

\(3\) [All reports]{.underline}. In addition to the requirements of FAR
33.104(a)(3), the GSA report contains all the following:

\(i\) GAO protest number (GAO case file number).

\(ii\) Solicitation or contract number.

\(iii\) Full corporate name of the protesting organiza­tion and other
firms involved.

\(iv\) Statement indicating if the protest was filed before or after
award.

\(4\) [Report for protest after award]{.underline}. If the protest is
filed after award, the report also includes:

\(i\) Identity of the awardee.

\(ii\) Date of award.

\(iii\) Contract number.

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E-22 APD 2800.12B, 09-01-99

\(iv\) Date and time of bid opening (including a statement if the date
of bid opening was extended by amendments).

\(v\) Total number of offerors.

\(vi\) Complete chronological statement of all relevant events and
administrative actions taken (including reasons and authority for the
actions taken).

\(vii\) Other relevant documents believed helpful in determining the
validity of the protest. This evidence should be referenced and
identified within the text of the position statement, alphabetically or
numerically, e.g., Tab A, Exhibit 1, etc.

**[Report Processing Procedures]{.underline}**

\(5\) When GSA receives the protest, the AGC telephonically notifies you
through your Central Office contracting activity or Regional Counsel.
The contracting activity or Regional Counsel must immediately notify the
AGC if they receive a copy of a protest before the AGC notifies them.

\(6\) After receiving the formal protest filed with GAO, the AGC
formally requests a statement of fact and position from you through your
Central Office contracting activity or Regional Counsel. You must
immediately notify the affected bidders or offerors that you received a
protest using the following format (see FAR 33.104(a)(2)):

Name\
Address

A protest concerning Solicitation No.\_\_\_\_\_\_\_\_\_\_\_\_\_ has been
filed with the General Accounting Office (GAO).

([Insert the name and address of the protester, and the name of the
person signing the protest.)]{.underline} filed the protest on
([Date]{.underline}).

You may obtain copies of the protest from this office.

Submit your views and relevant information regarding the protest
directly to GAO. Provide this office a copy of any submission to GAO.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
Contracting Officer\'s signature.

\(7\) You must also immediately notify assigned counsel and begin
preparing a documented statement of fact and position.

\(8\) The contracting director concurs on the statement of fact and
position (the Office of Regional Counsel concurs on a Regional
procurement). The AGC may request the Regional Counsel to prepare a
legal position analyzing the merits of a protest against a

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APD 2800.12B, 09-01-99 E-23

Regional procurement. In these cases, your statement of fact and
position is included as a referenced attachment.

\(9\) The Regional Counsel\'s legal position, if requested, and your
statement of fact and position, are sent in triplicate to the AGC. The
AGC may request additional copies if other interested parties are
involved. The statement is due to the AGC no later than 10 workdays
after the date you originally receive the protest. GAO may reduce this
time by invoking the express option.

\(10\) If you cannot prepare a statement of fact and position within 10
work days, promptly telephone the AGC with the reason for the delay. The
AGC may grant additional time if the report cannot be prepared because
of:

\(i\) Complicated facts or legal issues affecting protest resolution.

\(ii\) The need to coordinate the report with other agencies, or with
offices in distant locations.

\(iii\) Other compelling circumstances.

\(11\) At the AGC's request, you must confirm in writing any oral
requests for extensions. The contracting director concurs in the request
and sends a copy to the HCA. GAO grants a request that will delay
submission of GSA\'s report to GAO beyond 30 days from the date GSA
originally received the protest. The AGC notifies your Central Office
contracting activity or Regional Counsel of GAO's decision.

\(12\) After submitting the statement to the AGC, you or Regional
Counsel must advise the AGC of all later developments that may affect
the case.

\(13\) All documents must be sent by the fastest means possible.

\(14\) In addition to the requirements of FAR 33.104(a)(5)(ii), send a
copy of any comments to the AGC.

\(b\) [Protests before award]{.underline}. If the HCA determines that
urgent and compelling circumstances do not permit waiting for GAO's
decision as allowed by FAR 33.104(b):

\(1\) Prepare the written determinations and findings (D&F) in the
format shown at 501.704-70(e)(1) for the HCA's signature.

\(2\) The AGC and the Regional Counsel (on Regional acquisitions) concur
on the D&F.

\(3\) The AGC notifies GAO of the findings and intended action approved
by the HCA before award is made.

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E-24 APD 2800.12B, 09-01-99

\(c\) [Protests after award]{.underline}. If GSA receives a protest from
GAO within the time periods specified in FAR 33.104(c)(1), GSA must
suspend contract performance unless the HCA provides written
justification to continue.

\(1\) Prepare the written D&F for the HCA's signature.

\(2\) The AGC and Regional Counsel (on Regional procurements) concur on
the D&F.

\(3\) The AGC notifies GAO of the findings and intended action the HCA
approved before contract performance is authorized.

\(d\) [Notice to GAO]{.underline}. OGC concurs on the HCA's report to
the Comptroller General if GSA has decided not to comply with GAO's
recommendation.

**SUBPART 533.2 DISPUTES AND APPEALS**

**533.211 Contracting officer\'s decision.**

In addition to the information in FAR 33.211(a)(4)(v), advice the
contractor in your written decision that a notice of appeal must:

\(a\) Describe the nature of the dispute and the relief sought, the
contract provisions involved, and any other additional information or
comments relating to the dispute considered important.

\(b\) Be signed personally by the appellant (the prime contractor making
the appeal) or by an officer of the appellant corporation, or member of
the appellant firm, or by the contractor\'s duly authorized
representative or attorney.

**533.214 Alternative dispute resolution (ADR).**

GSA Order, Using Alternative Dispute Resolution Techniques (CSL P
5050.1), contains information about implementing ADR procedures.

**SUBPART 533.70 PROCESSING CONTRACT APPEALS**

**533.7001 Notice of appeal.**

\(a\) [Record.]{.underline} Upon receipt of the notice of appeal, the
contracting activity must establish a record to ensure the timely
preparation and submission of appeal cases. The record should show, at a
minimum:

\(1\) The name of the appellant.

\(2\) The date of your final decision.

\(3\) The date the appeal was filed.

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APD 2800.12B, 09-01-99 E-25

\(4\) Contract number.

\(5\) Docket number.

\(6\) Your name.

\(b\) [Untimely notices]{.underline}. If a contractor submits an
untimely notice of appeal, the contracting director must send a separate
letter to the AGC, requesting that a motion for dismissal of the appeal
be submitted to the Board. The letter and transmittal package must
include all the following:

\(1\) The name of the appellant, contract number, and date of your final
decision.

\(2\) The certified mail receipt showing the date on which the appellant
received your final decision.

\(3\) The envelope which contained the notice of appeal or other
evidence of late submission of the notice of appeal.

**533.7002 Appeal file.**

\(a\) [Submission time.]{.underline} Prepare the appeal file in
accordance with this section. Obtain the concurrence of assigned counsel
and forward the file to the AGC within 20 calendar days after receipt of
a notice of appeal or advice that an appeal has been filed. The AGC will
advise you if the Board requires a shorter period under its small claims
procedures.

\(b\) [Late submission.]{.underline} If you cannot meet the submission
time for the appeal file, submit in writing to the AGC, before
expiration of the designated time, a full explanation and a request for
additional time.

**533.7002-1 Preparation of the appeal file.**

\(a\) [General]{.underline}.

\(1\) Prepare appeal files in quadruplicate. Ensure that all copies are
identical in content and position of items.

\(2\) If more than one appeal is filed under the same contract, you may
request, through the AGC, that the Board waive the requirement to
duplicate the documents included in the first appeal file. Appeal files
for the second and subsequent appeals must include all the following:

\(i\) Refer to the original appeal file and include the docket and item
numbers.

\(ii\) Identify and include any changes to documents occurring after
preparation of the original file.

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E-26 APD 2800.12B, 09-01-99

\(iii\) Include any documents pertinent to the later appeal not
previously furnished.

\(b\) [Content of appeal file]{.underline}. You must prepare the appeal
file following the requirements in the Rules of Procedure of the General
Services Administration Board of Contract Appeals. The Rules of
Procedure are available at http://www.gsbca.gsa.gov/currules.htm. In
addition:

\(1\) Put a gummed label (NSN 75l0-00-264-5460) on top of the file that
identifies the case by appellant, contract number, and docket number.

\(2\) Use multiple binders for large files. Individual binders must not
be more than l inch thick. Use the same exterior labels on subsequent
binders that appear on the original binder.

\(3\) Assigned counsel will assist in determining which documents to
include in the file.

\(4\) Use division sheets to separate the documents listed in the
\"Index of Exhibits\"

\(5\) [Index of Exhibits]{.underline}. Place the index as the first
(top) document.

\(6\) [Other pertinent exhibits.]{.underline} In addition to the basic
documents described in Rule 104 of the Rules of Procedures, additional
pertinent exhibits may include:

\(i\) Copy of the repurchase contract, including referenced terms and
conditions.

\(ii\) Copy of the abstract of offers and list of all offerors solicited
for the repurchase contract.

\(iii\) Copy of letter of assessment, including worksheet showing
calculation of excess costs and other damages including administrative
costs.

\(iv\) Copies of orders issued under the repurchase contract.

\(v\) Proof of payment and a detailed disbursement listing, annotated
and certified. (NOTE: Obtain these from your finance office. Finance
will provide a detailed disbursement listing, annotated with the payment
number and date, and the amount applicable to the repurchase order if
different from the payment amount. A finance division official will
certify the disbursement listing. His or her title and date of signature
will also be shown.)

\(vi\) Evidence of certification of the claim or claims, as applicable.

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APD 2800.12B, 09-01-99 E-27

**533.7002-2 Transmittal of the appeal file.**

\(a\) The contracting director is responsible for all the following:

\(1\) Forwarding the original and two copies of the appeal file to the
AGC by a transmittal letter.

\(2\) Including your detailed statement of facts in a memorandum of
position as a separate document.

\(3\) Preparing a list of recommended witnesses and the Government\'s
estimate (when appropriate) of the amount of any claim in the event of
an adverse decision.

\(4\) Giving the AGC a point of contact: name of individual, position,
title, and telephone number.

\(b\) Assigned counsel concurs on your memorandum and attaches a
statement of legal position.

\(c\) You must retain one copy of the appeal file.

\(d\) The trial attorney in OGC is responsible for all the following:

\(1\) Reviewing the appeal file for adequacy.

\(2\) Transmitting the file to the Board.

\(3\) Serving a copy of the file upon appellant.

**533.7003 The contracting officer\'s memorandum of position.**

\(a\) The memorandum of position is a chronological summary for the
trial attorney of the actions leading to the dispute and an explanation
of your actions. Include all the following in the memorandum:

\(1\) Identify the contract.

\(2\) State the nature of the contractor\'s claim.

\(3\) Cite pertinent portions of the contract.

\(4\) State your decision with citations to pertinent contract
provisions and a supporting explanation.

\(5\) Set out any new facts which developed since the decision was made.

\(b\) You must sign the memorandum of position.

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E-28 APD 2800.12B, 09-01-99

\(c\) Submit the memorandum of position to the AGC simultaneously with
the appeal file, but as a separate document. The memorandum is not a
part of the appeal file. Do not reference it in the index.

**533.7004 Action following decision of the GSA Board of Contract
Appeals.**

\(a\) [Implementation]{.underline}. Board decisions are promptly
implemented, but may be postponed if further appeal or a motion for
reconsideration is considered. If the issue is over quantum, you should
consider paying the undisputed amount to minimize later interest
payments to the contractor. Either party may:

\(1\) Appeal a Board decision in the United States Court of Appeals for
the Federal Circuit.

\(2\) File a motion for reconsideration by the Board within 30 calendar
days from the receipt date of the Board decision.

\(b\) [Cost recovery]{.underline}. You need not take any further action
(other than administrative) if the Board affirms your original decision,
unless you must recover costs from the contractor. If a recovery is due,
initiate collection by one of the following:

\(1\) Contract amendment adjusting the contract price.

\(2\) Written demand for immediate payment. (In excess cost cases,
Office of Finance will normally pursue the necessary collection.) A
written demand must instruct the contractor to pay the General Services
Administration and send the payment to the appropriate GSA finance
office. Provide a copy of the written demand to the finance office for
information and follow-up.

\(3\) Set off against other contracts. You may use this alternative to
facilitate collection if the contractor is receiving revenue from other
contracts.

\(c\) [Appeals brought under the contract's disputes
clause]{.underline}. If the Board does not uphold your original decision
and provides for payment in favor of the contractor, prepare a
supplemental agreement and obtain AGC's concurrence. The supplemental
agreement will ensure against further litigation of the same dispute.
Forward a recommendation for payment to the appropriate finance office
with the original of the supplemental agreement and a copy of the
Board\'s decision.

\(d\) [Appeals brought under the Contract Disputes Act of
1978]{.underline}. If the Board does not uphold your original decision
and awards the contractor money, and the AGC informs you that the
Government will not appeal or move for reconsideration, complete the
Certificate of Finality attached to the Board\'s decision and return it
to assigned legal counsel. Counsel will forward the Board Decision,
Certificate of Finality, and FMS Forms 195, 196, and 197 (or 197A, as
appropriate) to the U.S. Department of Treasury, Financial Management
Service, for payment of monetary awards.

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APD 2800.12B, 09-01-99 E-29

**SUBCHAPTER F \--SPECIAL CATEGORIES OF CONTRACTING**

**PART 534 MAJOR SYSTEM ACQUISITION**

**RESERVED**

**PART 535 RESEARCH AND DEVELOPMENT CONTRACTING**

**RESERVED**

**PART 536 CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS**

**SUBPART 536.1 GENERAL**

**536.101 Applicability.**

If a requirement in this part is inconsistent with a requirement in
another GSAR part, this part takes precedence.

**536.102 Definitions.**

\"Construction activity\" means the organizational level of the agency
that has authority and responsibility for the architectural,
engineering, and other technical or administrative aspects of design and
construction.

\"Statutory cost limitations\" means the cost limits included in the
agency\'s statutory authorization or annual appropriations act (by law).

**SUBPART 536.2 SPECIAL ASPECTS OF CONTRACTING FOR CONSTRUCTION**

**536.201 Evaluation of contractor performance.**

\(a\) The construction activity must prepare a performance report for:

\(1\) Each construction contract of \$100,000 or more.

\(2\) Each construction contract regardless of value where any element
of performance was either unsatisfactory or outstanding.

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APD 2800.12B, 09-01-99 F-1

\(b\) Each Regional construction activity must establish an evaluation
report file. The file may be either automated or manual. It must
implement procedures for all the following:

\(1\) Maintaining alphabetically the evaluation reports.

\(2\) Cross referencing all names under which a contractor does business
with GSA.

\(3\) Ensuring that fully qualified personnel with knowledge of the
contractor\'s performance prepare and review the evaluation reports.

**536.202 Specifications.**

Under the Resource Conservation and Recovery Act of 1976 (RCRA), 42
U.S.C. 6962, the Environmental Protection Agency issued rules in 40 CFR
Part 247 allowing the use of certain waste by-products as substitutes
for energy-intensive raw materials. These by-products are known as
recovered materials. EPA's rules state that agencies should use
construction products containing recovered materials to the maximum
extent feasible if technical specifications allow their alternative use.
RCRA does not require the use of products containing recovered materials
if they will not meet performance requirements or their use would be
unsatisfactory for technical reasons.

**536.203 Government estimate of construction cost.**

\(a\) A copy of the independent Government estimate must be submitted to
you before the date and time for bid opening or the date for receipt of
proposals. (See paragraphs (b) and (c).)

\(b\) Before releasing a solicitation amendment that may affect price, a
revised Government estimate must be provided.

\(c\) You may disclose cost figures in the Government estimate during
negotiation, but only to the extent considered necessary for arriving at
a fair and reasonable price. The overall amount of the Government
estimate cannot be disclosed before award. After award, you may reveal
the independent Government estimated price, upon request, to those firms
or individuals who submitted proposals.

\(d\) Use the Government estimate to evaluate offers, as a guide in
conducting contract negotiations or negotiations of contract
modifications, and as a tool for determining the reasonableness of
prices.

**536.204 Disclosure of the magnitude of construction projects.**

For construction projects over \$10,000,000, show the magnitude in
ranges having increments of \$10,000,000 (e.g., \$25,000,000 to
\$35,000,000). You may use a multiple of \$10,000,000 (e.g.,
\$70,000,000 to \$100,000,000), but the lower figure must be at least
half of the higher figure.

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F-2 APD 2800.12B, 09-01-99

**536.213 Special procedures for sealed bidding in construction
contracting.**

**536.213-3 Invitations for bids.**

**536.213-370 Bids that include alternates.**

\(a\) The base bid must include all features essential to a sound and
adequate building design. If it appears that funds available for a
project may be insufficient to include all desired features in the base
bid, you may issue a solicitation for a base bid and include one or more
alternates in the order of priority. Use alternates only if they are
clearly justified and involve substantial amounts of work in relation to
the base bid. Their use must be limited and should involve only \"add\"
alternates.

\(b\) Before opening bids that include alternates, determine, and record
in the contract file, the amount of funds available for the project. The
amount recorded must be announced at the beginning of the bid opening.
The amount is the controlling factor in determining the low bidder. This
amount may be increased later when determining the alternate items to
award to the low bidder if the following condition is met: the award
amount of the base bid plus the combination of alternate items does not
exceed the amount offered for the base bid and the same combination of
alternate items by any other responsible bidder whose bid conforms to
the solicitation. This requirement prevents the displacement of the low
bidder by manipulating the alternates to be used.

**536.213-371 Bids that include options.**

\(a\) Subject to the limitations in (c) below, you may include options
in contracts if it is in the Government\'s interest.

\(b\) The appropriate use of options may include, but is not limited to,
any of the following:

\(1\) If additional work is anticipated but funds are not expected to be
available at the time of award, and it would not be practicable to award
a separate contract or to permit an additional contractor to work on the
same site.

\(2\) If fixed building equipment, e.g. elevators or escalators, will be
installed under the construction contract and it is advantageous to have
the installer of the equipment maintain and service the equipment during
the warranty period.

\(c\) You must not use options under any of the following conditions:

\(1\) The prospective option represents known firm requirements for
which funds are available unless competition for the option quantity is
impracticable once the initial contract is awarded.

\(2\) The contractor will incur undue risks; e.g., the price or
availability of necessary materials or labor is not reasonably
foreseeable.

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APD 2800.12B, 09-01-99 F-3

\(d\) Solicitations containing option provisions must state the period
within which the options may be exercised.

\(e\) Solicitations must state whether the basis of award is inclusive
or exclusive of the options. Before issuing a solicitation that includes
evaluated options, you must determine that there is reasonable certainty
that funds will be made available to permit exercise of the option.

**536.213-372 Bids that include both alternates and options.**

\(a\) Solicitations may include both alternates and options if the
conditions in 536.213-370, Bids that include alternates, and
536.213-371, Bids that include options, are satisfied. In these
solicitations, the low bidder for purposes of award is the responsible
bidder offering the lowest aggregate price for the base bid and the
alternates, in the order of priority listed in the solicitation, that
provide the most work features within the funds available at bid
opening, plus all options designated to be evaluated.

\(b\) The basis of award may require the evaluation of options
associated with alternates if the related alternate is selected.

\(c\) Before opening bids that include both alternates and options,
determine, and record in the contract file, the amount of funds
available for the project (i.e., for the base bid and alternate work).
The amount recorded must be announced at the beginning of the bid
opening. This amount may be increased later when determining the
alternate items to be awarded to the low bidder if the following
condition is met: the award amount of the base bid and evaluated options
plus the alternate items does not exceed the amount offered for the base
bid, the evaluated options, and the same combination of alternate items
by any other responsible bidder whose bid conforms to the solicitation.

**536.270 Exercise of options.**

\(a\) If exercising an option, notify the contractor, in writing, within
the time period specified in the contract.

\(b\) Exercise options only after determining that all the following
conditions exist:

\(1\) Funds are available.

\(2\) The requirement covered by the option fulfills an existing
Government need.

\(3\) Exercising the option is the most advantageous method of
satisfying the Government\'s need, price and other factors considered.

\(c\) Before exercising an option, you must determine that the action
complies with the option's terms and this section's requirements.
Include your written determination in the contract file.

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F-4 APD 2800.12B, 09-01-99

\(d\) The contract modification, or other written document which
notifies the contractor of the exercise of the option, must cite the
option clause as authority. If exercising an unpriced or unevaluated
option, cite the statutory authority permitting the use of other than
full and open competition (see FAR 6.302 and 517.207).

**536.271 Project labor agreements.**

\(a\) [Authority]{.underline}. This subpart implements the Presidential
memorandum of June 5, 1997, on using project labor agreements (PLAs) on
Federal construction projects. The Presidential memorandum authorizes
executive departments and agencies to require PLAs on large and
significant construction projects for facilities to be owned by a
Federal department or agency.

\(b\) [Applicability]{.underline}. These policies and procedures apply
to all GSA activities authorized to award contracts for construction of
facilities to be owned by a Federal department or agency. You may use a
PLA in leasehold arrangements, Federally funded projects, and other
appropriate circumstances.

\(c\) [Definitions]{.underline}.

\"Construction\" means construction, alteration, or repair (including
dredging, excavating, and painting) of buildings, structures, or other
real property. The terms buildings, structures, or other real property
are defined further in Federal Acquisition Regulation (FAR) 36.102.

\"Labor organization\" means a labor organization engaged in an industry
affecting commerce, and any agent of such an organization, and includes
any organization of any kind, and any agency, or employee representation
committee, group, association, or plan so engaged in which employees
participate and which exists for the purpose, in whole or in part, of
dealing with employers concerning grievances, labor disputes, wages,
rates of pay, hours, or other terms or conditions of employment, and any
conference, general committee, joint or system board, or joint council
so engaged which is subordinate to a national or international labor
organization (42 U.S.C. 2000e(d)).

\"Large and significant project\" means a Federal construction project
with a total cost to the Federal Government of more than \$5 million.

\"Project Labor Agreement\" (PLA) means an agreement between the
contractor, subcontractors, and the union(s) representing workers. Under
a PLA, the contractor and subcontractors on a project and the union(s)
agree on terms and conditions of employment for the project,
establishing a framework for labor-management cooperation to advance the
Government\'s procurement interest in cost, efficiency, and quality.

\(d\) [Policy]{.underline}.

\(1\) You may, on a project-by-project basis, use a PLA on a large and
significant project when both of the following conditions apply:

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APD 2800.12B, 09-01-99 F-5

\(i\) A PLA will advance the Government\'s procurement interests.

\(ii\) No laws that apply to the specific construction project preclude
the use of the PLA.

\(2\) Do not require any contractor to enter into a PLA with any
particular labor organization.

\(3\) The use of a PLA is not intended to create any right or benefit,
substantive or procedural, enforceable by a nonfederal party against the
United States, its departments, and agencies, its officers or employees,
or any other person.

\(e\) [Procedures]{.underline}.

\(1\) As part of procurement planning for construction projects with a
total estimated cost to the Federal Government of more than \$5 million,
you may consider requiring a PLA.

\(2\) To require a PLA, you must determine whether use of a PLA will
advance the Government\'s procurement interests in all the following
areas:

\(i\) Cost, efficiency, and quality.

\(ii\) Promoting labor-management stability.

\(iii\) Promoting compliance with applicable legal requirements
governing safety and health, equal employment opportunity, labor and
employment standards, and other matters.

\(3\) In making the determination required by paragraph (b) above,
consult with the agency project or program manager and obtain guidance
from the Agency Labor Advisor and assigned legal counsel. You should
consider the following factors:

\(i\) Whether past experience with construction projects in the location
where the project will be performed indicates that a PLA will be
effective.

\(ii\) Whether delays in performance of the construction contract would
have significant adverse impact on the mission of the agency or
operation of the installation or facility.

\(iii\) Whether any law applies to the specific construction project
that would impede use of a PLA.

\(iv\) Whether the labor organizations in the area can provide a
reliable source of skilled, experienced building trades workers in all
crafts needed on the job site for the project\'s duration (taking into
consideration other major construction work in the area).

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F-6 APD 2800.12B, 09-01-99

\(v\) Whether the Government can benefit from uniform work rules and
working conditions and established procedures for resolving labor
disputes, no strike/no lock-out protections.

\(vi\) Whether the Government can benefit from increased stability and
labor peace that derives from greater labor-management cooperation.

\(vii\) Whether the requirements for a PLA will unreasonably restrict
competition.

\(viii\) Other relevant information.

\(4\) Document the rationale supporting your decision to require a PLA
in the contract file.

\(5\) Provide the following information to the Agency Labor Advisor (GSA
Acquisition Policy Division (MVP)):

\(i\) A brief description of the project.

\(ii\) The estimated cost.

\(iii\) A copy of the document supporting your decision to require a
PLA.

\(iv\) A copy of the solicitation.

**SUBPART 536.5 CONTRACT CLAUSES**

**536.570 Supplemental provisions and clauses.**

**536.570-1 Definitions.**

Insert 552.236-70, Definitions, in solicitations and contracts if
construction, dismantling, demolition, or removal of improvements is
contemplated.

**536.570-2 Authorities and limitations.**

Insert 552.236-71, Authorities and Limitations, in solicitations and
contracts if construction, dismantling, demolition, or removal of
improvements is contemplated and the contract amount is expected to
exceed the simplified acquisition threshold.

**536.570-3 Specialist.**

Insert 552.236-72, Specialist, in solicitations and contracts for
construction if the technical sections of the contract require unusual
experience or specialized facilities for adequate contract performance.

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APD 2800.12B, 09-01-99 F-7

**536.570-4 Basis of award---construction contract.**

\(a\) Insert a provision substantially the same as 552.236-73, Basis of
Award - Construction Contract, in solicitations for fixed-price
construction contracts except if any of the following conditions apply:

\(1\) The solicitation requires the submission of a lump-sum bid only.

\(2\) The solicitation is for an indefinite quantity contract.

\(3\) The contract amount is not expected to exceed the simplified
acquisition threshold.

\(b\) Instructions for use.

  -------------------------------------- --------------------------------
  **If** the solicitation requests the   **Then** use the ...
  submission of a ...                    

  \(1\) Base bid and unit prices         Basic provision

  \(2\) Base bid and options             Provision with its Alternate I.

  \(3\) Base bid and alternates          Provision with its Alternate II

  \(4\) Base bid, alternates, and        Provision with its Alternate III
  options                                
  -------------------------------------- --------------------------------

**536.570-5 Working hours.**

Insert 552.236-74, Working Hours, in solicitations and contracts if
construction, dismantling, demolition, or removal of improvements is
contemplated and the contract amount is expected to exceed the
simplified acquisition threshold.

**536.570-6 Use of premises.**

Insert 552.236-75, Use of Premises, in solicitations and contracts if
construction, dismantling, demolition, or removal of improvements is
contemplated.

**536.570-7 Measurements.**

Insert 552.236-76, Measurements, in solicitations and contracts if
construction, dismantling, demolition, or removal of improvements is
contemplated.

**536.570-8 Specifications and drawings.**

Insert the clause at 552.236-77, Specifications and Drawings, in
solicitations and contracts if construction, dismantling, demolition, or
removal of improvements is contemplated and the contract amount is
expected to exceed the simplified acquisition threshold.

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F-8 APD 2800.12B, 09-01-99

**536.570-9 Shop drawings, coordination drawings, and schedules.**

Insert the clause at 552.236-78, Shop Drawings, Coordination Drawings,
and Schedules, in solicitations and contracts if construction is
contemplated and the contract amount is expected to exceed the
simplified acquisition threshold.

**536.570-10 Samples.**

Insert the clause at 552.236-79, Samples, in solicitations and contracts
for construction if the technical sections of the contract require the
submission and approval of samples.

**536.570-11 Heat.**

Insert the clause at 552.236-80, Heat, in solicitations and contracts if
construction, dismantling, demolition, or removal of improvements is
contemplated.

**536.570-12 Use of equipment by the Government.**

Insert the clause at 552.236-81, Use of Equipment by the Government, in
contracts requiring heating and air-conditioning of existing buildings
if it may be necessary for the Government to operate all or part of the
equipment before final acceptance of the contract.

**536.570-13 Subcontracts.**

Insert 552.236-82, Subcontracts, in solicitations and contracts for
construction if the contract amount is expected to exceed the simplified
acquisition threshold.

**536.570-14 Requirement for a project labor agreement.**

Insert a clause substantially the same as 552.236-83, Requirement for a
Project Labor Agreement, in solicitations and contracts that will
require a project labor agreement.

**SUBPART 536.6 ARCHITECT-ENGINEER SERVICES**

**536.602 Selection of firms for architect-engineer contracts.**

\[Reserved\]

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APD 2800.12B, 09-01-99 F-9

**PART 537 SERVICE CONTRACTING**

**SUBPART 537.1 SERVICE CONTRACTS \-- GENERAL**

**537.101 Definitions.**

\"Contracts for building services\" means contracts for services
relating to the operation and maintenance of a building (for example,
janitorial; window washing; snow removal; trash removal; lawn and
grounds care; inspection, maintenance and repair of fixed equipment
(e.g., elevators, air-conditioning, heating systems)) and protection or
guard service.

**537.106 Funding and term of service contracts.**

517.101 identifies GSA-specific statutory authority for multiyear
contracts for certain services.

**537.110 Solicitation provisions and contract clauses.**

**[Contracts for Building Services]{.underline}**

The following provision and clauses apply to contracts for building
services:

\(a\) Insert 552.237-70, Qualifications of Offerors, in solicitations if
the contract amount is expected to exceed the simplified acquisition
threshold.

\(b\) Insert 552.237-71, Qualifications of Employees, in solicitations
and contracts if the contract amount is expected to exceed the
simplified acquisition threshold. If needed, use supplemental provisions
or clauses to describe specific requirements for employees performing
work on the contract.

\(c\) Insert 552.237-72, Prohibition Regarding \"Quasi-Military Armed
Forces,\" in solicitations and contracts for guard service.

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APD 2800.12B, 09-01-99 F-11

**SUBPART 537.2 ADVISORY AND ASSISTANCE SERVICES**

**537.201 Definitions.**

\"Evaluation or analysis of a proposal" means proposal evaluation as
described in FAR 15.305. It includes:

\(a\) Cost or price evaluation using cost or price analysis, as defined
in FAR 15.801, to determine if the cost or price is reasonable and the
offeror\'s understanding of the work and ability to perform the
contract.

\(b\) Past performance evaluation, to assess the offeror\'s ability to
perform the contract.

\(c\) Technical evaluation, to ensure that the proposal meets the
minimum requirements in the solicitation and to analyze and assess the
technical acceptability of the proposal and the offeror\'s ability to
accomplish the technical requirements of the solicitation.

The extraction of factual information from a proposal or arranging such
information in a list, matrix, or other format, without making any
related determinations, assessments, rankings or analyses, does not
constitute evaluation or analysis of a proposal within the meaning of
section 6002 of the Federal Acquisition Streamlining Act (FASA).

"Proposal" means a proposal submitted for an initial contract award.
(See FAR 37.203(d)). It does not include proposals submitted after
contract award, such as value engineering proposals, proposals related
to contract modifications, claims, or other contract administration
actions.

"Readily available" means that employees with the requisite training and
capability are employed by the agency, capable of handling additional
work considering other duties assigned by management, and the travel and
other cost associated with using covered personnel does not exceed the
projected cost of a contract for evaluation and analysis services.

"Requisite training and capability" means training and capability
necessary to successfully perform the task or contract at issue in the
time and in the manner required. It may include relevant experience,
recent performance of work of similar size and scope, specific training
and other factors the contracting officer determines are necessary to
the successful performance of the task or contract at issue.

**537.204 Guidelines for determining availability of personnel.**

\(a\) [Authority]{.underline}. You are authorized to make the
determinations required by FAR 37.204 unless the HCA designates another
agency official.

\(b\) [Policy]{.underline}. You, or the HCA's designee, must make the
determination whether GSA personnel with the requisite training and
capabilities are readily available to perform the evaluation or analysis
before issuing a solicitation which includes evaluation and analysis
services (see FAR 37.205).

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\(c\) [Identifying qualified personnel]{.underline}. You, or the HCA\'s
designee, must base the determination on information received in
response to a survey conducted as follows:

\(1\) If the estimated cost of evaluation and analysis services to be
obtained under a contract or order is less than \$2,500, the
administrative cost and time associated with conducting the search and
other costs, such as travel, will likely exceed the cost of providing
the services under the contract or order. In this case, the survey need
only include the appropriate Assistant Commissioner, Assistant Regional
Administrator, or designee within the contracting organization (e.g.,
FSS, FTS, PBS) at the location (e.g., Region, Central Office) where the
services are needed.

\(2\) If the estimated cost of the evaluation and analysis services to
be obtained under a contract or order is expected to exceed \$2,500, the
survey must include all the following:

\(i\) The appropriate Assistant Commissioner, Assistant Regional
Administrator, or designee at the location where the services are
needed, and managers within other GSA Regions and Central Office of the
contracting organization (e.g., FSS, FTS, PBS).

\(ii\) Other Federal agencies that are reasonably expected to have
covered personnel with the requisite training and capability at the
location where the services are needed.

\(d\) [Decisions on availability of personnel]{.underline}. In
responding to a survey to determine the availability of covered
personnel, agency officials may make management decisions on the best
use of available personnel as provided in FAR 37.204(b)(2). Generally,
you, or the HCA\'s designee, should request that decisions on
availability be made by a management official at a level higher than the
employee's immediate supervisor.

\(e\) [Documentation]{.underline}. The determination required by FAR
37.204 may be incorporated in the acquisition plan or made a part of
another document prepared in the normal course of a procurement action.
The file should, at a minimum, describe:

\(1\) Who was surveyed and a summary of the responses received.

\(2\) The circumstances requiring the use of outside evaluators.

\(3\) Actions GSA will take to avoid organizational or other conflicts
of interest under\
FAR 9.5.

\(4\) The competitive relationship between prospective offerors,
including proposed subcontractors, and the prospective evaluator(s).

\(f\) [Indefinite delivery contracts for evaluation and analysis
services]{.underline}. You may issue an indefinite delivery contract for
evaluation and analysis services if there is a reasonable expectation
that there will be occasions when personnel with the requisite training
and

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APD 2800.12B, 09-01-99 F-13

capabilities will not be readily available to perform the evaluation and
analysis services covered by the contract.

\(1\) Before issuing a solicitation for an indefinite delivery contract,
the appropriate agency official should consider manpower and workload
projections over the proposed contract period. This should help avoid
unnecessarily incurring the cost of soliciting offers and awarding a
contract. Document the acquisition file accordingly.

\(2\) The appropriate agency official should establish procedures for
making determinations regarding particular evaluations before orders are
placed under the contract.

**537.270 Contract clause.**

Insert the clause at 552.237-73, Restriction on Disclosure of
Information, in solicitations and contracts for proposal evaluation and
analysis services.

**PART 538 FEDERAL SUPPLY SCHEDULE CONTRACTING**

**SUBPART 538.2 ESTABLISHING AND ADMINISTERING FEDERAL SUPPLY
SCHEDULES**

**538.270 Evaluation of multiple award schedule (MAS) offers.**

\(a\) The Government will seek to obtain the offeror's best price (the
best price given to the most favored customer). However, the Government
recognizes that the terms and conditions of commercial sales vary and
there may be legitimate reasons why the best price is not achieved.

\(b\) Establish negotiation objectives based on a review of relevant
data and determine price reasonableness.

\(c\) When establishing negotiation objectives and determining price
reasonableness, compare the terms and conditions of the MAS solicitation
with the terms and conditions of agreements with the offeror's
commercial customers. When determining the Government's price
negotiation objectives, consider the following factors:

\(1\) Aggregate volume of anticipated purchases.

\(2\) The purchase of a minimum quantity or a pattern of historic
purchases.

\(3\) Prices taking into consideration any combination of discounts and
concessions offered to commercial customers.

\(4\) Length of the contract period.

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\(5\) Warranties, training, and/or maintenance included in the purchase
price or provided at additional cost to the product prices.

\(6\) Ordering and delivery practices.

\(7\) Any other relevant information, including differences between the
MAS solicitation and commercial terms and conditions that may warrant
differentials between the offer and the discounts offered to the most
favored commercial customer(s). For example, an offeror may incur more
expense selling to the Government than to the customer who receives the
offeror's best price, or the customer (e.g., dealer, distributor,
original equipment manufacturer, other reseller) who receives the best
price may perform certain value-added functions for the offeror that the
Government does not perform. In such cases, some reduction in the
discount given to the Government may be appropriate. If the best price
is not offered to the Government, you should ask the offeror to identify
and explain the reason for any differences. Do not require offerors to
provide detailed cost breakdowns.

\(d\) You may award a contract containing pricing which is less
favorable than the best price the offeror extends to any commercial
customer for similar purchases if you make a determination that both of
the following conditions exist:

\(1\) The prices offered to the Government are fair and reasonable, even
though comparable discounts were not negotiated.

\(2\) Award is otherwise in the best interest of the Government.

**538.271 MAS contract awards.**

\(a\) MAS awards will be for commercial items as defined in FAR 2.101.
Negotiate contracts as a discount from established catalog prices.

\(b\) Before awarding any MAS contract, determine that the offered
prices are fair and reasonable (see FAR Subpart 15.4 and 538.270).
Document the negotiation and your determination using FAR 15.406-3 as
guidance.

\(c\) State clearly in the award document the price/discount
relationship between the Government and the identified commercial
customer (or category of customers) on which the award is predicated.

**538.272 MAS price reductions.**

\(a\) Section 552.238-75, Price Reductions, requires the contractor to
maintain during the contract period the negotiated price/discount
relationship (and/or term and condition relationship) between the
Government and the offeror\'s customer or category of customers on which
the contract award was predicated (see 538.271(c)). If a change occurs
in the contractor's commercial pricing or discount arrangement
applicable to the identified commercial

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customer (or category of customers) that results in a less advantageous
relationship between the Government and this customer or category of
customers, the change constitutes a "price reduction."

\(b\) Make sure that the contractor understands the requirements of
section 552.238-75 and agrees to report to you all price reductions as
provided for in the clause.

**538.273 Contract clauses.**

\(a\) [Multiple award schedules]{.underline}. Insert in solicitations
and contracts:

\(1\) 552.238-70, Identification of Electronic Office Equipment
Providing Accessibility for the Handicapped, if you include electronic
office equipment items.

\(2\) 552.238-71, Submission and Distribution of Authorized FSS Schedule
Pricelists. If GSA is not prepared to accept electronic submissions for
a particular schedule delete:

\(i\) Subparagraphs (c)(1)(ii) and (c)(3).

\(ii\) The subparagraph identifier \"(i)\" in (c)(1) and the word
\"and\" at the end of subparagraph (i).

\(3\) 552.238-72, Identification of Energy-Efficient Office Equipment
and Supplies Containing Recovered Materials or Other Environmental
Attributes.

\(4\) 552.238-73, Cancellation.

\(b\) [Multiple and single award schedules]{.underline}. Insert in
solicitations and contracts:

\(1\) 552.238-74, Contractor\'s Report of Sales.

\(2\) 52.238-75, Price Reductions.

\(3\) 552.238-76, Industrial Funding Fee.

**PART 539 ACQUISITION OF INFORMATION TECHNOLOGY**

**RESERVED**

**PART 540 \[RESERVED\]**

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F-16 APD 2800.12B, 09-01-99

**PART 541 ACQUISITION OF UTILITY SERVICES**

**SUBPART 541.4 ADMINISTRATION**

**541.401 Monthly and annual review.**

Unless other procedures are established, you must perform the review.

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APD 2800.12B, 09-01-99 F-17

**SUBCHAPTER G\--CONTRACT MANAGEMENT**

**PART 542 CONTRACT ADMINISTRATION AND AUDIT SERVICES**

**542.001 Definitions.**

\"Contract administration\" means Government actions taken after
contract award to obtain compliance with such contract requirements as
timely delivery of supplies or services, acceptance, payment, and
closing of the contract. These actions include technical, financial,
audit, legal, administrative, and managerial services in support of the
contracting officer. It may include additional tasks requested or needed
by the contracting activity including support in the pre-award phase of
contracting.

\"Procuring Contracting Officer\" (PCO) means the contracting officer
who awards the contract.

**SUBPART 542.1 CONTRACT AUDIT SERVICES**

**542.102 Assignment of contract audit services.**

\(a\) Request all audit services through the Assistant Inspector
General-Auditing or the Regional Inspector General-Auditing, as
appropriate.

\(b\) Follow the procedures in GSA Order, Audit resolution and follow-up
system (ADM P 2030.2B) for handling contract audit reports.

**SUBPART 542.2 CONTRACT ADMINISTRATION SERVICES**

**542.202 Assignment of contract administration.**

\(a\) Assignment of contract administration is the process whereby
identified functions, duties, or responsibilities related to the
administration of contracts are assigned to a contract administration
office (CAO) or an administrative contracting officer (ACO) within a
contracting office.

\(b\) Each contracting director must establish procedures that ensure
that qualified personnel perform contract administration activities in
an effective manner. Usually, the PCO or the ACO in the contracting
office performs these activities (but see paragraphs (c) - (g) of this
section).

\(c\) If it is more efficient, management may establish a separate CAO.
Consider each of the following:

\(1\) The nature and complexity of the contract.

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APD 2800.12B, 09-01-99 G-1

\(2\) The need to perform contract administration at or near the
contractor\'s facility or the place of performance.

\(3\) The availability of resources.

\(d\) You may designate one or more representatives to perform specified
functions such as quality assurance, production, price analysis, finance
and various engineering and technical specialties. The contracting
officer\'s representatives (CORs) may not enter into or modify a
contract or otherwise perform functions reserved for a contracting
officer (except see 543.202 for construction contracts).

\(e\) If you delegate contract administration to an ACO or designate a
contracting officer's technical representative (COTR) or contracting
officer's representative (COR), then provide the contractor with the
name of the ACO and any representative and identify the functions each
is authorized to perform.

\(f\) Provide or make available to the ACO a complete copy of the
contract file. Provide each COR and COTR with the contract file
information they need to perform their duties.

\(g\) You may delegate to an ACO functions other than those listed in
FAR 42.302 and 542.302(b) after obtaining approval from the Senior
Procurement Executive. Submit requests through the HCA. If approved,
follow FAR 42.202(c).

**SUBPART 542.3 CONTRACT ADMINISTRATION OFFICE FUNCTIONS**

**542.302 Contract administration functions.**

The ACO or CAO performs these additional functions only if and to the
extent specifically authorized by the PCO. Paragraphs (d) through (h)
apply only to ACOs in FSS.

\(a\) Negotiate and issue priced or unpriced orders under indefinite
delivery type contracts and basic ordering agreements.

\(b\) Terminate individual purchase, delivery, or task orders after
coordinating with the PCO.

\(c\) Assess liquidated damages.

\(d\) Issue change orders to modify the method of shipment, packing
requirements, the place of delivery, or specifications after
coordinating with the PCO.

\(e\) Accept or reject requests for acceptance of nonconforming supplies
involving other than a minor nonconformance after coordinating with the
PCO.

\(f\) Negotiate price adjustments and execute supplemental agreements
resulting from acceptances in (e) of this section.

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\(g\) Issue cure or show cause notices under FAR 49.402-3(b).

\(h\) Terminate the contract for default after coordinating with the
PCO.

**SUBPART 542.9 BANKRUPTCY**

**542.901 General.**

If a contractor becomes insolvent or files under any of the laws
relating to bankruptcy, insolvency, and dissolution of businesses (11
U.S.C. 101 et. seq.), you must protect the Government's rights
concerning both terminated and ongoing contracts. If you receive
notification of contractor financial difficulties, bankruptcy or
business dissolution, verify the accuracy of the information and follow
the procedures in 542.902. Information may come from various sources
including, but not limited to, the Industrial Operations Analyst (IOA),
COR or COTR, Office of Finance or Inspector General, an industry
association or a financial institution, another Federal agency or
contractor, Dun and Bradstreet, or a newspaper item.

**542.902 Procedures.**

\(a\) [Notice of financial difficulty]{.underline}. Upon notice and
verification that a contractor is experiencing financial difficulty,
take all the following actions:

\(1\) Determine whether the contractor is performing in a timely manner
and making satisfactory progress. Obtain recommendations from the IOA or
COR.

\(2\) Consider terminating the contract for default if performance has
been untimely or otherwise unsatisfactory and the reason was within the
contractor's control.

\(3\) Request that the IOA or COR monitor the contract more closely (for
example, visit the contractor\'s plant or the work site more frequently)
if contract termination is not considered necessary.

\(4\) Notify the Regional Small Business Administration (SBA) office and
the SBTA if a small business contractor is involved.

\(5\) Notify the bonding company if circumstances dictate.

\(b\) [Notice of bankruptcy]{.underline}. Upon notice that a contractor
has filed for bankruptcy, take all the following actions:

\(1\) Notify the contracting director, assigned counsel, the Office of
Finance and other interested parties. Notify the Inspector General if
you either:

\(i\) Suspect that the contractor may have fraudulently transferred
assets before filing for bankruptcy.

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\(ii\) Are aware of an ongoing audit or investigation of the contractor.

\(2\) Consider terminating the contract for default if performance has
been untimely or otherwise unsatisfactory and the reason was within the
contractor's control. Terminate only after obtaining concurrence of
legal counsel.

\(3\) Determine the status of and provide for the protection and
disposition of any Government-owned property. If special safeguards are
needed, obtain the names, addresses, and phone numbers of the local
Government officials concerned in the bankruptcy proceedings (e.g.,
sheriff, marshal, or the assigned Receiver or Trustee).

\(4\) Transmit promptly all relevant communications to legal counsel
(for example, notice of bankruptcy, notice of meeting of creditors, plan
of arrangement, status of such plan, claims bar date and address of the
Bankruptcy Court where proceedings were filed).

\(5\) Prepare, in consultation with assigned counsel, the preliminary,
contingent and, after reprocurement (if any), final proof of claim.

\(6\) Consult legal counsel regarding possible setoffs of Government
claims from retained and unpaid contractor earnings.

\(c\) [Notice of intent to dissolve a business or cease
operations]{.underline}. Upon notice and verification that a contractor
intends to dissolve a business or cease operations, take all the
following actions:

\(1\) Obtain the current status of contract(s) from the IOA or COR and
notify other directly interested parties. Do not request special visits
unless all other efforts to obtain the necessary information have
failed.

\(2\) Notify assigned legal counsel if a claim is either pending or
outstanding and obtain information that would aid in finalizing the
amount of the claim.

**SUBPART 542.11 PRODUCTION SURVEILLANCE AND REPORTING**

**542.1107 Contract clause.**

**[FSS Stock or Special Order Program]{.underline}**

Insert 552.242-70, Status Report of Orders and Shipments, in
solicitations and indefinite quantity and requirements contracts for
stock or special order program items. You also may use the clause in
indefinite delivery definite quantity contracts for stock or special
order program items when close monitoring is necessary because numerous
shipments are involved.

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**SUBPART 542.12 NOVATION AND CHANGE-OF-NAME AGREEMENTS**

**542.1203 Processing agreements.**

For any contract awarded under a small business set-aside, if the
proposed successor is a large business:

\(a\) Notify and solicit comments from the SBTA (see FAR 42.1203(b) and
(c)).

\(b\) If you believe that the transaction is intended to circumvent the
requirements and objectives of the small business program, do not
recognize the proposed successor.

\(c\) If a MAS contract is involved and other MAS small business
contracts exist for the same special item number(s), do not recognize
the proposed successor.

\(d\) If a MAS contract is involved and the contract has both set-aside
and non-set-aside special item numbers, cancel the set-aside items, and
process the novation request for the non-set-aside items.

**SUBPART 542.15 CONTRACTOR PERFORMANCE INFORMATION**

**542.1503 Procedures.**

\(a\) The contracting director reviews and considers any disagreement
between GSA and the contractor regarding GSA's evaluation of the
contractor. Based on the review, the contracting directors issues the
ultimate conclusion on the performance evaluation.

\(b\) Promptly provide a copy of the contracting director\'s ultimate
conclusion to the contractor.

\(c\) When responding to another department or agency request for past
performance information, include a copy of any related contractor
comments and contracting director\'s ultimate conclusion.

**542.1503-3 Performance evaluation.**

The HCA reviews any disagreement between the parties regarding a
contractor's performance evaluation. The HCA may delegate this
responsibility to a level not below the contracting officer\'s
supervisor.

**542.1503-70 Responsibilities.**

\(a\) [Senior Procurement Executive]{.underline}. The Senior Procurement
Executive evaluates each Service's system for collecting and applying
contract performance information to ensure compliance with the FAR and
GSAM.

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\(b\) [Heads of Services]{.underline}. Consistent with FAR 42.1500 and
this subpart, the Head of each Service must take all the following
actions:

\(1\) Establish mechanisms for systematically collecting and maintaining
positive and negative information on contractor performance.

\(2\) Identify pertinent performance data elements for collection.

\(3\) Ensure that contractor performance information is readily
available to contracting officials and other individuals with
procurement-related responsibilities.

\(4\) Clearly identify the officials responsible for collecting,
disseminating, and applying this information in the acquisition process.

\(c\) [Contracting officers]{.underline}. Follow the procedures in FAR
42.15, this subpart, and those established by the Head of the Service.
Systematically collect and appropriately use contractor performance
information.

**542.1503-71 Information to collect.**

The system for collecting contractor performance data should include, as
appropriate:

\(a\) Timeliness of delivery or performance, for example:

\(1\) Adherence to contract delivery schedules.

\(2\) Resolution of delays.

\(3\) Number of "show cause" letters and "cure notices" issued.

\(4\) Number of delinquent deliveries.

\(5\) Number of contract extensions resulting from contractor-caused
delays.

\(6\) Timely submission or performance or required tests.

\(b\) Conformance of product or service to contract requirements, for
example:

\(1\) Quality of workmanship.

\(2\) Reliability.

\(3\) Adequacy of correction of defects.

\(4\) Number of safety defects.

\(5\) Number of product rejections.

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\(6\) Results of laboratory tests.

\(7\) Number and extent of warranty problems.

\(c\) Customer comments, for example:

\(1\) Number and quality of positive comments.

\(2\) Number and nature of complaints.

\(3\) Adequacy of resolving customer complaints.

\(d\) Terminations for default.

\(e\) On-the-job safety performance record, including the number of lost
or restricted workdays due to occupational injuries in comparison to the
national average.

\(f\) Adequacy of contractor's quality assurance system.

\(g\) Compliance with other key contract provisions, for example:

\(1\) Subcontracting program.

\(2\) Labor standards.

\(3\) Safety standards.

\(4\) Reporting requirements.

\(h\) Exhibiting customer-oriented behavior.

\(i\) Other performance elements identified by the Service.

**SUBPART 542.70 AUDIT OF CONTRACTOR\'S RECORDS**

**542.7001 General.**

The Office of Audits audits contractor's records if required by law,
regulation, or sound business judgment. These audits include periodic or
special request audits necessary to determine a contractor's financial
condition, adequacy of its accounting system, integrity and reliability.
Coordinate with technical specialists, finance and audit personnel to
achieve the maximum benefits from these audits.

**542.7002 Purpose of audit.**

You may obtain from audits advice or recommendations on the:

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\(a\) Propriety of amounts paid, or to be paid, by GSA to a contractor
when such amounts are based on a cost or time determination or on
variable features related to the results of the contractor's operations.

\(b\) Adequacy of a contractor's measures to safeguard Government
property in its custody or under its control.

\(c\) Contractor's compliance with contractual obligations concerning
progress payments, advance payments, guaranteed loans, cash return
provisions, and price adjustments.

\(d\) Reasonableness of a contractor\'s termination settlement
proposals.

**542.7003 Additional internal controls.**

\(a\) Do not rely solely on contractual audit rights. Establish internal
controls or procedures for any flexible or variable features of these
contracts:

\(1\) Cost-reimbursement.

\(2\) Time-and-materials or labor-hour.

\(3\) Requirements or indefinite-quantity.

For example, for a time-and-materials or labor-hour contract performed
at a Government facility or elsewhere, provide for the review of time
records. Provide for this review even if the contractor is subject to
supervision by Government personnel.

\(b\) Establish these internal controls or procedures prior to the
commencement of contract performance. Use any reasonable and reliable
method or procedure that will enable the Government to determine the
correctness of the charges for such matters as the time spent on the job
and materials or supplies received. If needed, obtain assistance from
the Assistant Inspector General for Auditing or the Field Audit Office.

**542.7004 Releasing or withholding of audit reports.**

The Freedom of Information Act requires the disclosure of Government
records subject to certain exceptions. Consult with both the Assistant
Inspector General for Auditing and the Office of General Counsel before
releasing or withholding a contract audit report.

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**PART 543 CONTRACT MODIFICATIONS**

**SUBPART 543.1 GENERAL**

**543.102 Policy.**

\(a\) Treat as a new procurement a modification for work outside the
scope of a contract. See requirements in each of the following:

\(1\) FAR Subpart 6.3 for justifications and approvals.

\(2\) FAR Subpart 5.2 and Subpart 505.2 for synopsizing.

\(b\) Execute a supplemental agreement to issue the modification.

**543.170 Changes in designated subcontractors, inspection and/or
production points.**

\(a\) Before executing a contract modification authorizing changes in
either a designated subcontractor or inspection or production point, you
must consider the impact of the change on the contractor\'s ability to
satisfy contract requirements. Use the same standards used to determine
that the contractor was responsible (see FAR 9.1 and 509.1).

\(b\) The modification must identify the nature of the change and the
effective date. In establishing an effective date, consider the time
necessary for effected offices to take required actions. A good practice
is to provide that orders placed before the effective date will remain
in effect as written.

**SUBPART 543.2 CHANGE ORDERS**

**543.202 Authority to issue change orders.**

This section applies to construction contracts.

\(a\) [COR authority]{.underline}. For a construction contract, you may
authorize a warranted COR to issue change orders. Authorization must be
in writing, on a contract-by-contract basis, and must identify any
limitations. For example, identify dollar limitations or specify that
authority is only valid in emergency situations.

\(b\) [Additional restrictions]{.underline}. Provide the following
instruction to the COR as part of the written authorization:

\(1\) For any single change order, preferred practice in GSA is that the
COR should avoid personally performing all of these actions:

\(i\) Determining the need for a change.

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\(ii\) Preparing the Government\'s cost estimate.

\(iii\) Conducting negotiations.

\(iv\) Issuing the change order.

\(v\) Inspecting the work.

\(2\) For a price-to-be-determined-later change order, if the COR
personally performs all the actions in (1) above, the change order must
be reviewed by a designated official before issuance or definitization.

\(c\) [Review change orders]{.underline}. For
price-to-be-determined-later change orders when the COR personally
performs all actions, you must either personally review each change
order or designate a capable official to perform the review. Consider
designating the COR\'s immediate supervisor or a higher-level official
within the organization. Avoid designating more than one official to
review change orders issued under an individual contract.

\(d\) [Coordination of change orders]{.underline}. Issue change orders
only after coordination, as appropriate, with quality control, finance,
audit or other technical personnel.

**543.205 Contract clauses.**

\(a\) [Construction]{.underline}.

\(1\) Insert 552.243-70, Pricing of Adjustments, in solicitations and
contracts if the contract:

\(i\) Amount is expected to exceed the simplified acquisition threshold.

\(ii\) Will be other than a cost type.

\(2\) Insert 552.243-71, Equitable Adjustments, in solicitations and
contracts containing FAR 52.243-4.

\(b\) [Multiple award schedules (MAS)]{.underline}. Insert 552.243-72,
Modifications (Multiple Award Schedule), in MAS solicitations and
contracts issued by GSA. For solicitations and contracts issued under
Federal Supply Classification (FSC) 65, you may use the clause with its
Alternate I for products ordered from authorized Prime Vendors.

**PART 544 SUBCONTRACTING POLICIES AND PROCEDURES**

**RESERVED**

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G-10 APD 2800.12B, 09-01-99

**PART 545 GOVERNMENT PROPERTY**

**RESERVED**

**PART 546 QUALITY ASSURANCE**

**SUBPART 546.3 CONTRACT CLAUSES**

**546.302 Fixed-price supply contracts.**

**546.302-70 Source inspection by Quality Approved Manufacturer.**

For contracts and solicitations issued by FSS:

\(a\) Insert the clause at 552.246-70, Source Inspection by Quality
Approved Manufacturer, in solicitations and contract that provide for
source inspection, except:

\(1\) Multiple award schedule contracts.

\(2\) Motor vehicle contracts.

\(3\) Contracts awarded by the FSS Services Acquisition Center, unless
you decide, together with the Central Office Quality Assurance Division
(FQA), that inspection by Government personnel is necessary.

\(b\) You may authorize inspection and testing at manufacturing plants
or other facilities located outside the United States, Puerto Rico, or
the Virgin Islands, under paragraph (a)(1) of the clause at 552.246-70
under any of the circumstances listed below. Coordinate the
authorization with FQA and document it in the file.

\(1\) Inspection services are available from another Federal agency with
primary inspection responsibility in the geographic area.

\(2\) An inspection interchange agreement exists with another agency for
inspection at a contractor's plant.

\(3\) The procurement is for the Agency for International Development
and specifies the area of source.

\(4\) Other considerations will ensure more economical and effective
inspection consistent with the Government's interest.

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**546.302-71 Source inspection.**

For solicitations and contracts issued by FSS, if Government personnel
at the source will perform inspection, insert 552.246-71, Source
Inspection by Government.

**546.312 Construction contracts.**

Insert the clause at 552.246-72, Final Inspection and Tests, in
solicitations and contracts for construction that include FAR 52.246-12,
Inspection of Construction.

**SUBPART 546.4 GOVERNMENT CONTRACT QUALITY ASSURANCE**

**546.4-0070 Scope of subpart.**

This subpart prescribes policies and procedures for the Federal Supply
Service. Use by other GSA activities is optional.

**546.402 Government contract quality assurance at source.**

\(a\) Government personnel or a Quality Approved Manufacturer must
perform source inspection of supplies under any of the following
contracts:

\(1\) FSS contracts selected for source inspection.

\(2\) Requirements contracts with a national scope, including shipments
to GSA distribution centers.

\(3\) Requirements contracts with a regional scope.

\(4\) Definite quantity contracts for stock items.

\(5\) Contracts for Class 8010 items.

\(6\) Contracts for:

\(i\) Special-purpose vehicles.

\(ii\) Trucks over 10,000 pounds gross vehicle weight (GVW).

\(iii\) Trucks weighing 10,000 pounds GVW or less, not covered by a
Federal standard.

\(iv\) Vehicles to be shipped outside the coterminous United States.

\(b\) Contracts may also provide for source inspection if the
contracting director both:

\(1\) Coordinates with FQA.

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\(2\) Determines it is in the Government\'s interest due to the critical
nature of the supplies.

**546.403 Government contract quality assurance at destination.**

Require inspection of supplies at destination under each of the
following:

\(a\) For purchases that exceed the micropurchase threshold, but not the
simplified acquisition threshold.

\(b\) For schedule contracts, except those selected for source
inspection.

\(c\) If contracting for either:

\(1\) Commercial or off-the-shelf products.

\(2\) Standard vehicles purchased for domestic consignees.

\(3\) Trucks weighing 10,000 pounds GVW or less, purchased for domestic
consignees using a Federal Standard.

**546.470 Testing.**

You may authorize testing to determine conformance with specifications
and standards at the facilities of any of the following:

\(a\) Federal agencies.

\(b\) Manufacturers.

\(c\) Independent testing laboratories.

\(d\) Others, as appropriate.

**546.470-1 Acceptance testing.**

\(a\) Acceptance testing determines conformance with purchase
descriptions or specifications before a shipment is accepted. Do not use
acceptance testing solely to furnish information to a producer or vendor
as to whether a product conforms with specification requirements.

\(b\) GSA normally bears the cost of services for acceptance testing of
samples of a shipment, except for retesting necessitated by prior
rejection.

**546.470-2 Certification testing.**

Certification testing determines whether an item conforms with a
specification for the purpose of executing a certificate of compliance
required by the specification. The contractor has responsibility for
certification testing.

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**SUBPART 546.7 WARRANTIES**

**546.704 Authority for use of warranties.**

Consider the criteria in FAR 46.703 and decide whether to use a warranty
in a specific acquisition.

**546.705 Limitations.**

The contracting director must approve the use of warranties in cost
reimbursement contracts, except those in FAR clauses 52.246-3 and
52.246-8.

**546.708 Warranties of data.**

\(a\) Use warranties of data only when you meet both of the following
conditions:

\(1\) You decide the use of a warranty is in the Government\'s interest.

\(2\) The contracting director concurs in your decision.

\(b\) The technical or specification manager has responsibility for
developing any warranties of data.

**546.709 Warranties of commercial items.**

The specification manager must advise you which of the following apply:

\(a\) Whether a specification contains a warranty.

\(b\) Whether a commercial warranty applies.

\(c\) If an extended warranty is necessary, and recommend the duration
of the extended warranty.

**546.710 Contract clauses.**

\(a\) Insert the clause at 552.246-17, Warranty of Supplies of a
Noncomplex Nature, instead of FAR 52.246-17 in solicitations and
contracts. Use the following alternates as applicable:

\(1\) [Commercial item acquisitions other than multiple award
schedules]{.underline}. Use the clause at 552.246-17 with its Alternate
I.

\(2\) [Other than commercial items in Class 8010]{.underline}. Use the
clause at 552.246-17 with its Alternate II.

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\(3\) [Other than commercial items in Class 8030 or 8040]{.underline}.
Use the clause at 552.246-17 with its Alternate III. In addition,
specify in the solicitation whether the items are \"noncritical end use
items \" or \"critical end use items\".

\(b\) [Multiple award schedules, except international
schedules]{.underline}. Insert the clause at 552.246-73, Warranty -
Multiple Award Schedule, in solicitations and contracts.

\(c\) [International multiple award schedules]{.underline}. Insert the
clause at 552.246-74, Warranty - International Multiple Award Schedule,
in solicitations and contracts.

\(d\) [Construction contracts expected to exceed the simplified
acquisition threshold]{.underline}. Insert the clause at 552.246-75,
Guarantees, in solicitations and contracts.

\(e\) [Pesticides]{.underline}. Insert the clause at 552.246-76,
Warranty of Pesticides, in solicitations and contracts involving the
procurement of pesticides.

**PART 547 TRANSPORTATION**

**SUBPART 547.3 TRANSPORTATION IN SUPPLY CONTRACTS**

**547.300 Scope of subpart.**

This subpart applies to FSS acquisitions.

**547.303 Standard delivery terms and contract clauses.**

**547.303-1 F.o.b origin.**

[Contractor Responsibilities]{.underline}

The contractor must both:

\(a\) Request a carrier routing from the applicable transportation zone
office on all shipments weighing 10,000 pounds or more.

\(b\) Mail the original of the commercial bill of lading (CBL), to the
office that authorized the CBL (applies to shipment on a CBL). Ensure
that the signature of the carrier's agent and the annotation required by
FAR 52.247-1 appear on the original and all copies of the CBL.

**547.304 Determination of delivery terms.**

**547.304-5 Exceptions.**

\(a\) [Solicitations that provide for delivery to Alaska, Hawaii, or
Puerto Rico]{.underline}. Include notice that the offeror may specify
delivery f.o.b. origin; f.o.b. vessel, part of shipment; f.o.b.
destination; or any combination of these. If appropriate, provide for
other delivery terms.

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\(b\) [Federal Supply Schedules]{.underline}. If f.o.b. destination is
offered for delivery within CONUS, attempt to obtain the same delivery
term for shipment to Alaska , Hawaii, or Puerto Rico.

**547.305 Solicitation provisions, contract clauses, and transportation
factors.**

\(a\) Insert 552.247-70, Placarding Railcar Shipments, in solicitations
and contracts if it is essential that the railcar doors be specially
positioned next to the unloading dock, platform, or warehouse door.

\(b\) Insert 552.247-71, Diversion of Shipment Under f.o.b. Destination
Contracts, in Stock, Special Order Program (SOP), and Single Award
Schedule solicitations and contracts which provide for f.o.b.
destination shipment.

**547.370 Restrictions on transportation to military installations.**

If the solicitation and contract provides for direct delivery to a
military installation, include applicable delivery restrictions.

**PART 548 VALUE ENGINEERING**

**548.1 POLICIES AND PROCEDURES**

**548.101 General.**

GSA Order, GSA Value Engineering Program (ADM 8030.1C) provides guidance
on using value engineering.

**PART 549 TERMINATION OF CONTRACTS**

**SUBPART 549.1 GENERAL PRINCIPLES**

**549.111 Review of proposed settlements.**

The HCA may establish procedures for the review and approval of
settlement agreements at a level above the contracting officer.

**SUBPART 549.4 TERMINATION FOR DEFAULT**

**549.402-6 Repurchase against contractor\'s account.**

\(a\) Place a brief explanation for the repurchase in the contract file.

\(b\) If practical, use the original contract terms, conditions, and
specification for the repurchase. Otherwise, obtain the advice of
assigned legal counsel before issuing a solicitation for similar
supplies or services.

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\(c\) If the reprocurement is delayed, you must protect the
Government\'s rights to recover reprocurement costs by documenting the
file to explain the circumstances of the delay.

**549.402-7 Other damages.**

\(a\) Even if the repurchase price does not exceed the price of the
supplies or services terminated, consider administrative costs incurred
for the repurchase. You may include all reprocurement costs in a single
demand letter (see FAR 49.402-6(c)). Include detailed documentation in
the contract file to support the Government's position that the
additional administrative costs were a direct result of the default.
Provide a summary of the additional administrative costs in the demand
letter.

\(b\) Administrative costs include any of these:

\(1\) Salaries and fringe benefits paid to Government employees who
perform work as a result of the default.

\(2\) Preaward survey expense incurred in qualifying reprocurement
contractors.

\(3\) Printing and distribution costs of the reprocurement solicitation
and repurchase contract.

\(4\) Travel, per diem.

\(c\) For administrative labor costs, record each of the following:

\(1\) Name, position, and organization of each employee performing work
activities as a consequence of the default.

\(2\) Date(s) of work and time(s) spent by each employee on the
repurchase.

\(3\) Description of specific tasks performed (for example, solicitation
preparation, clerical).

\(4\) Hourly rate of pay (straight time or overtime).

\(5\) Applicable fringe benefits.

\(6\) Explanation of how the time spent by the employees during the
reprocurement would have been used on other projects but for the
default.

\(d\) For other incurred administrative costs, include travel vouchers,
invoices, printing requisitions, and other appropriate evidence of
expenditures.

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**SUBPART 549.5 CONTRACT TERMINATION CLAUSES**

**549.502 Termination for convenience of the Government.**

**[Acquisitions Funded Through the Information Technology (IT)
Fund]{.underline}**

\(a\) You may use the clause at 552.249-70, Termination for Convenience
of the Government (Fixed-Price)(Short Form), when appropriate, in
solicitations and contracts for the acquisition and maintenance of
telephone systems funded through the Information Technology (IT) Fund.
Use this clause with FAR 52.249-1 or FAR 52.249-3 and 52.249-4.

\(b\) If you use the clause at 552.249-70, you must also insert
552.249-71, Submission of Termination Liability Schedule, in the
solicitation and contract.

**PART 550 EXTRAORDINARY CONTRACTUAL ACTIONS**

**550.001 Definitions.**

\"Approving authority,\" as used in FAR Part 50, means GSA's
Administrator.

**PART 551 USE OF GOVERNMENT SOURCES BY CONTRACTORS**

**RESERVED**

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**SUBCHAPTER H\--CLAUSES AND FORMS**

**PART 552 SOLICITATION PROVISIONS AND CONTRACT CLAUSES**

552.000 Scope of part.

**552.1 Instructions for Using Provisions and Clauses\
** 552.101-70 Using Part 552.\
552.102 Incorporating provisions and clauses.\
552.103 Identification of provisions and clauses.\
552.104 Procedures for modifying and completing provisions and clauses.\
552.105 Procedures for using alternates.\
552.107-70 Provisions and clauses prescribed in 552.1.

**552.2 Text of Provisions and Clauses\
**552.200 Scope of subpart.\
552.203-5 Covenant Against Contingent Fees.\
552.203-70 Price Adjustment for Illegal or Improper Activity.\
552.203-71 Restriction on Advertising.\
552.209-70 Product Removal from Qualified Products List.\
552.209-71 Waiver of First Article Testing and Approval Requirement.\
552.209-72 Supplemental Requirements for First Article Approval \--
Contractor\
Testing.\
552.209-73 Supplemental Requirements for First Article Approval \--
Government\
Testing.\
552.211-8 Time of Delivery.\
552.211-70 Brand Name or Equal.\
552.211-71 Standard References.\
552.211-72 Reference to Specifications in Drawings.\
552.211-73 Marking.\
552.211-74 Charges for Marking.\
552.211-75 Preservation, Packaging and Packing.\
552.211-76 Charges for Packaging and Packing.\
552.211-77 Packing List.\
552.211-78 Commercial Delivery Schedule (Multiple Award Schedule).\
552.211-79 Acceptable Age of Supplies.\
552.211-80 Age on Delivery.\
552.211-81 Time of Shipment.\
552.211-82 Notice of Shipment.\
552.211-83 Availability for Inspection, Testing, and Shipment/Delivery.\
552.211-84 Non-Compliance with Contract Requirements.\
552.212-70 Preparation of Offer (Multiple Award Schedule).\
552.212-71 Contract Terms and Conditions Applicable to GSA Acquisition
of\
Commercial Items.

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552.212-72 Contract Terms and Conditions Required to Implement Statutes
or\
Executive Orders Applicable to GSA Acquisition of Commercial Items.\
552.212-73 Evaluation \-- Commercial Items (Multiple Award Schedule).\
552.214-70 \"All or None\" Offers.\
552.214-71 Progressive Awards and Monthly Quantity Allocations.\
552.214-72 Bid Sample Requirements.\
552.215-70 Examination of Records by GSA.\
552.215-71 Examination of Records by GSA (Multiple Award Schedule).\
552.215-72 Price Adjustment \-- Failure to Provide Accurate
Information.\
552.216-70 Economic Price Adjustment - FSS Multiple Award Schedule
Contracts.\
552.216-71 Economic Price Adjustment - Stock and Special Order Program
Contracts.\
552.216-72 Placement of Orders.\
552.216-73 Ordering Information.\
552.217-70 Evaluation of Options.\
552.217-71 Notice Regarding Option(s).\
552.219-70 Allocation of Orders - Partially Set-aside Items.\
552.219-71 Notice to Offerors of Subcontracting Plan Requirements.\
552.219-72 Preparation, Submission, and Negotiation of Subcontracting
Plans.\
552.219-73 Goals for Subcontracting Plan.\
552.219-74 Section 8(a) Direct Award.\
552.223-70 Hazardous Substances.\
552.223-71 Nonconforming Hazardous Materials.\
552.223-72 Hazardous Material Information.\
552.225-8 Buy American Act \-- Trade Agreements \-- Balance of Payments
Program\
Certificate.\
552.225-9 Buy American Act \-- Trade Agreements \-- Balance of Payments
Program.\
552.225-70 Notice of Procurement Restriction - Hand or Measuring Tools
or Stainless\
Steel Flatware.\
552.227-70 Government Rights (Unlimited).\
552.227-71 Drawings and Other Data to Become Property of Government.\
552.228-70 Workers\' Compensation Laws.\
552.229-70 Federal, State, and Local Taxes.\
552.229-71 Federal Excise Tax - DC Government.\
552.232-1 Payments.\
552.232-8 Discounts for Prompt Payment.\
552.232-23 Assignment of Claims.\
552.232-25 Prompt Payment.\
552.232-70 Invoice Requirements.\
552.232-71 Adjusting Payments.\
552.232-72 Final Payment.\
552.232-73 Availability of Funds.\
552.232-74 Invoice Payments.\
552.232-75 Prompt Payment.\
552.232-76 Electronic Funds Transfer Payment.

GSAM\
ii APD 2800.12B, 09-01-99

552.232-77 Payment By Credit Card.\
552.233-70 Protests Filed Directly with the General Services
Administration.\
552.236-70 Definitions.\
552.236-71 Authorities and Limitations.\
552.236-72 Specialist.\
552.236-73 Basis of Award---Construction Contract.\
552.236-74 Working Hours.\
552.236-75 Use of Premises.\
552.236-76 Measurements.\
552.236-77 Specifications and Drawings.\
552.236-78 Shop Drawings, Coordination Drawings, and Schedules.\
552.236-79 Samples.\
552.236-80 Heat.\
552.236-81 Use of Equipment by the Government.\
552.236-82 Subcontracts.\
552.236-83 Requirement for a Project Labor Agreement.\
552.237-70 Qualifications of Offerors.\
552.237-71 Qualifications of Employees.\
552.237-72 Prohibition Regarding \"Quasi-Military Armed Forces.\"\
552.237-73 Restriction on Disclosure of Information.\
552.238-70 Identification of Electronic Office Equipment Providing
Accessibility for\
the Handicapped.\
552.238-71 Submission and Distribution of Authorized FSS Schedule
Pricelists.\
552.238-72 Identification of Energy-Efficient Office Equipment and
Supplies\
Containing Recovered Materials or Other Environmental Attributes.\
552.238-73 Cancellation.\
552.238-74 Contractor\'s Report of Sales.\
552.238-75 Price Reductions.\
552.238-76 Industrial Funding Fee.\
552.242-70 Status Report of Orders and Shipments.\
552.243-70 Pricing of Adjustments.\
552.243-71 Equitable Adjustments.\
552.243-72 Modifications (Multiple Award Schedule).\
552.246-17 Warranty of Supplies of a Noncomplex Nature.\
552.246-70 Source Inspection by Quality Approved Manufacturer.\
552.246-71 Source Inspection by Government.\
552.246-72 Final Inspection and Tests.\
552.246-73 Warranty - Multiple Award Schedule.\
552.246-74 Warranty - International Multiple Award Schedule.\
552.246-75 Guarantees.\
552.246-76 Warranty of Pesticides.\
552.247-70 Placarding Railcar Shipments.\
552.247-71 Diversion of Shipment Under f.o.b. Destination Contracts.\
. 552.249-70 Termination for Convenience of the Government (Fixed Price)
(Short\
Form).

GSAM\
APD 2800.12B, 09-01-99 iii

552.249-71 Submission of Termination Liability Schedule.\
552.252-5 Authorized Deviations in Provisions.\
552.252-6 Authorized Deviations in Clauses.\
552.270-1 Instructions to Offerors - Acquisition of Leasehold Interest
in Real\
Property.\
552.270-2 Historic Preference.\
552.270-3 Parties to Execute Lease.\
552.270-4 Definitions.\
552.270-5 Subletting and Assignment.\
552.270-6 Maintenance of Building and Premises - Right of Entry.\
552.270-7 Fire and Casualty Damage.\
552.270-8 Compliance with Applicable Law.\
552.270-9 Inspection - Right of Entry.\
552.270-10 Failure in Performance.\
552.270-11 Successors Bound.\
552.270-12 Alterations.\
552.270-13 Proposals for Adjustment.\
552.270-14 Changes.\
552.270-15 Liquidated Damages.\
552.270-16 Adjustment for Vacant Premises.\
552.270-17 Delivery and Condition.\
552.270-18 Default in Delivery - Time Extensions.\
552.270-19 Progressive Occupancy.\
552.270-20 Payment.\
552.270-21 Effect of Acceptance and Occupancy.\
552.270-22 Default by Lessor During the Term.\
552.270-23 Subordination, Nondisturbance and Attornment.\
552.270-24 Statement of Lease.\
552.270-25 Substitution of Tenant Agency.\
552.270-26 No Waiver.\
552.270-27 Integrated Agreement.\
552.270-28 Mutuality of Obligation.\
552.270-29 Acceptance of Space.

**552.3 Provision and Clause Matrixes**

552.300 Scope of subpart.

**PART 553 FORMS**

**553.1 General**

553.101 Requirements for use of forms.\
553.102 Current editions.\
553.170 Establishing and revising GSA forms.

GSAM\
iv APD 2800.12B, 09-01-99

**553.3 Illustrations of Forms**

553.300 Scope of subpart.\
553.300-70 Forms not illustrated.\
553.370-300-I Instructions for using the GSA Form 300, Order for
Supplies and\
Services.\
553.370-353-I Instructions for Completing GSA Form 353, Performance
Evaluation & Facilities Report (PEFR).\
553.370-618D GSA Form 618D, Statement to be Submitted When Work is\
Performed Personally.\
553.370-1378 GSA Form 1378, Record of, and Receipt for, Bids and
Responses.\
553.370-1458 GSA Form 1458, Motor Vehicle Shop Work Order, Repair and\
Purchase Order.\
553.370-1535A GSA Form 1535A, Recommendation for Award(s)
(Continuation).\
553.370-1602 GSA Form 1602, Notice Concerning Solicitation.\
553.370-1678 GSA Form 1678, Status Report of Orders and Shipments.\
553.370-1720 GSA Form 1720, Request for Release of Classified
Information to U.S. Industry.\
553.370-1766 GSA Form 1766, Structured Approach Profit/Fee Objective.\
553.370-2689 GSA Form 2689, Procurement Not Set Aside.\
553.370-2728 GSA Form 2728, Procurement Contract Register.\
553.370-3186 GSA Form 3186, Order for Supplies or Services.\
553.370-3186B GSA Form 3186B, Order for Supplies or Services (EDI).\
553.370-3410 GSA Form 3410, Request for Appointment.\
553.370-3471 GSA Form 3471, Abstract of Offers.\
553.370-3521 Blanket Purchasing Agreement\
553.370-3577 GSA Form 3577, Notice to Unsuccessful Offeror of Contract
Award.\
553.370-3521 Blanket Purchase Agreement\
553.370-3611 GSA Form 3611, Cover Page Source Selection Information.\
553.370-8002A GSA Form 8002A, Motor Vehicle Requisition Status.\
553.370-8002B GSA Form 8002B, Motor Vehicle Delivery Order.

GSAM\
APD 2800.12B, CHGE 1, 10-01-99 v

**SUBCHAPTER H\--CLAUSES AND FORMS**

**PART 552 SOLICITATION PROVISIONS AND CONTRACT CLAUSES**

**552.000 Scope of part.**

This part provides the text of provisions and clauses which are unique
to GSA or supplement the FAR.

**SUBPART 552.1 INSTRUCTIONS FOR USING PROVISIONS AND CLAUSES**

**552.101-70 Using Part 552.**

\(a\) [Definition]{.underline}. \"Clause,\" as used in this subpart,
means provision or clause as defined in FAR 52.101(a).

\(b\) [Numbering]{.underline}.

\(1\) Clauses which are \"substantially\" the same as FAR clauses and
clauses to be used instead of FAR clauses are identified as follows:

\(i\) The clause has the same title as a clause in the FAR.

\(ii\) The number 5 precedes the clause.

\(iii\) The clause appears under the same subsection number and caption
as in the FAR.

\(2\) Supplemental clauses are numbered in the same manner as the FAR,
except:

\(i\) The chapter number precedes the clause.

\(ii\) The subsection numbers begin with 70.

\(iii\) The clauses are sequentially numbered, e.g., 552.232-70,
552.232-71, etc.

\(c\) [Matrixes]{.underline}. Matrixes provide a guide to locating
clauses. Matrixes are included for:

\(1\) Simplified acquisitions.

\(2\) Supply, service, construction, and architect-engineer
solicitations and contracts.

\(3\) FAR and GSAR clauses for utility contracts
(sole-supplier-regulated rates).

\(4\) Leases of real property.

GSAM\
APD 2800.12B, 09-01-99 H-1

\(d\) Individuals drafting solicitations must research pertinent
regulations or make other determinations to ensure that:

\(1\) The clauses selected fit the procurement.

\(2\) There are no restrictions on their use.

\(3\) When one clause depends on the use of another clause, the
solicitation includes all necessary clauses.

**552.102 Incorporating provisions and clauses.**

You may incorporate clauses prescribed in the GSAR for solicitations and
contracts by reference.

**552.103 Identification of provisions and clauses.**

[Deviations]{.underline}. If the GSAR prescribes a class deviation from
a FAR clause, identify the clause by the GSAR citation (e.g., 552.232-8
PROMPT PAYMENT DISCOUNT (NOV 1987) (DEVIATION FAR 52.232-8)).

**552.104 Procedures for modifying and completing provisions and
clauses.**

\(a\) The procedures in FAR 52.104 apply when you modify or complete a
GSAR provision or clause. Provisions and clauses shall not be modified
unless the GSAR authorizes their modification.

\(b\) You do not need to identify modifications of clauses which result
from negotiations unless you issue an amendment to the solicitation.

\(c\) In general, you should modify FAR or GSAR clauses only for
individual cases. If a contracting activity develops a modification for
repeated use, furnish a copy to the Office of GSA Acquisition Policy
(MV) for potential inclusion in the GSAR.

**552.105 Procedures for using alternates.**

The procedures in FAR 52.105 apply to GSAR Part 552.

**552.107-70 Provisions and clauses prescribed in Subpart 552.1.**

\(a\) Insert the provision at 552.252-5, Authorized Deviations in
Provisions, in solicitations that include any FAR or GSAR clause with an
authorized deviation. You must use this provision in lieu of the FAR
provision at 52.252-5.

GSAM\
H-2 APD 2800.12B, 09-01-99

\(b\) Insert the clause at 552.252-6, Authorized Deviations in Clauses,
in solicitations and contracts that include any FAR or GSAR clause with
an authorized deviation. You must use this clause in lieu of the FAR
clause at 52.252-6.

**SUBPART 552.2 TEXT OF PROVISIONS AND CLAUSES**

**552.200 Scope of subpart.**

This subpart sets forth the text of all GSAR provisions and clauses. It
also cross-references the location in the GSAR that prescribes the use
of each provision and clause.

**552.203-5 Covenant Against Contingent Fees.**

As prescribed in 503.404, insert the following clause:

COVENANT AGAINST CONTINGENT FEES (FEB 1990)

\(a\) The Contractor warrants that no person or agency has been employed
or retained to solicit or obtain this contract upon an agreement or
understanding for a contingent fee, except a bona fide employee or
agency. For breach or violation of this warranty, the Government shall
have the right to annul this contract without liability or, in its
discretion, to deduct from the contract price or consideration, or
otherwise recover the full amount of the contingent fee.

\(b\) \"Bona fide agency,\" as used in this clause, means an established
commercial or selling agency (including licensed real estate agents or
brokers), maintained by a Contractor for the purpose of securing
business, that neither exerts nor proposes to exert improper influence
to solicit or obtain Government contracts nor holds itself out as being
able to obtain any Government contract or contracts through improper
influence.

\"Bona fide employee,\" as used in this clause, means a person, employed
by a Contractor and subject to the Contractor\'s supervision and control
as to time, place, and manner of performance, who neither exerts nor
proposes to exert improper influence to solicit or obtain Government
contracts nor holds out as being able to obtain any Government contract
or contracts through improper influence.

\"Contingent fee,\" as used in this clause, means any commission,
percentage, brokerage, or other fee that is contingent upon the success
that a person or concern has in securing a Government contract.

\"Improper influence,\" as used in this clause, means any influence that
induces or tends to induce a Government employee or officer to give
consideration or to act regarding a Government contract on any basis
other than the merits of the matter.

(End of clause)

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APD 2800.12B, 09-01-99 H-3

**552.203-70 Price Adjustment for Illegal or Improper Activity.**

As prescribed in 503.104-9, insert the following clause:

PRICE ADJUSTMENT FOR ILLEGAL OR IMPROPER ACTIVITY (SEP 1999)

\(a\) If the head of the contracting activity (HCA) or his or her
designee determines that there was a violation of subsection 27(a) of
the Office of Federal Procurement Policy Act, as amended (41 U.S.C.
423), as implemented in the Federal Acquisition Regulation, the
Government, at its election, may \--

\(1\) Reduce the monthly rental under this lease by 5 percent of the
amount of the rental for each month of the remaining term of the lease,
including any option periods, and recover 5 percent of the rental
already paid;

\(2\) Reduce payments for alterations not included in monthly rental
payments by 5 percent of the amount of the alterations agreement; or

\(3\) Reduce the payments for violations by a Lessor\'s subcontractor by
an amount not to exceed the amount of profit or fee reflected in the
subcontract at the time the subcontract was placed.

\(b\) Prior to making a determination as set forth above, the HCA or
designee shall provide to the Lessor a written notice of the action
being considered and the basis therefor. The Lessor shall have a period
determined by the agency head or designee, but not less than 30 calendar
days after receipt of such notice, to submit in person, in writing, or
through a representative, information and argument in opposition to the
proposed reduction. The agency head or designee may, upon good cause
shown, determine to deduct less than the above amounts from payments.

\(c\) The rights and remedies of the Government specified herein are not
exclusive, and are in addition to any other rights and remedies provided
by law or under this lease.

(End of clause)

**552.203-71 Restriction on Advertising.**

As prescribed in 503.570-2, insert the following clause:

RESTRICTION ON ADVERTISING (SEP 1999)

The Contractor shall not refer to this contract in commercial
advertising or similar promotions in such a manner as to state or imply
that the product or service provided is endorsed or preferred by the
White House, the Executive Office of the President, or any other element
of the Federal Government, or is considered by these entities to be
superior to other products or services. Any

GSAM\
H-4 APD 2800.12B, 09-01-99

advertisement by the Contractor, including price-off coupons, that
refers to a military resale activity shall contain the following
statement: \"This advertisement is neither paid for nor sponsored, in
whole or in part, by any element of the United States Government.\"

(End of clause)

**552.209-70 Product Removal from Qualified Products List.**

As prescribed in 509.206-2, insert the following clause:

PRODUCT REMOVAL FROM QUALIFIED PRODUCTS LIST (SEP 1999)

If, during the performance of this contract, the product being furnished
is for any reason (except those outlined in paragraph 3.1.1 of the
applicable Federal or Interim Federal Specification for security
cabinets, security vault doors and changeable combination padlocks)
removed from the Qualified Products List, the Government may terminate
this contract for default.

(End of clause)

**552.209-71 Waiver of First Article Testing and Approval Requirement.**

As prescribed in 509.306, insert the following provision:

WAIVER OF FIRST ARTICLE TESTING AND APPROVAL REQUIREMENT (SEP 1999)

\(a\) Offerors must submit an offer including testing and approval,
however, an offeror may submit an alternate offer excluding testing and
approval, provided the offeror satisfies the requirements for the
waiving of first article testing.

\(b\) Before a waiver of the first article testing requirement of this
solicitation will be considered, the offeror is requested to identify
the procurement under which the product offered was previously approved
and accepted:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.\
(Offeror to insert both contract number and applicable national stock
number.)

(End of provision)

**552.209-72 Supplemental Requirements for First Article Approval \--
Contractor Testing.**

As prescribed in 509.308-1, insert the following clause:

SUPPLEMENTAL REQUIREMENTS FOR FIRST ARTICLE APPROVAL - CONTRACTOR
TESTING (SEP 1999)

\(a\) The term \"Contracting Officer\" as used in FAR 52.209-3, First
Article Approval - Contractor Testing, means the Administrative
Contracting Officer (ACO).

GSAM\
APD 2800.12B, 09-01-99 H-5

\(b\) The Contractor shall have either (1) the necessary inspection and
test equipment at the Contractor\'s plant to perform first article
testing, or (2) if the inspection and test equipment is not available, a
letter of commitment from a laboratory acceptable to the Government to
perform the inspection and testing.

\(c\) When the Government elects to witness the first article testing,
the Contractor shall conduct the testing between the hours of 7:00 AM
and 5:00 PM, Monday thru Friday, unless a different time is agreed to by
the ACO.

\(d\) The first article test report shall contain:

\(1\) The complete test data, the test method(s) used and date of test;

\(2\) Signature and printed name of the individual who performed the
inspection;

\(3\) Applicable specification/CID and/or drawing numbers;

\(4\) Name and type of test equipment used; and

\(5\) All numerical values as a result of testing with each noted as to
whether it passes or fails the contract test requirements.

\(e\) The first article shall be retained by the Contractor as the
manufacturing standard and will be kept in a secure area, under control
of the Quality Assurance Specialist (QAS), to protect against possible
changes or alterations for the life of the contract. If the first
article sample is destroyed during testing or damaged to a point making
it unusable as a standard, the Contractor, upon Government request,
shall provide a second sample.

\(f\) If the Contractor delivers the approved first article as part of
the contract quantity, it shall be in the last scheduled delivery under
the contract.

(End of clause)

**552.209-73 Supplemental Requirements for First Article Approval \--
Government Testing.**

As prescribed in 509.308-2, insert the following clause:

SUPPLEMENTAL REQUIREMENTS FOR FIRST ARTICLE APPROVAL - GOVERNMENT
TESTING (SEP 1999)

\(a\) The term \"Contracting Officer\" as used in FAR 52.209-4, First
Article Approval - Government Testing, means the Administrative
Contracting Officer (ACO).

\(b\) The first article shall be retained by the Contractor as the
manufacturing standard and will be kept in a secure area, under the
control of the Quality Assurance Specialist (QAS) to protect against
possible changes or alterations for the life of the contract. If the
first article sample

GSAM\
H-6 APD 2800.12B, 09-01-99

is destroyed during testing or damaged to a point making it unusable as
a standard, the Contractor, upon Government request, shall provide a
second sample.

\(c\) If the Contractor delivers the approved first article as part of
the contract quantity, it shall be in the last scheduled delivery under
the contract.

(End of clause)

**552.211-8 Time of Delivery.**

As prescribed in 511.404(a)(1) insert the following clause:

TIME OF DELIVERY (SEP 1999)

\(a\) The time of delivery for each item means the time required after
receipt of an order (1) to make delivery to a destination in the case of
delivered prices, or (2) to place shipment in transit in the case of
f.o.b. origin prices.

\(b\) Delivery is required to be made at the point(s) specified within
\_\_\_\_\_\_days after receipt of order.

(End of clause)

[Alternate I (SEP 1999)]{.underline}. If it is necessary to show
different delivery times for different items or groups of items, the
Contracting Officer may substitute the following paragraph (b) for
paragraph (b) of the basic clause.

\(b\) Delivery is required to be made at the point(s) specified within
the number of calendar days after receipt of order as indicated below:

ITEMS OR GROUPS OF ITEMS REQUIRED DELIVERY\
([Special Item Numbers or Nomenclature)]{.underline} [TIME (DAYS ARO)\
]{.underline}
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**552.211-70 Brand Name or Equal.**

As prescribed in 511.170-3(c), insert the following provision:

BRAND NAME OR EQUAL (FEB 1996)

(As used in this clause, the term \"brand name\" includes identification
of products by make and model.)

GSAM\
APD 2800.12B, 09-01-99 H-7

\(a\) Identification of items in this solicitation by a \"brand name or
equal\" description is intended to indicate the quality and
characteristics of products that will be satisfactory and is not
intended to be restrictive. Offers of \"equal\" products (including
products of the brand name manufacturer other than the one described by
brand name) will be considered for award if such products are clearly
identified in the offers and are determined by the Government to meet
fully the salient characteristics requirements listed in the
solicitation.

\(b\) Unless clearly indicated in the offer that an \"equal\" product is
offered, the offer shall be considered as offering a referenced brand
name product.

\(c\) (1) An offeror proposing to furnish an \"equal\" product shall
insert the name of the product in the space provided in the solicitation
or otherwise clearly identify the product. The Government\'s
determination as to the acceptability of the \"equal\" product shall be
based on information furnished or otherwise identified in the offer as
well as other information reasonably available to the purchasing
activity. CAUTION TO OFFERORS. The purchasing activity is not
responsible for locating or securing any information not identified in
the offer and reasonably available to the purchasing activity.
Accordingly, to ensure that sufficient information is available, the
offeror must furnish with its offer all descriptive material (such as
cuts, illustrations, drawings, or other information) necessary for the
purchasing activity to (i) determine whether the product offered meets
the specified salient characteristics, and (ii) establish exactly what
the offeror proposes to furnish. The information furnished may include
specific references to information previously furnished or otherwise
reasonably available to the purchasing activity.

\(2\) An offeror proposing to modify a product to make it conform to the
requirements of the solicitation shall (i) include in its offer a clear
description of the proposed modifications and (ii) clearly mark any
descriptive material to show the proposed modifications.

\(3\) In sealed bidding, modifications proposed after bid opening to
make a product conform to a brand name product referenced in the
solicitation will not be considered.

(End of provision)

**552.211-71 Standard References.**

As prescribed in 511.204(a), insert the following clause:

STANDARD REFERENCES (SEP 1999)

\(a\) All documents and publications (such as, but not limited to,
manuals, handbooks, codes, standards and specifications) cited in this
contract for the purpose of establishing requirements applicable to
equipment, materials, or workmanship under this contract, shall be
deemed to be incorporated herein as fully as if printed and bound with
the specifications of this contract, in accordance with the following:

GSAM\
H-8 APD 2800.12B, 09-01-99

\(1\) Wherever reference is made to Standard Specifications of the
Public Buildings Service, Interim Federal Specifications, Interim
Amendments to Federal Specifications, Interim Federal Standards, or
Interim Amendments to Federal Standards, the Contractor shall comply
with the requirements set out in the issue or edition identified in this
contract.

\(2\) Wherever reference is made to any such document other than those
specified in subparagraph (1) above, the Contractor shall comply with
the requirements set out in the edition specified in this contract, or
if not specified, the latest edition or revision thereof, as well as the
latest amendment or supplement thereto, in effect on the date of the
solicitation on this project, except as modified by, as otherwise
provided in, or as limited to type, class or grade, by the
specifications of this contract.

\(b\) Upon request the Contractor shall make available at the job site
within a reasonable time, a copy of each trade manual and standard which
is incorporated by reference in this contract and which governs quality
and workmanship.

(End of clause)

**552.211-72 Reference to Specifications in Drawings.**

As prescribed in 511.204(b), insert the following clause:

REFERENCES TO SPECIFICATIONS IN DRAWINGS (FEB 1996)

If military or other drawings are made a part of this contract, any
reference in the drawings to Federal specifications or standards will be
considered to be a reference to the date of such Federal specification
or standard identified in the contract. If the date of the Federal
specification or standard is not identified in the contract, the
edition, including re­visions thereto, in effect on the date the
solicitation is issued will apply.

(End of clause)

**552.211-73 Marking.**

As prescribed in 511.204(c)(1), insert the following clause:

MARKING (FEB 1996)

\(a\) [General requirements]{.underline}. Interior packages, if any, and
exterior shipping containers shall be marked as specified elsewhere in
the contract. Additional marking requirements may be specified on
delivery orders issued under the contract. If not otherwise specified,
interior packages and exterior shipping containers shall be marked in
accordance with the following standards:

\(1\) [Deliveries to civilian activities]{.underline}. Supplies shall be
marked in accordance with Federal Standard 123, edition in effect on the
date of issuance of the solicitation.

GSAM\
APD 2800.12B, 09-01-99 H-9

\(2\) [Deliveries to military activities]{.underline}. Supplies shall be
marked in accordance with Military Standard 129, edition in effect on
the date of issuance of the solicitation.

\(b\) [Improperly marked material]{.underline}. When Government
inspection and acceptance are at destination, and delivered supplies are
not marked in accordance with contract requirements, the Government has
the right, without prior notice to the Contractor, to perform the
required marking, by contract or otherwise, and charge the Contractor
therefor at the rate specified elsewhere in this contract. This right is
not exclusive, and is in addition to other rights or remedies provided
for in this contract.

(End of clause)

**552.211-74 Charges for Marking.**

As prescribed in 511.204(c)(2), insert a clause substantially as
follows:

CHARGES FOR MARKING (FEB 1996)

The rate provided for in paragraph (b) of 552.211-73, Marking, is
\$\_\_\_[\*]{.underline}\_\_\_ per man-hour or fraction thereof.

(End of clause)

\**The rate to be inserted in the above clause shall be determined and
published by the Commissioner, Federal Supply Service, or a designee*.

**552.211-75 Preservation, Packaging and Packing.**

As prescribed in 511.204(c)(3), insert the following clause:

PRESERVATION, PACKAGING, AND PACKING (FEB 1996)

Unless otherwise specified, all items shall be preserved, packaged, and
packed in accordance with normal commercial practices, as defined in the
applicable commodity specification. Packaging and packing shall comply
with the requirements of the Uniform Freight Classification and the
National Motor Freight Classification (issue in effect at time of
shipment) and each shipping container of each item in a shipment shall
be of uniform size and content, except for residual quantities. Where
special or unusual packing is specified in an order, but not
specifically provided for by the contract, such packing details must be
the subject of an agreement independently arrived at between the
ordering agency and the Contractor.

(End of clause)

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H-10 APD 2800.12B, 09-01-99

**552.211-76 Charges for Packaging and Packing.**

As prescribed in 511.204(c)(4), insert a clause substantially as
follows:

CHARGES FOR PACKAGING AND PACKING (FEB 1996)

If supplies shipped to a GSA wholesale distribution center are not
packaged and packed in accordance with contract requirements, the
Government has the right, without prior notice to the Contractor, to
perform the required repackaging/repacking, by contract or otherwise,
and charge the Contractor therefor at the rate of
\$\_\_\_[\*]{.underline}\_\_ per man-hour or fraction thereof. The
Contractor will also be charged for material costs, if incurred. This
right is not exclusive, and is in addition to other rights or remedies
provided for in this contract.

(End of clause)

\**The rate to be inserted in the above clause shall be determined by
the Commissioner, Federal Supply Service, or a designee*.

**552.211-77 Packing List.**

As prescribed in 511.204(d), insert the following clause:

PACKING LIST (FEB 1996)

\(a\) A packing list or other suitable shipping document shall accompany
each shipment and shall indicate:

\(1\) Name and address of the consignor;

\(2\) Name and complete address of the consignee;

\(3\) Government order or requisition number;

\(4\) Government bill of lading number covering the shipment (if any);
and

\(5\) Description of the material shipped, including item number,
quantity, number of containers, and package number (if any).

\(b\) When payment will be made by Government commercial credit card, in
addition to the information in (a) above, the packing list or shipping
document shall include:

\(1\) Cardholder name and telephone number and

\(2\) The term \"Credit Card.\"

(End of clause)

GSAM\
APD 2800.12B, 09-01-99 H-11

**552.211-78 Commercial Delivery Schedule (Multiple Award Schedule).**

As prescribed in 511.404(a)(2), insert the following clause:

COMMERCIAL DELIVERY SCHEDULE (MULTIPLE AWARD SCHEDULE) (FEB 1996)

\(a\) [Time of Delivery]{.underline}. The Contractor shall deliver to
destination within the number of calendar days after receipt of order
(ARO) in the case of F.O.B. Destination prices, or to place of shipment
in transit in the case of F.O.B. Origin prices, as set forth below.
Offerors shall insert in the \"Time of Delivery (days ARO)\" column in
the schedule of Items a definite number of calendar days within which
delivery will be made. In no case shall the offered delivery time exceed
the Contractor\'s normal commercial practice. The Government requires
the Contractor\'s normal commercial delivery time, as long as it is less
than the \"STATED\" delivery time(s) shown below. If the Offeror does
not insert a delivery time in the schedule of items, the Offeror will be
deemed to offer delivery in accordance with the Government\'s stated
delivery time as stated below:

ITEMS OR GROUP OF ITEMS GOVERNMENT\'S STATED CONTRACTOR\'S\
(Special Item Number or DELIVERY TIME NORMAL COMMERCIAL\
Nomenclature) (DAYS ARO) DELIVERY TIME\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(b\) [Expedited Delivery Times]{.underline}. For those items that can
be delivered quicker than the delivery times in paragraph (a), above,
the Offeror is requested to insert below, a time (hours/days ARO) that
delivery can be made when expedited delivery is requested.

ITEM OR GROUP OF ITEMS EXPEDITED DELIVERY TIME\
(Special Item Number or Nomenclature) (HOURS/DAYS ARO)\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(c\) Overnight and 2-Day Delivery Times. Ordering activities may
require overnight or 2-day delivery. The Offeror is requested to
annotate its price list or by separate attachment identify the items
that can be delivered overnight or within 2-days. Contractors offering
such delivery services will be required to state in the cover sheet to
its FSS price list details concerning this service.

(End of clause)

GSAM\
H-12 APD 2800.12B, 09-01-99

**552.211-79 Acceptable Age of Supplies.**

As prescribed in 511.404(a)(3)(i), insert the following clause:

ACCEPTABLE AGE OF SUPPLIES (FEB 1996)

The supplies furnished under this contract shall not be more than
\_\_\_\_\_ months old, beginning with the first full month after the
date of manufacture marked on the container. For the purpose of this
clause, supplies shall be considered to be furnished (1) when they are
offered to the Government for inspection and testing, or (2) on the date
of shipment if shipment is authorized to be made without prior
inspection by the Government. If the age of the supplies furnished under
this contract is greater than the specified period, the Government may
exercise its right to reject the supplies.

(End of clause)

[Alternate I (FEB 1996)]{.underline}. For items having a limited
shelf-life, the sentence below should be substituted for the first
sentence of the basic clause when authorized:

The supplies furnished under this contract shall not be more than
\_\_\_\_days old, beginning with the date of manufacture (month, day,
year) marked on the container.

**552.211-80 Age on Delivery.**

As prescribed in 511.404(a)(3)(ii) insert the following clause:

AGE ON DELIVERY (FEB 1996)

Included in the description of each shelf-life item is a statement
regarding the \"age on delivery.\" The age of the item(s) shall not
exceed the number of months shown in the item description, counted from
the first day of the month after the month of manufacture to the date of
delivery to the specified delivery point(s). If the age of the supplies
delivered under this contract is greater than the number of months
shown, the Government may exercise its right to reject the supplies.

(End of clause)

**552.211-81** **Time of Shipment.**

As prescribed in 511.404(a)(4), insert the following clause:

TIME OF SHIPMENT (FEB 1996)

Shipment is required within \_\_\_\_\_\_\_\_\_\_\_calendar days after
receipt of order.

(End of clause)

GSAM\
APD 2800.12B, 09-01-99 H-13

[Alternate I (FEB 1996)]{.underline}. If the contract will require
shipment more than 45 calendar days after receipt of the order, the
following paragraph should be added to the basic clause.

Each delivery order will specify that shipment is required no later than
the number of days shown above. If such order also states that \"Early
Shipment is Precluded,\" the Contractor agrees to make shipment no
sooner than \_\_\_\_calendar days after receipt of order. Earlier
shipments may result in nonacceptance of the supplies at the delivery
point at the time of arrival.

(*The second number to be inserted should be 15 calendar days less than
the first number*.)

**552.211-82 Notice of Shipment.**

As prescribed in 511.404(a)(5), insert the following clause:

NOTICE OF SHIPMENT (FEB 1996)

If specified in an order placed under this contract, the Contractor
shall, at the time each shipment is made on such order, furnish a notice
of shipment to either the consignee or the ordering office or both, as
specified. This requirement may be satisfied by completion and return of
appropriate forms furnished by the ordering office or by the furnishing
of copies of bills of lading, freight bills, or similar documents in
accordance with normal commercial practice if such document clearly
identifies the order number, items and quantities shipped, date of
shipment, point of origin, method of shipment and routing, and the name
of initial carrier.

(End of clause)

**552.211-83 Availability for Inspection, Testing, and
Shipment/Delivery.**

As prescribed in 511.404(a)(6), insert the following clause:

AVAILABILITY FOR INSPECTION, TESTING, AND SHIPMENT/DELIVERY (FEB 1996)

\(a\) The Government requires that the supplies be made avail­able for
inspection and testing within \_\_[\*]{.underline}\_\_ calendar days
after receipt of *\[Insert \"Notice of Award\" or \"order*\"\], and be
\[*Insert \"shipped\" or \"delivered\"*\] within
\_\_[\*]{.underline}\_\_ calendar days after receipt of (1) notice of
approval and release by the Government inspector or (2) authorization to
ship without Government inspection.

\(b\) Failure to make supplies available for inspection and testing or
to \[*Insert \"ship\" or \"deliver*\"\] as required by this clause may
result in termination of this contract for default.

(End of clause)

GSAM\
H-14 APD 2800.12B, 09-01-99

[Alternate I (FEB 1996)]{.underline}. If the contract is for stock
items, the Contracting Officer shall insert \"shipped\" or \"ship\" in
the basic clause, add the following paragraph (b) and redesignate
paragraph (b) of the basic clause as paragraph (c).

\(b\) If notice of approval and release by the Government inspector or
authorization to ship without Government inspection is received before
\_\_[\*]{.underline}\_\_calendar days after receipt of the \[*Insert
\"Notice of Award\" or \"order*\"\], receipt of such notice shall be
deemed to be received on the \_\_[\*]{.underline}\_\_calendar day after
receipt of \[*Insert \"Notice of Award\" or \"order*\"\]. Shipments
shall not be made before the \_\_[\*]{.underline}\_\_ calendar day after
receipt of the \[*Insert \"Notice of Award\" or \"order\"*\] unless
authorized in writing by the Contracting Officer.

*\* Entries are normally the same number of days specified for
availability*.

**552.211-84 Non-Compliance with Contract Requirements.**

As prescribed in 511.404(b), insert the following clause:

NON-COMPLIANCE WITH CONTRACT REQUIREMENTS (FEB 1996)

In the event the Contractor, after receiving written notice from the
Contracting Officer of non-compliance with any requirement of this
contract, fails to initiate promptly such action as may be appropriate
to comply with the specified requirement within a reasonable period of
time, the Contracting Officer shall have the right to order the
Contractor to stop any or all work under the contract until the
Contractor has complied or has initiated such action as may be
appropriate to comply within a reasonable period of time. The Contractor
will not be entitled to any extension of contract time or payment for
any costs incurred as a result of being ordered to stop work for such
cause.

(End of clause)

**552.212-70 Preparation of Offer (Multiple Award Schedule).**

As prescribed in 512.301(a)(1), insert the following clause:

PREPARATION OF OFFER (MULTIPLE AWARD SCHEDULE) (AUG 1997)

\(a\) Definitions. *Concession*, as used in this solicitation, means a
benefit, enhancement or privilege (other than a discount), which either
reduces the overall cost of a customer\'s acquisition or encourages a
customer to consummate a purchase. Concessions include, but are not
limited to freight allowance, extended warranty, extended price
guarantees, free installation and bonus goods.

*Discount*, as used in this solicitation, means a reduction to catalog
prices (published or unpublished). Discounts include, but are not
limited to, rebates, quantity discounts,

GSAM\
APD 2800.12B, 09-01-99 H-15

purchase option credits, and any other terms or conditions other than
concessions) which reduce the amount of money a customer ultimately pays
for goods or services ordered or received. Any net price lower than the
list price is considered a "discount" by the percentage difference from
the list price to the net price.

\(b\) For each Special Item Number (SIN) included in an offer, the
Offeror shall provide the information outlined in paragraph (c).
Offerors may provide a single response covering more than one SIN, if
the information disclosed is the same for all products under each SIN.
If discounts and concessions vary by model or product line, offerors
shall ensure that information is clearly annotated as to item or items
referenced.

\(c\) Provide information described below for each SIN:

\(1\) Two copies of the offeror's current published (dated or otherwise
identified) commercial descriptive catalogs and/or price list(s) from
which discounts are offered. If special catalogs or price lists are
printed for the purpose of this offer, such descriptive catalogs or
price lists shall include a statement indicating the special catalog or
price list represent a verbatim extract from the Offeror's commercial
catalog and/or price list and identify the descriptive catalog and/or
price list from which the information has been extracted.

\(2\) Next to each offered item in the commercial catalog and/or price
list, the Offeror shall write the special item number (SIN) under which
the item is being offered. Unless a special catalog or price list is
submitted, all other items shall be marked "excluded," lined out, and
initialed by the offeror.

\(3\) The discount(s) offered under this solicitation. The description
of discounts offered shall include all discounts, such as prompt payment
discounts, quantity/dollar volume discounts (indicate whether
models/products can be combined within the SIN or whether SINs can be
combined to earn discounts), blanket purchase agreement discounts, or
purchase option credits. If the terms of sale appearing in the
commercial catalogs or price list on which an offer is based are in
conflict with the terms of this solicitation, the latter shall govern.

\(4\) A description of concessions offered under this solicitation which
are not granted to other customers. Such concessions may include, but
are not limited to, an extended warranty, a return/exchange goods
policy, or enhanced or additional services.

\(5\) If the Offeror is a dealer/reseller or the Offeror will use
dealers to perform any aspect of contract awarded under this
solicitation, describe the functions, if any, that the dealer/reseller
will perform.

(End of clause)

GSAM\
H-16 APD 2800.12B, 09-01-99

**552.212-71 Contract Terms and Conditions Applicable to GSA Acquisition
of Commercial\
Items.**

As prescribed in 512.301(a)(2), insert the following clause:

CONTRACT TERMS AND CONDITIONS APPLICABLE TO GSA ACQUISITION OF
COMMERCIAL ITEMS (SEP 1999)

The Contractor agrees to comply with any provision or clause that is
incorporated herein by reference to implement agency policy applicable
to acquisition of commercial items or components. The provision or
clause in effect based on the applicable regulation cited on the date
the solicitation is issued applies unless otherwise stated herein. The
following provisions and clauses are incorporated by reference:

\[*The contracting officer should either check the provisions and
clauses that apply or delete the provisions and clauses that do not
apply from the list. The contracting officer may add the date of the
provision or clause if desired for clarity*.\]

\(a\) [Provisions]{.underline}.

\_\_\_\_552.237-70 Qualifications of Offerors

\(b\) [Clauses]{.underline}.

\_\_\_\_552.203-71 Restriction on Advertising

\_\_\_\_552.211-73 Marking

\_\_\_\_552.215-70 Examination of Records by GSA

\_\_\_\_552.215-71 Examination of Records by GSA (Multiple Award
Schedule)

\_\_\_\_552.215-72 Price Adjustment\--Failure to Provide Accurate
Information

\_\_\_\_552.219-70 Allocation of Orders \-- Partially Set-Aside Items

\_\_\_\_552.228-70 Workers\' Compensation Laws

\_\_\_\_552.229-70 Federal, State, and Local Taxes

\_\_\_\_552.232-8 Discounts for Prompt Payment

\_\_\_\_552.232-23 Assignment of Claims

\_\_\_\_552.232-71 Adjusting Payments

\_\_\_\_552.232-72 Final Payment

GSAM\
APD 2800.12B, 09-01-99 H-17

\_\_\_\_552.232-73 Availability of Funds

\_\_\_\_552.237-71 Qualifications of Employees

\_\_\_\_552.238-71 Submission and Distribution of Authorized FSS
Schedule Price List

\_\_\_\_552.238-74 Contractor\'s Report of Sales

\_\_\_\_552.238-75 Price Reductions

\_\_\_\_552.242-70 Status Report of Orders and Shipments

\_\_\_\_552.243-72 Modifications (Multiple Award Schedule)

\_\_\_\_552.246-73 Warranty - Multiple Award Schedule

\_\_\_\_552.246-76 Warranty of Pesticides

(End of clause)

**552.212-72 Contract Terms and Conditions Required to Implement
Statutes or Executive\
Orders Applicable to GSA Acquisition of Commercial Items.**

As prescribed in 512.301(a)(3), insert the following clause:

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR
EXECUTIVE ORDERS APPLICABLE TO GSA ACQUISITION OF COMMERCIAL ITEMS (SEP
1999)

The Contractor agrees to comply with any provision or clause that is
incorporated herein by reference to implement provisions of law or
Executive Orders applicable to acquisition of commercial items or
components. The provision or clause in effect based on the applicable
regulation cited on the date the solicitation is issued applies unless
otherwise stated herein. The following provisions and clauses are
incorporated by reference:

\[*The contracting officer should either check the provisions and
clauses that apply or delete the provisions and clauses that do not
apply from the list. The contracting officer may add the date of the
provision or clause if desired for clarity*.\]

\(a\) [Provisions]{.underline}.

\_\_\_\_552.223-72 Hazardous Material Information

\_\_\_\_552.225-8 Buy American Act \-- Trade Agreements \-- Balance of
Payments Program\
Certificate

GSAM\
H-18 APD 2800.12B, 09-01-99

\(b\) [Clauses]{.underline}.

\_\_\_\_552.223-70 Hazardous Substances

\_\_\_\_552.223-71 Nonconforming Hazardous Material

\_\_\_\_552.225-9 Buy American Act \-- Trade Agreements \-- Balance of
Payments Program

\_\_\_\_552.238-70 Identification of Electronic Office Equipment
Providing Accessibility for the\
Handicapped

\_\_\_\_552.238-72 Identification of Energy-Efficient Office Equipment
and Supplies Containing\
Recovered Materials or Other Environmental Attributes

\_\_\_\_552.238-76 Industrial Funding Fee

(End of clause)

**552.212-73 Evaluation \-- Commercial Items (Multiple Award
Schedule).**

As prescribed in 512.301(a)(4), insert the following provision:

EVALUATION \-- COMMERCIAL ITEMS (MULTIPLE AWARD SCHEDULE) (AUG 1997)

\(a\) The Government may make multiple awards for the supplies or
services offered in response to this solicitation that meet the
definition of a \"commercial item\" in FAR 52.202-1. Awards may be made
to those responsible offerors that offer reasonable pricing, conforming
to the solicitation, and will be most advantageous to the Government,
taking into consideration the multiplicity and complexity of items of
various manufacturers and the differences in performance required to
accomplish or produce required end results, production and distribution
facilities, price, compliance with delivery requirements, and other
pertinent factors. By providing a selection of comparable supplies or
services, ordering activities are afforded the opportunity to fulfill
their requirements with the item(s) that constitute the best value and
that meet their needs at the lowest overall cost.

\(b\) A written notice of award or acceptance of an offer, mailed or
otherwise furnished to the offeror within the time for acceptance
specified in the offer, shall result in a binding contract without
further action by either party. Before the offer\'s specified expiration
time, the Government may accept an offer (or part of an offer), whether
or not there are negotiations after its receipt, unless a written notice
of withdrawal is received before award.

(End of provision)

GSAM\
APD 2800.12B, 09-01-99 H-19

[Alternate I (AUG 1997)]{.underline}. When anticipating competition of
identical items, add the following paragraph after paragraph (b) of the
basic provision.

\(c\) The Government reserves the right to award only one contract for
all or a part of a manufacturer\'s product line. When two or more
offerors (e.g., dealers/resellers) offer the identical product, award
may be made competitively to only one offeror on the basis of the lowest
price. (Discounts for early payment will not be considered as an
evaluation factor in determining the low offeror). During initial open
season for an option period, any offers that are equal to or lower than
the current contract price received for identical items will be
considered. Current contractors will also be allowed to submit offers
for identical items during this initial open season. The current
contractor which has the identical item on contract will be included in
the evaluation process. The Government will evaluate all offers and may
award only one contract for each specified product or aggregate group.

**552.214-70 \"All or None\" Offers.**

As prescribed in 514.201-6, insert the following provision:

\"ALL OR NONE\" OFFERS (SEP 1999)

\(a\) Unless awards in the aggregate are specifically precluded in this
solicitation, the Government reserves the right to evaluate offers and
make awards on an \"all or none\" basis as provided below.

\(b\) An offer submitted on an \"all or none\" or similar basis will be
evalu­ated as follows: The lowest acceptable offer exclusive of the \"all
or none\" offer will be selected with respect to each item (or group of
items when the solicitation provides for aggregate awards) and the total
cost of all items thus determined shall be compared with the total of
the lowest acceptable \"all or none\" offer. Award will be made to
result in the lowest total cost to the Government.

(End of provision)

[Alternate I (SEP 1999)]{.underline}. For a requirements or indefinite
quantity contract, the following paragraph (b) shall be substituted in
the basic provision:

\(b\) An offer submitted on an \"all or none\" or similar basis will not
be considered unless the offer is low on each item to which the \"all or
none\" offer is made applicable. The term \"each item\" as used in this
provision refers either to an item that under the terms of the
solicitation may be independently awarded, or to a group of items on
which an award is to be made in the aggregate.

GSAM\
H-20 APD 2800.12B, 09-01-99

**552.214-71 Progressive Awards and Monthly Quantity Allocations.**

As prescribed in 514.201-7(a), insert the following clause:

PROGRESSIVE AWARDS AND MONTHLY QUANTITY ALLOCATIONS (SEP 1999)

\(a\) [Monthly quantity allocation]{.underline}.

\(1\) Set forth below are the Government\'s estimated annual and monthly
requirements for each stock item covered by this solicitation. Offerors
shall indicate, in the spaces provided, the monthly quantity which they
are willing to furnish of any item or group of items involving the use
of the same production facilities. In making monthly allocations,
offerors are urged to group as many items as possible. Such groupings
will make it possible for the Government to make fullest use of the
production capabilities of each offeror.

\(2\) Offerors need not limit their monthly allocations to the
Government\'s estimated monthly requirements, since additional
unanticipated needs may occur during the period of the contract. If an
offeror does not insert monthly allocation quantities, it will be deemed
to offer to furnish all of the Government\'s requirements, even though
they may exceed the stated estimated requirements.

National Stock Estimated Annual Estimated Monthly\
\_\_\_\_[Number]{.underline}\_\_\_\_ \_\_[Requirements]{.underline}\_\_
\_\_[Requirements]{.underline}\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

[Bidders Monthly Quantity Allocations]{.underline}

[Items or Groups of Items]{.underline} [Monthly Allocation Quantity\
]{.underline} \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(b\) [Progressive awards]{.underline}. If the low responsive offeror\'s
monthly quantity allocation is less than the Government\'s estimated
requirements, the Government may make progressive awards beginning with
the low responsive offeror and including each next low responsive
offeror to the extent necessary to meet the estimated requirements.

\(c\) [Ordering procedures]{.underline}. If progressive awards are made,
orders will be placed first with the Contractor offering the lowest
price on each item normally up to that Contractor\'s maximum quantity
allocation and then, in the same manner, successively to other
Contractors. When cumulative orders during any month, placed with a
lower priced Contractor, equal or exceed 95 percent of its monthly
quantity allocation, to avoid the placement of unduly small orders or
the splitting of a subsequent order, the Government reserves the right
to award the full

GSAM\
APD 2800.12B, 09-01-99 H-21

quantity of the subsequent order to the next lower priced Contractor. In
no case will orders be placed with any Contractor in excess of its
monthly quantity allocation.

(End of clause)

**552.214-72 Bid Sample Requirements.**

As prescribed in 514.202-4(a)(3), insert the following provision:

BID SAMPLE REQUIREMENTS (SEP 1999)

This provision supplements FAR 52.214-20, which is incorporated by
reference. Samples shall be from the production of the manufacturer
whose products will be supplied under resultant contracts.

\(a\) Two bid samples are required for each of the following items in
this solicitation:

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

\(b\) Two representative samples shall be submitted for each of the
following items upon which a bid is submitted:

[ITEMS]{.underline} [ACCEPTABLE REPRESENTATIVE SAMPLES]{.underline}

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

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

NOTE:

\(1\) Bidders are or are not authorized to re-apply samples being
retained by GSA in connection with previous solicitations and/or
resultant contracts. When the block \"are\" is marked by the government,
FAR 52.214-20, Alternate II, shall apply.

\(2\) Bidders who propose to furnish an item or group of items from more
than one manufacturer or production point must submit two samples from
the production of each manufacturer or production point.

\(c\) Samples will be evaluated to determine compliance with all
characteristics listed below:

[Subjective Characteristics]{.underline} [Objective Characteristics\
]{.underline} \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(d\) Forward samples addressed to the Sample Room indicated below.
Except for samples delivered by U.S. Mail, deliveries will be accepted
between the hours of \_\_\_\_\_\_\_\_\_\_\_ Mondays through Fridays,
official holidays excluded.

GSAM\
H-22 APD 2800.12B, 09-01-99

CAUTION: [USE PROPER ADDRESS FOR METHOD OF SHIPMENT
SELECTED]{.underline}.\
[MAIL AND PARCEL POST]{.underline} [FREIGHT OR EXPRESS]{.underline}

*(Insert Address of Bid Sample Room) (Insert address of Bid sample
Room)*

(End of provision)

**552.215-70 Examination of Records by GSA.**

As prescribed in 514.201-7(b) and 515.209-70(a) insert the following
clause:

EXAMINATION OF RECORDS BY GSA (FEB 1996)

The Contractor agrees that the Administrator of General Services or any
duly authorized representatives shall, until the expiration of 3 years
after final payment under this contract, or of the time periods for the
particular records specified in Subpart 4.7 of the Federal Acquisition
Regulation (48 CFR 4.7), whichever expires earlier, have access to and
the right to examine any books, documents, papers, and records of the
Contractor involving transactions related to this contract or compliance
with any clauses thereunder. The Contractor further agrees to include in
all its subcontracts hereunder a provision to the effect that the
subcontractor agrees that the Administrator of General Services or any
authorized representatives shall, until the expiration of 3 years after
final payment under the subcontract, or of the time periods for the
particular records specified in Subpart 4.7 of the Federal Acquisition
Regulation (48 CFR 4.7), whichever expires earlier, have access to and
the right to examine any books, documents, papers, and records of such
subcontractor involving transactions related to the subcontract or
compliance with any clauses thereunder. The term \"subcontract\" as used
in this clause excludes (a) purchase orders not exceeding \$100,000 and
(b) subcontracts or purchase orders for public utility services at rates
established for uniform applicability to the general public.

(End of clause)

**552.215-71 Examination of Records by GSA (Multiple Award Schedule).**

As prescribed in 515.209-70(c), insert the following clause:

EXAMINATION OF RECORDS BY GSA (MULTIPLE AWARD SCHEDULE) (AUG 1997)

The Contractor agrees that the Administrator of General Services or any
duly authorized representative shall have access to and the right to
examine any books, documents, papers and records of the Contractor
involving transactions related to this contract for overbillings,
billing errors, compliance with the Price Reduction clause and
compliance with the Industrial Funding Fee clause of this contract. This
authority shall expire 3 years after final payment. The basic contract
and each option shall be treated as separate contracts for purposes of
applying this clause.

(End of clause)

GSAM\
APD 2800.12B, 09-01-99 H-23

**552.215-72 Price Adjustment \-- Failure to Provide Accurate
Information.**

As prescribed in 515.408(d), insert the following clause:

PRICE ADJUSTMENT \-- FAILURE TO PROVIDE ACCURATE INFORMATION\
(AUG 1997)

\(a\) The Government, at its election, may reduce the price of this
contract or contract modification if the Contracting Officer determines
after award of this contract or contract modification that the price
negotiated was increased by a significant amount because the Contractor
failed to:

\(1\) Provide information required by this solicitation/contract or
otherwise requested by the Government; or

\(2\) Submit information that was current, accurate, and complete; or

\(3\) Disclose changes in the Contractor\'s commercial pricelist(s),
discounts or discounting policies which occurred after the original
submission and prior to the completion of negotiations.

\(b\) The Government will consider information submitted to be current,
accurate and complete if the data is current, accurate and complete as
of 14 calendar days prior to the date it is submitted.

\(c\) If any reduction in the contract price under this clause reduces
the price for items for which payment was made prior to the date of the
modification reflecting the price reduction, the Contractor shall be
liable to and shall pay the United States \--

\(1\) The amount of the overpayment; and

\(2\) Simple interest on the amount of such overpayment to be computed
from the date(s) of overpayment to the Contractor to the date the
Government is repaid by the Contractor at the applicable underpayment
rate effective each quarter prescribed by the Secretary of Treasury
under 26 U.S.C. 6621(a)(2).

\(d\) Failure to agree on the amount of the decrease shall be resolved
as a dispute.

\(e\) In addition to the remedy in paragraph (a) of this clause, the
Government may terminate this contract for default. The rights and
remedies of the Government specified herein are not exclusive, and are
in addition to any other rights and remedies provided by law or under
this contract.

(End of clause)

GSAM\
H-24 APD 2800.12B, 09-01-99

**552.216-70 Economic Price Adjustment - FSS Multiple Award Schedule
Contracts.**

As prescribed in 516.203-4(a), insert the following clause:

ECONOMIC PRICE ADJUSTMENT **-** FSS MULTIPLE AWARD SCHEDULE CONTRACTS
(SEP 1999)

Price adjustments include price increases and price decreases.
Adjustments will be considered as follows:

\(a\) Contractors shall submit price decreases anytime during the
contract period in which they occur. Price decreases will be handled in
accordance with the provisions of the Price Reduction Clause.

\(b\) Contractors may request price increases under the following
conditions:

\(1\) Increases resulting from a reissue or other modification of the
Contractor\'s commercial catalog/pricelist that was used as the basis
for the contract award.

\(2\) Only three increases will be considered during the contract
period.

\(3\) Increases are requested after the first 30 days of the contract
period and prior to the last 60 days of the contract period.

\(4\) At least 30 days elapse between requested increases.

\(c\) The aggregate of the increases in any contract unit price under
this clause shall not exceed \_\_\_\_\_\_\_\_\_\_\_\_\* percent of the
original contract unit price. The Government reserves the right to raise
this ceiling where changes in market conditions during the contract
period support an increase.

\(d\) The following material shall be submitted with the request for a
price increase:

\(1\) A copy of the commercial catalog/pricelist showing the price
increase and the effective date for commercial customers.

\(2\) Commercial Sales Practice format regarding the Contractor\'s
commercial pricing practice relating to the reissued or modified
catalog/price- list, or a certification that no change has occurred in
the data since completion of the initial negotiation or a subsequent
submission.

\(3\) Documentation supporting the reasonableness of the price increase.

\(e\) The Government reserves the right to exercise one of the following
options:

GSAM\
APD 2800.12B, 09-01-99 H-25

\(1\) Accept the Contractor\'s price increases as requested when all
conditions of (b), (c), and (d) of this clause are satisfied;

\(2\) Negotiate more favorable discounts from the new commercial prices
when the total increase requested is not supported; or,

\(3\) Remove the product(s) from contract involved pursuant to the
Cancellation Clause of this contract, when the increase requested is not
supported.

\(f\) The contract modification reflecting the price adjustment shall be
signed by the Government and made effective upon receipt of notification
from the Contractor that the new catalog/pricelist has been mailed to
the addressees previously furnished by the Contracting Officer, provided
that in no event shall such price adjustment be effective prior to the
effective date of the commercial price increases. The increased contract
prices shall apply to delivery orders issued to the Contractor on or
after the effective date of the contract modification.

(End of clause)

\* *Insert the percent appropriate at the time the solicitation is
issued. This percentage should normally be 10 percent, unless based on a
trend established by an appropriate index such as the Producer Prices
and Price Index during the most recent 6-month period indicates that a
different percentage is more appropriate. Any ceiling other than 10
percent must be approved by the contracting director.*

[Alternate I (SEP 1999)]{.underline}. As prescribed by 516.203-4(a)(2),
substitute the following for paragraphs (b) and (c) of the clause:

\(b\) Contractors may request price increases to be effective on or
after the first 12 months of the contract period providing all of the
following conditions are met:

\(1\) Increases resulting from a reissue or other modification of the
Contractor\'s commercial catalog/pricelist that was used as the basis
for the contract award.

\(2\) No more than three increases will be considered during each
succeeding 12-month period of the contract.(For succeeding contract
periods of less than 12 months, up to three increases will be considered
subject to the other conditions of this subparagraph (b)).

\(3\) Increases are requested before the last 60 days of the contract
period.

\(4\) At least 30 days elapse between requested increases.

\(c\) In any contract period during which price increases will be
considered, the aggregate of the increases during any 12-month period
shall not exceed \_\_[\*]{.underline}\_\_percent of the contract unit

GSAM\
H-26 APD 2800.12B, 09-01-99

price in effect at the end of the preceding 12-month period. The
Government reserves the right to raise the ceiling when market
conditions during the contract period support such a change.

\* *Insert the percentage appropriate at the time the solicitation is
issued. This percentage should be determined based on the trend
established by an appropriate index such as the Producer Prices and
Price Index. A ceiling of more than 10 percent must be approved by the
Contracting Director*.

**552.216-71 Economic Price Adjustment - Stock and Special Order Program
Contracts.**

As prescribed in 516.203-4(b), insert the following clause:

ECONOMIC PRICE ADJUSTMENT-STOCK AND SPECIAL ORDER PROGRAM CONTRACTS (SEP
1999)

\(a\) \"Producer Price Index\" (PPI), as used in this clause, means the
originally released index, not seasonally adjusted, published by the
Bureau of Labor Statistics, U.S. Department of Labor (Labor) for product
code \_\_\_\_\_\_\_\_\_ found under Table \_\_\_\_\_\_\_\_.

\(b\) During the term of the contract, the award price may be adjusted
once upward or downward a maximum of \_\_\_[\*]{.underline}\_\_\_
percent. Any price adjustment for the product code shall be based upon
the percentage change in the PPI released in the month prior to the
initial month of the contract period specified in the solicitation for
sealed bidding or the month prior to award in negotiation (the base
index) and the PPI released 12 months later (the updated index). The
formula for determining the Adjusted Contract Price (ACP) applicable to
shipments for the balance of the contract period is-

ACP = [Updated Index]{.underline} x Award Price\
Base Index

\(c\) If the PPI is not available for the month of the base index or the
updated index, the month with the most recently published PPI prior to
the month determining the base index or updated index shall be used.

\(d\) If a product code is discontinued, the Government and the
Contractor will mutually agree to substitute a similar product code. If
Labor designates an index with a new title and/or code number as
continuous with the product code specified above, the new index shall be
used.

\(e\) Unless the Contractor\'s written request for a price adjustment
resulting from the application of the formula in (b) above is received
by the Contracting Officer within 30 calendar days of the release of the
updated index, the Contractor shall have waived its right to an upward
price adjustment for the balance of the contract. Alternatively, the
Contracting Officer will unilaterally adjust the award price downward
when appropriate using the updated index defined in (b) above.

GSAM\
APD 2800.12B, 09-01-99 H-27

\(f\) Price adjustments shall be effective upon execution of a contract
modification by the Government or on the 31st day following the release
of the updated index, whichever is later, shall indicate the updated
index and percent of change as well as the ACP, and shall not apply to
delivery orders issued before the effective date.

(End of clause)

[Alternate I (SEP 1999)]{.underline}. As prescribed in 516.203-4(b)(1)
and (2), substitute the following paragraphs (b), (e) and (f) for
paragraphs (b), (e) and (f) of the basic clause:

\(b\) In any option period, the contract price may be adjusted upward or
downward a maximum of \_\_[\*]{.underline}\_\_ percent.

\(1\) For the first option period, any price adjustment for the product
code shall be based upon the percentage change in the PPI released in
the month prior to the initial month of the contract period specified in
the solicitation for sealed bidding or the month prior to award in
negotiation (the base index) and the PPI released in the third month
before completion of the initial contract period stated in the
solicitation (the updated index). This initial contract period may be
less than 12 months. The formula for determining the Adjusted Contract
Price (ACP) applicable to shipments during the first option period is\--

ACP = [Updated Index]{.underline} x Award Price\
Base Index

\(2\) For any subsequent option period, the price adjustment shall be
the percentage change between the previously updated index (the new base
index) and the PPI released 12 months later (the most recent updated
index). This percentage shall be applied to the Current Contract Price
(CCP). The formula for determining the ACP applicable to shipments for
the subsequent option period(s) is\--

ACP = [Most Recent Updated Index]{.underline} x CCP\
New Base Index

\(e\) Unless the Contractor\'s written request for a price adjustment
resulting from the application of the formulas in (b)(1) or (2) above is
received by the Contracting Officer within 30 calendar days of the date
of the Government\'s preliminary written notice of its intent to
exercise the option, the Contractors shall have waived its right to an
upward price adjustment for that option period. Alternatively, the
Contracting Officer in its written notice shall exercise the option at
the CCP or at a reduced price when appropriate using the formulas in
(b)(1) or (2) above.

\(f\) Price adjustments shall be effected by execution of a contract
modification by the Government indicating the most recent updated index
and percent of change and shall apply to delivery orders placed on or
after the first day of the option period.

GSAM\
H-28 APD 2800.12B, 09-01-99

[Alternate II (SEP 1999)]{.underline}. As prescribed in 516.203-4(b)(2),
add the following paragraph (g) to the basic clause.

\(g\) No price adjustment will be made unless the percentage change in
the PPI is at least [\*\*]{.underline} percent.

\* *The appropriate percentage should be determined based upon the
historical trend in the PPI for the product code. A ceiling of more than
10 percent must be approved by the Contracting Director*.

\*\* *You should insert a lower percent than the maximum percentage
stated in paragraph (b) of the clause*.

**552.216-72 Placement of Orders.**

As prescribed in 516.506, insert the following clause:

PLACEMENT OF ORDERS (SEP 1999)

\(a\) Delivery orders (orders) will be placed by:

\[*Contracting Officer insert names of Federal agencies*\]

\(b\) Orders may be placed through Electronic Data Interchange (EDI) or
mailed in paper form. EDI orders shall be placed using the American
National Standards Institute (ANSI) X12 Standard for Electronic Data
Interchange (EDI) format.

\(c\) If the Contractor agrees, GSA\'s Federal Supply Service (FSS) will
place all orders by EDI using computer-to-computer EDI. If
computer-to-computer EDI is not possible, FSS will use an alternative
EDI method allowing the Contractor to receive orders by facsimile
transmission. Subject to the Contractor\'s agreement, other agencies may
place orders by EDI.

\(d\) When computer-to-computer EDI procedures will be used to place
orders, the Contractor shall enter into one or more Trading Partner
Agreements (TPA) with each Federal agency placing orders electronically
in order to ensure mutual understanding by the parties of certain
electronic transaction conventions and to recognize the rights and
responsibilities of the parties as they apply to this method of placing
orders. The TPA must identify, among other things, the third party
provider(s) through which electronic orders are placed, the transaction
sets used, security procedures, and guidelines for implementation.
Federal agencies may obtain a sample format to customize as needed from
the office specified in (g) below.

\(e\) The Contractor shall be responsible for providing its own hardware
and software necessary to transmit and receive data electronically.
Additionally, each party to the TPA shall be responsible for the costs
associated with its use of third party provider services.

GSAM\
APD 2800.12B, 09-01-99 H-29

\(f\) Nothing in the TPA will invalidate any part of this contract
between the Contractor and the General Services Administration. All
terms and conditions of this contract that otherwise would be applicable
to a mailed order shall apply to the electronic order.

\(g\) The basic content and format of the TPA will be provided by:

General Services Administration\
Acquisition Operations and Electronic Commerce Center (FCS)\
Washington, DC 20406

Telephone: \[*Contracting Officer* *insert appropriate telephone
numbers*\]\
FAX:

(End of clause)

[Alternate I (SEP 1999)]{.underline}. As prescribed in 516.506,
substitute the following paragraphs (a), (b), (c), and (d) for
paragraphs (a), (b), (c), and (d) of the basic clause:

\(a\) All delivery orders (orders) under this contract will be placed by
the General Services Administration\'s Federal Supply Service (FSS). The
Contractor is not authorized to accept orders from any other agency.
Violation of this restriction may result in termination of the contract
pursuant to the default clause of this contract.

\(b\) All orders shall be placed by Electronic Data Interchange (EDI)
using the American National Standards Institute (ANSI) X12 Standard for
Electronic Data Interchange (EDI) format.

\(c\) If the Contractor agrees, transmission will be
computer-to-computer EDI. If computer-to-computer EDI is not possible,
FSS will use an alternative EDI method allowing the Contractor to
receive orders by facsimile transmission.

\(d\) When computer-to-computer EDI procedures will be used to place
orders, the Contractor shall enter into a Trading Partner Agreement
(TPA) with FSS in order to ensure mutual understanding by the parties of
certain electronic transaction conventions and to recognize the rights
and responsibilities of the parties as they apply to this method of
placing orders. The TPA must identify, among other things, the third
party provider(s) through which electronic orders are placed, the
transaction sets used, security procedures, and guidelines for
implementation.

[Alternate II (SEP 1999)]{.underline}. As prescribed in 516.506(c),
substitute the following paragraph (a) for paragraph (a) of the basic
clause:

\(a\) The organizations listed below may place orders under this
contract. Questions regarding organizations authorized to use this
schedule should be directed to the Contracting Officer.

\(1\) Executive agencies.

GSAM\
H-30 APD 2800.12B, 09-01-99

\(2\) Other Federal agencies.

\(3\) Mixed-ownership Government corporations.

\(4\) The District of Columbia.

\(5\) Government contractors authorized in writing by a Federal agency
pursuant to 48 CFR 51.1.

\(6\) Other activities and organizations authorized by statute or
regulation to use GSA as a source of supply.

**552.216-73 Ordering Information.**

As prescribed in 516.506(c), insert the following provision:

ORDERING INFORMATION (SEP 1999)

\(a\) In accordance with the Placement of Orders clause of this
solicitation, the offeror elects to receive orders placed by GSA\'s
Federal Supply Service (FSS) by either facsimile transmission or
computer-to-computer Electronic Data Interchange (EDI).

\(b\) An offeror electing to receive computer-to-computer EDI is
requested to indicate below the name, address, and telephone number of
the representative to be contacted regarding establishment of an EDI
interface.

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

\(c\) An offeror electing to receive orders by facsimile transmission is
requested to indicate below the telephone number(s) for facsimile
transmission equipment where orders should be forwarded.

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

\(d\) For mailed orders, the offeror is requested to include the postal
mailing address(es) where paper form orders should be mailed.

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

(End of provision)

GSAM\
APD 2800.12B, 09-01-99 H-31

[Alternate I (SEP 1999)]{.underline}. As prescribed in 516.506(b),
delete paragraph (d) of the basic provision.

[Alternate II (SEP 1999)]{.underline}. As prescribed in 516.506(b), add
the following paragraph (e) to the basic provision:

\(e\) Offerors marketing through dealers are requested to indicate below
whether those dealers will be participating in the proposed contract.

YES ( ) NO ( )

If \"yes\" is checked, ordering information to be inserted above shall
reflect that in addition to offeror\'s name, address, and facsimile
transmission telephone number, orders can be addressed to the offeror\'s
name, c/o nearest local dealer. In this event, two copies of a list of
participating dealers shall accompany this offer, and shall also be
included in Contractor\'s Federal Supply Schedule pricelist.

**552.217-70 Evaluation of Options.**

As prescribed in 517.208(a), insert the following provision:

EVALUATION OF OPTIONS (AUG 1990)

\(a\) The Government will evaluate offers for award purposes by
determining the lowest base period price. When option year pricing is
based on a formula (e.g., changes in the Producer Price Index or other
common standard); option year pricing is automatically considered when
evaluating the base year price, as any change in price will be uniformly
related to changes in market conditions. All options are therefore
considered to be evaluated. Evaluation of options will not obligate the
Government to exercise the option(s).

\(b\) The Government will reject the offer if exceptions are taken to
the price provisions of the Economic Price Adjustment clause, unless the
exception results in a lower maximum option year price. Such offers will
be evaluated without regard to the lower option year(s) maximum.
However, if the offeror offering a lower maximum is awarded a contract,
the award will reflect the lower maximum.

**552.217-71 Notice Regarding Option(s).**

As prescribed in 517.208(b), insert the following provision:

NOTICE REGARDING OPTION(S) (NOV 1992)

The General Services Administration (GSA) has included an option to
\[*Insert \"purchase additional quantities of supplies or services\" or
\"extend the term of this contract\" or \"purchase additional quantities
of supplies or services and to extend the term of this contract\"\]* in
order to

GSAM\
H-32 APD 2800.12B, 09-01-99

demonstrate the value it places on quality performance by providing a
mechanism for continuing a contractual relationship with a successful
Offeror that performs at a level which meets or exceeds GSA\'s quality
performance expectations as communicated to the Contractor, in writing,
by the Contracting Officer or designated representative. When deciding
whether to exercise the option, the Contracting Officer will consider
the quality of the Contractor\'s past performance under this contract in
accordance with 48 CFR 517.207.

(End of provision)

**552.219-70 Allocation of Orders - Partially Set-aside Items**.

As prescribed in 519.508, insert the following clause:

ALLOCATION OF ORDERS - PARTIALLY SET-ASIDE ITEMS (SEP 1999)

Where the set-aside portion of an item or group of items is awarded to a
Contractor other than the one receiving the award on the corresponding
non-set-aside portion, the Government will divide the requirements to be
ordered between the two Contractors with the objective of achieving, as
nearly as possible, a 50/50 division of the total value of orders placed
after the award of the set-aside portion. In no case will this division
vary by more than a 60/40 division (with either the non-set-aside or
set-aside Contractor receiving the larger portion) from the time of the
award of the set-aside portion.

(End of clause)

**552.219-71 Notice to Offerors of Subcontracting Plan Requirements.**

As prescribed in 519.708(a), insert the following provision:

NOTICE TO OFFERORS OF SUBCONTRACTING PLAN REQUIREMENTS (SEP 1999)

The General Services Administration (GSA) is committed to assuring that
maximum practicable opportunity is provided to small, HUBZone small,
small disadvantaged, and women-owned small business concerns to
participate in the performance of this contract consistent with its
efficient performance. GSA expects any subcontracting plan submitted
pursuant to FAR 52.219‑9, Small Business Subcontracting Plan, to reflect
this commitment. Consequently, an

offeror, other than a small business concern, before being awarded a
contract exceeding \$500,000 (\$1,000,000 for construction), must
demonstrate that its subcontracting plan represents a creative and
innovative program for involving small, HUBZone small, small
disadvantaged, and women-owned small business concerns as subcontractors
in the performance of this contract.

(End of provision)

GSAM\
APD 2800.12B, 09-01-99 H-33

**552.219-72 Preparation, Submission, and Negotiation of Subcontracting
Plans.**

As prescribed in 519.708(b), insert the following provision:

PREPARATION, SUBMISSION, AND NEGOTIATION OF SUBCONTRACTING PLANS (SEP
1999)

\(a\) An offeror, other than a small business concern, submitting an
offer that exceeds \$500,000 (\$1,000,000 for construction) shall submit
a subcontracting plan with its initial offer. The subcontracting plan
will be negotiated concurrently with price and any required technical
and management proposals, unless the offeror submits a
previously-approved commercial products plan.

\(b\) Maximum practicable utilization of small, HUBZone small, small
disadvantaged, and women-owned small business concerns as subcontractors
is a matter of national interest with both social and economic benefits.
The General Services Administration (GSA) expects that an offeror\'s
subcontracting plan will reflect a commitment to assuring that small,
HUBZone small, small disadvantaged, and women-owned small business
concerns are provided the maximum practicable opportunity, consistent
with efficient contract performance, to participate as subcontractors in
the performance of the resulting contract. An offeror submitting a
commercial products plan can reflect this commitment through
subcontracting opportunities it provides that relate to the offeror\'s
production generally; i.e., for both its commercial and Government
business.

\(c\) GSA believes that this potential contract provides significant
opportunities for the use of small, HUBZone small, small disadvantaged,
and women-owned small business concerns as subcontractors. Consequently,
in addressing the eleven elements described at FAR 52.219-9(d) of the
clause in this contract entitled Small Business Subcontracting Plan, the
offeror shall:

\(1\) Demonstrate that its subcontracting plan represents a creative and
innovative program for involving small, HUBZone small, small
disadvantaged, and women-owned small business concerns in performing the
contract.

\(2\) Include a description of the offeror\'s subcontracting strategies
used in any previous contracts, significant achievements, and how this
plan will build upon those earlier achievements.

\(3\) Demonstrate through its plan that it understands the small
business subcontracting program\'s objectives and GSA\'s expectations,
and it is committed to taking those actions necessary to meet these
goals or objectives.

\(d\) In determining the acceptability of any subcontracting plan, the
Contracting Officer will take each of the following actions:

GSAM\
H-34 APD 2800.12B, 09-01-99

\(1\) Review the plan to verify that the offeror demonstrates an
understanding of the small business subcontracting program\'s objectives
and GSA\'s expectations with respect to the program and has included all
the information, goals, and assurances required by FAR 52.219-9.

\(2\) Consider previous goals and achievements of contractors in the
same industry.

\(3\) Consider information and potential sources obtained from agencies
administering national and local preference programs and other advocacy
groups in evaluating whether the goals stated in the plan adequately
reflect the anticipated potential for subcontracting to small, HUBZone
small, small disadvantaged, and women-owned small business concerns.

\(4\) Review the offeror\'s description of its strategies, historical
performance and significant achievements in placing subcontracts for the
same or similar products or services with small, HUBZone small, small
disadvantaged, and women-owned small business concerns. The offeror\'s
description can apply to commercial as well as previous Government
contracts.

\(e\) Failure to submit an acceptable subcontracting plan and/or correct
deficiencies in a plan within the time specified by the Contracting
Officer shall make the offeror ineligible for award.

(End of provision)

**552.219-73 Goals for Subcontracting Plan.**

As prescribed in 519.708(c), insert the following provision:

GOALS FOR SUBCONTRACTING PLAN (SEP 1999)

\(a\) Maximum practicable utilization of small, HUBZone small, small
disadvantaged, and women-owned small business concerns as subcontractors
is a matter of national interest with both social and economic benefits.

\(1\) The General Services Administration\'s (GSA\'s) commitment to
ensuring that maximum practicable opportunity is provided to small,
HUBZone small, small disadvantaged, and women-owned small business
concerns to participate as subcontractors in the performance of this
contract, consistent with its efficient performance, must be reflected
in the offeror\'s subcontracting plan submitted pursuant to the clause
of this contract at FAR 52.219-9, Small Business Subcontracting Plan.

\(2\) In addressing the eleven elements described at FAR 52.219-9(d),
the offeror shall demonstrate that its subcontracting plan represents a
creative and innovative program for involving small, HUBZone small,
small disadvantaged, and women-owned small

GSAM\
APD 2800.12B, 09-01-99 H-35

business concerns in performing this contract. An offeror submitting a
commercial products plan can demonstrate its commitment in providing
maximum practicable opportunities through subcontracting opportunities
it provides to small, HUBZone small, small disadvantaged, and
women-owned small business concerns that relate to the offeror\'s
production generally; i.e., for both its commercial and Government
business.

\(3\) The subcontracting plan shall include a description of the
offeror\'s subcontracting strategies used in previous contracts and
significant achievements, with an explanation of how this plan will
build upon those earlier achievements. Additionally, the offeror shall
demonstrate through its plan that it understands the small business
subcontracting program\'s objectives, GSA\'s expectations, and is
committed to taking those actions necessary to meet these goals or
objectives.

\(b\) GSA believes that this contract provides significant opportunities
for the use of small, HUBZone small, small disadvantaged, and
women-owned small business concerns as subcontractors. Accordingly, it
is anticipated that an acceptable subcontracting plan will contain at
least the following goals:

Small Business \_\_\_\_percent\
HUBZone Small Business \_\_\_\_percent\
Small Disadvantaged Business \_\_\_\_percent\
Women-Owned Small Business \_\_\_\_percent

NOTE: Target goals are expressed as a percentage of planned
subcontracting dollars.

\(c\) In determining the acceptability of any subcontracting plan, the
Contracting Officer will \--

\(1\) Review the plan to verify that the offeror has demonstrated an
understanding of the small business subcontracting program\'s objectives
and GSA\'s expectations with respect to the programs and has included
all the information, goals, and assurances required by FAR 52.219-9;

\(2\) Consider previous goals and achievements of contractors in the
same industry;

\(3\) Consider information and potential sources obtained from agencies
administering national and local preference programs and other advocacy
groups in evaluating whether the goals stated in the plan adequately
reflect the anticipated potential for subcontracting to small, HUBZone
small, small disadvantaged, and women-owned small business concerns; and

\(4\) Review the offeror\'s description of its strategies, historical
performance and significant achievements in placing subcontracts for the
same or similar products or services with small, HUBZone small, small
disadvantaged, and women-owned small business

GSAM\
H-36 APD 2800.12B, 09-01-99

concerns. The offeror\'s description can apply to commercial as well as
previous Government contracts.

\(d\) Failure to submit an acceptable subcontracting plan and/or correct
deficiencies in a plan within the time specified by the Contracting
Officer shall make the offeror ineligible for award.

(End of provision)

[Alternate I (SEP 1999)]{.underline}. As prescribed in 519.708(c)(2),
delete paragraph (b) of the basic provision and redesignate paragraphs
(c) and (d) as paragraphs (b) and (c).

**552.219-74 Section 8(a) Direct Award.**

As prescribed in 519.870-8, insert the following clause:

SECTION 8(a) DIRECT AWARD (SEP 1999)

\(a\) This contract is issued as a direct award between the contracting
activity and the 8(a) Contractor pursuant to the Memorandum of
Understanding between the Small Business Administration (SBA) and the
General Services Administration. SBA retains the responsibility for 8(a)
certifications, 8(a) eligibility determinations, and related issues, and
will provide counseling and assistance to the 8(a) contractor under the
8(a) program. The cognizant SBA district office is:

\[*Complete at time of award*\]

\(b\) The contracting activity is responsible for administering the
contract and taking any action on behalf of the Government under the
terms and conditions of the contract. However, the contracting activity
shall give advance notice to SBA before it issues a final notice
terminating performance, either in whole or in part, under the contract.
The contracting activity shall also coordinate with SBA prior to
processing any advance payments or novation agreements. The contracting
activity may assign contract administration functions to a contract
administration office.

\(c\) The Contractor agrees:

\(1\) To notify the Contracting Officer, simultaneous with its
notification to SBA (as required by SBA\'s 8(a) regulations), when the
owner or owners upon whom 8(a) eligibility is based plan to relinquish
ownership or control of the concern. Consistent with 15 U.S.C.
637(a)(21), transfer of ownership or control shall result in termination
of the contract for convenience, unless SBA waives the requirement for
termination prior to the actual relinquishing of ownership and control.

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APD 2800.12B, 09-01-99 H-37

\(2\) To the requirements of 52.219-14, Limitations on Subcontracting.

(End of clause)

**552.223-70 Hazardous Substances.**

As prescribed in 523.303(a), insert the following clause:

HAZARDOUS SUBSTANCES (MAY 1989)

\(a\) If the packaged items to be delivered under this contract are of a
hazardous substance and ordinarily are intended or considered to be for
use as a household item, this contract is subject to the Federal
Hazardous Materials Act, as amended (15 U.S.C. 1261-1276),

implementing regulations thereof (16 CFR Chapter II), and Federal
Standard No. 123, Marking for Shipment (Civil Agencies), issue in effect
on the date of this solicitation.

\(b\) The packaged items to be delivered under this contract are subject
to the preparation of shipping documents, the preparation of items for
transportation, shipping container construction, package making, package
labeling, when required, shipper\'s certification of compliance, and
transport vehicle placarding in accordance with Parts 171 through 178 of
49 CFR and the Hazardous Materials Transportation Act.

\(c\) The minimum packaging acceptable for packaging Department of
Transportation regulated hazardous materials shall be those in 49 CFR
173.

(End of clause)

**552.223-71 Nonconforming Hazardous Materials.**

As prescribed in 523.303(b), insert the following clause:

NONCONFORMING HAZARDOUS MATERIALS (SEP 1999)

\(a\) Nonconforming supplies that contain hazardous material or that may
expose persons who handle or transport the supplies to hazardous
material and which require replacement under the inspection and/or
warranty clauses of this contract shall be reshipped to the Contractor
at the Contractor\'s expense. The Contractor agrees to accept return of
these nonconforming supplies and to pay all costs occasioned by their
return.

\(b\) \"Hazardous materials,\" as used in this clause, includes any
material defined as hazardous under the latest version of Federal
Standard No. 313 (including revisions adopted during the term of the
contract).

\(c\) If the Contractor fails to provide acceptable disposition
instructions for the nonconforming supplies within 10 days from the date
of the Government\'s request (or such longer period as

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H-38 APD 2800.12B, 09-01-99

may be agreed to between the Contracting Officer and the Contractor), or
fails to accept return of the reshipped nonconforming supplies, such
failure:

\(1\) may be interpreted as a willful failure to perform,

\(2\) may result in termination of the contract for default and

\(3\) shall be considered by the Contracting Officer in determining the
responsibility of the Contractor for any future award (see FAR
9.104-3(b) and 9.406-2).

\(d\) Pending final resolution of any dispute, the Contractor shall
promptly comply with the decision of the Contracting Officer.

(End of clause)

**552.223-72 Hazardous Material Information.**

As prescribed in 523.370, insert the following provision:

HAZARDOUS MATERIAL INFORMATION (SEP 1999)

Offeror shall indicate for each national stock number (NSN) the
following\
information:

DOT Label\
[\_\_\_\_NSN\_\_\_\_]{.underline} [DOT Shipping Name]{.underline} [DOT
Hazard Class]{.underline} [Required\
]{.underline} \_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Yes\[\_\]\_No\[\_\]\
\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Yes\[\_\]\_No\[\_\]\
\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Yes\[\_\]\_No\[\_\]

(End of provision)

**552.225-8 Buy American Act \-- Trade Agreements \-- Balance of
Payments Program\
Certificate.**

As prescribed in 525.408, insert the following provision:

BUY AMERICAN ACT \-- TRADE AGREEMENTS \-- BALANCE OF PAYMENTS PROGRAM
CERTIFICATE (SEP 1999) (DEVIATION FAR 52.225-8)

\(a\) The Offeror, by signing this offer, certifies that each end
product to be delivered under this contract is a U.S. made end product,
a designated country end product, a Caribbean Basin country end product,
a Canadian end product or a Mexican end product as defined in the clause
entitled \"Buy American Act \-- Trade Agreements \-- Balance of Payments
Program\" at 48 CFR 552.225-9.

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APD 2800.12B, 09-01-99 H-39

\(b\) Offers will be evaluated in accordance with Subpart 25.4 of the
Federal Acquisition Regulation except that offers of U.S. made end
products, designated country end products, Caribbean Basin end products,
Canadian end products, or Mexican end products shall be evaluated
without the restrictions of the Buy American Act or the Balance of
Payments Program.

(End of provision)

**552.225-9 Buy American Act \-- Trade Agreements \-- Balance of
Payments Program.**

As prescribed in 525.408, insert the following clause.

BUY AMERICAN ACT \-- TRADE AGREEMENTS \-- BALANCE OF PAYMENTS PROGRAM
(SEP 1999) (DEVIATION FAR 52.225-9)

\(a\) This clause implements the Trade Agreements Act of 1979 (19 U.S.C.
2501-2582) by providing a preference for U.S. made end products,
designated country end products,

Caribbean Basin country end products, Canadian end products or Mexican
end products over other products.

\"Caribbean Basin country end products,\" as used in this clause, means
an article that: (1) is wholly the growth, product, or manufacture of a
Caribbean Basin country (as defined in section 25.401 of the Federal
Acquisition Regulation (FAR)), or (2) in the case of an article which
consists in whole or in part of materials from another country or
instrumentality, has been substantially transformed into a new and
different article of commerce with a name, character, or use distinct
from that of the article or articles from which it was so transformed.
The term includes services (except transporta­tion services) incidental
to its supply; provided that the value of those incidental services does
not exceed that of the product itself. It does not include service
contracts as such. The term excludes products that are excluded from
duty free treatment from Caribbean countries under the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(b)). These exclusions presently
consist of (i) textiles and apparel articles that are subject to textile
agreements; (ii) footwear, handbags, luggage, flat goods, work gloves,
and leather wearing apparel not designated as eligible articles for the
purpose of the Generalized System of Preference under title V of the
Trade Act of 1974; (iii) tuna, pre­pared or preserved in any manner in
airtight containers, (iv) petroleum, or any product derived from
petroleum; and (v) watches and watch parts (including cases, bracelets
and straps) of whatever type including, but not limited to, mechanical,
quartz digital or quartz analog, if such watches or watch parts contain
any material that is the product of any country to which the Tariff
Schedule of the United States (TSUS) column 2 rates of duty apply.

\"Designated country end product,\" as used in this clause, means an
article that (1) is wholly the growth, product, or manufacture of the
designated country (as defined in section 25.401 of the Federal
Acquisition Regulation (FAR)), or (2) in the case of an article which
consists

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H-40 APD 2800.12B, 09-01-99

in whole or in part of materials from another country or
instrumentality, has been substantially transformed into a new and
different article of commerce with a name, character, or use distinct
from that of the article or articles from which it was so transformed.
The term includes services (except transportation services) incidental
to its supply, provided that the value of those incidental services does
not exceed that of the product itself. It does not include service
contracts as such.

\"Canadian end product,\" as used in this clause, means an article that
(1) is wholly the growth, product, or manufacture of Canada, or (2) in
the case of an article which consists in whole or in part of materials
from another country or instrumentality, has been substantially
transformed in Canada into a new and different article of commerce with
a name, character, or use distinct from that of the article or articles
from which it was transformed. The term includes services (except
transportation services) incidental to its supply; provided, that the
value of those incidental services does not exceed that of the product
itself. It does not include service contracts as such.

\"Mexican end product,\" as used in this clause, means an article that
(1) is wholly the growth, product, or manufacture of Mexico, or (2) in
the case of an article which consists in whole or in part of materials
from another country or instrumentality, has been substantially
transformed in Mexico into a new and different article of commerce with
a name, character, or use distinct from that of the article or articles
from which it was so transformed. The term includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed that of the product
itself. It does not include service contracts as such.

\"End products,\" as used in this clause, means those articles,
materials, and supplies to be acquired under this contract for public
use.

\"U.S. made end product,\" as used in this clause, means an article
which (1) is wholly the growth, product, or manufacture of the United
States, or (2) in the case of an article which consists in whole or in
part of materials from another country or instrumentality, has been
substantially transformed in the United States into a new and different
article of commerce with a name, character, or use distinct from that of
the article or articles from which it was so transformed.

\"Nondesignated country end products,\" as used in this clause, means
any end product which is not a U.S. made end product, designated country
end product, Caribbean Basin Country end product, Canadian end product
or Mexican end product.

\"United States,\" as used in this clause, means the United States, its
possessions, Puerto Rico, and any other place which is subject to its
jurisdiction, but does not include leased bases or trust territories.

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APD 2800.12B, 09-01-99 H-41

\(b\) The Contractor agrees to deliver under this contract only U.S.
made end products, designated country end products, Caribbean Basin
country end products, Canadian end products or Mexican end products or,
if a national interest waiver is granted under section 302 of the Trade
Agreements Act of 1979, nondesignated country end products. Only if such
waiver is granted may a nondesignated country end product be delivered
under this contract(s).

\(c\) Offers will be evaluated in accordance with the policies and
procedures of Part 25 of the FAR except that offers of U.S. made end
products, designated country end products, Caribbean Basin end products,
Canadian end products or Mexican end products shall be evaluated without
the restrictions of the Buy American Act or the Balance of Payments
Program.

(End of clause)

**552.225-70 Notice of Procurement Restriction - Hand or Measuring Tools
or Stainless\
Steel Flatware.**

As prescribed in 525.109, insert the following clause:

NOTICE OF PROCUREMENT RESTRICTION - HAND OR MEASURING TOOLS OR STAINLESS
STEEL FLATWARE (SEP 1999)

\(a\) Awards under this solicitation will only be made to offerors that
will furnish hand or measuring tools or stainless steel flatware that
are domestic end products. Pursuant to the requirements of the current
Department of Defense Appropriations Act, GSA has determined, in
accordance with Section 6‑104.4 of the Armed Services Procurement
Regulation (6/15/70)(32 CFR 6‑104.4), that it is in the national
interest to reject foreign products.

As used in this clause, a \"domestic end product\" is\--

\(1\) Any hand or measuring tool, except for an electric or air-motor
driven hand tool, or stainless steel flatware, wholly produced or
manufactured, including all components, in the United States or its
possessions; or

\(2\) Any electric or air-motor driven hand tool if the cost of its
components produced or manufactured in the United States exceeds 75
percent of the cost of all its components.

\(b\) Tool kits or sets, being procured under this solicitation, will
not be considered domestic end products if any individual tool
classified in FSC Group 51 or 52 and included in a tool kit or set is
not a domestic end product as defined in paragraph (a) of this clause.
The restrictions of this clause do not apply to individual hand or
measuring tools that are contained in the tool kit or set but are not
classified in FSC Group 51 or 52.

(End of clause)

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H-42 APD 2800.12B, 09-01-99

**552.227-70 Government Rights (Unlimited).**

As prescribed in 527.409(a), insert the following clause:

GOVERNMENT RIGHTS (UNLIMITED) (MAY 1989)

The Government shall have unlimited rights in all drawings, designs,
specifications, notes and other works developed in the performance of
this contract, including the right to use same on any other Government
design or construction without additional compensation to the
Contractor. The Contractor hereby grants to the Government a paid-up
license throughout the world to all such works to which he may assert or
establish any claim under design patent or copyright laws. The
Contractor for a period of three years after completion of the project
agrees to furnish the original or copies of all such works on the
request of the Contracting Officer.

(End of clause)

**552.227-71 Drawings and Other Data to Become Property of Government.**

As prescribed in 527.409(b), substitute the following clause:

DRAWINGS AND OTHER DATA TO BECOME PROPERTY OF GOVERNMENT\
(MAY 1989)

All designs, drawings, specifications, notes and other works developed
in the performance of this contract shall become the sole property of
the Government and may be used on any other design or construction
without additional compensation to the Contractor. The Government shall
be considered the \"person for whom the work was prepared\" for the
purpose of authorship in any copyrightable work under Section 201(b) of
Title 17, United States Code. With respect thereto, the Contractor
agrees not to assert or authorize others to assert any rights nor
establish any claim under the design patent or copyright laws. The
Contractor for a period of three years after completion of the project
agrees to furnish all retained works on the request of the Contracting
Officer. Unless otherwise provided in this contract, the Contractor
shall have the right to retain copies of works beyond such period.

(End of clause)

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APD 2800.12B, 09-01-99 H-43

**552.228-70 Workers\' Compensation Laws.**

As prescribed in 528.310(a), insert the following clause:

WORKERS\' COMPENSATION LAWS (SEP 1999)

The Act of June 25, 1936, 49 Stat. 1938 (40 U.S.C. 290) authorizes the
con­stituted authority of the several States to apply their workers\'
compensation laws to all lands and premises owned or held by the United
States.

(End of clause)

**552.229-70 Federal, State, and Local Taxes.**

As prescribed in 529.401-70, insert the following clause:

FEDERAL, STATE, AND LOCAL TAXES (APR 1984)

The contract price includes all applicable Federal, State, and local
taxes. No adjustment will be made to cover taxes which may subsequently
be imposed on this transaction or changes in the rates of currently
applicable taxes. However, the Government will, upon the request of the
Contractor, furnish evidence appropriate to establish exemption from any
tax from which the Government is exempt and which was not included in
the contract price.

(End of clause)

**552.229-71 Federal Excise Tax - DC Government.**

As prescribed in 529.401-71, insert the following clause:

FEDERAL EXCISE TAX - DC GOVERNMENT (SEP 1999)

If the District of Columbia cites an Internal Revenue Tax Exempt
Certificate Number on orders placed under this contract, the Contractor
shall bill shipments to the District of Columbia at prices exclusive of
Federal excise tax and show the amount of such tax on the invoice.

(End of clause)

**552.232-1 Payments.**

As prescribed in 532.7104, insert the following clause:

PAYMENTS (APR 1984) (DEVIATION FAR 52.232-1)

\(a\) The Government shall pay the Contractor, without submission of
invoices or vouchers, 30 days after the service period, the prices
stipulated in this contract for supplies delivered and accepted or
services rendered and accepted, less any deductions provided in this
contract.

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H-44 APD 2800.12B, 09-01-99

\(b\) Unless otherwise specified in this contract, the Government will
make payment on partial deliveries accepted by the Government if either:

\(1\) The amount due on the deliveries warrants it.

\(2\) The Contractor requests it and the amount due on the deliveries is
at least \$1,000 or 50 percent of the total contract price.

\(c\) When processing payment, GSA's Finance Office will automatically
generate the 12 digit invoice number using the ACT number assigned to
the contract, followed by an abbreviated month and year of service
(e.g., 84261554JUN7, for June 1997). The ACT number appears on the
contract award document.

(End of clause)

**552.232-8 Discounts for Prompt Payment.**

As prescribed in 532.206, insert the following clause:

DISCOUNTS FOR PROMPT PAYMENT (APR 1989) (DEVIATION FAR 52.232-8)

\(a\) Discounts for early payment (hereinafter referred to as
\"discounts\" or \"the discount\") will be considered in evaluating the
relationship of the offeror\'s concessions to the Government vis-a-vis
the offeror\'s concessions to its commercial customers, but only to the
extent indicated in this clause.

\(b\) Discounts will not be considered to determine the low offeror in
the situation described in the \"Offers on Identical Products\"
provision of this solicitation.

\(c\) Uneconomical discounts will not be considered as meeting the
criteria for award established by the Government. In this connection, a
discount will be considered uneconomical if the annualized rate of
return for earning the discount is lower than the \"value of funds\"
rate established by the Department of the Treasury and published
quarterly in the Federal Register. The \"value of funds\" rate applied
will be the rate in effect on the date specified for the receipt of
offers.

\(d\) Agencies required to use the resultant schedule will not apply the
discount in determining the lowest delivered price pursuant to the FPMR,
41 CFR 101-26.408, if the agency determines that payment will probably
not be made within the discount period offered. The same is true if the
discount is considered uneconomical at the time of placement of the
order.

\(e\) Discounts for early payment may be offered either in the original
offer or on individual invoices submitted under the resulting contract.
Discounts offered will be taken by the Government if payment is made
within the discount period specified.

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APD 2800.12B, 09-01-99 H-45

\(f\) Discounts that are included in offers become a part of the
resulting contracts and are binding on the Contractor for all orders
placed under the contract. Discounts offered only on individual invoices
will be binding on the Contractor only for the particular invoice on
which the discount is offered.

\(g\) In connection with any discount offered for prompt payment, time
shall be computed from the date of the invoice. For the purpose of
computing the discount earned, payment shall be considered to have been
made on the date which appears on the payment check or the date on which
an electronic funds transfer was made.

(End of clause)

**552.232-23 Assignment of Claims.**

As prescribed in 532.806, insert the following clause:

ASSIGNMENT OF CLAIMS (SEP 1999)

Because this is a requirements or indefinite quantity contract under
which more than one agency may place orders, paragraph (a) of the
Assignment of Claims clause (FAR 52.232-23) is inapplicable and the
following is substituted therefor:

In order to prevent confusion and delay in making payment, the
Contractor shall not assign any claim(s) for amounts due or to become
due under this contract. However, the Contractor is permitted to assign
separately to a bank, trust company, or other financial institution,
including any Federal lending agency, under the provisions of the
Assignment of Claims Act, as amended, 31 U.S.C. 3727, 41 U.S.C. 15
(hereinafter referred to as \"the Act\"), all amounts due or to become
due under any order amounting to \$1,000 or more issued by any
Government agency under this contract. Any such assignment takes effect
only if and when the assignee files written notice of the assignment
together with a true copy of the instrument of assignment with the
contracting officer issuing the order and the finance office designated
in the order to make payment. Unless otherwise stated in the order,
payments to an assignee of any amounts due or to become due under any
order assigned may, to the extent specified in the Act, be subject to
reduction or set-off.

(End of clause)

**552.232-25 Prompt Payment.**

As prescribed in 532.908(a)(2), insert the following clause:

PROMPT PAYMENT (JUL 1998) (DEVIATION FAR 52.232-25)

Notwithstanding any other payment clause in this contract, the
Government will make invoice payments and contract financing payments
under the terms and conditions specified in this

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H-46 APD 2800.12B, 09-01-99

clause. Payment shall be considered as being made on the day a check is
dated or the date of an electronic funds transfer. Definitions of
pertinent terms are set forth in section 32.902 of the Federal
Acquisition Regulation. All days referred to in this clause are calendar
days, unless otherwise specified. (However, see subparagraph (a)(4) of
this clause concerning payments due on Saturdays, Sundays, and legal
holidays.)

\(a\) Invoice payments.

\(1\) The due date for making invoice payments by the designated payment
office is:

\(i\) For orders placed electronically by the General Services
Administration (GSA) Federal Supply Service (FSS), and to be paid by GSA
through electronic funds transfer (EFT), the later of the following two
events:

\(A\) The 10th day after the designated billing office receives a proper
invoice from the Contractor. If the designated billing office fails to
annotate the invoice with the date of receipt at the time of receipt,
the invoice payment due date shall be the 10th day after the date of the
Contractor\'s invoice; provided the Contractor submitted a proper
invoice and no disagreement exists over quantity, quality, or Contractor
compliance with contract requirements.

\(B\) The 10th day after Government acceptance of supplies delivered or
services performed by the Contractor.

\(ii\) For all other orders, the later of the following two events:

\(A\) The 30th day after the designated billing office receives a proper
invoice from the Contractor. If the designated billing office fails to
annotate the invoice with the date of receipt at the time of receipt,
the invoice payment due date shall be the 30th day after the date of the
Contractor\'s invoice; provided the Contractor submitted a proper
invoice and no disagreement exists over quantity, quality, or Contractor
compliance with contract requirements.

\(B\) The 30th day after Government acceptance of supplies delivered or
services performed by the Contractor.

\(iii\) On a final invoice, if the payment amount is subject to contract
settlement actions, acceptance occurs on the effective date of the
contract settlement.

\(2\) The General Services Administration will issue payment on the due
date in (a)(1)(i) above if the Contractor complies with full cycle
electronic commerce. Full cycle electronic commerce includes all the
following elements:

\(i\) The Contractor must receive and fulfill electronic data
interchange (EDI) purchase orders (transaction set 850).

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APD 2800.12B, 09-01-99 H-47

\(ii\) The Contractor must generate and submit to the Government valid
EDI invoices (transaction set 810) or submit invoices through the GSA
Finance Center Internet-based invoice process. Internet-based invoices
must be submitted using procedures provided by GSA.

\(iii\) The Contractor\'s financial institution must receive and
process, on behalf of the Contractor, EFT payments through the Automated
Clearing House (ACH) system.

\(iv\) The EDI transaction sets in (i) through (iii) above must adhere
to implementation conventions provided by GSA.

\(3\) If any of the conditions in (a)(2) above do not occur, the 10 day
payment due dates in (a)(1) become 30 day payment due dates.

\(4\) Certain food products and other payments.

\(i\) Due dates on Contractor invoices for meat, meat food products, or
fish; perishable agricultural commodities; and dairy products, edible
fats or oils, and food products prepared from edible fats or oils are
\--

\(A\) For meat or meat food products, as defined in section 2(a)(3) of
the Packers and Stockyard Act of 1921 (7 U.S.C. 182(3)), and as further
defined in Pub. L. 98-181, including any edible fresh or frozen poultry
meat, any perishable poultry meat food product, fresh eggs, and any
perishable egg product, as close as possible to, but not later than, the
7th day after product delivery.

\(B\) For fresh or frozen fish, as defined in section 204(3) of the Fish
and Seafood Promotion Act of 1986 (16 U.S.C. 4003(3)), as close as
possible to, but not later than, the 7th day after product delivery.

\(C\) For perishable agricultural commodities, as defined in section
1(4) of the Perishable Agricultural Commodities Act of 1930 (7 U.S.C.
499a(4)), as close as possible to, but not later than, the 10th day
after product delivery, unless another date is specified in the
contract.

\(D\) For dairy products, as defined in section 111(e) of the Dairy
Production Stabilization Act of 1983 (7 U.S.C. 4502(e)), edible fats or
oils, and food products prepared from edible fats or oils, as close as
possible to, but not later than, the 10th day after the date on which a
proper invoice has been received. Liquid milk, cheese, certain processed
cheese products, butter, yogurt, ice cream, mayonnaise, salad dressings,
and other similar products, fall within this classification. Nothing in
the Act limits this classification to refrigerated products. When
questions arise regarding the proper classification of a specific
product, prevailing industry practices will be followed in specifying a
contract payment due date. The burden of proof that a classification of
a specific

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H-48 APD 2800.12B, 09-01-99

product is, in fact, prevailing industry practice is upon the Contractor
making the representation.

\(ii\) If the contract does not require submission of an invoice for
payment (e.g., periodic lease payments), the due date will be as
specified in the contract.

\(5\) Contractor\'s invoice. The Contractor shall prepare and submit
invoices to the designated billing office specified in the contract.
Notwithstanding paragraph (g) of the clause at FAR 52.212-4, Contract
Terms and Conditions\--Commercial Items, if the Contractor submits
hard-copy invoices, submit only an original invoice. No copies of the
invoice are required. A proper invoice must include the items listed in
subdivisions (a)(5)(i) through (a)(5)(viii) of this clause. If the
invoice does not comply with these requirements, it shall be returned
within 7 days after the date the designated billing office received the
invoice (3 days for meat, meat food products, or fish; 5 days for
perishable agricultural commodities, edible fats or oils, and food
products prepared from edible fats or oils), with a statement of the
reasons why it is not a proper invoice. Untimely notification will be
taken into account in computing any interest penalty owed the Contractor
in the manner described in subparagraph (a)(5) of this clause.

\(i\) Name and address of the Contractor.

\(ii\) Invoice date. (The Contractor is encouraged to date invoices as
close as possible to the date of the mailing or transmission.)

\(iii\) Contract number or other authorization for supplies delivered or
services performed (including order number and contract line item
number).

\(iv\) Description, quantity, unit of measure, unit price, and extended
price of supplies delivered or services performed.

\(v\) Shipping and payment terms (e.g., shipment number and date of
shipment, prompt payment discount terms). Bill of lading number and
weight of shipment will be shown for shipments on Government bills of
lading.

\(vi\) Name and address of Contractor official to whom payment is to be
sent (must be the same as that in the contract or in a proper notice of
assignment).

\(vii\) Name (where practicable), title, phone number, and mailing
address of person to be notified in the event of a defective invoice.

\(viii\) Any other information or documentation required by the contract
(such as evidence of shipment).

\(ix\) While not required, the Contractor is strongly encouraged to
assign an identification number to each invoice.

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APD 2800.12B, 09-01-99 H-49

\(6\) Interest penalty. An interest penalty shall be paid automatically
by the designated payment office, without request from the Contractor,
if payment is not made by the due date and the conditions listed in
subdivisions (a)(6)(i) through (a)(6)(iii) of this clause are met, if
applicable. However, when the due date falls on a Saturday, Sunday, or
legal holiday when Federal Government offices are closed and Government
business is not expected to be conducted, payment may be made on the
following business day without incurring a late payment interest
penalty.

\(i\) A proper invoice was received by the designated billing office.

\(ii\) A receiving report or other Government documentation authorizing
payment was processed, and there was no disagreement over quantity,
quality, or Contractor compliance with any contract term or condition.

\(iii\) In the case of a final invoice for any balance of funds due the
Contractor for supplies delivered or services performed, the amount was
not subject to further contract settlement actions between the
Government and the Contractor.

\(7\) Computing penalty amount. The interest penalty shall be at the
rate established by the Secretary of the Treasury under section 12 of
the Contract Disputes Act of 1978 (41 U.S.C. 611) that is in effect on
the day after the due date, except where the interest penalty is
prescribed by other governmental authority (e.g., tariffs). This rate is
referred to as the \`\`Renegotiation Board Interest Rate,\'\' and it is
published in the Federal Register semiannually on or about January 1 and
July 1. The interest penalty shall accrue daily on the invoice principal
payment amount approved by the Government until the payment date of such
approved principal amount; and will be compounded in 30-day increments
inclusive from the first day after the due date through the payment
date. That is, interest accrued at the end of any 30-day period will be
added to the approved invoice principal payment amount and will be
subject to interest penalties if not paid in the succeeding 30-day
period. If the designated billing office failed to notify the Contractor
of a defective invoice within the periods prescribed in subparagraph
(a)(5) of this clause, the due date on the corrected invoice will be
adjusted by subtracting from such date the number of days taken beyond
the prescribed notification of defects period. Any interest penalty owed
the Contractor will be based on this adjusted due date. Adjustments will
be made by the designated payment office for errors in calculating
interest penalties.

\(i\) For the sole purpose of computing an interest penalty that might
be due the Contractor, Government acceptance shall be deemed to have
occurred constructively on the 7th day (unless otherwise specified in
this contract) after the Contractor delivered the supplies or performed
the services in accordance with the terms and conditions of the
contract, unless there is a disagreement over quantity, quality, or
Contractor compliance with a contract provision. In the event that
actual acceptance occurs within the constructive acceptance period, the
determination of

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H-50 APD 2800.12B, 09-01-99

an interest penalty shall be based on the actual date of acceptance. The
constructive acceptance requirement does not, however, compel Government
officials to accept supplies or services, perform contract
administration functions, or make payment prior to fulfilling their
responsibilities.

\(ii\) The following periods of time will not be included in the
determination of an interest penalty:

\(A\) The period taken to notify the Contractor of defects in invoices
submitted to the Government, but this may not exceed 7 days (3 days for
meat, meat food products, or fish; 5 days for perishable agricultural
commodities, dairy products, edible fats or oils, and food products
prepared from edible fats or oils).

\(B\) The period between the defects notice and resubmission of the
corrected invoice by the Contractor.

\(C\) For incorrect electronic funds transfer (EFT) information, in
accordance with the EFT clause of this contract.

\(iii\) Interest penalties will not continue to accrue after the filing
of a claim for such penalties under the clause at 52.233-1, Disputes, or
for more than 1 year. Interest penalties of less than \$1 need not be
paid.

\(iv\) Interest penalties are not required on payment delays due to
disagreement between the Government and the Contractor over the payment
amount or other issues involving contract compliance or on amounts
temporarily withheld or retained in accordance with the terms of the
contract. Claims involving disputes, and any interest that may be
payable, will be resolved in accordance with the clause at 52.233-1,
Disputes.

\(8\) Prompt payment discounts. An interest penalty also shall be paid
automatically by the designated payment office, without request from the
Contractor, if a discount for prompt payment is taken improperly. The
interest penalty will be calculated as described in subparagraph (a)(7)
of this clause on the amount of discount taken for the period beginning
with the first day after the end of the discount period through the date
when the Contractor is paid.

\(9\) Additional interest penalty.

\(i\) If this contract was awarded on or after October 1, 1989, a
penalty amount, calculated in accordance with subdivision (a)(9)(iii) of
this clause, shall be paid in addition to the interest penalty amount if
the Contractor\--

\(A\) Is owed an interest penalty of \$1 or more;

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APD 2800.12B, 09-01-99 H-51

\(B\) Is not paid the interest penalty within 10 days after the date the
invoice amount is paid; and

\(C\) Makes a written demand to the designated payment office for
additional penalty payment, in accordance with subdivision (a)(9)(ii) of
this clause, postmarked not later than 40 days after the invoice amount
is paid.

\(ii\) (A) Contractors shall support written demands for additional
penalty payments with the following data. No additional data shall be
required. Contractors shall \--

\(1\) Specifically assert that late payment interest is due under a
specific invoice, and request payment of all overdue late payment
interest penalty and such additional penalty as may be required;

\(2\) Attach a copy of the invoice on which the unpaid late payment
interest was due; and

\(3\) State that payment of the principal has been received, including
the date of receipt.

\(B\) Demands must be postmarked on or before the 40th day after payment
was made, except that\--

\(1\) If the postmark is illegible or nonexistent, the demand must have
been received and annotated with the date of receipt by the designated
payment office on or before the 40th day after payment was made; or

\(2\) If the postmark is illegible or nonexistent and the designated
payment office fails to make the required annotation, the demand\'s
validity will be determined by the date the Contractor has placed on the
demand; provided such date is no later than the 40th day after payment
was made.

\(iii\) (A) The additional penalty shall be equal to 100 percent of any
original late payment interest penalty, except\--

\(1\) The additional penalty shall not exceed \$5,000;

\(2\) The additional penalty shall never be less than \$25; and

\(3\) No additional penalty is owed if the amount of the underlying
interest penalty is less than \$1.

\(B\) If the interest penalty ceases to accrue in accordance with the
limits stated in subdivision (a)(5)(iii) of this clause, the amount of
the additional penalty shall be calculated on the amount of interest
penalty that would have accrued in the

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H-52 APD 2800.12B, 09-01-99

absence of these limits, subject to the overall limits on the additional
penalty specified in subdivision (a)(7)(iii)(A) of this clause.

\(C\) For determining the maximum and minimum additional penalties, the
test shall be the interest penalty due on each separate payment made for
each separate contract. The maximum and minimum additional penalty shall
not be based upon individual invoices unless the invoices are paid
separately. Where payments are consolidated for disbursing purposes, the
maximum and minimum additional penalty determination shall be made
separately for each contract therein.

\(D\) The additional penalty does not apply to payments regulated by
other Government regulations (e.g., payments under utility contracts
subject to tariffs and regulation).

\(b\) Contract financing payments.

\(1\) Due dates for recurring financing payments. If this contract
provides for contract financing, requests for payment shall be submitted
to the designated billing office as specified in this contract or as
directed by the Contracting Officer. Contract financing payments shall
be made on the \[*insert day as prescribed by Agency head; if not
prescribed, insert 30th day*\] day after receipt of a proper contract
financing request by the designated billing office. In the event that an
audit or other review of a specific financing request is required to
ensure compliance with the terms and conditions of the contract, the
designated payment office is not compelled to make payment by the due
date specified.

\(2\) Due dates for other contract financing. For advance payments,
loans, or other arrangements that do not involve recurring submissions
of contract financing requests, payment shall be made in accordance with
the corresponding contract terms or as directed by the Contracting
Officer.

\(3\) Interest penalty not applicable. Contract financing payments shall
not be assessed an interest penalty for payment delays.

\(c\) Fast payment procedure due dates. If this contract contains the
clause at 52.213-1, Fast Payment Procedure, payments will be made within
15 days after the date of receipt of the invoice.

(End of clause)

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APD 2800.12B, 09-01-99 H-53

**552.232-70 Invoice Requirements.**

As prescribed in 532.111(a), insert the following clause:

INVOICE REQUIREMENTS (SEP 1999)

\(a\) Invoices shall be submitted in an original only, unless otherwise
specified, to the designated billing office specified in this contract
or order.

\(b\) Invoices must include the Accounting Control Transaction (ACT)
number provided below or on the order.

ACT Number (*Contracting Officer insert number*)

\(c\) In addition to the requirements for a proper invoice specified in
the Prompt Payment clause of this contract or order, the following
information or documentation must be submitted with each invoice:

(*Contracting Officer list additional requirements.*)

(End of clause)

**552.232-71 Adjusting Payments.**

As prescribed in 532.111(b), insert the following clause:

ADJUSTING PAYMENTS (SEP 1999)

\(a\) Under the Inspection of Services clause of this contract, payments
may be adjusted if any services do not conform with contract
requirements. The Contracting Officer or a designated representative
will inform the Contractor, in writing, of the type and dollar amount of
proposed deductions by the 10th workday of the month following the
performance period for which the deductions are to be made.

\(b\) The Contractor may, within 10 working days of receipt of the
notification of the proposed deductions, present to the Contracting
Officer specific reasons why any or all of the proposed deductions are
not justified. Reasons must be solidly based and must provide specific
facts that justify reconsideration and/or adjustment of the amount to be
deducted. Failure to respond within the 10-day period will be
interpreted to mean that the Contractor accepts the deductions proposed.

\(c\) All or a portion of the final payment may be delayed or withheld
until the Contracting Officer makes a final decision on the proposed
deduction. If the Contracting Officer

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H-54 APD 2800.12B, 09-01-99

determines that any or all of the proposed deductions are warranted, the
Contracting Officer shall so notify the Contractor, and adjust payments
under the contract accordingly.

(End of clause)

**552.232-72 Final Payment.**

As prescribed in 532.111(c), insert the following clause:

FINAL PAYMENT (SEP 1999)

Before final payment is made, the Contractor shall furnish the
Contracting Officer with a release of all claims against the Government
relating to this contract, other than claims in stated amounts that are
specifically excepted by the Contractor from the release. If the
Contractor\'s claim to amounts payable under the contract has been
assigned under the Assignment of Claims Act of 1940, as amended (31
U.S.C. 3727, 41 U.S.C. 15), a release may also be required of the
assignee.

(End of clause)

**552.232-73 Availability of Funds.**

As prescribed in 532.705-1, insert the following clause:

AVAILABILITY OF FUNDS (SEP 1999)

The authorization of performance of work under this contract during the
initial contract period and any option or extension period(s) is
contingent upon the appropriation of funds to procure this service. If
the contract is awarded, extended, or option(s) exercised, the
Government\'s obligation beyond the end of the fiscal year (September
30), in which the award or extension is made or option(s) exercised, is
contingent upon the availability of funds from which payment for the
contract services can be made. No legal liability on the part of the
Government for payment of any money beyond the end of each fiscal year
(September 30) shall arise unless or until funds are made available to
the Contracting Officer for this procurement and written notice of such
availability is given to the Contractor.

(End of clause)

**552.232-74 Invoice Payments.**

As prescribed in 532.908(a)(1), insert the following clause:

INVOICE PAYMENTS (SEP 1999)

\(a\) The due date for making invoice payments by the designated payment
office is:

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APD 2800.12B, 09-01-99 H-55

\(1\) For orders placed electronically by the General Services
Administration (GSA) Federal Supply Service (FSS), and to be paid by GSA
through electronic funds transfer (EFT), the later of the following two
events:

\(i\) The 10th day after the designated billing office receives a proper
invoice from the Contractor. If the designated billing office fails to
annotate the invoice with the date of receipt at the time of receipt,
the invoice payment due date shall be the 10th day after the date of the
Contractor\'s invoice; provided the Contractor submitted a proper
invoice and no disagreement exists over quantity, quality, or Contractor
compliance with contract requirements.

\(ii\) The 10th day after Government acceptance of supplies delivered or
services performed by the Contractor.

\(2\) For all other orders, the later of the following two events:

\(i\) The 30th day after the designated billing office receives a proper
invoice from the Contractor. If the designated billing office fails to
annotate the invoice with the date of receipt at the time of receipt,
the invoice payment due date shall be the 30th day after the date of the
Contractor\'s invoice; provided the Contractor submitted a proper
invoice and no disagreement exists over quantity, quality, or Contractor
compliance with contract requirements.

\(ii\) The 30th day after Government acceptance of supplies delivered or
services performed by the Contractor.

\(3\) On a final invoice, if the payment amount is subject to contract
settlement actions, acceptance occurs on the effective date of the
contract settlement.

\(b\) The General Services Administration will issue payment on the due
date in (a)(1) above if the Contractor complies with full cycle
electronic commerce. Full cycle electronic commerce includes all the
following elements:

\(1\) The Contractor must receive and fulfill electronic data
interchange (EDI) purchase orders (transaction set 850).

\(2\) The Contractor must generate and submit to the Government valid
EDI invoices (transaction set 810) or submit invoices through the GSA
Finance Center Internet-based

invoice process. Internet-based invoices must be submitted using
procedures provided by GSA.

\(3\) The Contractor\'s financial institution must receive and process,
on behalf of the Contractor, EFT payments through the Automated Clearing
House (ACH) system.

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H-56 APD 2800.12B, 09-01-99

\(4\) The EDI transaction sets in (b)(1) through (b)(3) above must
adhere to implementation conventions provided by GSA.

\(c\) If any of the conditions in (b) above do not occur, the 10 day
payment due dates in (a)(1) become 30 day payment due dates.

\(d\) Notwithstanding paragraph (g) of the clause at FAR 52.212-4,
Contract Terms and Conditions\--Commercial Items, if the Contractor
submits hard-copy invoices, submit only an original invoice. No copies
of the invoice are required.

\(e\) All other provisions of the Prompt Payment Act (31 U.S.C. 3901 et
seq.) and Office of Management and Budget (OMB) Circular A- 125, Prompt
Payment, apply.

(End of clause)

**552.232-75 Prompt Payment.**

As prescribed in 532.908(b)(1), insert the following clause:

PROMPT PAYMENT (SEP 1999)

The Government will make payments under the terms and conditions
specified in this clause. Payment shall be considered as being made on
the day a check is dated or an electronic funds transfer is made. All
days referred to in this clause are calendar days, unless otherwise
specified.

\(a\) [Payment due date]{.underline}.

\(1\) [Rental payments]{.underline}. Rent shall be paid monthly in
arrears and will be due on the first workday of each month, and only as
provided for by the lease.

\(i\) When the date for commencement of rent falls on the 15th day of
the month or earlier, the initial monthly rental payment under this
contract shall become due on the first workday of the month following
the month in which the commencement of the rent is effective.

\(ii\) When the date for commencement of rent falls after the 15th day
of the month, the initial monthly rental payment under this contract
shall become due on the first workday of the second month following the
month in which the commencement of the rent is effective.

\(2\) [Other payments]{.underline}. The due date for making payments
other than rent shall be the later of the following two events:

\(i\) The 30th day after the designated billing office has received a
proper invoice from the Contractor.

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APD 2800.12B, 09-01-99 H-57

\(ii\) The 30th day after Government acceptance of the work or service.
However, if the designated billing office fails to annotate the invoice
with the actual date of receipt, the invoice payment due date shall be
deemed to be the 30th day after the Contractor\'s invoice is dated,
provided a proper invoice is received and there is no disagreement over
quantity, quality, or Contractor compliance with contract requirements.

\(b\) [Invoice and inspection requirements for payments other than
rent]{.underline}.

\(1\) The Contractor shall prepare and submit an invoice to the
designated billing office after completion of the work. A proper invoice
shall include the following items:

\(i\) Name and address of the Contractor.

\(ii\) Invoice date.

\(iii\) Lease number.

\(iv\) Government\'s order number or other authorization.

\(v\) Description, price, and quantity of work or services delivered.

\(vi\) Name and address of Contractor official to whom payment is to be
sent (must be the same as that in the remittance address in the lease or
the order).

\(vii\) Name (where practicable), title, phone number, and mailing
address of person to be notified in the event of a defective invoice.

\(2\) The Government will inspect and determine the acceptability of the
work performed or services delivered within 7 days after the receipt of
a proper invoice or notification of completion of the work or services
unless a different period is specified at the time the order is placed.
If actual acceptance occurs later, for the purpose of determining the
payment due date and calculation of interest, acceptance will be deemed
to occur on the last day of the 7 day inspection period. If the work or
service is rejected for failure to conform to the technical requirements
of the contract, the 7 days will be counted beginning with receipt of a
new invoice or notification. In either case, the Contractor is not
entitled to any payment or interest unless actual acceptance by the
Government occurs.

\(c\) [Interest Penalty]{.underline}.

\(1\) An interest penalty shall be paid automatically by the Government,
without request from the Contractor, if payment is not made by the due
date.

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H-58 APD 2800.12B, 09-01-99

\(2\) The interest penalty shall be at the rate established by the
Secretary of the Treasury under Section 12 of the Contract Disputes Act
of 1978 (41 U.S.C. 611) that is in effect on the day after the due date.
This rate is referred to as the \"Renegotiation Board Interest Rate,\"
and it is published in the [Federal]{.underline} [Register]{.underline}
semiannually on or about January 1 and July 1. The interest penalty
shall accrue daily on the payment amount approved by the Government and
be compounded in 30-day increments inclusive from the first day after
the due date through the payment date.

\(3\) Interest penalties will not continue to accrue after the filing of
a claim for such penalties under the clause at 52.233-1, Disputes, or
for more than 1 year. Interest penalties of less than \$1.00 need not be
paid.

\(4\) Interest penalties are not required on payment delays due to
disagreement between the Government and Contractor over the payment
amount or other issues involving contract compliance or on amounts
temporarily withheld or retained in accordance with the terms of the
contract. Claims involving disputes, and any interest that may be
payable, will be resolved in accordance with the clause at 52.233-1,
Disputes.

(End of clause)

[Alternate I (SEP 1999)]{.underline}. If Alternate I is used,
subparagraph (a)(1) of the basic clause should be designated as
paragraph (a) and subparagraph (a)(2) and paragraph (b) should be
deleted. Paragraph (c) of the basic clause should be redesignated (b).

**552.232-76 Electronic Funds Transfer Payment.**

As prescribed in 532.908(b)(2), insert the following clause:

ELECTRONIC FUNDS TRANSFER PAYMENT (SEP 1999)

\(a\) The Government will make payments under this lease by electronic
funds transfer (EFT). The Lessor must, no later than 30 days before the
first payment:

\(1\) Designate a financial institution for receipt of EFT payments.

\(2\) Submit this designation to the Contracting Officer or other
Government official, as directed.

\(b\) The Lessor must provide the following information:

\(1\) The American Bankers Association 9-digit identifying number for
wire transfers of the financing institution receiving payment if the
institution has access to the Federal Reserve Communications System.

GSAM\
APD 2800.12B, 09-01-99 H-59

\(2\) Number of account to which funds are to be deposited.

\(3\) Type of depositor account (\"C\" for checking, \"S\" for savings).

\(4\) If the Lessor is a new enrollee to the EFT system, the Lessor must
complete and submit a \"Payment Information Form,\" SF 3881, before
payment can be processed.

\(c\) If the Lessor, during the performance of this contract, elects to
designate a different financial institution for the receipt of any
payment, the appropriate Government official must receive notice of such
change and the required information specified above no later than 30
days before the date such change is to become effective.

\(d\) The documents furnishing the information required in this clause
must be dated and contain the:

\(1\) Signature, title, and telephone number of the Lessor or the
Lessor's authorized representative.

\(2\) Lessor\'s name.

\(3\) Lease number.

\(e\) Lessor's failure to properly designate a financial institution or
to provide appropriate payee bank account information may delay payments
of amounts otherwise properly due.

(End of clause)

**552.232-77 Payment By Credit Card.**

As prescribed in 532.7003, insert the following clause:

PAYMENT BY CREDIT CARD (SEP 1999)

\(a\) Definitions. \"Government commercial credit card\" means the
uniquely numbered credit card issued by a contractor under GSA\'s
Governmentwide Contract for Fleet, Travel, and Purchase Card Services to
named individual Government employees to pay for official Government
purchases.

\"Oral order\" means an order placed orally either in person or by
telephone.

\(b\) At the option of the Government and if agreeable to the
Contractor, payments of \_\_\_[\*]{.underline}\_\_\_ or less for oral or
written orders may be made using the Government commercial credit card.

\(c\) The Contractor shall not process a transaction for payment through
the credit card clearinghouse until the purchased supplies have been
shipped or services performed. Unless the cardholder requests correction
or replacement of a defective or faulty item in accordance

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H-60 APD 2800.12B, 09-01-99

with other contract requirements, the Contractor shall immediately
credit a cardholder\'s account for items returned as defective or
faulty.

\(d\) Payments made using the Government Commercial Credit Card are not
eligible for any negotiated prompt payment discount. Payment made using
a Government debit card will receive the applicable prompt payment
discount.

(End of clause)

*\* Enter amount not to exceed \$100,000.*

[Alternate I (SEP 1999)]{.underline}. For solicitations and contracts
under which other agencies may place orders directly, replace paragraph
(b) of the basic clause with the following:

\(b\) At the option of the Government and if agreeable to the
Contractor, payments for oral or written orders may be made using the
Government commercial purchase card. The dollar value of a purchase card
action must not exceed the ordering agency\'s established limit.

**552.233-70 Protests Filed Directly with the General Services
Administration.**

As prescribed in 533.103-72, insert the following provision:

PROTESTS FILED DIRECTLY WITH THE GENERAL SERVICES ADMINISTRATION\
(SEP 1999)

\(a\) The following definitions apply in this provision:

"Agency Protest Official for GSA" means the official in the Office of
Acquisition Policy designated to review and decide procurement protests
filed with GSA.

"Deciding official" means the person chosen by the protester to decide
the agency protest. The deciding official may be either the Contracting
Officer or the Agency Protest Official.

\(b\) The filing time frames in FAR 33.103(e) apply. An agency protest
is filed when the protest complaint is received at the location the
solicitation designates for serving protests. GSA's hours of operation
are 8:00 a.m. to 4:30 p.m. Protests delivered after 4:30 p.m. will be
considered received and filed the following business day.

\(c\) A protest filed directly with the General Services Administration
(GSA) must:

\(1\) Indicate that it is a protest to the agency.

\(2\) Be filed with the Contracting Officer.

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APD 2800.12B, 09-01-99 H-61

\(3\) State whether the protester chooses to have the Contracting
Officer or the Agency Protest Official for GSA decide the protest. If
the protest is silent on this matter, the Contracting Officer will
decide the protest.

\(4\) Indicate whether the protester prefers to make an oral
presentation, a written presentation, or an oral presentation confirmed
in writing, of arguments in support of the protest to the deciding
official.

\(5\) Include the information required by FAR 33.103(d)(2):

\(i\) Name, address, fax number, and telephone number of the protester.

\(ii\) Solicitation or contract number.

\(iii\) Detailed statement of the legal and factual grounds for the
protest, to include a description of resulting prejudice to the
protester.

\(iv\) Copies of relevant documents.

\(v\) Request for a ruling by the agency.

\(vi\) Statement as to the form of relief requested.

\(vii\) All information establishing that the protester is an interested
party for the purpose of filing a protest.

\(viii\) All information establishing the timeliness of the protest (see
paragraph (b) of this provision).

\(d\) An interested party filing a protest with GSA has the choice of
requesting either that the Contracting Officer or the Agency Protest
Official for GSA decide the protest.

\(e\) The decision by the Agency Protest Official for GSA is an
alternative to a decision by the Contracting Officer. The Agency Protest
Official for GSA will not consider appeals from the Contracting
Officer's decision on an agency protest.

\(f\) The deciding official must conduct a scheduling conference with
the protester within three (3) days after the protest is filed. The
scheduling conference will establish deadlines for oral or written
arguments in support of the agency protest and for agency officials to
present information in response to the protest issues. The deciding
official may hear oral arguments in support of the agency protest at the
same time as the scheduling conference, depending on availability of the
necessary parties.

\(g\) Oral conferences may take place either by telephone or in person.
Other parties (e.g., representatives of the program office) may attend
at the discretion of the deciding official.

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H-62 APD 2800.12B, 09-01-99

\(h\) The following procedures apply to information submitted in support
of or in response to an agency protest:

\(1\) The protester and the agency have only one opportunity to support
or explain the substance of the protest (either orally, in writing, or
orally confirmed in writing).

\(2\) GSA procedures do not provide for any discovery.

\(3\) The deciding official has discretion to request additional
information from either the agency or the protester. However, the
deciding official will normally decide protests on the basis of
information provided by the protester and the agency.

\(4\) The parties are encouraged, but not required, to exchange
information submitted to the Agency Protest Official for GSA.

\(5\) Any written response by the agency to the protest must be filed
with the deciding official within five (5) days after the filing of the
protest.

\(6\) Any additional information that either party wants to submit in
writing after one-time oral arguments in support of the agency protest,
must be received by the deciding official within two (2) days after the
date of the oral arguments.

\(i\) The deciding official will resolve the protest through informal
presentations or meetings to the maximum extent practicable.

\(j\) An interested party may represent itself or be represented by
legal counsel. GSA will not reimburse the party for any legal fees
related to the agency protest.

\(k\) GSA will stay award or suspend contract performance in accordance
with FAR 33.103(f). The stay or suspension, unless over-ridden, remains
in effect until the protest is decided, dismissed, or withdrawn.

\(l\) The deciding official will make a best effort to issue a decision
on the protest within twenty-eight (28) days after the filing date. The
decision may be oral or written. If the decision is communicated orally
to the protester, the deciding official will confirm in writing within
three (3) days after the decision.

\(m\) GSA may dismiss or stay proceedings on an agency protest if a
protest on the same or similar basis is filed with a protest forum
outside of GSA.

(End of provision)

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APD 2800.12B, 09-01-99 H-63

**552.236-70 Definitions.**

As prescribed in 536.570-1, insert the following clause:

DEFINITIONS (APR 1984)

The terms \"Administration\" and \"Service\" as used in this contract
shall mean the General Services Administration (GSA) and the Public
Buildings Service (PBS), respectively.

(End of clause)

**552.236-71 Authorities and Limitations.**

As prescribed in 536.570-2, insert the following clause:

AUTHORITIES AND LIMITATIONS (APR 1984)

\(a\) All work shall be performed under the general direction of the
Contracting Officer, who alone shall have the power to bind the
Government and to exercise the rights, responsibilities, authorities and
functions vested in him by the contract documents, except that he shall
have the right to designate authorized representatives to act for him.
Wherever any provision in this contract specifies an individual (such
as, but not limited to, Construction Engineer, Resident Engineer,
Inspector or Custodian) or organization, whether Governmental or
private, to perform any act on behalf of or in the interests of the
Government, that individual or organization shall be deemed to be the
Contracting Officer\'s authorized representative under this contract but
only to the extent so specified. The Contracting Officer may, at any
time during the performance of this contract, vest in any such
authorized representatives additional power and authority to act for him
or designate additional representatives, specifying the extent of their
authority to act for him; a copy of each document vesting additional
authority in an authorized representative or designating an additional
authorized representative shall be furnished to the Contractor.

\(b\) The Contractor shall perform the contract in accordance with any
order (including but not limited to instruction, direction,
interpretation, or determination) issued by an authorized representative
in accordance with his authority to act for the Contracting Officer; but
the Contractor assumes all the risk and consequences of performing the
contract in accordance with any order (including but not limited to
instruction, direction, interpretation, or determination) of anyone not
authorized to issue such order.

(End of clause)

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H-64 APD 2800.12B, 09-01-99

**552.236-72 Specialist.**

As prescribed in 536.570-3, insert the following clause:

SPECIALIST (APR 1984)

The term \"Specialist,\" as used in the contract specification, shall
mean an individual or firm of established reputation (or, if newly
organized, whose personnel have previously established a reputation in
the same field), which is regularly engaged in, and which maintains a
regular force of workmen skilled in either (as applicable) manufacturing
or fabricating items required by the contract, installing items required
by the contract, or otherwise performing work required by the contract.
Where the contract specification requires installation by a specialist,
that term shall also be deemed to mean either the manufacturer of the
item, an individual or firm licensed by the manufacturer, or an
individual or firm who will perform the work under the manufacturer\'s
direct supervision.

(End of clause)

**552.236-73 Basis of Award---Construction Contract.**

As prescribed in 536.570-4, insert the following provision or the
appropriate Alternate:

BASIS OF AWARD \-- CONSTRUCTION CONTRACT (APR 1985)

\(a\) The low bidder for purposes of award is the responsible bidder
offering the lowest price for the base bid (consisting of the lump sum
bid and any associated unit price bids extended by the applicable number
of units shown on the bid form). See Standard Form 1442, Solicitation,
Offer, and Award and the provision entitled \"Contract Award - Sealed
Bidding.\"

\(b\) A bid may be rejected as nonresponsive if the bid is materially
unbalanced as to bid prices. A bid is unbalanced when the bid is based
on prices significantly less than cost for some work and significantly
overstated for other work.

(End of provision)

[Alternate I (APR 1985)]{.underline}. If the solicitation includes a
base bid and options, the Contracting Officer shall delete paragraph (a)
of the basic provision and insert paragraph (a) substantially as
follows:

\(a\) The low bidder for purposes of award is the responsible bidder
offering the lowest aggregate price for (1) the base bid (consisting of
the lump sum bid and any associated unit price bids extended by the
applicable number of units shown on the bid form) plus (2) all options
designated to be evaluated. The evaluation of options will not obligate
the Government to

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APD 2800.12B, 09-01-99 H-65

exercise the options. See Standard Form 1442, Solicitation, Offer, and
Award and the provision entitled \"Contract Award - Sealed Bidding.\"

[Alternate II (APR 1985)]{.underline}. If the solicitation includes a
base bid and alternates, the Contracting Officer shall delete paragraph
(a) of the basic provision and insert paragraphs (a), (c),and (d)
substantially as follows:

\(a\) The low bidder for purposes of award is the responsible bidder
offering the lowest aggregate price for (1) the base bid (consisting of
the lump sum bid and any associated unit price bids extended by the
applicable number of units shown on the bid form) plus (2) those
alternates in the order of priority listed in the solicitation that
provide the most features of work within the funds available at bid
opening. See the provision entitled \"Contract Award - Sealed Bidding.\"

\(c\) Alternates will be added to the base bid in the order listed in
the solicitation (see Standard Form 1442, Solicitation, Offer, and
Award). If the addition of an alternate would make all bids exceed the
funds available at bid opening, that alternate shall be skipped and the
next subsequent alternate in a lower amount shall be added, provided
that the aggregate of base bid and the selected alternates do not exceed
the funds available at bid opening. For example, when the amount
available is \$100,000 and a bidder\'s base bid is \$85,000, with its
separate bids on four successive alternates being \$10,000, \$8,000,
\$6,000, and \$4,000, the aggregate amount of the bid for purposes of
selecting the alternates would be \$99,000 (base bid plus the first and
fourth alternates). The second and third alternates are skipped because
each of them would cause the aggregate of the base bid and alternates to
exceed the \$100,000 amount available when considered with the first
alternate. All bids shall be evaluated on the basis of the same
alternates.

\(d\) After the low bidder has been determined in accordance with
paragraph (a), an award may be made to that low bidder on the base bid,
plus any combination of alternates for which funds are available at the
time of award, but only if the award amount does not exceed the amount
offered by any other responsible bidder. If the base bid plus the
proposed combination of alternates exceed the amount offered by any
other responsible bidder for the same combination of alternates, the
award cannot be made on that combination of alternates.

[Alternate III (APR 1985)]{.underline}. If the solicitation includes a
base bid, alternates, and options, the Contracting Officer shall delete
paragraph (a) of the basic provision and insert paragraphs (a), (c), and
(d) substantially as follows:

\(a\) The low bidder for purposes of award is the responsible bidder
offer­ing the lowest aggregate price for (1) the base bid (consisting of
the lump sum bid and any associated unit price bids extended by the
applicable number of units shown on the bid form) plus (2) those
alternates in the order of priority listed in the solicitation that
provide the most features of work within the funds available at bid
opening plus (3) all options designated to be evaluated except those
options associated with alternates which are skipped during the
selection process

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H-66 APD 2800.12B, 09-01-99

outlined in paragraph (c) below. The evaluation of options will not
obligate the Government to exercise the options. See the provision
entitled \"Contract Award - Sealed Bidding.\"

\(c\) Alternates will be added to the base bid in the order listed in
the solicitation (see Standard Form 1442, Solicitation, Offer, or
Award). If the addition of an alternate would make all bids exceed the
funds available at bid opening, that alternate shall be skipped and the
next subsequent alternate in a lower amount shall be added, provided
that the aggregate of base bid and the selected alternates do not exceed
the funds available at bid opening. For example, when the amount
available is \$100,000 and a bidder\'s base bid is \$85,000, with its
separate bids on four successive alternates being \$10,000, \$8,000,
\$6,000, and \$4,000, the aggregate amount of the bid for purposes of
selecting the alternates would be \$99,000 (base bid plus the first and
fourth alternates). The second and third alternates are skipped because
each of them would cause the aggregate of the base bid and alternates to
exceed the \$100,000 amount available when considered with the first
alternate. All bids shall be evaluated on the basis of the same
alternates.

\(d\) After the low bidder has been determined in accordance with
paragraph (a), award may be made to that low bidder on the base bid and
evaluated options plus any combination of alternates for which funds are
available at the time of award, but only if that low bidder is still low
on the sum thereof plus any previously unevaluated options designated to
be evaluated which are associated with proposed alternates that were
skipped during the selection under paragraph (c). If that low bidder is
not still low, award cannot be made on the proposed combination of
alternates.

**552.236-74 Working Hours.**

As prescribed in 536.570-5, insert the following clause:

WORKING HOURS (APR 1984)

\(a\) It is contemplated that all work will be performed during the
customary working hours of the trades involved unless otherwise
specified in this con­tract. Work performed by the Contractor at his own
volition outside such customary working hours shall be at no additional
expense to the Government.

\(b\) Any requests received by the Contractor from occupants of existing
buildings to change the hours of work shall be referred to the
Contracting Officer for determination.

(End of clause)

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APD 2800.12B, 09-01-99 H-67

**552.236-75 Use of Premises.**

As prescribed in 536.570-6, insert the following clause:

USE OF PREMISES (APR 1984)

\(a\) If the premises are occupied, the Contractor, his subcontractors,
and their employees shall comply with the regulations governing access
to, operation of, and conduct while in or on the premises and shall
perform the work required under this contract in such a manner as not to
unreasonably interrupt or interfere with the conduct of Government
business.

\(b\) Any request received by the Contractor from occupants of existing
buildings to change the sequence of work shall be referred to the
Contracting Officer for determination.

\(c\) If the premises are occupied, the Contractor, his subcontractors
and their employees shall not have access to or be admitted into any
building outside the scope of this contract except with official
permission.

(End of clause)

**552.236-76 Measurements.**

As prescribed in 536.570-7, insert the following clause:

MEASUREMENTS (APR 1984)

All dimensions shown of existing work and all dimensions required for
work that is to connect with work now in place, shall be verified by the
Contractor by actual measurement of the existing work. Any discrepancies
between the contract requirements and the existing conditions shall be
referred to the Contracting Officer before any work affected thereby has
been performed.

(End of clause)

**552.236-77 Specifications and Drawings.**

As prescribed in 536.570-8, insert the following clause:

SPECIFICATIONS AND DRAWINGS (SEP 1999)

The requirements of the clause entitled \"Specifications and Drawings
for Construction\" at FAR 52.236-21, are supplemented as follows:

\(a\) In case of difference between small and large-scale drawings, the
large-scale drawings shall govern. Schedules on any contract drawing
shall take precedence over conflicting information on that or any other
contract drawing. On any of the drawings where a portion

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H-68 APD 2800.12B, 09-01-99

of the work is detailed or drawn out and the remainder is shown in
outline, the parts detailed or drawn out shall apply also to all other
like portions of the work.

\(b\) Where the word \"similar\" occurs on the drawings, it shall have a
general meaning and not be interpreted as being identical, and all
details shall be worked out in relation to their location and their
connection with other parts of the work.

\(c\) Standard Details or Specification Drawings are applicable when
listed, bound with the specifications, noted on the drawings or
referenced elsewhere in the specifications. Where the notes on the
drawings indicate modifications, such modifications shall govern.

\(d\) In case of difference between Standard Details or Specification
Drawings and the specifications, the specifications will govern. In case
of difference between the Standard Details or Specification Drawings and
the drawings prepared specifically for this contract, the later shall
govern.

(End of clause)

**552.236-78 Shop Drawings, Coordination Drawings, and Schedules.**

As prescribed in 536.570-9, insert the following clause:

SHOP DRAWINGS, COORDINATION DRAWINGS, AND SCHEDULES (SEP 1999)

The requirements, of the clause entitled \"Specifications and Drawings
for Construction\" at FAR 52.236-21, are supplemented as follows:

\(a\) The Contractor shall submit shop drawings, coordination drawings,
and schedules for approval as required by the specifications or
requested by the Contracting Officer as follows:

\(b\) Shop drawings shall include fabrication, erection and setting
drawings, schedule drawings, manufacturers\' scale drawings, wiring and
control diagrams, cuts or entire catalogs, pamphlets, descriptive
literature, and performance and test data.

\(c\) Drawings and schedules, other than catalogs, pamphlets and similar
printed material, shall be submitted in reproducible form with two
prints made by a process approved by the Contracting Officer. Upon
approval, the reproducible form will be returned to the Contractor who
shall then furnish the number of additional prints, not to exceed 10,
required by the specifications. The Contractor shall submit shop
drawings in catalog, pamphlet and similar printed form in a minimum of
four copies plus as many additional copies as the Contractor may desire
or need for his use or use by subcontractors.

\(d\) Before submitting shop drawings on the mechanical and electrical
work, the Contractor shall submit and obtain the Contracting Officer\'s
approval of such lists of mechanical and electrical equipment and
materials as may be re­quired by the specifications.

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APD 2800.12B, 09-01-99 H-69

\(e\) Each shop drawing or coordination drawing shall have a blank area
5 by 5 inches, located adjacent to the title block. The title block
shall display the following:

Number and title of drawing\
Date of drawing or revision\
Name of project building or facility\
Name of Contractor and (if appropriate) name of subcontractor submitting
drawing\
Clear identity of contents and location on the work\
Project title and contract number

\(f\) Unless otherwise provided in this contract, or otherwise directed
by the Contracting Officer, shop drawings, coordination drawings and
schedules shall be submitted to the Contracting Officer, with a letter
in triplicate, sufficiently in advance of construction requirements to
permit no less than 10 working days for checking and appropriate action.

\(g\) Approval of drawings and schedules will be general and shall not
be construed as permitting any departure from the contract requirements,
or as approving departures from full-size details furnished by the
Contracting Officer.

(End of clause)

**552.236-79 Samples.**

As prescribed in 536.570-10, insert the following clause:

SAMPLES (APR 1984)

\(a\) After the award of the contract, the Contractor shall furnish for
the approval of the Contracting Officer samples required by the
specifications or by the Contracting Officer. Samples shall be delivered
to the Contracting Officer or to the Architect as specified or as
directed. The Contractor shall prepay all shipping charges on samples.
Materials or equipment for which samples are required shall not be used
in the work until approved in writing by the Contracting Officer.

\(b\) Each sample shall have a label indicating:

\(1\) Name of project building or facility, project title and contract
number.

\(2\) Name of Contractor and, if appropriate, name of subcontractor.

\(3\) Identification of material or equipment with specification
requirement.

\(4\) Place of origin.

\(5\) Name of producer and brand (if any).

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H-70 APD 2800.12B, 09-01-99

Samples of finished materials shall have additional markings that will
identify them under the finish schedules.

\(c\) The Contractor shall mail under separate cover a letter in
triplicate submitting each shipment of samples and containing the
information required in paragraph (b) of this clause. He shall enclose a
copy of this letter with the shipment and send a copy to the Government
representative on the project. Approval of a sample shall be only for
the characteristics or use named in such approval and shall not be
construed to change or modify any contract requirement. Substitutions
will not be permitted unless they are approved in writing by the
Contracting Officer.

\(d\) Approved samples not destroyed in testing will be sent to the
Government representative at the project. Approved samples of hardware
in good condition will be marked for identification and may be used in
the work. Materials and equipment, incorporated in the work shall match
the approved samples. Other samples not destroyed in testing or not
approved will be returned to the Contractor at his expense if so
requested at time of submission.

\(e\) Failure of any material to pass the specified tests will be
sufficient cause for refusal to consider, under this contract, any
further samples of the same brand or make of that material or equipment
which previously has proved unsatisfactory in service.

\(f\) Samples of various materials or equipment delivered on the site or
in place may be taken by the Government representative for testing.
Samples failing to meet contract requirements will automatically void
previous approvals of the items tested. The Contractor shall replace
such materials or equipment found not to have met contract requirements,
or there shall be a proper adjustment of the contract price as
determined by the Contracting Officer.

\(g\) Unless otherwise specified, when tests are required only one test
of each sample proposed for use will be made at the expense of the
Government. Samples which do not meet specification requirements will be
rejected. Testing of additional samples will be made by the Government
at the expense of the Contractor.

(End of clause)

**552.236-80 Heat.**

As prescribed in 536.570-11, insert the following clause:

HEAT (APR 1984)

Unless otherwise specified or unless already provided by the Government
the Contractor shall;

\(a\) Provide heat, as necessary to protect all work, materials, and
equipment against injury from dampness and cold;

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APD 2800.12B, 09-01-99 H-71

\(b\) Protect, cover and/or heat as may be necessary, to produce and
maintain a temperature of not less than 50 degrees Fahrenheit (1) in the
concrete during the placing, setting and curing of concrete, and (2) in
the plaster during the application, setting and curing of plaster; and

\(c\) Provide heat as necessary in the area where work is to be done to
provide the minimum temperature recommended by the supplier or
manufacturer of the material, but in no case less than 50 degrees
Fahrenheit, for a period beginning 10 days before placing of interior
finishes and finish materials and continuing until completion or
beneficial occupancy of the area, whichever is earlier.

(End of clause)

**552.236-81 Use of Equipment by the Government.**

As prescribed in 536.570-12, insert the following clause:

USE OF EQUIPMENT BY THE GOVERNMENT (APR 1984)

\(a\) The Government may take over and operate, with Government
employees, such equipment as is necessary for heating or cooling such
areas of the building as require the service, as soon as the
installation is sufficiently complete.

\(b\) The Contracting Officer will advise the Contractor by letter,
prior to the use of equipment, which items of equipment will be
operated, and the date and time such operation will begin.

\(c\) Government operation of equipment will not relieve the Contractor
of the one-year guarantee on materials and workmanship elsewhere
provided for in this contract.

\(d\) The guarantee period, elsewhere provided for in this contract, for
each piece of equipment shall be in accordance with the \"Guarantees\"
clause of this contract.

(End of clause)

**552.236-82 Subcontracts.**

As prescribed in 536.570-13, insert the following clause:

SUBCONTRACTS (APR 1984)

\(a\) Nothing contained in the contract shall be construed as creating
any contractual relationship between any subcontractor and the
Government. The divisions or sections of the specifications are not
intended to control the Contractor in dividing the work among
subcontractors, or to limit the work performed by any trade.

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H-72 APD 2800.12B, 09-01-99

\(b\) The Contractor shall be responsible to the Government for acts and
omis­sions of his own employees and of subcontractors and their
employees. He shall also be responsible for the coordination of the work
of the trades, subcontractors and suppliers.

\(c\) The Government will not undertake to settle any differences
between or among the Contractor, subcontractors, or suppliers.

(End of clause)

**552.236-83 Requirement for a Project Labor Agreement.**

As prescribed in 536.570-14, insert a clause substantially the same as
the following:

REQUIREMENT FOR A PROJECT LABOR AGREEMENT (SEP 1999)

\(a\) Definition. \"Project Labor Agreement\" (PLA) means an agreement
between the contractor, subcontractors, and the union(s) representing
workers. Under a PLA, the contractor and subcontractors on a project and
the union(s) agree on terms and conditions of employment for the
project, establishing a framework for labor-management cooperation to
advance the Government\'s procurement interest in cost, efficiency, and
quality.

\(b\) The Contractor shall, after contract award, enter into a PLA for
performance of \[*Insert project or contract name*\]. The PLA binds the
Contractor and subcontractors of whatever tier engaged in onsite
construction work. The PLA shall include all the following terms:

\(1\) Guarantees against strikes, lockouts, and similar work
disruptions.

\(2\) Effective, prompt and mutually binding procedures for resolving
labor disputes arising during the project.

\(3\) Other mechanisms for labor-management cooperation on matters of
mutual interest and concern, including productivity, quality of work,
safety, and health.

\(4\) The PLA shall fully conform to all applicable statutes,
regulations, and Executive Orders.

\(c\) Any PLA reached under this clause shall not change the terms of
this contract or provide for any pricing adjustment by the Government.

\(d\) The Government shall not participate in the negotiations of any
PLA.

\(e\) Nothing in this clause precludes contractors or subcontractors
from competing for contracts or subcontracts on this project without
discrimination based on union or non-union status.

(End of clause)

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**552.237-70 Qualifications of Offerors.**

As prescribed in 537.110(a), insert the following provision:

QUALIFICATIONS OF OFFERORS (MAY 1989)

\(a\) Offers will be considered only from responsible organizations or
individuals now or recently engaged in the performance of building
service contracts comparable to those described in this solicitation. In
order to determine an Offeror\'s qualifications, the Offeror may be
requested to furnish a narrative statement listing comparable contracts
which it has performed; a general history of its operating organization;
and its complete experience. An Offeror may also be required to furnish
a statement of its financial resources; show that it has the ability to
maintain a staff of regular employees adequate to ensure continuous
performance of the work; and, demonstrate that its equipment and/or
plant capacity for the work contemplated is sufficient, adequate, and
suitable.

\(b\) Competency in performing comparable building service contracts,
demonstration of acceptable financial resources, personnel staffing,
plant, equipment, and supply sources will be considered in determining
whether an Offeror is responsible.

\(c\) Prospective Offerors are advised that in evaluating these areas
involving any small business concern(s), any negative determinations are
subject to the Certificate of Competency procedures set forth in the
Federal Acquisition Regulation.

(End of provision)

**552.237-71 Qualifications of Employees.**

As prescribed in 537.110(b), insert the following clause:

QUALIFICATIONS OF EMPLOYEES (MAY 1989)

\(a\) The contracting officer or a designated representative may require
the Contractor to remove any employee(s) from GSA controlled buildings
or other real property should it be determined that the individual(s) is
either unsuitable for security reasons or otherwise unfit to work on GSA
controlled property.

\(b\) The Contractor shall fill out and cause each of its employees
performing work on the contract work to fill out, for submission to the
Government, such forms as may be necessary for security or other
reasons. Upon request of the Contracting Officer, the Contractor and its
employees shall be fingerprinted.

\(c\) Each employee of the Contractor shall be a citizen of the United
States of America, or an alien who has been lawfully admitted for
permanent residence as evidenced by Alien

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H-74 APD 2800.12B, 09-01-99

Registration Receipt Card Form I-151, or, who presents other evidence
from the Immigration and Naturalization Service that employment will not
affect his immigration status.

(End of clause)

**552.237-72 Prohibition Regarding \"Quasi-Military Armed Forces.\"**

As prescribed in 537.110(c), insert the following clause:

PROHIBITION REGARDING \"QUASI-MILITARY ARMED FORCES\" (SEP 1999)

The Contractor must not, during the term of this contract, offer for
hire \"Quasi-Military Armed Forces\" within the meaning of the court
decision in United States ex. rel. Weinberger v. Equifax, 557 F. 2d 456
(5th Cir., 1977).

(End of clause)

**552.237-73 Restriction on Disclosure of Information.**

As prescribed in 537.270, insert the following clause:

RESTRICTION ON DISCLOSURE OF INFORMATION (SEP 1999)

\(a\) The Contractor shall, in the performance of this contract, keep
all information contained in source documents or other media furnished
by the Government in the strictest confidence. The Contractor shall not
publish or otherwise divulge such information in whole or in part, in
any manner or form, nor authorize or permit others to do so. The
Contractor shall take such reasonable measures as are necessary to
restrict access to such information, while in the Contractor\'s
possession, to those employees needing such information to perform the
work provided herein, i.e., on a \"need to know\" basis. The Contractor
shall immediately notify, in writing, the Contracting Officer in the
event that the Contractor determines or has reason to suspect a breach
of this requirement.

\(b\) The Contractor shall not disclose any information concerning the
work under this contract to any persons or individual unless the
Contractor obtains prior written approval from the Contracting Officer.

\(c\) The Contractor shall insert the substance of this clause in any
consultant agreement or subcontract under this contract.

\(d\) Any unauthorized disclosure of information may result in
termination of this contract for cause.

(End of clause)

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**552.238-70 Identification of Electronic Office Equipment Providing
Accessibility for the\
Handicapped.**

As prescribed in 538.273(a)(1), insert the following clause:

IDENTIFICATION OF ELECTRONIC OFFICE EQUIPMENT PROVIDING ACCESSIBILITY
FOR THE HANDICAPPED (SEPT 1991)

\(a\) [Definitions]{.underline}. \"Electronic office equipment
accessibility\" means the application/configuration of electronic office
equipment (includes hardware, software and firmware) in a manner that
accommodates the functional limitations of individuals with disabilities
(i.e., handicapped individuals) so as to promote productivity and
provide access to work related and/or public information resources.

\"Handicapped individuals\" mean qualified individuals with impairments
as cited in 29 CFR 1613.702(f) who can benefit from electronic office
equipment accessibility.

\"Special peripheral\" means a special needs aid that provides access to
electronic equipment that is otherwise inaccessible to a handicapped
individual.

\(b\) The offeror is encouraged to identify in its offer, and include in
any commercial catalogs and pricelists accepted by the Contracting
Officer, office equipment, including any special peripheral, that will
facilitate electronic office equipment accessibility for handicapped
individuals. Identification should include the type of disability
accommodated and how the users with that disability would be helped.

(End of clause)

**552.238-71 Submission and Distribution of Authorized FSS Schedule
Pricelists.**

As prescribed in 538.273(a)(2), insert the following clause:

SUBMISSION AND DISTRIBUTION OF AUTHORIZED FSS SCHEDULE PRICELISTS (SEP
1999)

\(a\) Definition. For the purposes of this clause, the Mailing List is
\[*Contracting officer shall insert either: \"the list of addressees
provided to the Contractor by the Contracting Officer\" or \"the
Contractor\'s listing of its Federal Government customers*\"\].

\(b\) The Contracting Officer will return one copy of the Authorized FSS
Schedule Pricelist to the Contractor with the notification of contract
award.

\(c\) (1) The Contractor shall provide to the GSA Contracting Officer:

\(i\) Two paper copies of Authorized FSS Schedule Pricelist; and

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H-76 APD 2800.12B, 09-01-99

\(ii\) The Authorized FSS Schedule Pricelist on a common-use electronic
medium.

The Contracting Officer will provide detailed instructions for the
electronic submission with the award notification. Some structured data
entry in a prescribed format may be required.

\(2\) The Contractor shall provide to each addressee on the mailing list
either:

\(i\) One paper copy of the Authorized FSS Schedule Price List; or

\(ii\) A self-addressed, postage-paid envelope or postcard to be
returned by addressees that want to receive a paper copy of the
pricelist. The Contractor shall distribute price lists within 20
calendar days after receipt of returned requests.

\(3\) The Contractor shall advise each addressee of the availability of
pricelist information through the on-line Multiple Award Schedule
electronic data base.

\(d\) The Contractor shall make all of the distributions required in
paragraph (c) at least 15 calendar days before the beginning of the
contract period, or within 30 calendar days after receipt of the
Contracting Officer\'s approval for printing, whichever is later.

\(e\) During the period of the contract, the Contractor shall provide
one copy of its Authorized FSS Schedule Pricelist to any authorized
schedule user, upon request. Use of the mailing list for any other
purpose is not authorized.

(End of clause)

**552.238-72 Identification of Energy-Efficient Office Equipment and
Supplies Containing\
Recovered Materials or Other Environmental Attributes.**

As prescribed in 538.273(a)(3), insert the following clause:

IDENTIFICATION OF ENERGY-EFFICIENT OFFICE EQUIPMENT AND SUPPLIES
CONTAINING RECOVERED MATERIALS OR OTHER ENVIRONMENTAL ATTRIBUTES (SEP
1999)

\(a\) [Definitions]{.underline}. \"Energy-efficient office equipment,\"
as used in this clause, means office equipment that, in representative
use, provides equivalent or better performance and value to users, but
uses significantly less energy than most functionally equivalent models.

\"Recovered materials,\" as used in this clause, means waste material
and by-products which have been recovered or diverted from solid waste,
but such term does not include those materials and by-products generated
from, and commonly reused, within an original manufacturing process (42
U.S.C. 6903(19)). For paper, it also includes postconsumer materials,
and manufacturing and certain other wastes. (42 U.S.C. 6962(h)).

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APD 2800.12B, 09-01-99 H-77

\"Remanufactured products,\" as used in this clause, means equipment or
parts that have been factory remanufactured or rebuilt to meet new
equipment or part performance specifications and have had no use
subsequent to their remanufacture.

\(b\) The offeror shall identify in its offer and include in any
commercial catalogs and pricelists and any resultant Government catalogs
or pricelists submitted to the Contracting Officer, energy-efficient
office equipment and supplies that contain recovered material,
remanufactured products, or other environmental attributes. Examples of
energy-efficient office equipment are microcomputers and associated
equipment that meet the requirements of the Environmental Protection
Agency\'s (EPA\'s) Energy Star Computers Program. Supplies that contain
recovered materials and other environmental attributes include, but are
not limited to, products identified in EPA procurement guidelines (40
CFR Subchapter I) and products that are either degradable, ozone safe,
recyclable, contain low volatile organic content compounds, contribute
to source reduction, or otherwise are designed or manufactured to
achieve environmental improvement. For example, an offeror can identify
products that are safe or safer alternatives for more toxic or hazardous
products and products that can be substituted for ones manufactured with
toxic or hazardous materials. Such supplies shall satisfy the guidance
contained in 16 CFR Part 260, Guides for the Use of Environmental
Marketing Claims.

\(c\) An offeror, in identifying an item with an environmental
attribute, shall possess evidence or rely upon a reasonable basis to
substantiate the claim (see 16 CFR 260.5). The Government will accept an
offeror\'s claim of an item\'s environmental attribute on the basis
of---

\(1\) Participation in a Federal agency sponsored program, e.g., EPA\'s
Energy Star Computer program;

\(2\) Verification by an independent organization that specializes in
certifying such claims; or

\(3\) Possession of competent and reliable evidence. For any test,
analysis, research, study or other evidence to be \"competent and
reliable,\" it must have been conducted and evaluated in an objective
manner by persons qualified to do so, using procedures generally
accepted in the profession to yield accurate and reliable results.

(End of clause)

**552.238-73 Cancellation**

As prescribed in 538.273(a)(4), insert the following clause:

CANCELLATION (SEP 1999)

Either party may cancel this contract in whole or in part by providing
written notice. The cancellation will take effect 30 calendar days after
the other party receives the notice of

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H-78 APD 2800.12B, 09-01-99

cancellation. If the Contractor elects to cancel this contract, the
Government will not reimburse the minimum guarantee.

(End of clause)

**552.238-74 Contractor\'s Report of Sales.**

As prescribed in 538.273(b)(1), insert the following clause:

CONTRACTOR\'S REPORT OF SALES (SEP 1999)

\(a\) The Contractor must report the quarterly dollar value (in U.S.
dollars and rounded to the nearest whole dollar) of all sales under this
contract by calendar quarter (i.e., January-March, April-June,
July-September, and October-December). The dollar value of a sale is the
price paid by the schedule user for products and services on a schedule
contract task or delivery order, as recorded by the Contractor. The
reported contract sales value must include the industrial funding fee
(see Clause 552.238-76).

\(b\) The Contractor must report the quarterly dollar value of sales on
electronic GSA Form 72A, Contractor\'s Report of Sales, to the FSS
Vendor Support Center (VSC) Website at Internet, http://VSC.gsa.gov. The
Contractor must report sales separately for each National Stock Number
(NSN), Special Item Number (SIN), or subitem. If no sales occur, the
Contractor must show zero on the report for each separate NSN, SIN, or
subitem.

\(c\) The Contractor must register with the VSC before using the
automated reporting system. To register, the Contractor (or its
authorized representative) must call the VSC at (703) 305-6235 and
provide the necessary information regarding the company, contact
name(s), and telephone number(s). The VSC will then issue a 72A specific
password and provide other information needed to access the reporting
system. Instructions for electronic reporting are available at the VSC
Website or by calling the above phone number.

\(d\) The Contractor must convert the total value of sales made in
foreign currency to U.S. dollars using the \"Treasury Reporting Rates of
Exchange,\" issued by the U.S. Department of Treasury, Financial
Management Service. The Contractor must use the issue of the Treasury
report in effect on the last day of the calendar quarter. The report is
available from:

Department of the Treasury\
Financial Management Service\
International Funds Branch\
3700 East-West Highway\
PGCII, Room 5A19\
Hyattsville, MD 20782\
Telephone: (202) 874-7994\
Internet: http://www.fms.treas.gov/intn.html

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APD 2800.12B, 09-01-99 H-79

\(e\) The report is due 30 days following the completion of the
reporting period. The Contractor must also provide a close-out report
within 120 days after the expiration of the contract. The contract
expires upon physical completion of the last, outstanding task or
delivery order of the contract. The close-out report must cover all
sales not shown in the final quarterly report and reconcile all errors
and credits. If the Contractor reported all contract sales and
reconciled all errors and credits on the final quarterly report, then
show zero sales in the close-out report.

(End of clause)

**552.238-75 Price Reductions.**

As prescribed in 538.273(b)(2), insert the following clause:

PRICE REDUCTIONS (SEP 1999)

\(a\) Before award of a contract, the Contracting Officer and the
Offeror will agree upon (1) the customer (or category of customers)
which will be the basis of award, and (2) the Government\'s price or
discount relationship to the identified customer (or category of
customers). This relationship shall be maintained throughout the
contract period. Any change in the Contractor\'s commercial pricing or
discount arrangement applicable to the identified customer (or category
of customers) which disturbs this relationship shall constitute a price
reduction.

\(b\) During the contract period, the Contractor shall report to the
Contracting Officer all price reductions to the customer (or category of
customers) that was the basis of award. The Contractor\'s report shall
include an explanation of the conditions under which the reductions were
made.

\(c\) (1) A price reduction shall apply to purchases under this contract
if, after the date negotiations conclude, the Contractor \--

\(i\) Revises the commercial catalog, pricelist, schedule or other
document upon which contract award was predicated to reduce prices;

\(ii\) Grants more favorable discounts or terms and conditions than
those contained in the commercial catalog, pricelist, schedule or other
documents upon which contract award was predicated; or

\(iii\) Grants special discounts to the customer (or category of
customers) that formed the basis of award, and the change disturbs the
price/discount relationship of the Government to the customer (or
category of customers) that was the basis of award.

\(2\) The Contractor shall offer the price reduction to the Government
with the same effective date, and for the same time period, as extended
to the commercial customer (or category of customers).

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H-80 APD 2800.12B, 09-01-99

\(d\) There shall be no price reduction for sales \--

\(1\) To commercial customers under firm, fixed-price definite quantity
contracts with specified delivery in excess of the maximum order
threshold specified in this contract;

\(2\) To Federal agencies; or

\(3\) Caused by an error in quotation or billing, provided adequate
documentation is furnished by the Contractor to the Contracting Officer.

\(e\) The Contractor may offer the Contracting Officer a voluntary
Governmentwide price reduction at any time during the contract period.

\(f\) The Contractor shall notify the Contracting Officer of any price
reduction subject to this clause as soon as possible, but not later than
15 calendar days after its effective date.

\(g\) The contract will be modified to reflect any price reduction which
becomes applicable in accordance with this clause.

(End of clause)

**552.238-76 Industrial Funding Fee.**

As prescribed in 538.273(b)(3), insert the following clause:

INDUSTRIAL FUNDING FEE (SEP 1999)

\(a\) The Contractor must pay the Federal Supply Service, GSA, an
industrial funding fee (IFF). The Contractor must remit the IFF in U.S.
dollars within 30 days after the end of each quarterly reporting period
as established in clause 552.238-74, Contractor\'s Report of Sales. The
IFF equals \_\_\_\_\_\* of total quarterly sales reported. The IFF
reimburses the GSA Federal Supply Service for the costs of operating the
Federal Supply Schedules Program and recoups its operating costs from
ordering activities. Offerors must include the IFF in their prices. The
fee is included in the award price(s) and reflected in the total amount
charged to ordering activities.

\(b\) The Contractor must remit any monies due as a result of the
close-out report required by Clause 552.238-74 at the time the close-out
report is submitted to GSA.

\(c\) The Contractor must pay the IFF amount due by check, or electronic
funds transfer through the Automated Clearing House (ACH), to the
\"General Services Administration.\" If the payment involves multiple
special item numbers or contracts, the Contractor may consolidate the
IFFs into one payment. To ensure that the payment is credited properly,
the Contractor must identify the check or electronic transmission as an
\"Industrial Funding Fee\" and include the following information:
contract number(s); report amount(s); and report

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APD 2800.12B, 09-01-99 H-81

period(s). If the Contractor makes payment by check, provide this
information on either the check, check stub, or other remittance
material.

\(1\) If paying the IFF by check, the Contractor must forward the check
to the following address:

General Services Administration\
Accounts Receivable Branch\
P.O. Box 70500\
Chicago, IL 60673-0500

\(2\) If paying by electronic funds transfer through the ACH, the
Contractor must call GSA, Financial Information Control Branch,
Receivables, Collections and Sales Section (6BCDR) at \[*Contracting
Officer to insert phone number*\] to make arrangements.

\(d\) If the full amount of the IFF is not paid within 30 calendar days
after the end of the applicable reporting period, it constitutes a
contract debt to the United States Government under the terms of FAR
32.6. The Government may exercise all rights under the Debt Collection
Act of 1982, including withholding or setting off payments and interest
on the debt (see FAR 52.232-17, Interest).

\(e\) If the Contractor fails to submit sales reports, falsifies sales
reports, or fails to pay the IFF in a timely manner, the Government may
terminate or cancel this contract. Willful failure or refusal to furnish
the required reports, falsification of sales reports, or failure to pay
the IFF timely constitutes sufficient cause for terminating the
Contractor for cause under the termination provisions of this contract.

(End of clause)

\* The Commissioner, Federal Supply Service, or a designee determines
and provides to contracting officers the percentage amount of the fee to
insert in the above clause.

**552.242-70 Status Report of Orders and Shipments.**

As prescribed in 542.1107, insert the following clause:

STATUS REPORT OF ORDERS AND SHIPMENTS (APR 1992)

\(a\) The Contractor shall furnish to the Administrative Contracting
Officer (ACO) a report covering orders received and shipments made
during each calendar month of contract performance. The information
required by the Government shall be reported on GSA Form 1678, Status
Report of Orders and Shipments, in accordance with instructions on the
form. The information required by the GSA Form 1678 may also be
submitted in an automated printout form if authorized by the ACO.
Alternatively, the required information may be reported by electronic
data interchange using ANSI standards. For further information,

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H-82 APD 2800.12B, 09-01-99

contact GSA, Contract Administration Division \[*Insert appropriate
telephone number of FQC*\]. Reports shall be forwarded to the ACO no
later than the seventh workday of the succeeding month.

\(b\) An initial supply of GSA Form 1678 will be forwarded to the
Contractor with the contract. Additional copies of the form, if needed,
may be obtained from the ACO, or reproduced by the Contractor.

(End of clause)

**552.243-70 Pricing of Adjustments.**

As prescribed in 543.205(a)(1), insert the following clause:

PRICING OF ADJUSTMENTS (APR 1989)

When costs are a factor in any determination of a contract price
adjustment, such costs shall be in accordance with the contract cost
principles and procedures in Part 31 of the Federal Acquisition
Regulation (48 CFR Part 31) in effect on the date of this contract.

(End of clause)

**552.243-71 Equitable Adjustments.**

As prescribed in 543.205(a)(2), insert the following clause:

EQUITABLE ADJUSTMENTS (APR 1984)

\(a\) The provisions of the \"Changes\" clause prescribed by FAR
52.243-4 are supplemented as follows:

\(1\) Upon written request, the Contractor shall submit a proposal, in
accordance with the requirements and limitations set forth in the
\"Equitable Adjustments\" clause, for work involving contemplated
changes covered by the request. The proposal shall be submitted within
the time limit indicated in the request or any extension of such time
limit as may be subsequently granted. The Contractor\'s written
statement of the monetary extent of a claim for equitable adjustment
shall be submitted in the following form:

\(i\) Proposals totaling \$5,000 or less shall be submitted in the form
of a lump sum proposal with supporting information to clearly relate
elements of cost with specific items of work involved to the
satisfaction of the Contracting Officer, or his/her authorized
representative.

\(ii\) For proposals in excess of \$5,000, the claim for equitable
adjustment shall be submitted in the form of a lump sum proposal
supported with an itemized

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APD 2800.12B, 09-01-99 H-83

breakdown of all increases and decreases in the contract in at least the
following detail:

[Direct Costs]{.underline}

Material quantities by trades and unit costs\
(Manufacturing burden associated with material fabrication performed
will be considered to be part of the material costs of the fabricated
item delivered to the job site)

Labor breakdown by trades and unit costs\
(Identified with specific item of material to be placed or operation to
be performed)

Construction equipment exclusively necessary for the change

Costs of preparation and/or revision to shop drawings resulting from the
change

Workers\' Compensation and Public Liability Insurance

Employment taxes under FICA and FUTA

Bond Costs - when size of change warrants revision

[Overhead, Profit and Commission]{.underline}

\(2\) The allowable overhead shall be determined in accordance with the
contract cost principles and procedures in Part 31 of the Federal
Acquisition Regulation (48 CFR Part 31) in effect on the date of this
contract. The percentages for profit and commission shall be negotiated
and may vary according to the nature, extent and complexity of the work
involved, but in no case shall exceed the following unless the
Contractor demonstrates entitlement to a higher percentage:

[Overhead]{.underline} [Profit]{.underline} [Commission\
]{.underline} To Contractor on work\
performed by other than\
his own forces \-\-\-\-\-\-\-- \-- \-- 10%

To first tier subcontractor\
on work performed by his\
subcontractors \-\-\-\-\-\-\-\-- \-- \-- 10%

To Contractor and/or the\
subcontractors for that\
portion of the work performed To be\
with their respective forces \-\-- Negotiated 10% \--

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H-84 APD 2800.12B, 09-01-99

Not more than four percentages will be allowed regardless of the number
of tier subcontractors. The Contractor shall not be allowed a commission
on the commission received by a first tier subcontractor. Equitable
adjustments for deleted work shall include credits for overhead, profit
and commission. On proposals covering both increases and decreases in
the amount of the contract, the application of overhead and profit shall
be on the net change in direct costs for the Contractor or subcontractor
performing the work.

\(3\) The Contractor shall submit with the proposal his request for time
extension (if any), and shall include sufficient information and dates
to demonstrate whether and to what extent the change will delay the
contract in its entirety.

\(4\) In considering a proposal, the Government shall make check
estimates in detail, utilizing unit prices where specified or agreed
upon, with a view to arriving at an equitable adjustment.

\(5\) After receipt of a proposal the Contracting Officer shall act
thereon, within 30 days; provided however, that when the necessity to
proceed with a change does not allow time properly to check a proposal
or in the event of failure to reach an agreement on a proposal, the
Government may order the Contractor to proceed on the basis of price to
be determined at the earliest practicable date. Such price shall not be
more than the increase or less than the decrease proposed.

\(6\) If a mutually acceptable agreement cannot be reached, the
Contracting Officer may determine the price unilaterally.

\(b\) The provisions of the \"Differing Site Conditions\" clause
prescribed by FAR 52.236-2 are supplemented as follows: The Contractor
shall submit all claims for equitable adjustment in accordance with, and
subject to the requirements and limitations set out in paragraph (a) of
this \"Equitable Adjustments\" clause.

(End of clause)

**552.243-72 Modifications (Multiple Award Schedule).**

As prescribed in 543.205(b), insert the following clause:

MODIFICATIONS (MULTIPLE AWARD SCHEDULE (SEP 1999)

\(a\) [General]{.underline}. The Contractor may request a contract
modification by submitting a request to the Contracting Officer for
approval, except as noted in paragraph (d) of this clause. At a minimum,
every request shall describe the proposed change(s) and provide the
rationale for the requested change(s).

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APD 2800.12B, 09-01-99 H-85

\(b\) [Types of Modifications]{.underline}.

\(1\) [Additional items/additional SINs]{.underline}. When requesting
additions, the following information must be submitted:

\(i\) Information requested in paragraphs (1) and (2) of the Commercial
Sales Practice Format to add SINs.

\(ii\) Discount information for the new item(s) or new SIN(s).
Specifically, submit the information requested in *paragraphs 3 through
5* of the Commercial Sales Practice Format. If this information is the
same as the initial award, a statement to that effect may be submitted
instead.

\(iii\) Information about the new item(s) or the item(s) under the new
SIN(s) as described in 552.212-70, Preparation of Offer (Multiple Award
Schedule) is required.

\(iv\) Delivery time(s) for the new item(s) or the items under the new
SIN(s) must be submitted in accordance with 552.211-78, Commercial
Delivery Schedule (Multiple Award Schedule).

\(v\) Production point(s) for the new item(s) or the item(s) under the
new SIN(s) must be submitted if required by 52.215-6, Place of
Performance.

\(vi\) Hazardous material information (if applicable) must be submitted
as required by 52.223-3 (ALT I), Hazardous Material Identification and
Material Safety Data.

\(vii\) Any information requested by 52.212-3(f), Offerors
Representations and Certifications - Commercial Items, that may be
necessary to assure compliance with 552.225-9, Buy American Act\--Trade
Agreement\--Balance of Payments Program.

\(2\) [Deletions]{.underline}. The Contractor shall provide an
explanation for the deletion. The Government reserves the right to
reject any subsequent offer of the same item or a substantially equal
item at a higher price during the same contract period, if the
contracting officer finds the higher price to be unreasonable when
compared with the deleted item.

\(3\) [Price Reduction]{.underline}. The Contractor shall indicate
whether the price reduction falls under item (i), (ii), or (iii) of
paragraph (c)(1) of the Price Reductions clause at 552.238-75. If the
price reduction falls under item (i), the Contractor shall submit a copy
of the dated commercial price list. If the price reduction falls under
item (ii) or (iii), the Contractor shall submit a copy of the applicable
price list(s), bulletins or letters or customer agreements which outline
the effective date, duration, terms and conditions of the price
reduction.

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H-86 APD 2800.12B, 09-01-99

\(c\) [Effective Dates]{.underline}. The effective date of any
modification is the date specified in the modification, except as
otherwise provided in the Price Reductions clause at 552.238-75.

\(d\) [Electronic File Updates]{.underline}. The Contractor shall update
electronic file submissions to reflect all modifications. For additional
items or SINs, the Contractor shall obtain the contracting officer\'s
approval before transmitting changes. Contract modifications will not be
made effective until the Government receives the electronic file
updates. The Contractor may transmit price reductions, item deletions,
and corrections without prior approval. However, the Contractor shall
notify the contracting officer as set forth in the Price Reductions
clause at 552.238-75.

\(e\) [Amendments to Paper Federal Supply Schedule Price
Lists]{.underline}.

\(1\) The Contractor must provide supplements to its paper price lists,
reflecting the most current changes. The Contractor may either:

\(i\) Distribute a supplemental paper Federal Supply Schedule Price List
within 15 workdays after the effective date of each modification.

\(ii\) Distribute quarterly cumulative supplements. The period covered
by a cumulative supplement is at the discretion of the Contractor, but
may not exceed three calendar months from the effective date of the
earliest modification. For example, if the first modification occurs in
February, the quarterly supplement must cover February - April, and
every 3 month period after. The Contractor must distribute each
quarterly cumulative supplement within 15 workdays from the last day of
the calendar quarter.

\(2\) At a minimum, the Contractor shall distribute each supplement to
those ordering activities that previously received the basic document.
In addition, the Contractor shall submit two copies of each supplement
to the contracting officer, and one copy to the FSS Schedule Information
Center.

(End of clause)

[Alternate I (SEP 1999]{.underline}). As prescribed in 543.205(b),
substitute the following paragraph (d) for paragraph (d) of the basic
clause:

\(d\) [Electronic File Updates]{.underline}. The Contractor shall update
electronic file submissions to reflect all modifications. For additional
items or SINs, the Contractor shall obtain the contracting officer\'s
approval before transmitting changes. Contract modifications will not be
made effective until the Government receives the electronic file
updates. The Contractor may transmit price reductions and corrections
without prior approval. However, the Contractor shall notify the
contracting officer as set forth in the Price Reductions clause at
552.238-75.

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APD 2800.12B, 09-01-99 H-87

**552.246-17 Warranty of Supplies of a Noncomplex Nature**

As prescribed in 546.710(a), insert the following clause:

WARRANTY OF SUPPLIES OF A NONCOMPLEX NATURE (DEC 1990)\
(DEVIATION FAR 52.246-17)

\(a\) [Definitions.]{.underline} \"Acceptance,\" as used in this clause,
means the act of an authorized representative of the Government by which
the Government assumes for itself, or as an agent of another, ownership
of existing supplies, or approves specific services as partial or
complete performance of the contract.

\"Correction,\" as used in this clause, means the elimination of a
defect.

\"Supplies,\" as used in this clause, means the end item furnished by
the Contractor and related services required under the contract. The
word does not include \"data.\"

\(b\) [Contractor\'s obligations.]{.underline}

\(1\) Notwithstanding inspection and acceptance by the Government of
supplies furnished under this contract, or any condition of this
contract concerning the conclusiveness thereof, the Contractor warrants
that for \_\_[\*]{.underline}\_\_

\(i\) All supplies furnished under this contract will be free from
defects in material or workmanship and will conform with the
requirements of this contract; and

\(ii\) The preservation, packaging, packing, and marking, and the
preparation for, and method of, shipment of such supplies will conform
with the requirements of this contract.

\(2\) When return, correction, or replacement is required, the
Contractor shall be responsible for all costs attendant to the return,
correction or replacement of the nonconforming supplies. Any removal in
connection with the above shall be done by the Contractor at its
expense. However, the Contractor\'s liability for the transportation
charges shall not exceed an amount equal to the cost of transportation
by the usual commercial method of shipment between the place of delivery
specified in the contract and the Contractor\'s plant, and return.

\(3\) Any supplies or parts thereof, corrected or furnished in
replacement under this clause, shall also be subject to the terms of
this clause to the same extent as supplies initially delivered. The
warranty, with respect to supplies or parts thereof, shall be equal in
duration to that in paragraph (b)(1) of this clause and shall run from
the date of delivery of the corrected or replaced supplies.

\(4\) All implied warranties of merchantability and \"fitness for a
particular purpose\" are excluded from any obligation contained in this
contract.

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H-88 APD 2800.12B, 09-01-99

\(c\) [Remedies available to the Government]{.underline}.

\(1\) The Contracting Officer shall give written notice to the
Contractor of any breach of warranties in paragraph (b)(1) of this
clause within \_\_\_[\*\*]{.underline}\_\_\_. This notice shall contain
information concerning the deficiencies found, the location of the
nonconforming supplies, and the quantity involved.

\(2\) Within a reasonable time after the notice, the Contracting Officer
may either---

\(i\) Require, by written notice, the prompt correction or replacement
of any supplies or parts thereof (including preservation, packaging,
packing, and marking) that do not conform with the requirements of this
contract within the meaning of paragraph (b)(1) of this clause; or

\(ii\) Retain such supplies and reduce the contract price by an amount
equitable under the circumstances. When the nature of the defect in the
nonconforming item is such that the defect affects an entire batch or
lot of material, then the equitable price adjustment shall apply to the
entire batch or lot of material from which the nonconforming item was
taken.

\(3\) (i) If the contract provides for inspection of supplies by
sampling procedures, conformance of supplies or components subject to
warranty action shall be determined by the applicable sampling
procedures in the contract. The Contracting Officer---

\(A\) May, for sampling purposes, group any supplies delivered under
this contract;

\(B\) Shall require the size of the sample to be that required by
sampling procedures specified in the contract for the quantity of
supplies on which warranty action is proposed;

\(C\) May project warranty sampling results over supplies in the same
shipment or other supplies contained in other shipments even though all
of such supplies are not present at the point of reinspection;
[provided]{.underline}, that the supplies remaining are reasonably
representative of the quantity on which warranty action is proposed; and

\(D\) Need not use the same lot size as on original inspection or
reconstitute the original inspection lots.

\(ii\) Within a reasonable time after notice of any breach of the
warranties specified in paragraph (b)(1) of this clause, the Contracting
Officer may exercise one or more of the following options:

\(A\) Require an equitable adjustment in the contract price for any
group of supplies.

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APD 2800.12B, 09-01-99 H-89

\(B\) Screen the supplies grouped for warranty action under this clause
at the Contractor\'s expense and return all nonconforming supplies to
the Contractor for correction or replacement.

\(C\) Require the Contractor to screen the supplies at locations
designated by the Government within the continental United States and to
correct or replace all nonconforming supplies.

\(D\) Return the supplies grouped for warranty action under this clause
to the Contractor (irrespective of the f.o.b. point or the point of
acceptance) for screening and correction or replacement. All costs
incurred by the Government in returning the nonconforming supplies,
including costs to the freight carrier resulting from the Contractor\'s
refusal to accept their return, shall be for the Contractor\'s account.

\(4\) (i) The Contracting Officer may, by contract or otherwise, correct
or replace the nonconforming supplies with similar supplies from another
source and charge to the Contractor the cost occasioned to the
Government thereby if the Contractor---

\(A\) Fails to make redelivery of the corrected or replaced supplies
within the time established for their return; or

\(B\) Fails either to accept return of the nonconforming supplies or
fails to make progress after their return to correct or replace them so
as to endanger performance of the delivery schedule, and in either of
these circumstances does not cure such failure within a period of 10
days (or such longer period as the Contracting Office may authorize in
writing) after receipt of notice from the Contracting Officer specifying
such failure.

\(ii\) Instead of correction or replacement by the Government, the
Contracting Officer may require an equitable adjustment of the contract
price for all nonconforming supplies, including batch or lot materials
which either have been consumed or other disposition has been made. In
addition, if the Contractor fails to furnish timely disposition
instructions, the Contracting Officer may return the supplies for
screening and correction or replacement under subparagraph (c)(3)(ii)(D)
above; store the nonconforming supplies for the Contractor\'s account;
sell the nonconforming supplies to the highest bidder on the open market
and apply the proceeds against the accumulated storage and other costs,
including the cost of the sale; or otherwise dispose of the
nonconforming supplies for the Contractor\'s account in a reasonable
manner. The Government is entitled to reimbursement from the Contractor,
or from the proceeds of such disposal, for the reasonable expenses of
the care and disposition of the nonconforming supplies, as well as for
excess costs incurred or to be incurred.

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H-90 APD 2800.12B, 09-01-99

\(5\) The rights and remedies of the Government provided in this clause
are in addition to and do not limit any rights afforded to the
Government by any other clause of this contract.

\(6\) Unless otherwise provided, this warranty is applicable both within
and outside the continental limits of the United States.

\(7\) In addition to other marking requirements of this contract, the
Contractor shall stamp or mark the supplies delivered or otherwise
furnish notice with the supplies of the existence of the warranty. The
marking should briefly include (i) a statement that the warranty exists,
(ii) the substance of the warranty, (iii) its duration, and (iv) whom to
notify if the supplies are found to be defective.

(End of clause)

\* *State the specific period of time after delivery or the specified
event whose occurrence will terminate the warranty period; e.g., the
number of miles or hours of use, or combination of any applicable event
or periods of time.*

\*\* *Insert specific period of time; e.g., \"45 days from the last
delivery under this contract,\" or \"45 days after discovery of the
defect.\" The number of days specified shall be no less than 30*.

[Alternate I (DEC 1990)]{.underline}. As prescribed in 546.710(a)(1),
substitute the following for paragraph (b)(1) of the basic clause and
delete paragraph (b)(4) of the basic clause.

\(1\) Notwithstanding inspection and acceptance by the Government of
supplies furnished under this contract, or any condition of this
contract concerning the conclusiveness thereof, the Contractor warrants
that for [\_\_\_\_\*\_\_\_\_]{.underline} all supplies furnished---

\(i\) Are of a quality to pass without objection in the trade under the
contract description;

\(ii\) Are fit for the ordinary purposes for which the supplies are
used;

\(iii\) Are within the variations permitted by the contract, and are of
an even kind, quality, and quantity within each unit and among all
units;

\(iv\) Are adequately contained, packaged, and marked as the contract
may require; and

\(v\) Conform to the promises or affirmations of fact made on the
container.

[Alternate II (DEC 1990)]{.underline}. As prescribed in 546.710(a)(2),
substitute the following paragraph for paragraph (b)(1) of the basic
clause:

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APD 2800.12B, 09-01-99 H-91

\(1\) Notwithstanding inspection and acceptance by the Government of
supplies furnished under this contract, or any condition of this
contract concerning the conclusiveness thereof, the Contractor warrants
that for [\_\_\_\_\*\_\_\_\_]{.underline} all supplies furnished---

\(i\) Conform to the specifications except that in the case of solvent
systems, the viscosity may exceed the specified maximum by 10 Kreb
Units, unless otherwise specified elsewhere in this contract; and

\(ii\) Are suitable for their intended purpose as stated in this
contract.

[Alternate III (DEC 1990]{.underline}). As prescribed in 546.710(a)(3),
substitute the following for paragraph (b)(1) of the basic clause,
redesignate paragraph (c) of the basic clause as paragraph (d), and add
the following as paragraph (c) in the basic clause:

\(1\) Notwithstanding inspection and acceptance by the Government of
supplies furnished under this contract, or any condition of this
contract concerning the conclusiveness thereof, the Contractor warrants
that for [\_\_\_\_\*\_\_\_\_]{.underline}, beginning with the first day
of the first full month following the month of manufacture marked on the
container, all supplies furnished retain their original characteristics
to the extent that the supplies remain suitable for the intended use as
stated in this contract (i) under actual application conditions or (ii)
when tested in accordance with requirements stated elsewhere in this
contract.

\(c\) [Government surveillance and testing]{.underline}.

\(1\) During this period, surveillance will be maintained on supplies
warehoused in Government facilities; and the supplies will be tested
periodically to determine their suitability for intended use. Sampling
for surveillance testing will be in accordance with Military Standard
No. 105, and such testing will be made after NORMAL MIXING, STIRRING, OR
SHAKING, in accordance with directions either furnished with the
supplies or as shown in the applicable specifications.

\(2\) Surveillance testing will be based on storage stability
requirements set forth in the contract specification, or purchase
description on the basis of salient characteristics (e.g., viscosity or
sag flow, curing time, strip adhesion or tensile shear, etc.)
established by GSA as appropriate to determine suitability for intended
use. In the case of brand name items not covered by detailed purchase
descriptions, surveillance testing may be based on salient
characteristics included in the manufacturer\'s data sheets. If storage
stability requirements showing allowable variations are not included in
applicable specifications or elsewhere in the contract, material will be
considered suitable for intended use if the salient characteristics vary
not more than 20 percent from the originally specified values (i.e.,
those applicable to acceptance testing of the supplies) for noncritical
end-use items, and not more then 10 percent for critical end-use items.

GSAM\
H-92 APD 2800.12B, 09-01-99

**552.246-70 Source Inspection by Quality Approved Manufacturer.**

As prescribed in 546.302-70, insert the following clause:

SOURCE INSPECTION BY QUALITY APPROVED MANUFACTURER (SEP 1999)

\(a\) [Inspection system and inspection facilities]{.underline}.

\(1\) The inspection system maintained by the Contractor under the
Inspection of Supplies---Fixed Price clause (FAR 52.246-2) of this
contract shall be maintained throughout the contract period and shall
comply with all requirements of editions in effect on the date of the
solicitation of either Federal Standard 368 or the International
Organization for Standardization (ISO) Standard 9001 (ANSI/ASQC Q 91)
(Quality Systems - Model for Quality Assurance in Design/Development,
Production, Installation and Servicing), or ISO Standard 9002 (ANSI/ASQC
Q 92) (Quality Systems - Model for Quality Assurance in Production and
Installation). The ISO 9000 family of standards is a set of worldwide
standards used to document, implement and demonstrate quality assurance
systems. When using the ISO option the Contractor\'s quality system must
be registered by a third party registrar accredited by either the
Registrar Accreditation Board (RAB) or an organization recognized as
equivalent. A written description of the inspection system shall be made
available to the Government before contract award. The Contractor shall
immediately notify the Contracting Officer and the designated GSA
quality assurance office of any changes made in the inspection system
during the contract period. As used herein, the term \"inspection
system\" means the Contractor\'s own facility or any other facility
acceptable to the Government that will be used to perform inspections or
tests of materials and components before incorporation into end articles
and for inspection of such end articles before shipment. When the
manufacturing plant is located outside of the United States, the
Contractor shall arrange delivery of the items from a plant or warehouse
located in the United States (including Puerto Rico and the Virgin
Islands) equipped to perform all inspections and tests required by the
contract or specifications to evidence conformance therewith, or shall
arrange with a testing laboratory or other facility in the United
States, acceptable to the Government, to perform the required
inspections and tests.

\(2\) In addition to the requirements in Federal Standard 368, ISO 9001
or ISO 9002 records shall include the date when inspection and testing
were performed. These records shall be available for (i) 3 years after
final payment; or (ii) 4 years from the end of the Contractor\'s fiscal
year in which the record was created, whichever period expires first.

\(3\) Offerors are required to specify, in the space provided elsewhere
in this solicitation, the name and address of each manufacturing plant
or other facility where supplies will be available for inspection,
indicating the item number(s) to which each applies.

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APD 2800.12B, 09-01-99 H-93

\(4\) Within 10 calendar days after receipt of the written notice of
award, the Contractor shall provide the Administrative Contracting
Officer with the name of the individual and an alternate that will be
responsible for inspecting each shipment under this contract.

\(b\) [Inspection and receiving reports]{.underline}.

\(1\) For each shipment released, one of the officials named by the
Contractor under paragraph (a)(4) above shall sign a Quality Approved
Manufacturer Certificate certifying that supplies have been inspected
and found to comply with contract requirements. The certification shall
read as follows:

\"I certify that all items in this shipment have been listed herein, and
have been inspected and found to comply with all requirements of the
contract.\"

Signature of Certifying Official

\(2\) For shipments made to military facilities, the Contractor shall
prepare and distribute the DD Form 250, Material Inspection and
Receiving Report, or computer formatted equivalent of the form not later
than the close of business the workday following shipment. The
certification above shall be placed in block 16 on this form. The
Contractor will be provided a supply of the DD Form 250 with complete
instructions for preparation and distribution.

\(3\) For shipments made to civilian facilities [only]{.underline}, the
Contractor shall prepare and distribute not later than the close of
business the workday following shipment a certification of inspection
and conformance for the identified items, in accordance with
instructions furnished at the time of award. The Contractor may furnish
the requisite information on the DD Form 250 or computer formatted
equivalent, company letterhead, or invoice document.

\(c\) [Inspection by Government personnel]{.underline}.

\(1\) Although the Government will normally rely upon the Contractor\'s
certification as to the quality of supplies shipped, it reserves the
right under the Inspection of Supplies---Fixed Price clause to inspect
and test all supplies called for by this contract, before acceptance, at
all times and places, including the point of manufacture. When the
Government notifies the Contractor of its intent to inspect supplies
before shipment, the Contractor shall notify or arrange for
subcontractors to notify the designated GSA quality assurance office 7
workdays before the date when supplies will be ready for inspection.
Shipment shall not be made until inspection by the Government is
completed and shipment is authorized by the Government.

GSAM\
H-94 APD 2800.12B, 09-01-99

\(2\) Government inspection responsibility will be assigned to the GSA
quality assurance office which has jurisdiction over the State in which
the Contractor\'s or subcontractor\'s plant or other designated point
for inspection is located.

\(3\) During the contract period, a Government representative may
period­ically select samples of supplies produced under this contract for
Government verification inspection and testing. Samples sent to a
Government testing facility will be disposed of as follows: Samples from
an accepted lot, not damaged in the testing process, will be returned
promptly to the Contractor after completion of tests. Samples damaged in
the testing process will be disposed of as requested by the Contractor.
Samples from a rejected lot will be returned to the Contractor or
disposed of in a time and manner agreeable to both the Contractor and
the Government.

\(d\) [Quality deficiencies]{.underline}.

\(1\) Notwithstanding any other clause of this contract concerning the
conclusiveness of acceptance by the Government, any supplies or
production lots shipped under this contract found to be defective in
material or workmanship, or otherwise not in conformity with the
requirements of this contract within a period of
\_\_\_[\*]{.underline}\_\_\_ months after acceptance shall, at the
Government\'s option, be replaced, repaired or otherwise corrected by
the Contractor at no cost to the Government within 30 calendar days (or
such longer period as the Government may authorize in writing) after
receipt of notice to replace or correct. The Contractor shall remove, at
its expense, supplies rejected or required to be replaced, repaired or
corrected. When the nature of the defect affects an entire batch or lot
of supplies, and the Contracting Officer determines that correction can
best be accomplished by retaining the nonconforming supplies and
reducing the contract price by an amount equitable under the
circumstances, then the equitable price adjustment shall apply to the
entire batch or lot of supplies from which the nonconforming item was
taken.

\(2\) If supplies in process, shipped, or awaiting shipment to fill
Government orders are found not to comply with contract requirements, or
if deficiencies in either plant quality or process controls are found,
the Contractor may be issued a Quality Deficiency Notice (QDN). Upon
receipt of a QDN, the Contractor shall take immediate corrective action
and shall suspend shipment of the supplies covered by the QDN until such
time as corrective action has been completed. The Contractor shall
notify the GSA quality assurance office, within 5 workdays, of
corrective action taken or to be taken to permit onsite verification by
a Government representative. Shipments of nonconforming supplies will be
returned at the Contractor\'s expense and may constitute cause for
termination. Delays due to the issuance of a QDN do not constitute
excusable delay under the Default clause. Failure to complete corrective
action in a timely manner may result in termination of this contract.

\(3\) This contract may be terminated for default if subsequent
Government inspection discloses that plant quality or process controls
are not being maintained, supplies which

GSAM\
APD 2800.12B, 09-01-99 H-95

do not meet the requirements of the specification are being shipped, or
there is failure to comply with any other requirement of this clause.

\(e\) [Additional cost for inspection and testing]{.underline}. The
Contractor will be charged for any additional cost of inspection/testing
or reinspecting/retesting supplies for the reasons stated in paragraph
(e) of FAR 52.246-2, Inspection of Supplies---Fixed Price. When
inspection or testing is performed by or under the direction of GSA,
charges will be at the rate of \$\_\_[\*\*]{.underline}\_\_ per man-hour
or fraction thereof if the inspection is at a GSA distribution center;
\$\_\_[\*\*]{.underline}\_\_ per man-hour or fraction thereof, plus
travel costs incurred, if the inspection is at any other location; and
\$\_\_[\*\*]{.underline}\_\_ per man-hour or fraction thereof for
laboratory testing, except that when a testing facility other than a GSA
laboratory performs all or part of the required tests, the Contractor
shall be assessed the actual cost incurred by the Government as a result
of testing at such facility. When inspection is performed by or under
the direction of any agency other than GSA, the charges indicated above
may be used, or the agency may assess the actual cost of performing the
inspection and testing.

\(f\) [Responsibility for rejected supplies]{.underline}. When the
Contractor fails to remove or provide instructions for the removal of
rejected supplies under paragraph (d) above, pursuant to the Contracting
Officer\'s instructions, the Contractor shall be liable for all costs
incurred by the Government in taking such measures as are expedient to
avoid unnecessary loss to the Contractor. In addition to the remedies
provided in FAR 52.246-2, supplies may be---

\(1\) Stored for the Contractor\'s account;

\(2\) Reshipped to the Contractor at its expense (any additional expense
incurred by the Government or the freight carrier caused by the refusal
of the Contractor to accept their return also shall be for the
Contractor\'s account); or

\(3\) Sold to the highest bidder on the open market and the proceeds
applied against the accumulated storage and other costs, including the
cost of the sale.

\(g\) [Subcontracting requirements]{.underline}. The Contractor shall
insert in any subcontracts the inspection or testing provisions set
forth in paragraphs (a) through (d) of this clause and the Inspection of
Supplies---Fixed Price clause of this contract. The Contractor shall be
responsible for compliance by any subcontractor with the provisions set
forth in paragraphs (a) through (d) of this clause and the Inspection of
Supplies---Fixed Price clause.

(End of clause)

*\* Normally insert 12 months as the period during which defective or
otherwise nonconforming supplies must be replaced. However, when the
supplies being bought have a shelf life of less than 1 year, you should
use the shelf-life period, or in the instance where you reasonably
expect a longer period to be available, you should use the longer
period.*

GSAM\
H-96 APD 2800.12B, 09-01-99

*\*\* The rates to be inserted are established by the Commissioner of
the Federal Supply Service or a designee.*

**552.246-71 Source Inspection by Government.**

As prescribed in 546.302-71, insert the following clause:

SOURCE INSPECTION BY GOVERNMENT (SEP 1999)

\(a\) [Inspection by Government personnel]{.underline}.

\(1\) Supplies to be furnished under this contract will be inspected at
source by the Government before shipment from the manufacturing plant or
other facility designated by the Contractor, unless the Contractor is
otherwise notified in writing by the Contracting Officer or a designated
representative. Notwithstanding the foregoing, the Government may
perform any or all tests contained in the contract specifications at a
Government facility without prior written notice by the Contracting
Officer before release of the supplies for shipment. Samples sent to a
Government testing facility will be disposed of as follows: Samples from
an accepted lot, not damaged in the testing process, will be returned
promptly to the Contractor after completion of tests. Samples damaged in
the testing process will be disposed of as requested by the Contractor.
Samples from a rejected lot will be returned to the Contractor or
disposed of in a time and manner agreeable to both the Contractor and
the Government.

\(2\) Government inspection responsibility will be assigned to the GSA
quality assurance office which has jurisdiction over the State in which
the Contractor\'s or subcontractor\'s plant or other designated point
for inspection is located. The Contractor shall notify or arrange for
subcontractors to notify the designated GSA quality assurance office 7
workdays before the date when supplies will be ready for inspection.
Shipment shall not be made until after inspection by the Government is
completed and shipment is authorized by the Government.

\(b\) [Inspection and receiving reports]{.underline}. For each shipment,
the Contractor shall be responsible for preparation and distribution of
inspection documents as follows: (1) DD Form 250, Material Inspection
and Receiving Report, or computer formatted equivalent for deliveries to
military agencies; or (2) GSA Form 308, Notice of Inspection for
deliveries to GSA or other civilian agencies. When required, the
Contractor will be furnished a supply of GSA Form 308 and/or DD Form
250, and complete instructions for their preparation and distribution.

\(c\) [Inspection facilities]{.underline}.

\(1\) The inspection system required to be maintained by the Contractor
in accordance with FAR 52.246-2, Inspection of Supplies---Fixed Price,
may be the Contractor\'s own facilities or any other facilities
acceptable to the Government. These facilities shall be utilized to
perform all inspections and tests of materials and components before

GSAM\
APD 2800.12B, 09-01-99 H-97

incorporation into end articles, and for the inspection of such end
articles before shipment. The Government reserves the right to evaluate
the acceptability and effectiveness of the Contractor\'s inspection
system before award and periodically during the contract period.

\(2\) Offerors are required to specify, in the spaces provided elsewhere
in the solicitation, the name and address of each manufacturing plant or
other facility where supplies will be available for inspection,
indicating the item number(s) to which each applies.

\(3\) The Contractor shall deliver the items specified in this contract
from a plant or warehouse located within the United States (including
Puerto Rico and the Virgin Islands) that is equipped to perform all
inspections and tests required by this contract or specifications to
evidence conformance therewith, or shall arrange with a testing
laboratory or other facility in the United States, acceptable to the
Government, to perform the required inspections and tests.

\(d\) [Availability of records.]{.underline}

\(1\) In addition to any other requirement of this contract, the
Contractor shall maintain records showing the following information for
each order received under the contract: (i) order number; (ii) date
order received by the Contractor; (iii) quantity ordered; (iv) date
scheduled into production; (v) batch or lot number, if applicable; (vi)
date inspected and/or tested; (vii) date available for shipment; (viii)
date shipped or date service completed; and (ix) National Stock Number
(NSN), or if none is provided in the contract, the applicable item
number or other contractual identification.

\(2\) These records should be maintained at the point of source
inspection and shall be available to the Contracting Officer, or an
authorized representative, for (i) 3 years after final payment; or (ii)
4 years from the end of the Contractor\'s fiscal year in which the
record was created, whichever period expires first.

\(e\) [Additional cost for inspection and testing]{.underline}. The
Contractor will be charged for any additional cost for
inspecting/testing or reinspection/ retesting supplies for the reasons
stated in paragraph (e) of FAR 52.246-2, Inspection of Supplies---Fixed
Price. When inspection or testing is performed by or under the direction
of GSA, charges will be at the rate of \$\_\_[\*]{.underline}\_\_\_ per
man-hour or fraction thereof if the inspection is at a GSA distribution
center; \$\_\_[\*]{.underline}\_\_\_ per man-hour or fraction thereof,
plus travel costs incurred, if the inspection is at any other location;
and \$\_\_\_[\*]{.underline}\_\_\_ per man-hour or fraction thereof for
laboratory testing, except that when a testing facility other than a GSA
laboratory performs all or part of the required tests, the Contractor
shall be assessed the actual cost incurred by the Government as a result
of testing at such facility. When inspection is performed by or under
the direction of any agency other than GSA, the charges indicated above
may be used, or the agency may assess the actual cost of performing the
inspection and testing.

GSAM\
H-98 APD 2800.12B, 09-01-99

\(f\) [Responsibility for rejected supplies]{.underline}. When the
Contractor fails to remove or provide instructions for the removal of
rejected supplies under FAR 52.246-2(h) pursuant to the Contracting
Officer\'s instructions, the Contractor shall be liable for all costs
incurred by the Government in taking such measures as are expedient to
avoid unnecessary loss to the Contractor. In addition to the remedies
provided in FAR 52.246-2, supplies may be---

\(1\) Stored for the Contractor\'s account;

\(2\) Reshipped to the Contractor at its expense (any additional expense
incurred by the Government or the freight carrier caused by the refusal
of the Contractor to accept their return also shall be for the
Contractor\'s account); or

\(3\) Sold to the highest bidder on the open market and the proceeds
applied against the accumulated storage and other costs, including the
cost of the sale.

(End of clause)

\* *The rates to be inserted are established by the Commissioner of the
Federal Supply Service or a designee*.

**552.246-72 Final Inspection and Tests.**

As prescribed in 546.312, insert the following clause:

FINAL INSPECTION AND TESTS (SEP 1999)

The Contractor shall give written notice to the Contracting Officer at
least 10 calendar days before the date the work will be completed and
ready for final inspection and tests. Final inspection and tests will
begin within 10 calendar days after the date specified in the
Contractor\'s notice unless the Contracting Officer determines that the
work is not ready for final inspection and so informs the Contractor.

(End of clause)

**552.246-73 Warranty - Multiple Award Schedule.**

As prescribed in 546.710(b), insert the following clause:

WARRANTY - MULTIPLE AWARD SCHEDULE (FEB 1996)

Unless specified otherwise in this contract, the Contractor\'s standard
commercial warranty as stated in the Contractor\'s commercial price list
will apply to this contract.

(End of clause)

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APD 2800.12B, 09-01-99 H-99

**552.246-74 Warranty - International Multiple Award Schedule.**

As prescribed in 546.710(c), insert the following clause:

WARRANTY - INTERNATIONAL MULTIPLE AWARD SCHEDULE (MAY 1989)

Unless specified otherwise in this contract, the Contractor\'s standard
commercial warranty as stated in the commercial price list applies to
this contract, except: (a) the Contractor shall provide, at a minimum, a
warranty on all non-consumable parts for a period of 90 days from the
date that the Government accepts the product; (b) parts and labor
required under the warranty provisions shall be supplied free of charge;
(c) transportation costs of returning the products to and from the
repair facility, or the costs involved with Contractor personnel
traveling to the Government facility for the purpose of repairing the
product onsite shall be borne by the Contractor during the 90-day
warranty period.

(End of clause)

**552.246-75 Guarantees.**

As prescribed in 546.710(d), insert the following clause:

GUARANTEES (MAY 1989)

\(a\) Unless otherwise provided in the specifications, the Contractor
guarantees all work to be in accordance with contract requirements and
free from defective or inferior materials, equipment, and workmanship
for 1 year after the date of final acceptance or the date the equipment
or work was placed in use by the Government, whichever occurs first.

\(b\) (1) If, within any guarantee period, the Contracting Officer finds
that guaranteed work requires repair or change because of defective or
inferior materials, equipment, or workmanship or is not in accordance
with contract requirements, the Contracting Officer shall notify the
Contractor in writing. The Contractor shall promptly, and without
additional expense to the Government, correct:

\(i\) All guaranteed work;

\(ii\) All damage to equipment, the site, the building or its contents
resulting from the unsatisfactory guaranteed work; and

\(iii\) Any work, materials, and equipment that are disturbed in
fulfilling the guarantee, including any disturbed work, materials, and
equipment that may have been guaranteed under another contract.

\(2\) If the Contractor fails to proceed promptly in accordance with the
guarantee, the Government may have such work performed at the expense of
the Contractor.

GSAM\
H-100 APD 2800.12B, 09-01-99

\(c\) Any special guarantees that may be required under the contract
will be subject to paragraphs (a) and (b), insofar as they do not
conflict with special guarantees.

\(d\) The Contractor shall furnish to the Government: (1) Each
transferable guarantee or warranty of equipment, materials, or
installation furnished by any manufacturer, supplier, or installer in
the ordinary course of business; (2) All information required to make
such guarantee or warranty legally binding and effective; and (3) The
information and the guarantee or warranty in sufficient time to permit
the Government to meet any time limit specified in the guarantee or
warranty or, if no time limit is specified, prior to completion and
acceptance of all work under this contract.

(End of clause)

**552.246-76 Warranty of Pesticides.**

As prescribed in 546.710(e), insert the following clause:

WARRANTY OF PESTICIDES (MAY 1989)

\(a\) Notwithstanding acceptance of pesticides by the Government, the
Contractor warrants that for 1 year after the date of shipment, all
pesticides furnished under this contract shall meet the requirements of
Pub. L. 92-516, as amended, and shall be registered with the
Environmental Protection Agency (EPA).

\(b\) If EPA takes action to stop sale, stop use, remove, seize, or
cancel registration of a pesticide within 1 year after date of shipment,
the Contractor shall immediately notify the Contracting Officer. The
notification will include: (1) contract number; (2) identification of
the pesticide; (3) reason for the EPA action against the pesticide; and
(4) list of Government agencies and addresses to which it was delivered.

(End of clause)

**552.247-70 Placarding Railcar Shipments.**

As prescribed in 547.305(a), insert the following clause:

PLACARDING RAILCAR SHIPMENTS (MAY 1989)

When a railcar is loaded in such a manner that it can be or should be
unloaded from only one side, the Contractor shall place on the
appropriate railcar door a placard reading \"UNLOAD FROM THIS SIDE\" and
on the opposite door a placard reading \"UNLOAD FROM OTHER SIDE.\"

(End of clause)

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APD 2800.12B, 09-01-99 H-101

**552.247-71 Diversion of Shipment Under f.o.b. Destination Contracts.**

As prescribed in 547.305(b), insert the following clause:

DIVERSION OF SHIPMENT UNDER F.O.B. DESTINATION CONTRACTS (SEP 1999)

\(a\) Notwithstanding paragraph (c) of the clause in this contract
titled 52.212-4, Contract Terms and Conditions \-- Commercial Items, the
Government has the unilateral right to make changes at any time within
the general scope of this contract in either the:

\(1\) Method of shipment or packing.

\(2\) Place of delivery.

\(b\) If any such change causes an increase or decrease in the cost of
this contract, the Contracting Officer shall make an equitable
adjustment in the contract price, the delivery schedule, or both. The
Contractor must assert its right to an adjustment under this clause
within 30 days from the date of receipt of a delivery order.

\(c\) The Government shall make no adjustment when supplies are
identically priced for delivery regionally or nationally and the place
of delivery is changed within the area to which the identical price
applies. In all other cases, adjustments for changes in transportation
costs under this clause shall be determined as follows:

\(1\) If the contractor ships by contract or common carrier, price
adjustments shall be determined by comparing the cost of shipments to
the new destination(s), as evidenced by copy of paid freight bills
supplied by the Contractor with the invoice, to one of the following:

\(i\) The cost of shipments to the standard contract destination, as
evidenced by copy of appropriate paid freight bills supplied by the
Contractor.

\(ii\) If no shipments have been made to the standard contract
destination, the cost as evidenced by the applicable rates of a common
or contract carrier. If carrier rates are not publicly filed with a
regulatory body (e.g., interstate shipments moving by rail piggyback
service), the Contractor shall provide a copy of the contract, letter
agreement, or other written communication from the carrier(s) quoting
the rates/charges that would have applied for shipments to the standard
contract destination.

\(2\) If (i) shipments to the new destination are made by the
Contractor\'s owned or leased trucks or (ii) shipments to the original
destination were or would have been made by the Contractor\'s owned or
leased trucks, the Government shall determine the adjustment by
substituting a rate equal to 70 percent of the lowest applicable rate
published in common

GSAM\
H-102 APD 2800.12B, 09-01-99

carrier tariffs as of the date of shipment for the Contractor\'s actual
rate or contemplated transportation costs.

\(d\) If the copies of paid freight bills for a diverted shipment do not
show, or make readily available, each of the following items, the
Contractor shall supply a written statement showing the item(s):

\(1\) Full name of each carrier in the routing.

\(2\) Number of containers.

\(3\) Gross shipping weight.

\(4\) Actual date of shipping.

\(5\) Freight description for the supplies as indicated in the
\"National Motor Freight Classification\" or the \"Uniform Freight
Classification\" (Rail).

(End of clause)

**552.249-70 Termination for Convenience of the Government (Fixed Price)
(Short Form).**

As prescribed in 549.502(a) insert the following clause:

TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE)\
(SHORT FORM) (MAY 1988) (DEVIATION FAR 52.249-1 AND 52.249-2)

\(a\) If the Government terminates this contract for convenience, the
rights of the Government and the Contractor shall be determined under
paragraph (b) unless there is a termination liability schedule, in which
case the rights of the parties shall be determined under paragraph (c).

\(b\) The clause at \[*Contracting Officer inserts 52.249-1 or 52.249-2,
as applicable*\] of the FAR shall apply to the supply portion of the
contract and the clause at 52.249-4 of the FAR shall apply to the
service portion of the contract.

\(c\) If the Contractor specifies a schedule of termination liability
charges that would be incurred by the Government if the Government
terminates this lease contract without taking title to the equipment,
the payment of such charges shall be the only responsibility of the
Government to compensate the Contractor for such termination; except
that, there shall be no termination liability for equipment installed
after termination of this contract.

(End of clause)

GSAM\
APD 2800.12B, 09-01-99 H-103

**552.249-71 Submission of Termination Liability Schedule.**

As prescribed in 549.502(b), insert the following clause:

SUBMISSION OF TERMINATION LIABILITY SCHEDULE (MAY 1989)

\(a\) An offeror may submit, as part of its proposal, a termination
liability schedule to be applied if any resultant contract is terminated
by the Government for reasons other than default. The offeror shall
provide and explain the amount and method of computation of the
termination liability charge(s).

\(b\) If submitted, the termination liability schedule will be
incorporated into Part I, Section B of the contract document. If a
termination liability schedule is not submitted and the Government
terminates any resultant contract for its convenience, the rights of the
parties shall be determined under paragraph (b) of the GSAR Termination
for Convenience of the Government clause at 552.249-70.

\(c\) Any termination liability charges existing at the end of the
evaluated contract period will be considered in the evaluation of
offers.

(End of clause)

**552.252-5 Authorized Deviations in Provisions.**

As prescribed in 552.107-70(a), insert the following provision:

AUTHORIZED DEVIATIONS IN PROVISIONS\
(DEVIATION FAR 52.252-5) (SEP 1999)

\(a\) [Deviations to FAR provisions]{.underline}.

\(1\) This solicitation indicates any authorized deviation to a Federal
Acquisition Regulation (48 CFR Chapter 1) provision by the addition of
\"(DEVIATION)\" after the date of the provision, if the provision is not
published in the General Services Administration Acquisition Regulation
(48 CFR Chapter 5).

\(2\) This solicitation indicates any authorized deviation to a Federal
Acquisition Regulation (FAR) provision that is published in the General
Services Administration Acquisition Regulation by the addition of
\"(DEVIATION (FAR provision no.))\" after the date of the provision.

\(b\) [Deviations to GSAR provisions]{.underline}. This solicitation
indicates any authorized deviation to a General Services Administration
Acquisition Regulation provision by the addition of \"(DEVIATION)\"
after the date of the provision.

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H-104 APD 2800.12B, 09-01-99

\(c\) [\"Substantially the same as\" provisions]{.underline}. Changes in
wording of provisions prescribed for use on a \"substantially the same
as\" basis are not considered deviations.

(End of provision)

**552.252-6 Authorized Deviations in Clauses.**

As prescribed in 552.107-70(b), insert the following clause:

AUTHORIZED DEVIATIONS IN CLAUSES\
(DEVIATION FAR 52.252-6) (SEP 1999)

\(a\) [Deviations to FAR clauses]{.underline}.

\(1\) This solicitation or contract indicates any authorized deviation
to a Federal Acquisition Regulation (48 CFR Chapter 1) clause by the
addition of \"(DEVIATION)\" after the date of the clause, if the clause
is not published in the General Services Administration Acquisition
Regulation (48 CFR Chapter 5).

\(2\) This solicitation indicates any authorized deviation to a Federal
Acquisition Regulation (FAR) clause that is published in the General
Services Administration Acquisition Regulation by the addition of
\"(DEVIATION (FAR clause no.))\" after the date of the clause.

\(b\) [Deviations to GSAR clauses]{.underline}. This solicitation
indicates any authorized deviation to a General Services Administration
Acquisition Regulation clause by the addition of \"(DEVIATION)\" after
the date of the clause.

\(c\) [\"Substantially the same as\" clauses]{.underline}. Changes in
wording of clauses prescribed for use on a \"substantially the same as\"
basis are not considered deviations.

(End of clause)

**552.270-1 Instructions to Offerors - Acquisition of Leasehold
Interests in Real Property.**

As prescribed in 570.602, insert the following provision:

INSTRUCTIONS TO OFFERORS - ACQUISITION OF LEASEHOLD INTERESTS IN REAL
PROPERTY (MAR 1998)

\(a\) Definitions. As used in this provision\--

\"Discussions\" are negotiations that occur after establishment of the
competitive range that may, at the Contracting Officer\'s discretion,
result in the offeror being allowed to revise its proposal.

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APD 2800.12B, 09-01-99 H-105

\"In writing\" or \"written\" means any worded or numbered expression
which can be read, reproduced, and later communicated, and includes
electronically transmitted and stored information.

\"Proposal modification\" is a change made to a proposal before the
solicitation\'s closing date and time, or made in response to an
amendment, or made to correct a mistake at any time before award.

\"Proposal revision\" is a change to a proposal made after the
solicitation closing date, at the request of or as allowed by a
Contracting Officer as the result of negotiations.

\"Time,\" if stated as a number of days, is calculated using calendar
days, unless otherwise specified, and will include Saturdays, Sundays,
and legal holidays. However, if the last day falls on a Saturday,
Sunday, or legal holiday, then the period shall include the next working
day.

\(b\) Amendments to solicitations. If this solicitation is amended, all
terms and conditions that are not amended remain unchanged. Offerors
shall acknowledge receipt of any amendment to this solicitation by the
date and time specified in the amendment(s).

\(c\) Submission, modification, revision, and withdrawal of proposals.

\(1\) Unless other methods (e.g., electronic commerce or facsimile) are
permitted in the solicitation, proposals and modifications to proposals
shall be submitted in paper media in sealed envelopes or packages Offers
must be:

\(i\) Submitted on the forms prescribed and furnished by the Government
as a part of this solicitation or on copies of those forms, and

\(ii\) Signed. The person signing an offer must initial each erasure or
change appearing on any offer form. If the offeror is a partnership, the
names of the partners composing the firm must be included with the
offer.

\(2\) Late proposals and revisions.

\(i\) The Government will not consider any proposal received at the
office designated in the solicitation after the exact time specified for
receipt of offers unless it is received before the Government makes
award and it meets at least one of the following conditions:

\(A\) It was sent by registered or certified mail not later than the 5th
calendar day before the date specified for receipt of offers (e.g., an
offer submitted in response to a solicitation requiring receipt of
offers by the 20th of the month must have been mailed by the 15th).

\(B\) It was sent by mail (or telegram or facsimile, if authorized) or
hand-carried (including delivery by a commercial carrier) if it is
determined by the

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H-106 APD 2800.12B, 09-01-99

Government that the late receipt was due primarily to Government
mishandling after receipt at the Government installation.

\(C\) It was sent by U.S. Postal Service Express Mail Next Day
Service-Post Office to Addressee, not later than 5:00 p.m. at the place
of mailing two working days prior to the date specified for receipt of
proposals. The term \"working days\" excludes weekends and U.S. Federal
holidays.

\(D\) It was transmitted through an electronic commerce method
authorized by the solicitation and was received at the initial point of
entry to the Government infrastructure not later than 5:00 p.m. one
working day prior to the date specified for receipt of proposals.

\(E\) There is acceptable evidence to establish that it was received at
the activity designated for receipt of offers and was under the
Government\'s control prior to the time set for receipt of offers, and
the Contracting Officer determines that accepting the late offer would
not unduly delay the procurement.

\(F\) It is the only proposal received.

\(ii\) Any modification or revision of a proposal or response to request
for information, including any final proposal revision, is subject to
the same conditions as in subparagraphs (c)(2)(i)(A) through
(c)(2)(i)(E) of this provision.

\(iii\) The only acceptable evidence to establish the date of mailing of
a late proposal or modification or revision sent either by registered or
certified mail is the U.S. or Canadian Postal Service postmark both on
the envelope or wrapper and on the original receipt from the U.S. or
Canadian Postal Service. Both postmarks must show a legible date or the
proposal, response to a request for information, or modification or
revision shall be processed as if mailed late. \"Postmark\" means a
printed, stamped, or otherwise placed impression (exclusive of a postage
meter machine impression) that is readily identifiable without further
action as having been supplied and affixed by employees of the U.S. or
Canadian Postal Service on the date of mailing. Therefore, offerors or
respondents should request the postal clerk to place a legible hand
cancellation bull\'s eye postmark on both the receipt and the envelope
or wrapper.

\(iv\) Acceptable evidence to establish the time of receipt at the
Government installation includes the time/date stamp of that
installation on the proposal wrapper, other documentary evidence of
receipt maintained by the installation, or oral testimony or statements
of Government personnel.

\(v\) The only acceptable evidence to establish the date of mailing of a
late offer, modification or revision, or withdrawal sent by Express Mail
Next Day Service-Post Office to Addressee is the date entered by the
post office receiving clerk on the

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APD 2800.12B, 09-01-99 H-107

\"Express Mail Next Day Service-Post Office to Addressee\" label and the
postmark on both the envelope or wrapper and on the original receipt
from the U.S. Postal Service. \"Postmark\" has the same meaning as
defined in paragraph (c)(2)(iii) of this provision, excluding postmarks
of the Canadian Postal Service. Therefore, offerors or respondents
should request the postal clerk to place a legible hand cancellation
bull\'s eye postmark on both the receipt and the envelope or wrapper.

\(vi\) Notwithstanding paragraph (c)(2)(i) of this provision, a late
modification or revision of an otherwise successful proposal that makes
its terms more favorable to the Government will be considered at any
time it is received and may be accepted.

\(vii\) An offeror may withdraw its proposal by written notice or
telegram (including mailgram) received at any time before award. If the
solicitation authorizes facsimile proposals, an offeror may withdraw its
proposal via facsimile received at any time before award, subject to the
conditions specified in the provision entitled \"Facsimile Proposals.\"
Proposals may be withdrawn in person by an offeror or an authorized
representative, if the representative\'s identity is made known and the
representative signs a receipt for the proposal before award.

\(viii\) If an emergency or unanticipated event interrupts normal
Government processes so that proposals cannot be received at the office
designated for receipt of proposals by the exact time specified in the
solicitation, and urgent Government requirements preclude amendment of
the solicitation or other notice of an extension of the closing date,
the time specified for receipt of proposals will be deemed to be
extended to the same time of day specified in the solicitation on the
first work day on which normal Government processes resume. If no time
is specified in the solicitation, the time for receipt is 4:30 p.m.,
local time, for the designated Government office.

\(3\) Any information given to a prospective offeror concerning this
solicitation will be furnished promptly to all other prospective
offerors, if that information is necessary in submitting offers or if
the lack of it would be prejudicial to any other prospective offeror.

\(4\) Offerors may submit modifications to their proposals at any time
before the solicitation closing date and time, and may submit
modifications in response to an amendment, or to correct a mistake at
any time before award.

\(5\) Offerors may submit revised proposals only if requested or allowed
by the Contracting Officer.

\(6\) The Government will construe an offer to be in full and complete
compliance with this solicitation unless the offer describes any
deviation in the offer.

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H-108 APD 2800.12B, 09-01-99

\(7\) Offerors may submit proposals that depart from stated
requirements. Such a proposal shall clearly identify why the acceptance
of the proposal would be advantageous to the Government. The proposal
must clearly identify and explicitly define any deviations from the
terms and conditions of the solicitation, as well as the comparative
advantage to the Government. The Government reserves the right to amend
the solicitation to allow all offerors an opportunity to submit revised
proposals based on the revised requirements.

\(d\) Restriction on disclosure and use of data. An offeror that
includes in its proposal data that it does not want disclosed to the
public for any purpose, or used by the Government except for evaluation
purposes, must meet both of the following conditions:

\(1\) Mark the title page with the following legend:

This proposal includes data that shall not be disclosed outside the
Government and shall not be duplicated, used, or disclosed\--in whole or
in part\--for any purpose other than to evaluate this proposal. If,
however, a lease is awarded to this offeror as a result of\--or in
connection with\--the submission of this data, the Government shall have
the right to duplicate, use, or disclose the data to the extent provided
in the resulting contract. This restriction does not limit the
Government\'s right to use information contained in this data if it is
obtained from another source without restriction. The data subject to
this restriction are contained in sheets \[*insert numbers or other
identification of sheets*\].

\(2\) Mark each sheet of data it wishes to restrict with the following
legend:

Use or disclosure of data contained on this sheet is subject to the
restriction on the title page of this proposal.

\(e\) Lease award.

\(1\) The Government intends to award a lease resulting from this
solicitation to the responsible offeror whose proposal represents the
best value after evaluation in accordance with the factors and
subfactors in the solicitation.

\(2\) The Government may reject any or all proposals if such action is
in the Government\'s interest.

\(3\) The Government may waive informalities and minor irregularities in
proposals received.

\(4\) The Government intends to evaluate proposals and award a lease
after conducting discussions with offerors whose proposals have been
determined to be within the competitive range. If the Contracting
Officer determines that the number of proposals that would otherwise be
in the competitive range exceeds the number at which an efficient
competition can be conducted, the Contracting Officer may limit the
number of proposals in the competitive range to the greatest number that
will permit an efficient

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APD 2800.12B, 09-01-99 H-109

competition among the most highly rated proposals. Therefore, the
offeror\'s initial proposal should contain the offeror\'s best terms
from a price and technical standpoint.

\(5\) Exchanges with offerors after receipt of a proposal do not
constitute a rejection or counteroffer by the Government.

\(6\) The Government may determine that a proposal is unacceptable if
the prices proposed are materially unbalanced between line items or
subline items. Unbalanced pricing exists when, despite an acceptable
total evaluated price, the price of one or more contract line items is
significantly overstated or understated as indicated by the application
of cost or price analysis techniques. A proposal may be rejected if the
Contracting Officer determines that the lack of balance poses an
unacceptable risk to the Government.

\(7\) The unconditional written acceptance of an offer establishes a
valid contract.

\(8\) The Government may disclose the following information in postaward
debriefings to other offerors:

\(i\) The overall evaluated cost or price and technical rating of the
successful offeror;

\(ii\) The overall ranking of all offerors, when any ranking was
developed by the agency during source selection; and

\(iii\) A summary of the rationale for award.

(End of provision)

[Alternate I (MAR 1998)]{.underline}. As prescribed in 570.602,
substitute the following paragraph for paragraph (c)(2)(i) of the basic
provision:

\(i\) Any offer received at the office designated in the solicitation
after the exact time specified for receipt of final proposal revisions
will not be considered unless it is received before award is made and it
meets one of the following conditions\--

[Alternate II (MAR 1998)]{.underline}. As prescribed in 570.602,
substitute the following paragraph for paragraph (e)(4) of the basic
provision:

\(4\) The Government intends to evaluate proposals and award a lease
without discussions with offerors (except clarifications as described in
FAR 15.306(a)). Therefore, the offeror\'s initial proposal should
contain the offeror\'s best terms from a cost or price and technical
standpoint. The Government reserves the right to conduct discussions if
the Contracting Officer later determines them to be necessary. If the
Contracting Officer determines that the number of proposals that would
otherwise be in the competitive range exceeds the number at which an
efficient competition can be conducted, the

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H-110 APD 2800.12B, 09-01-99

Contracting Officer may limit the number of proposals in the competitive
range to the greatest number that will permit an efficient competition
among the most highly rated proposals.

**552.270-2 Historic Preference.**

As prescribed in 570.602, insert the following provision:

HISTORIC PREFERENCE (SEP 1999)

\(a\) The Government will give preference to offers of space in
buildings on, or formally listed as eligible for inclusion in, the
National Register of Historic Places and to historically significant
buildings in historic districts listed in the National Register. This
preference extends to historic buildings and will result in award if
both of the following are met:

\(1\) The offer for space meets the terms and conditions of this
solicitation as well as any other offer received. The Contracting
Officer has discretion to accept alternatives to certain architectural
characteristics and safety features defined elsewhere in this
solicitation to maintain the historical integrity of the building such
as high ceilings, wooden floors, etc.

\(2\) The rental is no more than 10 percent higher on a total annual
usable square foot cost to the Government than the lowest otherwise
acceptable offer.

\(b\) If the Government receives more than one offer of an historic
building and they meet the above criteria, the Government will award to
the lowest priced historic property offered.

(End of provision)

**552.270-3 Parties to Execute Lease.**

As prescribed in 570.602, insert the following provision:

PARTIES TO EXECUTE LEASE (SEP 1999)

\(a\) If the lease is executed by an attorney, agent, or trustee on
behalf of the Lessor, an authenticated copy of his power of attorney, or
other evidence to act on behalf of the Lessor, shall accompany the
lease.

\(b\) If the Lessor is a partnership, the lease shall be signed with the
partnership name, followed by the name of the legally authorized partner
signing the same, and, if requested by the Government, a copy of either
the partnership agreement or current Certificate of Limited Partnership
shall accompany the lease.

\(c\) If the Lessor is a corporation, the lease shall be signed with the
corporate name, followed by the signature and title of the officer or
other person signing the lease on its behalf, duly

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APD 2800.12B, 09-01-99 H-111

attested, and, if requested by the Government, evidence of this
authority to so act shall be furnished.

(End of provision)

**552.270-4 Definitions.**

As prescribed in 570.603, insert the following clause:

DEFINITIONS (SEP 1999)

The following terms and phrases (except as otherwise expressly provided
or unless the context otherwise requires) for all purposes of this lease
shall have the respective meanings hereinafter specified:

\(a\) "Commencement Date" means the first day of the term.

\(b\) "Contract" and "Contractor" means "Lease" and "Lessor,"
respectively.

\(c\) "Contracting Officer" means a person with the authority to enter
into, administer, and/or terminate contracts and make related
determinations and findings. The term includes certain authorized
representatives of the Contracting Officer acting within the limits of
their authority as delegated by the Contracting Officer.

\(d\) \"Delivery Date\" means the date specified in or determined
pursuant to the provisions of this lease for delivery of the premises to
the Government, improved in accordance with the provisions of this lease
and substantially complete, as such date may be modified in accordance
with the provisions of this lease.

\(e\) \"Delivery Time\" means the number of days provided by this lease
for delivery of the premises to the Government, as such number may be
modified in accordance with the provisions of this lease.

\(f\) \"Excusable Delays\" mean delays arising without the fault or
negligence of Lessor and Lessor\'s subcontractors and suppliers at any
tier, and shall include, without limitation:

\(1\) acts of God or of the public enemy,

\(2\) acts of the United States of America in either its sovereign or
contractual capacity,

\(3\) acts of another contractor in the performance of a contract with
the Government,

\(4\) fires,

\(5\) floods,

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H-112 APD 2800.12B, 09-01-99

\(6\) epidemics,

\(7\) quarantine restrictions,

\(8\) strikes,

\(9\) freight embargoes,

\(10\) unusually severe weather, or

\(11\) delays of subcontractors or suppliers at any tier arising from
unforeseeable causes beyond the control and without the fault or
negligence of both the Lessor and any such subcontractor or supplier.

\(g\) \"Lessor\" means the sub‑lessor if this lease is a sublease.

\(h\) \"Lessor shall provide\" means the Lessor shall furnish and
install at Lessor\'s expense.

\(i\) \"Notice\" means written notice sent by certified or registered
mail, Express Mail or Comparable service, or delivered by hand. Notice
shall be effective on the date delivery is accepted or refused.

\(j\) \"Premises\" means the space described in this lease.

\(k\) \"Substantially complete\" and \"substantial completion\" means
that the work, the common and other areas of the building, and all other
things necessary for the Government\'s access to the premises and
occupancy, possession, use and enjoyment thereof, as provided in this
lease, have been completed or obtained, excepting only such minor
matters as do not interfere with or materially diminish such access,
occupancy, possession, use or enjoyment.

\(l\) \"Usable square feet\" means the ANSI/BOMA Z65.1-1996 definition
for BOMA usable office area, which means "The area where a tenant
normally houses personnel and/or furniture, for which a measurement is
to be computed."

\(m\) \"Work\" means all alterations, improvements, modifications, and
other things required for the preparation or continued occupancy of the
premises by the Government as specified in this lease.

(End of clause)

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APD 2800.12B, 09-01-99 H-113

**552.270-5 Subletting and Assignment.**

As prescribed in 570.603, insert the following clause:

SUBLETTING AND ASSIGNMENT (SEP 1999)

The Government may sublet any part of the premises but shall not be
relieved from any obligations under this lease by reason of any such
subletting. The Government may at any time assign this lease, and be
relieved from all obligations to Lessor under this lease excepting only
unpaid rent and other liabilities, if any, that have accrued to the date
of said assignment. Any assignment shall be subject to prior written
consent of Lessor, which shall not be unreasonably withheld.

(End of clause)

**552.270-6 Maintenance of Building and Premises - Right of Entry.**

As prescribed in 570.603, insert the following clause:

MAINTENANCE OF BUILDING AND PREMISES - RIGHT OF ENTRY (SEP 1999)

Except in case of damage arising out of the willful act or negligence of
a Government employee, Lessor shall maintain the premises, including the
building and all equipment, fixtures, and appurtenances furnished by the
lessor under this lease, in good repair and condition so that they are
suitable in appearance and capable of supplying such heat, air
conditioning, light, ventilation, access and other things to the
premises, without reasonably preventable or recurring disruption, as is
required for the Government\'s access to, occupancy, possession, use and
enjoyment of the premises as provided in this lease. For the purpose of
so maintaining the premises, the Lessor may at reasonable times enter
the premises with the approval of the authorized Government
representative in charge.

(End of clause)

**552.270-7 Fire and Casualty Damage.**

As prescribed in 570.603, insert the following clause:

FIRE AND CASUALTY DAMAGE (SEP 1999)

If the entire premises are destroyed by fire or other casualty, this
lease will immediately terminate. In case of partial destruction or
damage, so as to render the premises untenantable, as determined by the
Government, the Government may terminate the lease by giving written
notice to the Lessor within 15 calendar days of the fire or other
casualty; if so terminated, no rent will accrue to the Lessor after such
partial destruction or damage; and if not so terminated, the rent will
be reduced proportionately by supplemental agreement hereto effective
from the date of such partial destruction or damage. Nothing in this
lease shall be construed as relieving Lessor from

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H-114 APD 2800.12B, 09-01-99

liability for damage to or destruction of property of the United States
of America caused by the willful or negligent act or omission of Lessor.

(End of clause)

**552.270-8 Compliance with Applicable Law.**

As prescribed in 570.603, insert the following clause:

COMPLIANCE WITH APPLICABLE LAW (SEP 1999)

Lessor shall comply with all Federal, state and local laws applicable to
the Lessor as owner or lessor, or both, of the building or premises,
including, without limitation, laws applicable to the construction,
ownership, alteration or operation of both or either thereof, and will
obtain all necessary permits, licenses and similar items at Lessor\'s
expense. The Government will comply with all Federal, state and local
laws applicable to and enforceable against it as a tenant under this
lease; provided that nothing in this lease shall be construed as a
waiver of any sovereign immunity of the Government. This lease shall be
governed by Federal law.

(End of clause)

**552.270-9 Inspection - Right of Entry.**

As prescribed in 570.603, insert the following clause:

INSPECTION - RIGHT OF ENTRY (SEP 1999)

\(a\) At any time and from time to time after receipt of an offer (until
the same has been duly withdrawn or rejected), after acceptance thereof
and during the term, the agents, employees and contractors of the
Government may, upon reasonable prior notice to Offeror or Lessor, enter
upon the offered premises or the premises, and all other areas of the
building access to which is necessary to accomplish the purposes of
entry, to determine the potential or actual compliance by the Offeror or
Lessor with the requirements of the solicitation or this lease, which
purposes shall include, but not be limited to:

\(1\) Inspecting, sampling and analyzing suspected asbestos-containing
materials and air monitoring for asbestos fibers;

\(2\) Inspecting the heating, ventilation and air conditioning system,
maintenance records, and mechanical rooms for the offered premises or
the premises;

\(3\) Inspecting for any leaks, spills, or other potentially hazardous
conditions which may involve tenant exposure to hazardous or toxic
substances; and

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\(4\) Inspecting for any current or past hazardous waste operations, to
ensure that appropriate mitigative actions were taken to alleviate any
environmentally unsound activities in accordance with Federal, State and
local law.

\(b\) Nothing in this clause shall be construed to create a Government
duty to inspect for toxic materials or to impose a higher standard of
care on the Government than on other lessees. The purpose of this clause
is to promote the ease with which the Government may inspect the
building. Nothing in this clause shall act to relieve the Lessor of any
duty to inspect or liability which might arise as a result of Lessor\'s
failure to inspect for or correct a hazardous condition.

(End of clause)

**552.270-10 Failure in Performance.**

As prescribed in 570.603, insert the following clause:

FAILURE IN PERFORMANCE (SEP 1999)

The covenant to pay rent and the covenant to provide any service,
utility, maintenance, or repair required under this lease are
interdependent. In the event of any failure by the Lessor to provide any
service, utility, maintenance, repair or replacement required under this
lease the Government may, by contract or otherwise, perform the
requirement and deduct from any payment or payments under this lease,
then or thereafter due, the resulting cost to the Government, including
all administrative costs. If the Government elects to perform any such
requirement, the Government and each of its contractors shall be
entitled to access to any and all areas of the building, access to which
is necessary to perform any such requirement, and the Lessor shall
afford and facilitate such access. Alternatively, the Government may
deduct from any payment under this lease, then or thereafter due, an
amount which reflects the reduced value of the contract requirement not
performed. No deduction from rent pursuant to this clause shall
constitute a default by the Government under this lease. These remedies
are not exclusive and are in addition to any other remedies which may be
available under this lease or at law.

(End of clause)

**552.270-11 Successors Bound.**

As prescribed in 570.603, insert the following clause:

SUCCESSORS BOUND (SEP 1999)

This lease shall bind, and inure to the benefit of, the parties and
their respective heirs, executors, administrators, successors and
assigns.

(End of clause)

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H-116 APD 2800.12B, 09-01-99

**552.270-12 Alterations.**

As prescribed in 570.603, insert the following clause:

ALTERATIONS (SEP 1999)

The Government shall have the right during the existence of this lease
to make alterations, attach fixtures, and erect structures or signs in
or upon the premises hereby leased, which fixtures, additions or
structures so placed in, on, upon, or attached to the said premises
shall be and remain the property of the Government and may be removed or
otherwise disposed of by the Government. If the lease contemplates that
the Government is the sole occupant of the building, for purposes of
this clause, the leased premises include the land on which the building
is sited and the building itself. Otherwise, the Government shall have
the right to tie into or make any physical connection with any structure
located on the property as is reasonably necessary for appropriate
utilization of the leased space.

(End of clause)

**552.270-13 Proposals for Adjustment.**

As prescribed in 570.603, insert the following clause:

PROPOSALS FOR ADJUSTMENT (SEP 1999)

\(a\) The Contracting Officer may, from time to time during the term of
this lease, require changes to be made in the work or services to be
performed and in the terms or conditions of this lease. Such changes
will be required under the Changes clause.

\(b\) If the Contracting Officer makes a change within the general scope
of the lease, the Lessor shall submit, in a timely manner, an itemized
cost proposal for the work to be accomplished or services to be
performed when the cost exceeds \$100,000. The proposal, including all
subcontractor work, will contain at least the following detail \--

\(1\) Material quantities and unit costs;

\(2\) Labor costs (identified with specific item or material to be
placed or operation to be performed);

\(3\) Equipment costs;

\(4\) Worker\'s compensation and public liability insurance;

\(5\) Overhead;

\(6\) Profit; and

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\(7\) Employment taxes under FICA and FUTA.

\(c\) The following Federal Acquisition Regulation (FAR) provisions also
apply to all proposals exceeding \$500,000 in cost \--

\(1\) The Lessor shall provide cost or pricing data including
subcontractor cost or pricing data (48 CFR 15.403-4); and

\(2\) The Lessor\'s representative, all Contractors, and subcontractors
whose portion of the work exceeds \$500,000 must sign and return the
\"Certifi­cate of Current Cost or Pricing Data\" (48 CFR 15.406-2).

\(d\) Lessors shall also refer to 48 CFR Part 31, Contract Cost
Principles, for information on which costs are allowable, reasonable,
and allocable in Government work.

(End of clause)

**552.270-14 Changes.**

As prescribed in 570.603, insert the following clause:

CHANGES (SEP 1999)

\(a\) The Contracting Officer may at any time, by written order, make
changes within the general scope of this lease in any one or more of the
following:

\(1\) Specifications (including drawings and designs).

\(2\) Work or services.

\(3\) Facilities or space layout.

\(4\) Amount of space, provided the Lessor consents to the change.

\(b\) If any such change causes an increase or decrease in Lessor\'s
cost of or the time required for performance under this lease, whether
or not changed by the order, the Contracting Officer shall modify this
lease to provide for one or more of the following:

\(1\) A modification of the delivery date.

\(2\) An equitable adjustment in the rental rate.

\(3\) A lump sum equitable adjustment.

\(4\) An equitable adjustment of the annual operating costs per usable
square foot specified in this lease.

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H-118 APD 2800.12B, 09-01-99

\(c\) The Lessor must assert its right to an adjustment under this
clause within 30 days from the date of receipt of the change order and
must submit a proposal for adjustment. Failure to agree to any
adjustment shall be a dispute under the Disputes clause. However,
nothing in this clause excuses the lessor from proceeding with the
change as directed.

\(d\) Absent such written change order, the Government is not liable to
Lessor under this clause.

(End of clause)

**552.270-15 Liquidated Damages.**

As prescribed in 570.603, insert the following clause:

LIQUIDATED DAMAGES (SEP 1999)

In case of failure on the part of the Lessor to complete the work within
the time fixed in the lease contract or letter of award, the Lessor
shall pay the Government as fixed and agreed liquidated damages,
pursuant to this clause, the sum of \$\_\_\_\_\_\_ for each and every
calendar day that the delivery is delayed beyond the date specified for
delivery of all of the space ready for occupancy by the Government. This
remedy is not exclusive and is in addition to any other remedies which
may be available under this lease or at law.

(End of clause)

**552.270-16 Adjustment for Vacant Premises.**

As prescribed in 570.603, insert the following clause:

ADJUSTMENT FOR VACANT PREMISES (SEP 1999)

\(a\) If the Government fails to occupy any portion of the leased
premises or vacates the premises in whole or in part before the lease
term expires, the rental rate will be reduced.

\(b\) The rental rate will be reduced by that portion of the costs per
usable square foot of operating expenses not required to maintain the
space. The reduction takes effect 30 calendar days after the Government
gives notice to the Lessor, and continues in effect until the Government
occupies the premises or the lease expires or is terminated.

(End of clause)

GSAM\
APD 2800.12B, 09-01-99 H-119

**552.270-17 Delivery and Condition.**

As prescribed in 570.603, insert the following clause:

DELIVERY AND CONDITION (SEP 1999)

\(a\) Unless the Government elects to have the space occupied in
increments, the space must be delivered ready for occupancy as a
complete unit. The Government reserves the right to determine when the
space is substantially complete.

\(b\) If the premises do not in every respect comply with the provisions
of this lease the Contracting Officer may, in accordance with the
Failure in Performance clause of this lease, elect to reduce the rent
payments.

(End of clause)

**552.270-18 Default in Delivery - Time Extensions.**

As prescribed in 570.603, insert the following clause:

DEFAULT IN DELIVERY - TIME EXTENSIONS (SEP 1999)

\(a\) With respect to Lessor\'s obligation to deliver the premises
substantially complete by the delivery date, time is of the essence. If
the Lessor fails to work diligently to ensure its substantial completion
by the delivery date or fails to substantially complete the work by such
date, the Government may by notice to the Lessor terminate this lease.
Such termination is effective when received by Lessor. The Lessor and
the Lessor\'s sureties, if any, are jointly and severally liable for any
damages to the Government resulting from such termination, as provided
in this clause. The Government is entitled to the following damages:

\(1\) The Government\'s aggregate rent, estimated real estate tax, and
operating cost adjustments for the firm term and all option terms of its
replacement lease or leases, in excess of the aggregate rent and
estimated real estate tax and operating cost adjustments for the term.
If the Government procures replacement premises for a term (including
all option terms) in excess of this lease term, the Lessor is not liable
for excess Government rent or adjustments during such excess lease term.

\(2\) All administrative and other costs the Government incurs in
procuring a replacement lease or leases.

\(3\) Other, additional relief provided for in this lease, at law, or in
equity.

\(b\) Damages to which the Government is entitled to under this clause
are due and payable thirty (30) days following the date Lessor receives
notice from the Contracting Officer specifying such damages.

GSAM\
H-120 APD 2800.12B, 09-01-99

\(c\) Delivery by Lessor of less than the minimum usable square footage
required by this lease shall in no event be construed as substantial
completion, except as the Contracting Officer permits.

\(d\) The Government shall not terminate this lease under this clause
nor charge the Lessor with damages under this clause, if (1) the delay
in substantially completing the work arises from excusable delays, and
(2) the Lessor within 10 days from the beginning of any such delay
(unless extended in writing by the Contracting Officer) provides notice
to the Contracting Officer of the causes of delay. The Contracting
Officer shall ascertain the facts and the extent of delay. If the facts
warrant, the Contracting Officer shall extend the delivery date, to the
extent of such delay at no additional costs to the Government. A time
extension is the sole remedy of the Lessor.

(End of clause)

**552.270-19 Progressive Occupancy.**

As prescribed in 570.603, insert the following clause:

PROGRESSIVE OCCUPANCY (SEP 1999)

The Government shall have the right to elect to occupy the space in
partial increments prior to the substantial completion of the entire
leased premises, and the Lessor agrees to schedule its work so as to
deliver the space incrementally as elected by the Government. The
Government shall pay rent commencing with the first business day
following substantial completion of the entire leased premise unless the
Government has elected to occupy the leased premises incrementally. In
case of incremental occupancy, the Government shall pay rent pro rata
upon the first business day following substantial completion of each
incremental unit. Rental payments shall become due on the first workday
of the month following the month in which an increment of space is
substantially complete, except that should an increment of space be
substantially completed after the fifteenth day of the month, the
payment due date will be the first workday of the second month following
the month in which it was substantially complete. The commencement date
of the firm lease term will be a composite determined from all rent
commencement dates.

(End of clause)

**552.270-20 Payment.**

As prescribed in 570.603, insert the following clause:

PAYMENT (SEP 1999)

\(a\) When space is offered and accepted, usable square footage
delivered will be confirmed by either:

GSAM\
APD 2800.12B, 09-01-99 H-121

\(1\) The Government\'s measurement of plans submitted by the successful
offeror as approved by the Government, and an inspection of the space to
verify that the delivered space conforms with such plans.

\(2\) A mutual on-site measurement of the space if the Contracting
Officer determines it necessary.

\(b\) The Government will not pay for space in excess of the amount of
usable square footage stated in the lease.

\(c\) If the amount of usable square footage delivered is less than the
amount agreed to in the lease, the lease will be modified to reflect the
amount of usable space delivered and the annual rental will be adjusted
as follows:

Usable square feet (USF) not delivered multiplied by one plus the common
area factor (CAF), multiplied by the rate per rentable square foot
(RSF). That is:

USF X (1 + CAF) X Rate per RSF = Reduction in Annual Rent.

(End of clause)

**552.270-21 Effect of Acceptance and Occupancy.**

As prescribed in 570.603, insert the following clause:

EFFECT OF ACCEPTANCE AND OCCUPANCY (SEP 1999)

Neither the Government\'s acceptance of the premises for occupancy, nor
the Government\'s occupancy thereof, shall be construed as a waiver of
any requirement of or right of the Government under this Lease, or as
otherwise prejudicing the Government with respect to any such
requirement or right.

(End of clause)

**552.270-22 Default by Lessor During the Term.**

As prescribed in 570.603, insert the following clause:

DEFAULT BY LESSOR DURING THE TERM (SEP 1999)

\(a\) Each of the following shall constitute a default by Lessor under
this lease:

\(1\) Failure to maintain, repair, operate or service the premises as
and when specified in this lease, or failure to perform any other
requirement of this lease as and when required provided any such failure
shall remain uncured for a period of thirty (30) days next

GSAM\
H-122 APD 2800.12B, 09-01-99

following Lessor\'s receipt of notice thereof from the Contracting
Officer or an authorized representative.

\(2\) Repeated and unexcused failure by Lessor to comply with one or
more requirements of this lease shall constitute a default
notwithstanding that one or all such failures shall have been timely
cured pursuant to this clause.

\(b\) If a default occurs, the Government may, by notice to Lessor,
terminate this lease for default and if so terminated, the Government
shall be entitled to the damages specified in the Default in
Delivery-Time Extensions clause.

(End of clause)

**552.270-23 Subordination, Nondisturbance and Attornment.**

As prescribed in 570.603, insert the following clause:

SUBORDINATION, NONDISTURBANCE AND ATTORNMENT (SEP 1999)

\(a\) Lessor warrants that it holds such title to or other interest in
the premises and other property as is necessary to the Government\'s
access to the premises and full use and enjoyment thereof in accordance
with the provisions of this lease. Government agrees, in consideration
of the warranties and conditions set forth in this clause, that this
lease is subject and subordinate to any and all recorded mortgages,
deeds of trust and other liens now or hereafter existing or imposed upon
the premises, and to any renewal, modification or extension thereof. It
is the intention of the parties that this provision shall be
self‑operative and that no further instrument shall be required to
effect the present or subsequent subordination of this lease. Government
agrees, however, within twenty (20) business days next following the
Contracting Officer\'s receipt of a written demand, to execute such
instruments as Lessor may reasonably request to evidence further the
subordination of this lease to any existing or future mortgage, deed of
trust or other security interest pertaining to the premises, and to any
water, sewer or access easement necessary or desirable to serve the
premises or adjoining property owned in whole or in part by Lessor if
such easement does not interfere with the full enjoyment of any right
granted the Government under this lease.

\(b\) No such subordination, to either existing or future mortgages,
deeds of trust or other lien or security instrument shall operate to
affect adversely any right of the Government under this lease so long as
the Government is not in default under this lease. Lessor will include
in any future mortgage, deed of trust or other security instrument to
which this lease becomes subordinate, or in a separate nondisturbance
agreement, a provision to the foregoing effect. Lessor warrants that the
holders of all notes or other obligations secured by existing mortgages,
deeds of trust or other security instruments have consented to the
provisions of this clause, and agrees to provide true copies of all such
consents to the Contracting Officer promptly upon demand.

GSAM\
APD 2800.12B, 09-01-99 H-123

\(c\) In the event of any sale of the premises or any portion thereof by
foreclosure of the lien of any such mortgage, deed of trust or other
security instrument, or the giving of a deed in lieu of foreclosure, the
Government will be deemed to have attorned to any purchaser, purchasers,
transferee or transferees of the premises or any portion thereof and its
or their successors and assigns, and any such purchasers and transferees
will be deemed to have assumed all obligations of the Lessor under this
lease, so as to establish direct privity of estate and contract between
Government and such purchasers or transferees, with the same force,
effect and relative priority in time and right as if the lease had
initially been entered into between such purchasers or transferees and
the Government; provided, further, that the Contracting Officer and such
purchasers or transferees shall, with reasonable promptness following
any such sale or deed delivery in lieu of foreclosure, execute all such
revisions to this lease, or other writings, as shall be necessary to
document the foregoing relationship.

\(d\) None of the foregoing provisions may be deemed or construed to
imply a waiver of the Government\'s rights as a sovereign.

(End of clause)

**552.270-24 Statement of Lease.**

As prescribed in 570.603, insert the following clause:

STATEMENT OF LEASE (SEP 1999)

\(a\) The Contracting Officer will, within thirty (30) days next
following the Contracting Officer\'s receipt of a joint written request
from Lessor and a prospective lender or purchaser of the building,
execute and deliver to Lessor a letter stating that the same is issued
subject to the conditions stated in this clause and, if such is the
case, that (1) the lease is in full force and effect; (2) the date to
which the rent and other charges have been paid in advance, if any; and
(3) whether any notice of default has been issued.

\(b\) Letters issued pursuant to this clause are subject to the
following conditions:

\(1\) That they are based solely upon a reasonably diligent review of
the Contracting Officer\'s lease file as of the date of issuance;

\(2\) That the Government shall not be held liable because of any defect
in or condition of the premises or building;

\(3\) That the Contracting Officer does not warrant or represent that
the premises or building comply with applicable Federal, State and local
law; and

\(4\) That the Lessor, and each prospective lender and purchaser are
deemed to have constructive notice of such facts as would be
ascertainable by reasonable prepurchase

GSAM\
H-124 APD 2800.12B, 09-01-99

and precommitment inspection of the Premises and Building and by inquiry
to appropriate Federal, State and local Government officials.

(End of clause)

**552.270-25 Substitution of Tenant Agency.**

As prescribed in 570.603, insert the following clause:

SUBSTITUTION OF TENANT AGENCY (SEP 1999)

The Government may, at any time and from time to time, substitute any
Government agency or agencies for the Government agency or agencies, if
any, named in the lease.

(End of clause)

**552.270-26 No Waiver.**

As prescribed in 570.603, insert the following clause:

NO WAIVER (SEP 1999)

No failure by either party to insist upon the strict performance of any
provision of this lease or to exercise any right or remedy consequent
upon a breach thereof, and no acceptance of full or partial rent or
other performance by either party during the continuance of any such
breach shall constitute a waiver of any such breach of such provision.

(End of clause)

**552.270-27 Integrated Agreement.**

As prescribed in 570.603, insert the following clause:

INTEGRATED AGREEMENT (SEP 1999)

This Lease, upon execution, contains the entire agreement of the parties
and no prior written or oral agreement, express or implied, shall be
admissible to contradict the provisions of the Lease.

(End of clause)

GSAM\
APD 2800.12B, 09-01-99 H-125

**552.270-28 Mutuality of Obligation.**

As prescribed in 570.603, insert the following clause:

MUTUALITY OF OBLIGATION (SEP 1999)

The obligations and covenants of the Lessor, and the Government\'s
obligation to pay rent and other Government obligations and covenants,
arising under or related to this Lease, are interdependent. The
Government may, upon issuance of and delivery to Lessor of a final
decision asserting a claim against Lessor, set off such claim, in whole
or in part, as against any payment or payments then or thereafter due
the Lessor under this lease. No setoff pursuant to this clause shall
constitute a breach by the Government of this lease.

(End of clause)

**552.270-29 Acceptance of Space.**

As prescribed in 570.603, insert the following clause:

ACCEPTANCE OF SPACE (SEP 1999)

\(a\) When the lessor has completed all alterations, improvements, and
repairs necessary to meet the requirements of the lease, the lessor
shall notify the Contracting Officer. The Contracting Officer or
designated representative shall promptly inspect the space.

\(b\) The Government will accept the space and the lease term will begin
after determining that the space is substantially complete and contains
the required usable square footage as indicated in Paragraph 1.1, Amount
and Type of Space, of this solicitation.

(End of clause)

**SUBPART 552.3 PROVISION AND CLAUSE MATRIXES**

**552.300 Scope of subpart.**

This subpart consists of a series of matrixes:

\(a\) One matrix each for supply, service, construction,
architect-engineer and simplified acquisition contracts which lists the
applicable GSAR provisions and clauses.

\(b\) One matrix each for utility contracts (sole supplier-regulated
rates) and leases of real property which list the applicable FAR and
GSAR provisions and clauses.

GSAM\
H-126 APD 2800.12B, 09-01-99

**MATRIX OF PROVISIONS AND CLAUSES**

**KEY**: Sup = Supply Leas = Acquisitions of leasehold interests in real
property

Serv = Service Contract (excluding construction and A-E services) P =
Provision

Const = Construction Services C = Clause

A-E = Architect-Engineer Services R = Required

SAT = Acquisitions at or under the simplified acquisition threshold WR =
When required

Util = Utility services, sole supplier - regulated rate O = Optional

  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------
  **P/C**   **Number**   **Reference.**   **Title**                 **Sup**   **Serv**   **Const**   **A-E**   **SAT**   **Util**   **Leas**

  C         552.203-5    503.404          Covenant Against                                                                          WR
                                          Contingent Fees                                                                           

  C         552.203-70   503.104-9        Price Adjustment for                                                                      WR
                                          Illegal or Improper                                                                       
                                          Activity                                                                                  

  C         552.203-71   503.570-2        Restriction on            R         R          R           R                              R
                                          Advertising                                                                               

  C         552.209-70   509.206-2        Product Removal from      WR                                         WR                   
                                          Qualified Products List                                                                   

  P         552.209-71   509.306          Waiver of First Article   WR                                         WR                   
                                          Testing and Approval                                                                      
                                          Requirements                                                                              

  C         552.209-72   509.308-1        Supplemental Requirements WR                                         WR                   
                                          for First Article                                                                         
                                          Approval \-- Contractor                                                                   
                                          Testing                                                                                   

  C         552.209-73   509.308-2        Supplemental Requirements WR                                         WR                   
                                          for First Article                                                                         
                                          Approval \-- Government                                                                   
                                          Testing                                                                                   

  C         552.211-8    511.404          Time of Delivery          WR                                         WR                   

  P         552.211-70   511.170-3        Brand Name or Equal       WR                   WR                    WR                   

  C         552.211-71   511.204(a)       Standard References                            WR                                         

  C         552.211-72   511.204(b)       Reference to              WR        WR         WR                    WR                   
                                          Specifications in                                                                         
                                          Drawings                                                                                  

  C         552.211-73   511.204(c)(1)    Marking                   WR                                                              

  C         552.211-74   511.204(c)(2)    Charges for Marking       WR                                                              

  C         552.211-75   511.204(c)(3)    Preservation, Packaging   WR                                         O                    
                                          and Packing                                                                               

  C         552.211-76   511.204(c)(4)    Charges for Packaging and WR                                         WR                   
                                          Packing                                                                                   
  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------

GSAM\
APD 2800.12B, 09-01-99 H-127

<table style="width:100%;">
<colgroup>
<col style="width: 4%" />
<col style="width: 8%" />
<col style="width: 12%" />
<col style="width: 35%" />
<col style="width: 5%" />
<col style="width: 5%" />
<col style="width: 5%" />
<col style="width: 5%" />
<col style="width: 5%" />
<col style="width: 5%" />
<col style="width: 5%" />
</colgroup>
<tbody>
<tr class="odd">
<td><strong>P/C</strong></td>
<td><strong>Number</strong></td>
<td><strong>Reference.</strong></td>
<td><strong>Title</strong></td>
<td><strong>Sup</strong></td>
<td><strong>Serv</strong></td>
<td><strong>Const</strong></td>
<td><strong>A-E</strong></td>
<td><strong>SAT</strong></td>
<td><strong>Util</strong></td>
<td><strong>Leas</strong></td>
</tr>
<tr class="even">
<td>C</td>
<td>552.211-77</td>
<td>511.204(d)</td>
<td>Packing List</td>
<td>WR</td>
<td></td>
<td></td>
<td></td>
<td>WR</td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>C</td>
<td>552.211-78</td>
<td>511.404(a)(2)</td>
<td>Commercial Delivery Schedule (Multiple Award Schedule)</td>
<td>WR</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>C</td>
<td>552.211-79</td>
<td>511.404(a)(3)(i)</td>
<td>Acceptable Age of Supplies</td>
<td>WR</td>
<td></td>
<td></td>
<td></td>
<td>WR</td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>C</td>
<td>552.211-80</td>
<td>511.404(a)(3)(ii)</td>
<td>Age on Delivery</td>
<td>WR</td>
<td></td>
<td></td>
<td></td>
<td>WR</td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>C</td>
<td>552.211-81</td>
<td>511.404(a)(4)</td>
<td>Time of Shipment</td>
<td>WR</td>
<td></td>
<td></td>
<td></td>
<td>WR</td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>C</td>
<td>552.211-82</td>
<td>511.404(a)(5)</td>
<td>Notice of Shipment</td>
<td>WR</td>
<td></td>
<td></td>
<td></td>
<td>WR</td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>C</td>
<td>552.211-83</td>
<td>511.404(a)(6)</td>
<td>Availability for Inspection, Testing, and Shipment/Delivery</td>
<td>WR</td>
<td></td>
<td></td>
<td></td>
<td>WR</td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>C</td>
<td>552.211-84</td>
<td>511.404(b)</td>
<td>Non-Compliance with Contract Requirements</td>
<td></td>
<td></td>
<td>R</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>C</td>
<td>552.212-70</td>
<td>512.301(a)(1)</td>
<td>Preparation of Offer (Multiple Award Schedule)</td>
<td>WR</td>
<td>WR</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>C</td>
<td>552.212-71</td>
<td>512.301(a)(2)</td>
<td>Contract Terms and Conditions Applicable to GSA Acquisition of
Commercial Items</td>
<td>WR</td>
<td>WR</td>
<td></td>
<td></td>
<td>WR</td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>C</td>
<td>552.212-72</td>
<td>512.301(a)(3)</td>
<td>Contract Terms and Conditions Required to Implement Statutes or
Executive Orders Applicable to GSA Acquisition of Commercial Items</td>
<td>WR</td>
<td>WR</td>
<td></td>
<td></td>
<td>WR</td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>P</td>
<td>552.212-73</td>
<td>512.301(a)(4)</td>
<td>Evaluation -- Commercial Items (Multiple Award Schedule)</td>
<td>WR</td>
<td>WR</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>P</td>
<td>552.214-70</td>
<td>514.201-6</td>
<td>"All or None" Offers</td>
<td>WR</td>
<td>WR</td>
<td></td>
<td></td>
<td>WR</td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>C</td>
<td>552.214-71</td>
<td>514.201-7(a)</td>
<td>Progressive Awards and Monthly Quantity Allocations</td>
<td>WR</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>P</td>
<td>552.214-72</td>
<td>514.202-4(a)(3)</td>
<td>Bid Sample Requirements</td>
<td>WR</td>
<td>WR</td>
<td></td>
<td></td>
<td>WR</td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>C</td>
<td>552.215-70</td>
<td><p>514.201-7(b)(1)</p>
<p>515.209-70(a)</p></td>
<td>Examination of Records by GSA</td>
<td>WR</td>
<td>WR</td>
<td>WR</td>
<td>WR</td>
<td></td>
<td></td>
<td>WR</td>
</tr>
<tr class="even">
<td>C</td>
<td>552.215-71</td>
<td>515.209-70(c)</td>
<td>Examination of Records by GSA (Multiple Award Schedule)</td>
<td>WR</td>
<td>WR</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
</tbody>
</table>

GSAM\
H-128 APD 2800.12B, 09-01-99

  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------
  **P/C**   **Number**   **Reference.**   **Title**                 **Sup**   **Serv**   **Const**   **A-E**   **SAT**   **Util**   **Leas**

  C         552.215-72   515.408(d)       Price Adjustment \--      WR        WR                                                    
                                          Failure to Provide                                                                        
                                          Accurate Information                                                                      

  C         552.216-70   516.203-4(a)     Economic Price            WR        WR                                                    
                                          Adjustment - FSS Multiple                                                                 
                                          Award Schedule Contracts                                                                  

  C         552.216-71   516.203-4(b)     Economic Price            WR                                         WR                   
                                          Adjustment - Stock and                                                                    
                                          Special Order Program                                                                     
                                          Contracts                                                                                 

  C         552.216-72   516.506(a)       Placement of Orders       WR                                         WR                   

  P         552.216-73   516.506(c)       Ordering Information      WR        WR                               WR                   

  P         552.217-70   517.208(a)       Evaluation of Options     WR                                         WR                   

  P         552.217-71   517.208(b)       Notice Regarding          WR        WR         WR          WR        WR                   
                                          Option(s)                                                                                 

  C         552.219-70   519.508          Allocation of Orders -    WR                                                              
                                          Partially Set-aside Items                                                                 

  P         552.219-71   519.708-70(a)    Notice to Offerors of     WR        WR         WR          WR                             WR
                                          Subcontracting Plan                                                                       
                                          Requirements                                                                              

  P         552.219-72   519.708-70(b)    Preparation, Submission,  WR        WR         WR          WR                             WR
                                          and Negotiation of                                                                        
                                          Subcontracting Plans                                                                      

  P         552.219-73   519.708-70(c)    Goals for Subcontracting  WR        WR         WR          WR                             WR
                                          Plan                                                                                      

  C         552.219-74   519.870-8(a)     Section 8(a) Direct Award WR        WR         WR          WR        WR                   WR

  C         552.223-70   523.303(a)       Hazardous Substances      WR                                         WR                   

  C         552.223-71   523.303(b)       Nonconforming Hazardous   WR                                         WR                   
                                          Materials                                                                                 

  P         552.223-72   523.370          Hazardous Material        WR                                         WR                   
                                          Information                                                                               

  P         552.225-8    525.408          Buy American Act \--      WR        WR         WR                                         
                                          Trade Agreements \--                                                                      
                                          Balance of Payments                                                                       
                                          Program Certificate                                                                       

  C         552.225-9    525.408          Buy American Act \--      WR        WR         WR                                         
                                          Trade Agreements \--                                                                      
                                          Balance of Payments                                                                       
                                          Program                                                                                   
  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------

GSAM\
APD 2800.12B, 09-01-99 H-129

  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------
  **P/C**   **Number**   **Reference.**   **Title**                 **Sup**   **Serv**   **Const**   **A-E**   **SAT**   **Util**   **Leas**

  C         552.225-70   525.109          Notice of Procurement     WR                                                              
                                          Restriction - Hand or                                                                     
                                          Measuring Tools or                                                                        
                                          Stainless Steel Flatware                                                                  

  C         552.227-70   527.409(a)       Government Rights                                          WR                             
                                          (Unlimited)                                                                               

  C         552.227-71   527.409(b)       Drawings and Other Data                                    WR                             
                                          to Become Property of                                                                     
                                          Government                                                                                

  C         552.228-70   528.310          Workers\' Compensation              WR         WR                                         
                                          Laws                                                                                      

  C         552.229-70   529.401-70       Federal, State, and Local           WR         WR          WR        R                    
                                          Taxes                                                                                     

  C         552.229-71   529.401-71       Federal Excise Tax - DC   WR        WR                               WR                   
                                          Government                                                                                

  C         552.232-1    532.7103(a)      Payments                            WR                                                    

  C         552.232-8    532.206          Discounts for Prompt      WR        WR                                                    
                                          Payment                                                                                   

  C         552.232-23   532.806          Assignment of Claims      WR        WR                                                    

  C         552.232-25   532.908(a)(2)    Prompt Payment            WR        WR                               WR                   

  C         552.232-70   532.111(a)       Invoice Requirements      WR        WR         WR          WR        WR        WR         WR

  C         552.232-71   532.111(b)       Adjusting Payments                  WR                                                    

  C         552.232-72   532.111(c)       Final Payment                       WR                                                    

  C         552.232-73   532.705-1        Availability of Funds               WR                               WR                   

  C         552.232-74   532.908(a)(1)    Invoice Payments          WR        WR                               WR                   

  C         552.232-75   532.908(b)(1)    Prompt Payment                                                                            R

  C         552.232-76   532.908(b)(2)    Electronic Funds Transfer                                                                 WR
                                          Payment                                                                                   

  C         552.232-77   532.7003         Payment By Credit Card    WR        WR                               WR                   

  P         552.233-70   533.103-72       Protests Filed Directly   R         R          R           R                              R
                                          with the General Services                                                                 
                                          Administration                                                                            

  C         552.236-70   536.570-1        Definitions                                    WR          WR        WR                   

  C         552.236-71   536.570-2        Authorities and                                WR          WR                             
                                          Limitations                                                                               
  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------

GSAM\
H-130 APD 2800.12B, 09-01-99

  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------
  **P/C**   **Number**   **Reference.**   **Title**                 **Sup**   **Serv**   **Const**   **A-E**   **SAT**   **Util**   **Leas**

  C         552.236-72   536.570-3        Specialist                                     WR                    WR                   

  P         552.236-73   536.570-4        Basis of                                       WR                                         
                                          Award---Construction                                                                      
                                          Contract                                                                                  

  C         552.236-74   536.570-5        Working Hours                                  R                                          

  C         552.236-75   536.570-6        Use of Premises                                R                     WR                   

  C         552.236-76   536.570-7        Measurements                                   R                     WR                   

  C         552.236-77   536.570-8        Specifications and                             R                                          
                                          Drawings                                                                                  

  C         552.236-78   536.570-9        Shop Drawings,                                 R                                          
                                          Coordination Drawings,                                                                    
                                          and Schedules                                                                             

  C         552.236-79   536.570-10       Samples                                        WR                    WR                   

  C         552.236-80   536.570-11       Heat                                           R                     WR                   

  C         552.236-81   536.570-12       Use of Equipment by the                        WR                    WR                   
                                          Government                                                                                

  C         552.236-82   536.570-13       Subcontracts                                   R                                          

  C         552.236-83   536.570-14       Requirement for a Project                      WR                                         
                                          Labor Agreement                                                                           

  P         552.237-70   537.110(a)       Qualifications of                   WR                                                    
                                          Offerors                                                                                  

  C         552.237-71   537.110(b)       Qualifications of                   WR                                                    
                                          Employees                                                                                 

  C         552.237-72   537.110(c)       Prohibition Regarding               WR                               WR                   
                                          \"Quasi-Military Armed                                                                    
                                          Forces\"                                                                                  

  C         552.237-73   537.270          Restriction on Disclosure           WR                               WR                   
                                          of Information                                                                            

  C         552.238-70   538.273(a)(1)    Identification of         WR                                                              
                                          Electronic Office                                                                         
                                          Equipment Providing                                                                       
                                          Accessibility for the                                                                     
                                          Handicapped                                                                               

  C         552.238-71   538.273(a)(2)    Submission and            WR        WR                                                    
                                          Distribution of                                                                           
                                          Authorized FSS Schedule                                                                   
                                          Pricelists                                                                                

  C         552.238-72   538.273(a)(3)    Identification of         WR        WR                                                    
                                          Energy-Efficient Office                                                                   
                                          Equipment and Supplies                                                                    
                                          Containing Recovered                                                                      
                                          Materials or Other                                                                        
                                          Environmental Attributes                                                                  
  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------

GSAM\
APD 2800.12B, 09-01-99 H-131

  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------
  **P/C**   **Number**   **Reference.**   **Title**                 **Sup**   **Serv**   **Const**   **A-E**   **SAT**   **Util**   **Leas**

  C         552.238-73   538.273(a)(4)    Cancellation              WR        WR                                                    

  C         552.238-74   538.273(b)(1)    Contractor\'s Report of   WR        WR                                                    
                                          Sales                                                                                     

  C         552.238-75   538.273(b)(2)    Price Reductions          WR        WR                                                    

  C         552.238-76   538.273(b)(3)    Industrial Funding Fee    WR        WR                                                    

  C         552.242-70   542.1107         Status Report of Orders   WR                                         WR                   
                                          and Shipments                                                                             

  C         552.243-70   543.205(a)(1)    Pricing of Adjustments                         WR                                         

  C         552.243-71   543.205(a)(2)    Equitable Adjustments                          WR                                         

  C         552.243-72   543.205(b)       Modifications (Multiple   WR        WR                                                    
                                          Award Schedule)                                                                           

  C         552.246-17   546.710(a)       Warranty of Supplies of a WR                                         WR                   
                                          Noncomplex Nature                                                                         

  C         552.246-70   546.302-70       Source Inspection by      WR                                         WR                   
                                          Quality Approved                                                                          
                                          Manufacturer                                                                              

  C         552.246-71   546.302-71       Source Inspection by      WR                                         WR                   
                                          Government                                                                                

  C         552.246-72   546.312          Final Inspection and                           WR                    O                    
                                          Tests                                                                                     

  C         552.246-73   546.710(b)       Warranty - Multiple Award WR        WR                                                    
                                          Schedule                                                                                  

  C         552.246-74   546.710(c)       Warranty - International  WR        WR                                                    
                                          Multiple Award Schedule                                                                   

  C         552.246-75   546.710(d)       Guarantees                                     WR                                         

  C         552.246-76   546.710(e)       Warranty of Pesticides    WR                                         WR                   

  C         552.247-70   547.305(a)       Placarding Railcar        WR                                         WR                   
                                          Shipments                                                                                 

  C         552.247-71   547.305(b)       Diversion of Shipment     WR                                         WR                   
                                          Under f.o.b. Destination                                                                  
                                          Contracts                                                                                 

  C         552.249-70   549.502(a)       Termination for           WR                                         WR                   
                                          Convenience of the                                                                        
                                          Government (Fixed Price)                                                                  
                                          (Short Form)                                                                              

  C         552.249-71   549.502(b)       Submission of Termination WR                                         WR                   
                                          Liability Schedule                                                                        

  P         552.252-5    552.107-70(a)    Authorized Deviations in  WR        WR         WR          WR        WR        WR         
                                          Provisions                                                                                
  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------

GSAM\
H-132 APD 2800.12B, 09-01-99

  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------
  **P/C**   **Number**   **Reference.**   **Title**                 **Sup**   **Serv**   **Const**   **A-E**   **SAT**   **Util**   **Leas**

  C         552.252-6    552.107-70(b)    Authorized Deviations in  WR        WR         WR          WR        WR        WR         
                                          Clauses                                                                                   

  P         552.270-1    570.602          Instructions to                                                                           R
                                          Offerors - Acquisition of                                                                 
                                          Leasehold Interests in                                                                    
                                          Real Property                                                                             

  P         552.270-2    570.602          Historic Preference                                                                       R

  P         552.270-3    570.602          Parties to Execute Lease                                                                  R

  C         552.270-4    570.603          Definitions                                                                               R\*

  C         552.270-5    570.603          Subletting and Assignment                                                                 R

  C         552.270-6    570.603          Maintenance of Building                                                                   R
                                          and Premises - Right of                                                                   
                                          Entry                                                                                     

  C         552.270-7    570.603          Fire and Casualty Damage                                                                  R

  C         552.270-8    570.603          Compliance with                                                                           R
                                          Applicable Law                                                                            

  C         552.270-9    570.603          Inspection - Right of                                                                     R
                                          Entry                                                                                     

  C         552.270-10   570.603          Failure in Performance                                                                    R

  C         552.270-11   570.603          Successors Bound                                                                          R

  C         552.270-12   570.603          Alterations                                                                               R

  C         552.270-13   570.603          Proposals for Adjustment                                                                  R

  C         552.270-14   570.603          Changes                                                                                   R

  C         552.270-15   570.603          Liquidated Damages                                                                        R

  C         552.270-16   570.603          Adjustment for Vacant                                                                     R
                                          Premises                                                                                  

  C         552.270-17   570.603          Delivery and Condition                                                                    R

  C         552.270-18   570.603          Default in Delivery -                                                                     R
                                          Time Extensions                                                                           

  C         552.270-19   570.603          Progressive Occupancy                                                                     R

  C         552.270-20   570.603          Payment                                                                                   R
  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------

\* Clauses prescribed in GSAR 570.603 are optional for acquisitions that
do not exceed the simplified lease acquisition threshold.

GSAM\
APD 2800.12B, 09-01-99 H-133

  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------
  **P/C**   **Number**   **Reference.**   **Title**                 **Sup**   **Serv**   **Const**   **A-E**   **SAT**   **Util**   **Leas**

  C         552.270-21   570.603          Effect of Acceptance and                                                                  R
                                          Occupancy                                                                                 

  C         552.270-22   570.603          Default by Lessor During                                                                  R
                                          the Term                                                                                  

  C         552.270-23   570.603          Subordination,                                                                            R
                                          Nondisturbance and                                                                        
                                          Attornment                                                                                

  C         552.270-24   570.603          Statement of Lease                                                                        R

  C         552.270-25   570.603          Substitution of Tenant                                                                    R
                                          Agency                                                                                    

  C         552.270-26   570.603          No Waiver                                                                                 R

  C         552.270-27   570.603          Integrated Agreement                                                                      R

  C         552.270-28   570.603          Mutuality of Obligation                                                                   R

  C         552.270-29   570.603          Acceptance of Space                                                                       R

  P         52.203-2     570.601(e)       Certificate of                                                                            WR
                                          Independent Price                                                                         
                                          Determination                                                                             

  C         52.203-7     570.601(e)       Anti-Kickback Procedures                                                                  WR

  P         52.203-11    570.601(d)       Certification and                                                                         WR
                                          Disclosure Regarding                                                                      
                                          Payments to Influence                                                                     
                                          Certain Federal                                                                           
                                          Transactions                                                                              

  P         52.204-3     570.601(a)       Taxpayer Identification                                                                   WR

  P         52.209-5     570.601(e)       Certification Regarding                                                                   WR
                                          Debarment, Suspension,                                                                    
                                          Proposed Debarment, and                                                                   
                                          Other Responsibility                                                                      
                                          Matters                                                                                   

  C         52.209-6     570.601(c)       Protecting the                                                                            WR
                                          Government's Interest                                                                     
                                          when Subcontracting with                                                                  
                                          Contractors Debarred,                                                                     
                                          Suspended, or Proposed                                                                    
                                          for Debarment                                                                             

  C         52.215-2     570.601(e)       Audit and Records \--                                                                     WR
                                          Negotiation                                                                               

  P         52.215-5     570.601(j)       Facsimile Proposals                                                                       WR

  C         52.215-10    570.601(i)       Price Reduction for                                                                       WR
                                          Defective Cost or Pricing                                                                 
                                          Data                                                                                      

  C         52.215-12    570.601(i)       Subcontractor Cost or                                                                     WR
                                          Pricing Data                                                                              

  P         52.219-1     570.601(a)       Small Business Program                                                                    WR
                                          Representations                                                                           
  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------

GSAM\
H-134 APD 2800.12B, 09-01-99

  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------
  **P/C**   **Number**   **Reference.**   **Title**                 **Sup**   **Serv**   **Const**   **A-E**   **SAT**   **Util**   **Leas**

  C         52.219-8     570.601(e)       Utilization of Small                                                                      WR
                                          Business Concerns                                                                         

  C         52.219-9     570.601(f)       Small Business                                                                            WR
                                          Subcontracting Plan,                                                                      

  C         52.219-16    570.601(f)       Liquidated Damages -                                                                      WR
                                          Subcontracting Plan                                                                       

  P         52.219-24    570.601(g)       Small Disadvantaged                                                                       WR
                                          Business Participation                                                                    
                                          Program \-- Targets                                                                       

  C         52.219-25    570.601(g)       Small Disadvantaged                                                                       WR
                                          Business Participation                                                                    
                                          Program \-- Disadvantaged                                                                 
                                          Status and Reporting                                                                      

  C         52.219-26    570.601(k)       Small Disadvantaged                                                                       WR
                                          Business Participation                                                                    
                                          Program \-- Incentive                                                                     
                                          Subcontracting                                                                            

  P         52.222-21    570.601(b)       Prohibition of Segregated                                                                 WR
                                          Facilities                                                                                

  P         52.222-22    570.601(b)       Previous Contracts and                                                                    WR
                                          Compliance Reports                                                                        

  P         52.222-24    570.601(h)       Preaward On-site Equal                                                                    WR
                                          Opportunity Compliance                                                                    
                                          Review                                                                                    

  P         52.222-25    570.601(b)       Affirmative Action                                                                        WR
                                          Compliance                                                                                

  C         52.222-26    570.601(b)       Equal Opportunity                                                                         WR

  C         52.222-35    570.601(b)       Affirmative Action for                                                                    WR
                                          Disabled Veterans and                                                                     
                                          Veterans of the Vietnam                                                                   
                                          Era                                                                                       

  C         52.222-36    570.601(a)       Affirmative Action for                                                                    WR
                                          Workers with Disabilities                                                                 

  C         52.222-37    570.601(b)       Employment Reports on                                                                     WR
                                          Disabled Veterans and                                                                     
                                          Veterans of the Vietnam                                                                   
                                          Era                                                                                       

  C         52.223-6     570.601(e)       Drug-Free Workplace                                                                       WR

  C         52.232-23    570.601(a)       Assignment of Claims                                                                      WR

  C         52.233-1     570.601(a)       Disputes                                                                                  WR

  P         52.233-2     570.601(e)       Service of Protest                                                                        WR
  --------- ------------ ---------------- ------------------------- --------- ---------- ----------- --------- --------- ---------- ----------

GSAM\
APD 2800.12B, 09-01-99 H-135

**Page Intentionally Blank**

GSAM\
H-136 APD 2800.12B, 09-01-99

**PART 553 FORMS**

**SUBPART 553.1 GENERAL**

**553.101 Requirements for use of forms.**

Parts 501-552 and 570 prescribe the requirements for use of GSA forms
illustrated or referenced in this part. You may identify the
prescription as follows:

\(a\) [Forms available on-line]{.underline}. The list of forms available
on-line in 553.370-1 identifies the basic prescription for each
referenced form.

\(b\) [Illustrated forms]{.underline}. The prescription for each
illustrated form is identified by a cross-reference shown on the
illustration. When a form is mentioned in more than one place in this
regulation, the section referenced on the illustration is the section
that contains the basic prescription.

**553.102 Current editions.**

You must use the current edition of the forms identified in Subpart
553.3 unless otherwise authorized under this regulation.

**553.170 Establishing and revising GSA Forms.**

\(a\) If two or more GSA Services or Offices use a GSA form, the Office
of Acquisition Policy maintains the form.

\(b\) If only one GSA Service or Office uses a GSA form or if the form
is used for a contract type unique to one Service or Office (e.g.,
construction contracts), that Service or Office is responsible for
maintaining the form.

\(c\) Any proposed new or revised GSA acquisition related form must be
submitted to the Office of Acquisition Policy for review and
concurrence.

**SUBPART 553.3 ILLUSTRATIONS OF FORMS**

**553.300 Scope of subpart.**

This subpart illustrates standard and GSA forms prescribed or referenced
in Parts 501-551 and 570. Instructions on completing a form, if
included, are identified by the suffix \"I\" after the GSAR section
number.

GSAM\
APD 2800.12B, 09-01-99 H-137

**553.300-70 Forms not illustrated.**

This subpart does not illustrate either:

\(a\) Standard forms illustrated in the FAR.

\(b\) Forms available on-line. You can access the forms listed below at
the location indicated.

  ------------------ ------------ --------------------------- -----------------------------------------------
  **Reference**      **Form No.** **Title**                   **On-line Location**

  570.701            Standard     U.S. Government Lease for   http://www.gsa.gov/pbs/pe/stancla/stancla.htm
                     Form 2       Real Property               

  552.238-74         GSA Form 72A Contractor\'s Report of     http://vsc.gsa.gov
                                  Sales                       

  570.702(b)         GSA Form 276 Supplemental Lease          http://www.gsa.gov/forms
                                  Agreement                   

  513.302-70(b)      GSA Form 300 Order for Supplies and      http://www.gsa.gov/forms
                                  Services                    

  513.302-70(b)(2)   GSA Form     Order for Supplies and      http://www.gsa.gov/forms
                     300A         Services (Continuation)     

  509.106-2          GSA Form 353 Performance Evaluation &    http://www.gsa.gov/forms
                                  Facilities Report           

  509.105-1(a)       GSA Form 527 Contractor\'s               http://www.gsa.gov/forms
                                  Qualifications and          
                                  Financial Information       

  532.905-71(a)      GSA Form     Release of Claims           http://www.gsa.gov/forms
                     1142                                     

  570.702(c)         GSA Form     Proposal to Lease Space     http://www.gsa.gov/forms
                     1364                                     

  514.407-72         GSA Form     Recommendation for Award(s) http://www.gsa.gov/forms
                     1535                                     

  513.106(c)(2)      GSA Form     Small Purchase Tabulation   http://www.gsa.gov/forms
                     2010         Source List/Abstract        

  532.905-70         GSA Form     Certification of Progress   http://www.gsa.gov/forms
                     2419         Payments Under Fixed-Price  
                                  Construction Contracts      

  501.603-3(b)(1)    GSA Form     Personal Qualifications     http://www.gsa.gov/forms
                     3409         Statement for Appointment   
                                  as Contracting Officer      

  504.803(b)         GSA Form     Contract/Modification File  http://www.gsa.gov/forms
                     3420         Checklist File Format       
                                  (Award)                     

  503.104-5          GSA Form     Record of Authorization of  http://www.gsa.gov/forms
                     3617         Access to Proprietary or    
                                  Source Selection            
                                  Information                 

  570.702(a)         GSA Form     U.S. Government Lease for   http://www.gsa.gov/pbs/pe/stancla/stancla.htm
                     3626         Real Property (Short Form)  
  ------------------ ------------ --------------------------- -----------------------------------------------

(Next page is H-141) GSAM\
H-138 APD 2800.12B, CHGE 1, 10-1-99

**553.370-300-I Instructions for** **using the GSA Form 300, Order for
Supplies and Services.**

\[513.302-70(b)(2)\]

\(a\) [Completing the form]{.underline}.

[Block 1, Date of Orde]{.underline}r. Enter the date the order is signed
by the contracting/ordering officer.

[Block 2, Order Number]{.underline}. If an order is being placed against
an established contract, assign an order number in accordance with the
procedures in GSAR 504.7001-3. This block does not apply to open market
purchases/contracts.

[Block 3, Contract Number]{.underline}. If an order is being placed
against an established contract, insert the contract number of the
contract that the order is being placed against. If an open market
purchase/contract is involved, assign a contract number in accordance
with the procedures in GSAR 504.7001-2.

[Block 4, ACT Number]{.underline}. Assign an Accounting Control
Transaction (ACT) number in accordance with NEAR system procedures. If
the purchase is charged to the General Supply Fund (255X), contemplates
periodic billing or is for an amount that exceeds \$2,500, place the ACT
number label on copy 1, the \"paying office\" copy. The ACT number label
will be placed on the invoice for other purchases. NOTE: In some
organizations, the \"paying office\" copy is forwarded to a Budget or
Executive Office within the service or staff office where the ACT number
label is affixed to the copy and forwarded to the appropriate Finance
Division.

[Block 5, Accounting Classification]{.underline}. Enter the accounting
information in accordance with the procedures contained in the
Accounting Classification Handbook (COM P 4240.1). The following blocks
are mandatory and must be completed for each order: \"FUND,\" \"ORG
CODE,\" \"B/A CODE,\" \"O/C CODE,\" \"FUNC CODE,\" and \"C/E CODE.\" The
accounting information on modifications must be the same as the original
order, unless the accounting information is being modified.

[Block 6, Finance Division]{.underline}. To be completed by the Finance
Division.

[Block 7, To: Contractor]{.underline}. Enter the contractor\'s name and
address, including zip code.

[Block 8, Type of Order]{.underline}. Check \"block A\" when making an
open market purchase/contract and refer to the date of the contractor\'s
oral or written quotation in the space \"REFERENCE YOUR.\" Check \"block
B\" when placing orders against established contracts. Check \"block C\"
when using a GSA Form 300 to modify another GSA Form 300; enter the
modification number and the authority for issuing the change, i.e.,
\"changes\" clause or other authority for issuing. Assign modification
numbers in accordance with GSAR 504.7001-4.

GSAM\
APD 2800.12B, 09-01-99 H-141

**553.370-300-I Instructions for** **using the GSA Form 300, Order for
Supplies and Services.**

[Block 9, Taxpayer\'s Identification Number (TIN)]{.underline}. This
block is mandatory when making open market purchases of services from
firms or individuals that are not incorporated (partnerships or sole
proprietors). This requirement does not apply to supply
purchases/contracts. Obtain the firm\'s or individual\'s TIN and enter
it in \"block A.\" The Finance Division will return purchase orders if
block 9A is incomplete. If the contractor refuses to provide a TIN,
check \"block B\" to reduce payment by twenty percent. NOTE: The
contractor must be informed before checking \"block B\" that failure to
provide the TIN will result in twenty percent of the payment being
withheld.

[Block 10, Classification]{.underline}. Check the block in 10A that
indicates the classification of the contractor. Definitions of \"Small
Business,\" \"Disadvantaged Business,\" and \"Women-owned Business\" can
be found at FAR 19.001 and 52.219-3. Check the block in 10B that
indicates the type of business organization of the contractor. This
block is mandatory when making open market purchases of services.

[Block 11, Issuing Office]{.underline}. Enter the name, address,
including zip code, and telephone number of the office making the
purchase/contract.

[Block 12, Remittance Address]{.underline}. Ask the contractor for the
address that it would like the payment for the supplies or services to
be mailed. The Finance Division can only make payments to the address
indicated on the order. Therefore, in order for payments to be processed
in a timely manner, the contracting officer must ask the contractor for
a remittance address and enter it in \"block 12.\" If the contractor\'s
invoice requests payment to be made to a different address than the one
in block 12, the Finance Division will request the contracting officer
to modify the order within 5 days to provide the proper \"remit to\"
address. If the Finance Division does not receive a modification within
5 days, the invoice will be considered improper and will be returned to
the contractor.

[Block 13, Ship to]{.underline}. Enter the consignee address, including
zip code, and telephone number.

[Block 14, Place of Inspection and Acceptance]{.underline}. Enter the
location where inspection and acceptance will occur.

[Block 15, Requisition Office]{.underline}. Enter the name,
correspondence symbol and telephone number of the office that requested
the supplies or services be purchased.

[Block 16, F.O.B. Point]{.underline}. Enter the appropriate f.o.b.
point. See FAR 47.302 and 47.303 and GSAR 547.300.

[Block 17, Government B/L No]{.underline}. When supplies are shipped
using a Government Bill of Lading (GBL), enter the GBL number.

[Block 18, Delivery f.o.b. point on or before]{.underline}. Enter the
date when supplies or services are to be delivered. Terms such as
\"ASAP\" are unacceptable.

GSAM\
H-142 APD 2800.12B, 09-01-99

**553.370-300-I Instructions for** **using the GSA Form 300, Order for
Supplies and Services.**

[Block 19, Payment/Discount Terms]{.underline}. Enter the prompt payment
discount terms provided for in the contract when placing an order
against an established contract or the discount terms offered if
purchasing on the open market.

[Block 20, Schedule]{.underline}. Enter a complete description of the
supplies or services being procured, including quantity, unit price,
total price and any periodic billing requirements. In addition, the
estimated freight charges must be included when f.o.b. origin terms are
used and a Government Bill of Lading (GBL) is not issued.

Periods for inspection and acceptance of contract deliverables or
completed work that are different from the 5 days cited in the Prompt
Payment clause on the reverse of the GSA Form 300, must be included in
this block.

When a GSA Form 300 is used to modify another GSA Form 300, block 20
must describe in detail what is being modified, e.g., number of units
from \_\_\_ to \_\_\_, delivery date from \_\_\_ to \_\_\_ , etc.
Indicate the impact of the modification on the total price, e.g., total
price is increased from \$\_\_\_\_\_ to \$\_\_\_\_\_, total price is
decreased from \$\_\_\_\_\_ to \$\_\_\_\_\_, or the price of the
original order is unchanged.

[Block 21, Receiving Office]{.underline}. Enter the name, correspondence
symbol and telephone number of the office responsible for completing the
receiving report.

[Block 22, Shipping Point]{.underline}. When the Government is paying
the transportation cost or reimbursing the contractor for transportation
cost, enter the shipping point for the supplies being purchased. This
information should be obtained from the seller.

[Block 23, Gross Shipping Weight]{.underline}. When the Government is
paying the transportation cost or reimbursing the contractor for
transportation cost, enter the shipping weight for the supplies being
purchased. This information can usually be obtained from the seller.

[Block 24, Mail Invoice to]{.underline}. Enter the address of the
issuing office (same as block 11) or other designated program office
within the service or region for purchases which do not exceed \$2,500
except for procurements charged to the General Supply Fund (255X) and
procurements that anticipate periodic billings, e.g., utility contracts,
recurring building service contracts, equipment rentals, etc. For all
other purchases, enter the address of the appropriate Finance Division.
Enter the \"Fund\" in designated area.

[Block 25]{.underline}. If block 24 provides for the invoice to be
submitted directly to the appropriate Finance Division, enter the Chief,
Accounts Payable Branch in block A and his/her telephone number,
including area code, in block B. If block 24 provides for the invoice to
be submitted to the issuing office or other designated program office
within the service or region, enter the name and telephone number,
including area code, of an individual in that office.

GSAM\
APD 2800.12B, 09-01-99\` H-143

**553.370-300-I Instructions for** **using the GSA Form 300, Order for
Supplies and Services.**

[Block 26]{.underline}. Enter the name of the contracting/ordering
officer in block A and his/her telephone number, including area code, in
block B. The name of the contracting/ordering officer typed in block A
must correspond with the signature in block C. Obligating documents
cannot be signed for a contracting/ordering officer.

\(b\) [Distribution]{.underline}.

\(1\) The distribution for orders (GSA Form 300) that do not exceed
S2,500, except those orders charged to the General Supply Fund (255X) or
those which anticipate periodic billing, will be as follows:

Copy 1 - Paying Office (Original) - Retain in the contract file or send
to the program office within the service or region responsible for
preparing the receiving report (Copy 6). DO NOT send to the paying
office until the invoice is received and approved for payment.

Copy 2 - Contractor\'s original

Copy 3 - Purchase File (Contracting/Ordering Officer)

Copy 4 - Purchase Office (Distribution as necessary)

Copy 5 - Consignee

Copy 6 - Receiving Report (Paying Office)

Copy 7 - Memorandum (Distribution as necessary)

\(2\) The distribution for orders (GSA Form 300) that exceed \$2,500, is
charged to the General Supply Fund (255X), or that anticipates periodic
billing will be as follows:

Copy 1 - Paying Office (Original)

Copy 2 - Contractor\'s Original

Copy 3 - Purchase File (Contracting/Ordering Officer)

Copy 4 - Purchase Office (Distribution as necessary)

Copy 5 - Consignee

Copy 6 - Receiving Report (Paying Office) - Not applicable to State
A.I.D. overseas orders.

Copy 7 - Memorandum (Distribution as necessary)

GSAM\
H-144 APD 2800.12B, 09-01-99

**553.370-300-I Instructions for** **using the GSA Form 300, Order for
Supplies and Services.**

\(c\) [Certifying receipt and processing payments for procurements
requiring a written purchase order (GSA Form 300)]{.underline}

\(1\) When supplies or services are received, the contracting/ordering
office or designated program office will certify receipt and acceptance
and indicate the amount approved for payment on copy 6, Receiving
Report, of the GSA Form 300 or 300-1. When multiple deliveries/payments
are required, additional copies of the receiving report (copy 6) may be
reproduced or the GSA Form 3025 or 3025A, Receiving Report, used to
certify receipt and acceptance. Photocopied signatures will not be
accepted on the receiving report.

NOTE: It is important that the date of receipt and the date of
acceptance entered in the certification on the receiving report be
accurate. Those dates are used to calculate the due date for payments,
and interest on overdue payments. The contracting/ordering officer or a
designated representative should certify receipt and authorize payment
by signing the certification on the receiving report.

\(2\) Invoices received by issuing offices or other designated program
offices must be time stamped to indicate the date of receipt, checked to
verify the accuracy of the invoiced amount, and forwarded within 5
workdays (after receipt of the invoice or acceptance of the supplies
and/or services, whichever is later), to the appropriate Finance
Division for payment. Copy 1 of the GSA Form 300/300-1 and a receiving
report (Copy 6 of the GSA Form 300/300-1 or GSA Form 3025/3025A,
Receiving Report) should be forwarded with the invoice to finance.

\(3\) When invoices are submitted directly to the Finance Division,
contracting/ordering offices or other designated program offices will
certify receipt and acceptance and authorize payment for supplies or
services by completing copy 6 of GSA Form 300/300-1 or the GSA Form
3025/3025A, Receiving Report, in accordance with paragraph (c)(1) above
and sending it to the appropriate Finance Division within 5 workdays
after supplies or services are received and accepted.

GSAM\
APD 2800.12B, 09-01-99 H-145

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

\[509.106-2\]

\(a\) [Completing Section I - PCO Request]{.underline}**.** Blocks 1
through 8 are to be completed by the contract specialists/Procuring
Contracting Officer (PCO) requesting the PEFR.

[Block 1 - OFFEROR/CONTRACTOR]{.underline}.

[Block la - IDENTIFICATION (Name, address, telephone number, CEC, and
point of contact)]{.underline}. Enter the name, address, complete
telephone number (including area code), the Contractor Establishment
Code (CEC), and the name of the individual that is the
offeror/contractor\'s point of contact.

[Block lb - REPRESENTATION]{.underline}. Check the appropriate boxes
according to the offeror/contractor representations in the offer.

[Block 2 - INSPECTION POINT, IF DIFFERENT FROM ABOVE (Name , address,
telephone number, CEC, and point of contact)]{.underline}. If the
inspection point is at a separate location from the offeror/contractor
listed in Block 1, the PEFR should be requested at the inspection point.
The PEFR request should be sent to the Contract Management zone where
the inspection point is located, regardless of the location of the
production point.

Enter the name, address/location (no post office boxes), complete
telephone number (including area code), CEC, and, if available, the name
of the individual that is the point of contact at the inspection point.

If there are multiple inspection points, separate requests must be made
for each location. If multiple PEFRs are required for one
offeror/contractor due to multiple inspection points, use Block 5 to
notify the Quality Assurance Specialist (QAS) of all additional related
PEFRs.

[Block 3 - SOLICITATION/CONTRACT NUMBER AND ESTIMATED DOLLAR
VALUE]{.underline}. Enter the complete solicitation number, or contract
number in cases of options, and the estimated dollar value of the items
for which the offeror/contractor is being considered. If the PEFR is
being requested for the purpose of exercising an option (additional
quantity or extended period), enter the dollar value of the option only,
not the full contract value.

[Block 4 - SPECIAL REQUIREMENTS (Delivery, lst Article, Bid Sample, Buy
American, SBSA, MAS)]{.underline}. Enter the delivery requirements (in
number of days) and any special requirements that are applicable to the
procurement; e.g., first article sample, bid sample, Buy American Act
applies, Small Business Set Aside (SBSA), Multiple Award Schedule (MAS),
quick ship provisions, backup contract, options versus a base contract,
etc.

GSAM\
H-146 APD 2800.12B, 09-01-99

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

If anything other than a complete PEFR is being requested, clearly
specify what limited information is needed. For example, in the case of
a MAS proposed award or exercising an option for additional quantities
or an extended period of tine, the PCO may request only certain
information rather than a full PEFR.

While the QAS cannot certify that the contractor/offeror is a small
business or qualifies as a dealer under the requirements of the
Walsh-Healey Act, the PCO may request that the QAS advise of any
conditions observed that would give reason to challenge the
contractor/offeror\'s representations as reflected in Block lb. The QAS
will address any issues regarding representations in Block 29.

[Block 5 - SPECIAL INFORMATION FOR CONTRACT MANAGEMENT]{.underline}.
Enter any special information that would assist the QAS or the
Administrative Contracting Officer (ACO) in evaluating the proposed
contractor, such as: protests received, any allegations made by
competitors that the PCO would like to have checked out, any information
on problems experienced with bid samples, etc.

As noted in (2) above, if multiple PEFRs have been requested due to
separate inspection points, so note. Specify the name and location (city
and state) of the additional inspection points. This will enable the QAS
and ACO to coordinate with other Regional Contract Management Divisions
if necessary.

[Block 6 - REASON FOR REQUEST (CAL/date, new supplier, new
product)]{.underline}. Enter the reason for the request; e.g.,
offeror/contractor is on the Contractor Alert List (CAL) (if so, state
the CAL date), new product, new supplier, no recent PEFR, etc. Explain
fully when the dollar value of the proposed award is below the small
purchase threshold.

[Block 7 - REQUESTER]{.underline}.

[Block 7a - REQUESTER (Name, organizational symbol, telephone number,
and FAX number)]{.underline}. Enter the typed/printed name of the
contract specialist/PCO making the PEFR request. The contract
specialist\'s signature, organizational symbol, complete telephone
number (including area code), and FAX number.

[Block 7b - DATE]{.underline}. Enter the date of the request.

[Block 8 - SOLICITATION ITEMS]{.underline}.

[Block 8a - ITEM NUMBER]{.underline}. Enter the solicitation/contract
item number. This will assist the QAS and ACO in readily identifying the
item in the solicitation/contract for which the offeror/contractor is
being considered.

GSAM\
APD 2800.12B, 09-01-99 H-147

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

[Block 8b - NOMENCLATURE AND NSN]{.underline}. Enter the nomenclature
and national stock number (NSN), if applicable, for each item for which
the offeror/contractor is being considered.

[REQUIREMENTS (Units)]{.underline}.

[Block 8c - PEAK MONTHLY]{.underline}. For each item enter the
offeror/contractor\'s stated peak monthly supply potential. If the
offeror/contractor has not given its monthly supply potential, enter 125
percent of the Government\'s estimated monthly requirement.

[Block 8d - TOTAL]{.underline}. On definite quantity
solicitations/contracts, enter the total quantity required. If the PEFR
is being requested for exercising an optional quantity, enter the total
quantity of the option only, not the entire contract quantity. For other
contract types (requirements or indefinite quantity), enter the total
estimated quantity for the entire contract period.

\(b\) [Completing Section II - QAS EVALUATION]{.underline}**.** Blocks 9
and 14 through 30 are to be completed by the QAS. Blocks 9, 10, 11, and
13 are to be completed last. Blocks 10 through 12 are to be completed by
the Contract Management Division Director or his/her designee. Block 13
is to be completed by the Contract Management Division Director or
Acting Director. Authority to sign Block 13 shall not be delegated below
the level of Director, Contract Management Division.

[Block 9a - MONTHLY CAPACITY]{.underline}. Determine the maximum
production capacity. In making this determination, factors to be
considered should include, but are not limited to:

\(1\) Reviewing past production records on the same or similar items;

\(2\) Considering employment level and number of shifts in operation
during this period;

\(3\) Planning and scheduling of production equipment;

\(4\) Flexibility for reassignment of operation to alternate production
equipment; and

\(5\) Time required to test.

Enter the total quantity for each item that can be produced in one
month. Maximum production capacity must be determined by taking into
consideration all items being evaluated, all operating processes,
functions, equipment, and personnel.

[Block 9b - GOVERNMENT COMMITMENTS]{.underline}. Determine and verify
the number of units committed under existing Government contracts.

GSAM\
H-148 APD 2800.12B, 09-01-99

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

[Block 9c - COMMERCIAL COMMITMENTS]{.underline}. Determine and verify
the number of units committed under existing commercial contracts.

[Block 9d - NET AVAILABLE]{.underline}. Subtract the total number of
units in b and c from the number of units in a, and enter the results in
Block 9d.

[Block 10 - SUMMARY OF ACO/QAS FINDINGS (Past performance, production
capacity, quality control system, representations, and favorable or
unfavorable factors)]{.underline}. This Block is to be completed by the
Contract Management Division Director, or his/her designee. Give a
summation of the past performance, production capability and capacity,
quality control system, purchasing, subcontracting procedures, problems
with representations, and records at the manufacturing plant on items
identical or similar-to the proposed award items.

[Block 11 - RECOMMENDATION]{.underline}. This Block is to be completed
by the Contract Management Division Director or his/her designee.

Check the appropriate box; i.e., capable of performing or incapable of
performing. One of the boxes must be checked.

[Block 12]{.underline}. This Block is to be completed by the Contract
Management Division Director or his/her designee.

[Block 12a - ZONE]{.underline}. The receiving Contract Management
Division shall enter the number of the zone where the survey will be
conducted.

[Block 12b - DATE RECEIVED]{.underline}. The surveying zone shall enter
the date the Contract Management Division received the request from the
procurement office.

[Block 12c - CONTROL NUMBER]{.underline}. The surveying zone shall enter
the control number assigned to the PEFR by the Contract Management
Division.

[Block 13 - APPROVAL: DIRECTOR, CONTRACT MANAGEMENT
DIVISION]{.underline}.

[Block 13a - PRINTED NAME]{.underline}. The typed or printed name of the
Contract Management Director approving the PEFR shall be entered in this
block.

[Block 13b - TELEPHONE NUMBER]{.underline}. Enter the telephone number
(including area code) of the Contract Management Division Director.

[Block 13c - SIGNATURE]{.underline}. After reviewing the completed form,
the Director, Contract Management Division, or the Acting Director,
shall sign the Form. Authority to approve the PEFR shall not be
delegated below this level. Signature indicates a full review of the
completed GSA Form 353 and agreement with its full contents.

GSAM\
APD 2800.12B, 09-01-99 H-149

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

[Block 13d - DATE]{.underline}. Enter the date signed.

[Block 14 - TYPE OF COMPANY]{.underline}. Check corporation,
partnership, or other. If \"other,\" specify; e.g., sole proprietor,
etc.

[Block 15 - KEY PERSONNEL INTERVIEWED]{.underline}.

[Block 15a - NAME]{.underline}. List the name(s) of the individual(s)
interviewed.

[Block 15b - TITLE]{.underline}. Give the organizational title(s) of the
individual(s) interviewed.

[Block 15c. - YEARS WITH FIRM]{.underline}. Enter the number of years
each individual interviewed has been employed by the company.

[Block 16 - YEAR ESTABLISHED]{.underline}. Enter the year the current
company/division was established.

[Block 17 - PERSONNEL]{.underline}. In Block 17b, headed \"NO. ON
HAND\", enter the actual number of employees corresponding to the
categories listed in Block 17a; i.e., Production, Quality Assurance,
Engineering, and Administrative. If more employees are needed to produce
the solicitation/contract item(s), comment in Block 22. Indicate their
plans to recruit.

[Block 18 - PRODUCTION EQUIPMENT]{.underline}.

[Block 18a - ON HAND]{.underline}. List the major production equipment
necessary to produce the solicitation/contract item(s) physically in the
plant.

[Block 18b - QUANTITY]{.underline}. Enter the number of pieces of
equipment for each entry in Block 18a.

[Block 18c - CONDITION]{.underline}. Indicate whether the equipment is
in condition to adequately produce the solicitation/contract item(s).

[Block 19 - UNION AFFILIATION - DATE AGREEMENT EXPIRES]{.underline}.
List the union affiliations and the expiration date of each agreement.
Comment on any imminent strike or labor unrest conditions in Block 22.

[Block 20]{.underline}

[Block 20a - NUMBER OF SHIFTS]{.underline}. Enter the number of shifts
worked per day.

[Block 20b - HOURS PER SHIFT]{.underline}. Enter the number of hours
worked in each shift.

GSAM\
H-150 APD 2800.12B, 09-01-99

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

[Block 21]{.underline}

[Block 21a - SQUARE METERS UNDER ROOF]{.underline}. Enter the total
number of square meters the offeror/contractor has under roof.

[Block 21b - MANUFACTURING]{.underline}. Enter the total number of
square meters the offeror/contractor uses for manufacturing.

[Block 21c - STORAGE]{.underline}. Enter the total number of square
meters the offeror/contractor uses for storage of raw materials,
components, and end items.

[Block 21d - CONSTRUCTION AND CONDITION]{.underline}. Describe the
construction and condition of the buildings.

[Block 2le - NUMBER OF BUILDINGS]{.underline}. Enter the number of
buildings at this location.

[Block 22 - COMMENTS (Adequacy of personnel, equipment, and
space)]{.underline}. Enter any comments relative to adequacy or
inadequacy of:

\(1\) Available personnel;

\(2\) Any imminent strike conditions;

\(3\) Equipment necessary to produce the solicitation/contract item(s);
and

\(4\) Space for manufacturing and storage.

[Block 23 - SPECIAL TOOLING (Quantity, condition, plans for procuring,
costs, delivery dates, and manufacturer\'s familiarity with use and
handling)]{.underline}. List any special tooling such as molding
equipment, special dyes, and special printing plates required to
fabricate the solicitation/contract item(s), showing quantity on hand
and present condition. If the necessary tooling is not on hand, enter
the source where it will be obtained and the costs. Determine that the
delivery dates of any new special tooling will meet contract delivery
dates. Indicate manufacturer\'s familiarity with use and handling.

[Block 24 - PRODUCTION METHODS (order tracking system, flow, assembly
line, production cycle time, parts manufactured, parts contracted
for/purchased]{.underline}). Determine the process utilized by the
offeror/contractor for tracking incoming Government purchase orders to
assure adequate controls are in place. Determine that production methods
are adequate to produce all items listed in Block 8 of this PEFR
request. Provide a narrative to describe the processes. Include a
listing of the significant items manufactured as well as those
purchased. Record the production cycle tine. List any deficiencies noted
and indicate what corrective action the offeror/contractor will take
before the start of the contract.

GSAM\
APD 2800.12B, 09-01-99 H-151

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

[Block 25 - OTHER ITEM(S) PRODUCED (Using same machinery, tools,
equipment, and]{.underline} [personnel as solicitation/ contract
item(s))]{.underline}. List all item(s) (other than the
solicitation/contract items under evaluation) being produced, or
scheduled into production, that use the same machinery, tools,
equipment, and personnel required for the solicitation/contract item(s).

[Block 26 - QUALITY SYSTEM REQUIREMENTS]{.underline}

[Block 26a - DOCUMENTED QUALITY SYSTEM]{.underline}. Describe the
offeror/contractor\'s current documented quality procedure and overall
Conformance to the proposed contract requirements. Include a description
of how the contractor ensures that incoming materials conform to
contract requirements.

[Block 26b - ORGANIZATION AND MANAGEMENT RESPONSIBILITY]{.underline}.
Identify person(s) responsible and their authority in the quality
organization. Describe management policy, controls, and objectives.
Identify any training plan for personnel activities affecting quality.

[Block 26c - PROCESS AND SPECIAL PROCESS CONTROLS]{.underline}. Describe
process status controls, e.g., non-conforming material control, product
segregation and traceability (use of tags, labels, marking, etc.).
Identify process verification and inspection stations, as well as
controls where product and special process characteristics are
monitored.

[Block 26d - INSPECTION, MEASURING, AND TEST EQUIPMENT]{.underline}.
Identify inspection, tests, facilities, equipment, calibration plan, and
overall program adequacy. Also identify any outside test facilities to
be used. Explain the degree to which they will be utilized, and describe
their adequacy.

[Block 26e - USE OF STATISTICAL TECHNIQUES]{.underline}. Specify the
sampling plans and/or statistical process controls used by the
offeror/contractor. Determine if the plans are acceptable under the
contract requirements.

[Block 26f - QUALITY RECORDS]{.underline}. Describe the maintenance,
identification, collection, indexing, filing, storage and disposition of
records. Determine that the quality records adequately document the
process controls and the inspections and tests performed as provided in
the documented quality procedures.

[Block 26g - TECHNICAL DOCUMENT CONTROL AND COMMUNICATIONS]{.underline}.
Comment on the following:

\(1\) The offeror/contractor\'s control of technical documents,
drawings, specifications, standards, commercial item descriptions, item
purchase descriptions, etc., the control of changes to these documents,
and communication and distribution of information;

GSAM\
H-152 APD 2800.12B, 09-01-99

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

\(2\) The adequacy of production technical documents;

\(3\) The contractor\'s understanding of the scope and nature of the
work required and the specific issue of the technical documents
involved; and

\(4\) Adequacy of controls and lines of communication between
contractor, suppliers, and vendors concerning contract administration
responsibilities.

[Block 26h - PACKAGING, PACKING, AND MARKING]{.underline}. Explain how
the offeror/contractor plans to fulfill the contract requirements for
packaging, packing (including palletization), and marking. Describe
plans to control the quality. Comment on the offeror/contractor\'s
understanding of any military requirements.

[Block 27 - EEO COMPLIANCE (From observation only)]{.underline}. To be
completed only when the potential contract will exceed \$10,000. The QAS
will observe, but not inquire of the bidder, whether the plant appears
to be in compliance with EEO clause (see FAR 52-222.26).

[Block 27a - ARE EEO POSTERS DISPLAYED WHERE ALL EMPLOYEES CAN READ
THEM]{.underline}? Check yes or no, as appropriate.

[Block 27b - GIVE ANY EVIDENCE OF SEGREGATED FACILITIES (Entrances,
exits, drinking fountains, eating, rest rooms]{.underline}, etc.). Enter
details of any segregated facilities noted except facilities such as
rest rooms or locker rooms segregated on the basis of gender.

[Block 28 - REMARKS AND ADDITIONAL COMMENTS]{.underline}. This Block is
to be used for continuation space for additional information from any
other blocks.

If the QAS is denied admittance, document the details and individuals
involved.

[Block 29 - QAS ANALYSIS AND RECOMMENDATION]{.underline}. Enter
information regarding the offeror/contractor\'s performance, such as,
synopsis of quality complaints, information on administrative holds,
related replacement actions, unresolved QDNs and/or unacceptable
performance with respect to timely corrective actions, etc.

If the offeror/contractor is on the CAL, the QAS shall specifically
address the criteria for which they were placed on the CAL, including
identifying and analyzing any corrective actions taken and the current
performance with regard to those CAL criteria.

Describe any favorable or unfavorable conditions that might affect
contractor\'s performance, considering familiarity with the product,
contract terms, technical documents, test requirements, and special
requirements. Note whether there are any deficiencies in meeting quality
system requirements and indicate their seriousness. State whether the
supplier

GSAM\
APD 2800.12B, 09-01-99 H-153

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

appears reliable, is able to make changes before the start of
production, and is willing to correct deficiencies. Describe any reasons
to question or challenge the offeror/contractor\'s representations
(reflected in Block lb). Any additional remarks or comments can be
continued in Block 28 or on plain bond paper if space is needed.

**In this analysis, the QAS must specifically state a recommendation of
\"capable\" or \"incapable\" of performing.**

Enter any information available regarding other pending awards which
would represent commitments that may cause conflict on capacity if
awarded. Provide as much detail as possible, such as points of contact.

[Block 30 - QUALITY ASSURANCE SPECIALIST]{.underline}.

[Block 30a - PRINTED NAME]{.underline}. Enter the typed or printed name
of the QAS conducting the review and completing Section II of the PEFR.

[Block 30b - TELEPHONE NUMBER]{.underline}. Enter the telephone number
of the zonal office where questions regarding the PEFR are to be
fielded.

[Block 30c - SIGNATURE]{.underline}. The QAS shall sign the report. When
the GSA Form 353 is electronically transmitted, a signature is not
necessary.

[Block 30d - DATE]{.underline}. Enter the date the QAS portion is
completed and signed.

\(c\) [Completing Section III - PERFORMANCE HISTORY AND ACO
ANALYSIS]{.underline}.

Performance data must cover all current GSA contracts and small
purchases, as well as all GSA contracts and small purchases that have
been completed and/or terminated within the last three years.

If GSA contract performance data is not available, the ACO shall so
indicate, and request the QAS to obtain any performance data available
from the offeror/contractor on other Government or commercial contracts.

**NOTE:** At the discretion of the zone Contract Management Director,
Section III may be completed concurrently by the ACO while Section II is
being completed by the QAS, or completed by the ACO prior to forwarding
the PEFR to the QAS for completion of Section II.

[Block 31 - SUMMARY OF CONTRACTS (Beginning with the most recent
contract)]{.underline}. No blocks are to be left blank. If the number is
zero, enter \"0\". If the item is not applicable,

GSAM\
H-154 APD 2800.12B, 09-01-99

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

enter \"N/A\" (This should be a rare circumstance). If the information
is not available or unknown, enter \"UKN\". Space is provided for two
contracts. List the data for the most recent contract first and continue
on to the oldest contract last. If the offeror/contractor has held more
than two contracts in the past three years, provide the data on
additional pages. If additional space is needed, duplicate page 7 of the
PEFR.

For Blocks 31b through 3lu enter the data as indicated below
corresponding to each contract listed in Block 31a.

[Block 31a - CONTRACT NUMBER]{.underline}. Enter the contract number.

[Block 31b - CONTRACT PERIOD]{.underline}. Enter the contract period;
i.e., the beginning and ending Julian dates.

[Block 31c FSC/NOMENCLATURE]{.underline}. Enter the FSC and
nomenclature.

[Block 31d TOTAL NUMBER OF PURCHASE ORDERS ISSUED]{.underline}.

Enter the total number of purchase orders issued.

[Block 3le - PERCENT POs DELINQUENT TO ORIGINAL DUE DATE]{.underline}.
Enter the percentage of purchase orders delinquent based on the original
due date; specifying in the spaces provided the number that were
Government Caused (GC) and the number that were Contractor Caused (CC).

[Block 31f - NUMBER PURCHASE ORDERS DELINQUENT]{.underline}. Enter the
number of purchase orders delinquent (16 or more days); specifying in
the spaces provided the number that were Government Caused (GC) and the
number that were Contractor Caused (CC).

[Block 3lg - PERCENT POs DELINQUENT (CC)]{.underline}. Divide the total
of contractor caused late purchase orders (Block 31f (CC)) by the total
number of purchase orders issued (Block 31d) to determine the percent of
purchase orders delinquent due to contractor failure. Enter the
resulting percentage.

[Block 31h - NUMBER OF PURCHASE ORDERS TERMINATED FOR
DEFAULT]{.underline}. Enter the number of purchase orders that were
terminated for default.

[Block 31i - PERCENT OF PURCHASE ORDERS TERMINATED FOR
DEFAULT]{.underline}. Divide the number of purchase orders terminated
for default (Block 31i) by the total number of purchase orders issued
(Block 31d). Enter the resulting percentage.

[Block 31j - NUMBER QDNs]{.underline}. Enter the number of Quality
Deficiency Notices (QDNs) issued.

GSAM\
APD 2800.12B, 09-01-99 H-155

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

[Block 31k - NUMBER CURE LETTERS]{.underline}. Enter the number of Cure
Letters issued.

[Block 311 - NUMBER SHOW CAUSE LETTERS]{.underline}. Enter the number of
Show Cause Letters issued.

[Block 31m - LABORATORY]{.underline}. In the space labeled \"Number
Tests\", enter the total number of laboratory submissions conducted. In
the second space, labeled \"Number Failed\", enter the number of
laboratory submissions where the item(s) tested failed to meet
requirements. In the third space, labeled \"Percent of Test Failed,\"
enter the percent of the laboratory submissions which failed. To derive
the percent, divide the number of failed submissions) by the total
number of submissions)

[Block 31n - DEVIATION]{.underline}. Deviations are request(s) by the
contractor for changes in requirements prior to the beginning of
production. In the first space, labeled \"GC\" (Government caused),
enter the number of deviations granted that were caused by the
Government; e.g., faulty Government technical documents. In the second
space, labeled \"CC\" (contractor caused), enter the number of
deviations granted that were caused by the contractor.

[Block 31o - lst ARTICLE]{.underline}. If no First Article sample was
required under the contract, check \"N/A.\" If a First Article was
required, check \"yes\" or \"no\" in the space labeled \"On Time\" to
show whether the contractor offered the sample on time. In the space
labeled \"1st Submission or Accepted,\" check \"yes\" or \"no\" to show
whether the first submission of the first article sample was accepted.

[Block 31p - NONCONFORMING SUPPLIES ACCEPTED]{.underline}. Enter the
number of purchase orders where nonconforming supplies were accepted by
the Government.

[Block 3lq - COMPLAINTS]{.underline}. In the space under \"Complaints\"
labeled \"Total\" enter the total number of customer complaints
received. In the space labeled \"Number Contractor Liable\" enter the
number of complaints with contractor liability that were found to be
justified following investigation. In the space labeled \"Number
Category I\" enter the number of complaints that were determined to be
Category I complaints. In the final space under \"Complaints\" labeled
\"Number Failed Correct\" enter the number of complaints where the
contractor failed to take timely and adequate corrective action.

[Block 3lr - HOLDS]{.underline}. List only those holds that are over 90
calendar days old. In the space under \"Holds\" labeled \"Type\" enter
the type of hold; e.g., 51 - Quality; 53 - Litigation, etc. In the space
labeled \"Age\" enter the age of the hold in terms of calendar days. In
Block \"t. - ACO COMMENTS\" for the specified contract, provide a brief
narrative on the hold. Describe any problems resulting from the
contractor\'s failure to resolve the situation.

GSAM\
H-156 APD 2800.12B, 09-01-99

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

[Block]{.underline} [31s - CONTRACT TERMINATED FOR DEFAULT]{.underline}.
Check the \"Yes\" or \"No\" box, indicating whether the contract was
terminated for default. Provide details in Block 31t.

[Block 31t - ACO COMMENTS]{.underline}. Enter any additional information
for the contract specified. Provide an explanation of the data and an
evaluation of the contractor\'s performance under this specific
contract.

[Block 32 - SUMMARY OF SMALL PURCHASES]{.underline}.

[Block 32a - TOTAL NUMBER OF PURCHASE ORDERS ISSUED]{.underline}. Enter
the total number of small purchase orders issued to the
offeror/contractor over the past three years.

[Block 32b - TOTAL DOLLAR VALUE]{.underline}. Enter the total dollar
value of all small purchase orders issued to the offeror/contractor over
the past three years.

[Block 32c - 32o]{.underline}. Enter data in accordance with the
instructions for Blocks 3le - 3lr with the corresponding headings.

[Block 32p - ACO COMMENTS (Small Purchases)]{.underline}. Enter any
additional information to the data listed. Provide an explanation of the
data and an evaluation of the contractor\'s performance on small
purchases.

[Block 33 - ACO SUMMARY ANALYSIS OF OVERALL PERFORMANCE AND
RECOMMENDATION]{.underline}. Provide a detailed analysis of all data
gathered. Evaluate the offeror/contractor\'s past performance, current
standing, and potential for future performance. Identify any patterns of
improvement or deterioration in performance. **In this analysis, the ACO
must specifically state a recommendation of \"award\" or \"no award.\"**

[Block 34 - ADMINISTRATIVE CONTRACTING OFFICER]{.underline}.

[Block 34a - PRINTED NAME]{.underline}. Enter the typed or printed name
of the ACO conducting the review and completing Section III of the PEFR.

[Block 34b - TELEPHONE NUMBER]{.underline}. Enter the telephone number
where the ACO can be reached.

[Block 34c - SIGNATURE]{.underline}. The ACO shall sign the report.

[Block 34d - DATE]{.underline}. Enter the date the ACO portion is
completed and signed.

[Copies and distribution]{.underline}. A separate GSA Form 353 must be
used for each inspection point. An original and 3 copies of the GSA Form
353 must be prepared. The original and first copy must be forwarded to
the Quality Assurance Branch in the zone in which the facilities

GSAM\
APD 2800.12B, 09-01-99 H-157

**553.370-353-I Instructions for completing GSA Form 353, Performance
Evaluation &\
Facilities Report (PEFR)**

are located. The second copy must be sent to the Quality Assurance
Division, Central office, and the third copy retained as the file copy.
The original and each of the two forwarded copies must be accompanied
by:

\(1\) A copy of the solicitation;

\(2\) A copy of all pertinent information submitted by the offeror,
including delivery time, and where applicable, the offeror\'s indicated
monthly production capacity or supply potential (in lieu of extracting
such information from the offer, copies of the offer or pertinent pages
thereof may be furnished);

\(3\) Any pertinent correspondence between GSA and the offeror; and

\(4\) Any other information the buying activity has which should be
considered by the Quality Assurance Branch in making the evaluation.

GSAM\
H-158 APD 2800.12B, 09-01-99

**553.370-618D Statement to be Submitted When Work is Performed
Personally.**

![](media/image1.png){width="6.491666666666666in"
height="7.831944444444445in"}

GSAM\
APD 2800.12B, 09-01-99 H-159

**553.370-1378 Record of, and Receipt for, Bids and Responses.**

![](media/image2.png){width="5.995138888888889in"
height="7.479166666666667in"}

GSAM\
H-160 APD 2800.12B, 09-01-99

**53.370-1458 Motor Vehicle Shop Work Order, Repair and Purchase
Order.**

![](media/image3.png){width="6.489583333333333in"
height="8.577777777777778in"} GSAM\
APD 2800.12B, 09-01-99 H-161

**553.370-1458 Motor Vehicle Shop Work Order, Repair and Purchase
Order.**

![](media/image4.png){width="6.497222222222222in"
height="8.553472222222222in"} GSAM\
H-162 APD 2800.12B, 09-01-99

**553.370-1535A Recommendation for Award(s) (Continuation).**

![](media/image5.png){width="5.991666666666666in"
height="7.528472222222222in"}

GSAM\
APD 2800.12B, 09-01-99 H-163

**553.370-1602 Notice Concerning Solicitation.**

![](media/image6.png){width="6.4944444444444445in"
height="8.361805555555556in"}

**553.370-1678 Status Report of Orders and Shipments.**

![](media/image7.png){width="6.499305555555556in"
height="8.174305555555556in"}

GSAM\
APD 2800.12B, 09-01-99 H-165

**553.370-1678 Status Report of Orders and Shipments.**

![](media/image8.png){width="6.493055555555555in"
height="8.310416666666667in"}

GSAM\
H-166 APD 2800.12B, 09-01-99

**553.370-1720 Request for Release of Classified Information to U.S.
Industry.**

![](media/image9.png){width="6.49375in" height="8.209722222222222in"}
GSAM\
APD 2800.12B, 09-01-99 H-167

**553.370-1720 Request for Release of Classified Information to U.S.
Industry.**

![](media/image10.png) GSAM\
H-168 APD 2800.12B, 09-01-99

**553.370-1766 Structured Approach Profit/Fee Objective.**

![](media/image11.png){width="6.4875in" height="8.045833333333333in"}

GSAM\
APD 2800.12B, 09-01-99 H-169

**553.370-2689 Procurement Not Set Aside.**

![](media/image12.png){width="6.496527777777778in"
height="8.208333333333334in"}

GSAM\
H-170 APD 2800.12B, 09-01-99

**553.370-2728 Procurement Contract Register.**

![](media/image13.png){width="5.908333333333333in"
height="8.529861111111112in"} GSAM\
APD 2800.12B, 09-01-99 H-171

**553.370-3186 Order for Supplies or Services.**

![](media/image14.png){width="6.489583333333333in"
height="8.334722222222222in"}

GSAM\
H-172 APD 2800.12B, 09-01-99

**553.370-3186 Order for Supplies or Services.**

![](media/image15.png){width="6.489583333333333in"
height="8.400694444444444in"}

GSAM\
APD 2800.12B, 09-01-99 H-173

**553.370-3186B Order for Supplies or Services (EDI).**

![](media/image16.png){width="6.499305555555556in"
height="8.217361111111112in"}

GSAM\
H-174 APD 2800.12B, 09-01-99

**553.370-3410 Request for Appointment.**

![](media/image17.png){width="6.088888888888889in"
height="8.152083333333334in"}

GSAM\
APD 2800.12B, 09-01-99 H-175

**553.370-3471 Abstract of Offers.**

![](media/image18.png){width="6.175in" height="8.386805555555556in"}
GSAM\
H-176 APD 2800.12B, 09-01-99

**553.370-3521 Blanket Purchase Agreement.**

![](media/image19.png){width="6.495138888888889in" height="7.98125in"}

GSAM\
APD 2800.12B, 09-01-99 H-177

**553.370-3521 Blanket Purchase Agreement.**

![](media/image20.png){width="6.489583333333333in"
height="8.213194444444444in"}

GSAM\
H-178 APD 2800.12B, 09-01-99

**553.370-3521 Blanket Purchase Agreement.**

![](media/image21.png){width="6.488194444444445in"
height="8.216666666666667in"}

GSAM\
APD 2800.12B, 09-01-99 H-179

**553.370-3521 Blanket Purchase Agreement.**

![](media/image22.png){width="6.499305555555556in"
height="8.053472222222222in"}

GSAM\
H-180 APD 2800.12B, 09-01-99

**553.370-3577 Notice to Unsuccessful Offeror of Contract Award.**

![](media/image23.png){width="5.748611111111111in"
height="8.120833333333334in"}

**553.370-3611 Cover Page Source Selection Information.**

![](media/image24.png)(Next page is H-185) GSAM\
H-182 APD 2800.12B, CHGE 1, 10-1-99

**553.370-8002A Motor Vehicle Requisition Status.**

![](media/image25.png){width="6.5in" height="4.565972222222222in"}

GSAM\
APD 2800.12B, 09-01-99 H-185

**553.370-8002B Motor Vehicle Delivery Order.**

![](media/image26.png){width="6.4944444444444445in"
height="8.171527777777778in"} GSAM\
H-186 APD 2800.12B, 09-01-99

**SUBCHAPTER 570\--SPECIAL CONTRACTING PROGRAMS**

**PART 570 ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY**

**SUBPART 570.1 GENERAL**

**570.101 Applicability.**

\(a\) This part applies to acquisitions of leasehold interests in real
property except:

\(1\) Leasehold interests acquired by the power of eminent domain or by
donation.

\(2\) Acquisition of leasehold interests in bare or unimproved land.

\(b\) In addition, the GSAR rules in the table below apply. Other
provisions of 48 CFR Chapter 5 (GSAR) do not apply to leases of real
property unless specifically cross-referenced in this Part 570.

+----------------+----------------+----------------+-----------------+
| **GSAR Rules   |                |                |                 |
| Applicable to  |                |                |                 |
| Acquisitions   |                |                |                 |
| of Leasehold   |                |                |                 |
| Interests in   |                |                |                 |
| Real           |                |                |                 |
| Property**     |                |                |                 |
+----------------+----------------+----------------+-----------------+
| 501            | 514.201-7(b)   | 517.207        | 533             |
|                |                |                |                 |
| 502            | 514.407        | 519.7          | 536.271         |
|                |                |                |                 |
| 503            | 515.204-1      | 519.12         | 537.2           |
|                |                |                |                 |
| 504.5          | 515.209-70     | 522.8          | 552             |
|                |                |                |                 |
| 505            | 515.305        | 532.1          | 553             |
|                |                |                |                 |
| 509.4          | 517.202        | 532.908        |                 |
+----------------+----------------+----------------+-----------------+

\(c\) The following GSAM provisions apply to acquisitions of leasehold
interests in real property. These are in addition to the GSAR
requirements identified in 570.101(b).

+----------------+----------------+----------------+-----------------+
| **GSAM         |                |                |                 |
| Applicable to  |                |                |                 |
| Acquisitions   |                |                |                 |
| of Leasehold   |                |                |                 |
| Interests in   |                |                |                 |
| Real           |                |                |                 |
| Property**     |                |                |                 |
+----------------+----------------+----------------+-----------------+
| 501            | 507            | 522.14         | 532.8           |
|                |                |                |                 |
| 503            | 519.3          | 523.4          | 532.9           |
|                |                |                |                 |
| 504.2          | 519.6          | 530            | 532.11          |
|                |                |                |                 |
| 504.9          | 519.7          | 532.1          | 533             |
|                |                |                |                 |
| 505            | 519.12         | 532.4          | 537.2           |
|                |                |                |                 |
| 506            | 522.13         | 532.6          |                 |
+----------------+----------------+----------------+-----------------+

**570.102 Definitions.**

\"Acquisition\" means the acquiring by lease of an interest in improved
real property for use by the Federal Government, whether the space
already exists or must be constructed.

GSAM\
APD 2800.12B, 09-01-99 570-1

\"Contract\" means lease.

\"Contractor\" means lessor.

\"Landlord\" or \"lessor\" means any individual, firm, partnership,
trust, association, State or local government, or other legal entity
that leases real property to the Government.

\"Lease\" or \"leasehold interest in real property\" means a conveyance
to the Government of the right of exclusive possession of real property
for a definite period of time by a landlord. It may include operational
services provided by the landlord.

\"Lessee\" or \"tenant\" means the United States of America.

"Operational services" means services that support use of a leased
property, such as heating, ventilation, air conditioning, utilities, and
custodial services.

\"Rent and related services\" means the consideration paid for the use
of leased property plus the costs of operational services whether
furnished by the lessor, the Government, or both.

"Simplified lease acquisition procedures" mean the procedures for
awarding leases at or below the simplified lease acquisition threshold.

\"Simplified lease acquisition threshold\" means \$100,000 average
annual rent for the term of the lease, including option periods and
excluding the cost of operational services.

\"Small business\" means a concern including affiliates, which is
organized for profit, is independently-owned and operated, is not
dominant in the field of leasing commercial real estate, and has annual
average gross receipts of \$15 million or less for the preceding three
fiscal years.

\"Solicitation for Offers (SFO)\" means invitation for bids in sealed
bidding or request for proposals in negotiations.

\"Space in buildings\" means the premises leased, or to be leased,
including improvements. Its quantity is normally expressed in square
feet. It does not include space acquired by the power of eminent domain,
donation, or condemnation, nor acquisitions of bare or unimproved land.

\"Substantially as follows\" or \"substantially the same as,\" when used
in prescribing a provision or clause, means that you may prepare and use
a variation of that provision or clause to accommodate requirements
peculiar to an individual acquisition. The variation must include the
salient features of the FAR or GSAR provision or clause. It must also be
consistent with the intent, principle, and substance of the FAR or GSAR
provision or clause and related coverage on the subject matter.

GSAM\
570-2 APD 2800.12B, 09-01-99

**570.103 Authority to lease.**

\(a\) The Federal Property and Administrative Services Act of 1949 (40
U.S.C. 490(h)(1)), as amended, and Section 1 of the Reorganization Plan
No. 18 of 1950 (40 U.S.C. 490 Note) authorize the Administrator of
General Services to acquire leasehold interests in real property for use
by Federal agencies. The authority is limited to leases for buildings
and improvements that bind the Government for periods not exceeding 20
years.

\(b\) You have exclusive authority to enter into and administer leases
on the Government's behalf to the extent provided in your certificate of
appointment as a contracting officer.

**570.104 Competition.**

Unless you use the simplified procedures in Subpart 570.2, the
competition requirements of FAR Part 6 apply to acquisition of leasehold
interests in real property.

**570.105 Methods of contracting.**

**570.105-1 Contracting by negotiation.**

Contracting by negotiation is usually appropriate for acquiring space in
a building though a lease contract. You will usually need to conduct
discussions with offerors about their proposals and consider factors
other than price in making the award.

**570.105-2 Two-phase design-build selection procedures.**

Unless you use another acquisition procedure authorized by law, you must
use the two-phase design-build selection procedures in section 303M of
the Federal Property and Administrative Services Act of 1949, as
amended, for lease construction projects. This includes lease
construction projects with options to purchase the real property leased.
Use the procedures in section 303M when you meet the conditions in (a)
and (b) below:

\(a\) You anticipate the lease will involve the design and construction
of a public building, facility, or work for lease to the Government.

\(b\) You determine the procedures are appropriate for entering into a
lease construction contract based on the following:

\(1\) You expect to receive three or more offers.

\(2\) Offerors will need to perform design work before developing a
price.

\(3\) Offerors will incur a substantial amount of expense in preparing
offers.

\(4\) You consider criteria such as the following:

GSAM\
APD 2800.12B, 09-01-99 570-3

\(i\) The extent to which the project requirements have been adequately
defined.

\(ii\) The time constraints for delivery of the project.

\(iii\) The capability and experience of potential contractors.

\(iv\) The suitability of the project for use of the two-phase selection
procedures.

\(v\) The capability of the agency to manage the two-phase selection
process.

\(vi\) Other criteria established by the HCA.

**570.105-3 Sealed bidding.**

For sealed bidding, use the procedures in FAR Part 14. In most cases you
should not use sealed bidding to acquire space in buildings unless you
meet all the following conditions:

\(a\) You have a preselected site.

\(b\) A building will be constructed on the site using Government
furnished plans and specifications.

\(c\) The Government will lease the building.

**570.106 Publicizing/Advertising.**

\(a\) Subparts 505.101, 505.202, and 505.203 define requirements for
publicizing lease actions.

\(b\) Instead of issuing separate advertisements for multiple, known
leasing actions, you may include the actions in one consolidated
advertisement.

**570.107 Oral presentations.**

You may use oral presentations for acquisitions of leasehold interests
in real property. Follow the procedures in FAR 15.102.

**570.108 Responsibility determination.**

\(a\) Determine that the prospective awardee is responsible with respect
to the lease under consideration. The standards in FAR 9.104 apply. As
part of the determination that a prospective contractor is otherwise
qualified and eligible for award, review the List of Parties Excluded
from Federal Procurement and Nonprocurement Programs.

\(b\) Your signature on the contract is deemed an affirmative
determination.

\(c\) If you find an offeror nonresponsible, sign and place in the
contract file a determination of nonresponsibility. State the basis for
the determination.

GSAM\
570-4 APD 2800.12B, 09-01-99

\(d\) If you find a small business concern nonresponsible, the
procedures at FAR 19.6 apply. Place all documents and reports supporting
a determination of responsibility or nonresponsibility in the lease
file.

**570.109 Certifications.**

Before awarding a lease, review applicable certifications for compliance
with statute and regulations.

**570.110 Cost or pricing data and information other than cost or
pricing data.**

\(a\) The policies and procedures of FAR 15.403 apply to lease contract
actions.

\(b\) FAR 15.403-1 defines exceptions to and waivers for submitting cost
or pricing data. Most leasing actions will have adequate price
competition. For price analysis, you may use a market survey or an
appraisal conducted using accepted real property appraisal procedures to
establish a market price for comparison.

\(c\) In exceptional cases, the requirement for submission of certified
cost or pricing data may be waived under FAR 15.403-1(c)(4).

\(d\) If cost or pricing data are required, follow the procedures in FAR
15.403-4 and 15.406-2.

**570.111 Inspection and acceptance.**

Before you accept space, obtain an inspection to ensure that the space
complies with the Government\'s requirements and specifications.
Document the inspection and acceptance in the contract file.

**570.112 Awards to Federal employees.**

If you receive an offer from an officer or employee of the Government,
follow the procedures in FAR 3.6.

**570.113 Disclosure of mistakes after award.**

If you discover a mistake in a lessor\'s offer after award, follow the
procedures in FAR 14.407-4 and Subpart 514.407-4.

**570.114 Protests.**

FAR 33.1 and 533.1 apply to protests of lease acquisitions.

GSAM\
APD 2800.12B, 09-01-99 570-5

**SUBPART 570.2 SIMPLIFIED LEASE ACQUISITION PROCEDURES**

**570.201 Purpose.**

This subpart prescribes simplified procedures for small leases. These
procedures reduce administrative costs, while improving efficiency and
economy, when acquiring small leasehold interests in real property.

**570.202 Policy.**

Use simplified lease acquisition procedures to the maximum extent
practicable for actions at or below the simplified lease acquisition
threshold.

**570.203 Procedures.**

**570.203-1 Market survey.**

Conduct a market survey to identify potential sources. Use information
available in GSA or from other sources to identify locations that will
meet the Government\'s requirements.

**570.203-2 Competition.**

\(a\) Solicit at least three sources to promote competition to the
maximum extent practicable. If you have repeated requirements for space
in the same market, and if practicable, invite two sources not included
in the most recent solicitation to submit offers.

\(b\) If you solicit only one source, document the file to explain the
lack of competition.

**570.203-3 Soliciting offers.**

\(a\) Solicit offers by providing each prospective offeror a proposed
short form lease or SFO. The short form lease or SFO must provide all
the following information:

\(1\) A description of the Government's requirements.

\(2\) All award factors, including price or cost, and any significant
subfactors you will consider in awarding the lease.

\(3\) A statement of the relative importance of the evaluation factors
and subfactors.

\(4\) A statement of whether all evaluation factors other than cost or
price, when combined, are either:

\(i\) Significantly more important than cost or price.

\(ii\) Approximately equal in importance to cost or price.

GSAM\
570-6 APD 2800.12B, 09-01-99

\(iii\) Significantly less important than cost or price.

\(5\) Either in full text or by reference, applicable FAR provisions and
contract clauses required by 570.6.

\(b\) As necessary, review with prospective offerors the Government's
requirements, pricing matters, evaluation procedures and submission of
offers.

**570.203-4 Negotiation, evaluation, and award.**

\(a\) If you need to conduct negotiations, use the procedures in
570.307.

\(b\) Evaluate offers in accordance with the solicitation. Evaluate
prices and document the lease file to demonstrate whether the proposed
contract prices are fair and reasonable.

\(c\) If the total price, including options, exceeds \$500,000, consider
whether you need cost and pricing data to determine that the price is
fair and reasonable. In most cases the exceptions at FAR 15.403-1 will
apply.

\(d\) If the total contract value of the lease, including options, will
exceed \$500,000, the proposed awardee must provide an acceptable small
business subcontracting plan. This requirement does not apply if the
proposed awardee is a small business concern.

\(e\) Make award to the responsible offeror whose proposal is most
advantageous to the Government considering price and other factors
included in the solicitation.

**SUBPART 570.3 CONTRACTING PROCEDURES FOR LEASEHOLD INTERESTS\
IN REAL PROPERTY**

**570.301 Market survey.**

Conduct a market survey to identify potential sources. Use information
available in GSA or from other sources to identify locations capable of
meeting the Government\'s requirements.

**570.302 Description of requirements.**

\(a\) The description of requirements depends on the nature of the space
the agency needs and the market available to satisfy that need.

\(b\) The description of requirements must include all the following:

\(1\) A statement of the purpose of the lease.

\(2\) Functional, performance, or physical requirements.

\(3\) Any special requirements.

GSAM\
APD 2800.12B, 09-01-99 570-7

\(4\) The delivery schedule.

\(c\) The description must promote full and open competition. Include
restrictive provisions or conditions only to the extent necessary to
satisfy the agency's needs or as authorized by law.

**570.303 Solicitation for offers.**

**570.303-1 Preparing the SFO.**

The SFO forms the basis for the lease negotiation process and becomes
part of the lease. Document each SFO in writing or electronically.
Include the information necessary to enable prospective offerors to
prepare proposals. Each SFO, at a minimum, must provide all the
following:

\(a\) Describe the Government's requirements.

\(b\) State the method the Government will use to measure space.

\(c\) Explain how to structure offers.

\(d\) Specify a date, time, and place for submission of offers.

\(e\) Explain how the Government will evaluate offers.

\(f\) Describe the source selection procedures the Government will use.

\(g\) Include a statement outlining the information the Government may
disclose in debriefings.

\(h\) Include appropriate forms prescribed in 570.7.

**570.303-2 Issuing the SFO.**

Release the SFO to all prospective offerors at the same time.

**570.303-3 Late offers, modifications of offers, and withdrawals of
offers.**

Follow the procedures in FAR 15.208.

**570.303-4 Changes to SFOs.**

\(a\) If the Government\'s requirements change, either before or after
receipt of proposals, issue an amendment. Document the amendment using
the same method as for the SFO, written or electronic.

\(b\) If time is critical, you may provide information on SFO amendments
orally.

\(1\) Make a record of the information provided.

GSAM\
570-8 APD 2800.12B, 09-01-99

\(2\) Provide, or attempt to provide, the notice to all offerors or
prospective offerors on the same day.

\(3\) Promptly confirm the information provided orally in a written
amendment.

\(c\) Distribute an amendment as follows:

\(1\) If before the proposal due date, send the amendment to all
prospective offerors who were sent a copy of the SFO.

\(2\) If after proposal receipt, send the amendment to each offeror who
submitted a proposal.

\(d\) If an amendment is so substantial that it requires a complete
revision of the SFO, cancel the SFO and issue a new one.

**570.304 General source selection procedures.**

\(a\) These procedures apply to acquisitions of leasehold interests
except if you use either:

\(1\) Simplified lease acquisition procedures authorized by 570.2.

\(2\) Two-phase design-build selection procedures authorized by
570.105-2.

\(b\) The contracting officer is designated as the source selection
official unless the HCA appoints another individual for a particular
leasing action or group of leasing actions.

\(c\) You must include price or cost to the Government and past
performance as evaluation factors in every case.

\(d\) The SFO must comply with FAR 15.304 and either:

\(1\) FAR 15.101-1 if you will use the tradeoff process.

\(2\) FAR 15.101-2 if you will use the lowest price technically
acceptable source selection process.

**570.305 Two-phase design-build selection procedures.**

\(a\) These procedures apply to acquisitions of leasehold interests if
you use the two-phase design-build selection procedures authorized by
570.105-2.

\(b\) The SFO must include all the following information:

\(1\) The Scope of Work.

\(2\) The evaluation factors and subfactors to be used in evaluating
phase-one proposals and their relative importance.

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APD 2800.12B, 09-01-99 570-9

\(3\) The maximum number of offerors to be selected to submit
competitive proposals in phase-two.

\(4\) The evaluation factors, including cost or price, and subfactors to
be used in evaluating phase-two proposals and selecting the successful
offeror, and their relative importance.

\(c\) The following procedures apply to phase-one evaluation factors:

\(1\) Phase one factors include:

\(i\) Specialized experience and technical competence.

\(ii\) Capability to perform.

\(iii\) Past performance of the offeror's team (including
architect-engineer and construction members of the team).

\(iv\) Other appropriate factors, such as site or location.

\(2\) Do not require offerors to submit detailed design information or
cost or price information in phase one. Do not use cost related or price
related evaluation factors.

\(d\) Set the maximum number of offerors to be selected for phase-two to
not exceed five (5) unless you determine that a number greater than five
is both:

\(1\) In the government's interest.

\(2\) Consistent with the purpose and objectives of the two-phase
selection process.

\(e\) In phase-two, require detailed technical and price proposals.
Evaluate the proposals using the procedures in 570.306.

**570.306 Evaluating offers.**

\(a\) You must evaluate offers solely in accordance with the factors and
subfactors stated in the SFO.

\(b\) Evaluate prices and document the lease file to demonstrate that
the proposed contract price is fair and reasonable.

\(c\) Evaluate past performance in accordance with FAR 15.305(a)(2).

\(d\) Document the evaluation of award factors other than price listed
in the solicitation. The file must include the basis for evaluation, an
analysis of each offer, and a summary of findings.

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570-10 APD 2800.12B, 09-01-99

**570.307 Negotiations.**

\(a\) Follow the procedures in FAR 15.306 and 15.307 for exchanges
(including clarifications, communications, negotiations, discussions,
and revisions).

\(b\) Place a written record of all exchanges in the lease file.

\(c\) Provide prompt written notice to any offeror excluded from the
competitive range or otherwise eliminated from the competition in
accordance with FAR 15.503(a).

**570.308 Award.**

\(a\) Make award to the responsible offeror whose proposal represents
the best value after evaluation in accordance with the factors and
subfactors in the SFO.

\(b\) Make award in writing and in the timeframe specified in the SFO.

\(1\) If you cannot make an award in that time, request in writing from
each offeror an extension of the acceptance period through a specific
date.

\(2\) If time is critical, you may request the extensions orally. You
must make a record of the request and confirm it promptly in writing.

\(c\) Notify unsuccessful offerors in writing or electronically in
accordance with FAR 15.501 and 15.503(b).

\(d\) The source selection authority may reject all proposals received
in response to an SFO, if doing so is in the best interest of the
Government.

**570.309 Debriefings.**

The procedures of FAR 15.505 and 15.506 apply to leasing actions.

**SUBPART 570.4 SPECIAL ASPECTS OF CONTRACTING FOR CONTINUED\
SPACE REQUIREMENTS**

**570.401 Renewal options.**

\(a\) [Exercise of options]{.underline}. Before exercising an option to
renew, follow the procedures in 517.202 and 517.207. The contract must
first provide the right to renew the lease.

\(b\) [Market survey]{.underline}. Before exercising an option to renew
a lease, review current market information to ensure the rental rate in
the option is fair and reasonable.

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APD 2800.12B, 09-01-99 570-11

**570.402 Succeeding leases.**

**570.402-1 General.**

\(a\) If a succeeding lease for the continued occupancy of space in a
building does not exceed the simplified lease acquisition threshold, you
may use the simplified procedures in 570.2. Explain the absence of
competition in the contract file.

\(b\) If a succeeding lease will exceed the simplified lease acquisition
threshold, you may enter into the lease under either of the following
conditions:

\(1\) You do not identify any potential acceptable locations.

\(2\) You identify potential acceptable locations, but a cost-benefit
analysis indicates that award to an offeror other than the present
lessor will result in substantial relocation costs or duplication of
costs to the Government, and the Government cannot expect to recover
such costs through competition.

**570.402-2 Publicizing/Advertising.**

Publish a notice if required by 505.101(c). The notice should:

\(a\) Indicate the Government\'s lease is expiring.

\(b\) Describe the requirement in terms of type and quantity of space.

\(c\) Indicate the Government is interested in considering alternative
space if economically advantageous.

\(d\) Advise prospective offerors that the Government will consider the
cost of moving, alterations, etc., when deciding whether it should
relocate.

\(e\) Provide a contact person for those interested in providing space
to the Government.

**570.402-3 Market survey.**

Conduct a market survey following 570.301.

**570.402-4 No potential acceptable locations.**

If you do not identify any potential acceptable locations through the
advertisement or the market survey, you may prepare a justification to
negotiate directly with the present lessor. Fully document the efforts
to locate alternative sources. Prepare the justification and obtain
approval following FAR 6.3 and 506.3.

GSAM\
570-12 APD 2800.12B, 09-01-99

**570.402-5 Potential acceptable locations.**

If you identify potential acceptable locations through the advertisement
or market survey, conduct a cost-benefit analysis following the
procedures 570.402-6. Based on the results of the cost-benefit analysis,
take appropriate action as follows:

\(a\) If the cost-benefit analysis indicates that the Government will
recover relocation costs and duplication of costs through competition,
develop an SFO and negotiate with all interested parties following
570.3.

\(b\) If the cost-benefit analysis indicates that the Government cannot
expect to recover relocation costs and duplication of costs through
competition, prepare a justification for approval in accordance with FAR
6.3 and 506.3. Explain both:

\(1\) How you performed the cost-benefit analysis.

\(2\) That the cost-benefit analysis indicates that award to any other
offeror will likely result in substantial costs to the Government that
the Government cannot expect to recover through competition.

**570.402-6 Cost-benefit analysis.**

\(a\) The cost-benefit analysis must consider all the following:

\(1\) The prices of other potentially available properties.

\(2\) Relocation costs, including estimated costs for moving,
telecommunications, and alterations, amortized over the firm term of the
lease.

\(3\) Duplication of costs to the Government.

\(4\) Other appropriate considerations.

\(b\) Establish the prices for other potentially available properties by
requesting each prospective offeror to provide an informational
quotation for standard space for comparison purposes.

\(1\) Adjust the prices quoted for standard space for any special
requirements.

\(2\) You do not need a formal SFO to obtain the informational
quotation. However, you must provide a general description of the
Government\'s needs.

\(3\) If you obtain oral quotations, document the following information,
as a minimum:

\(i\) Name and address of the firm solicited.

\(ii\) Name of the firm\'s representative providing the quote.

GSAM\
APD 2800.12B, 09-01-99 570-13

\(iii\) Price(s) quoted.

\(iv\) Description of the space and services for which the quote is
provided.

\(v\) Name of the Government employee soliciting the quotation.

\(vi\) Date of the conversation.

\(4\) Compare the informational quotations to the present lessor\'s
price, adjusted to reflect the anticipated price for a succeeding lease.

**570.403 Expansion requests.**

\(a\) If the expansion space is in the general scope of the lease, you
may acquire the space through a modification without further
justification under FAR 6.3.

\(b\) If the expansion space needed is outside the general scope of the
lease, determine whether it is more prudent to provide the expansion
space by supplemental agreement to the existing lease or to satisfy the
requirement by competitive means.

\(1\) Conduct a market survey to determine the availability of suitable
alternative locations.

\(2\) If you identify alternate locations that can satisfy the total
requirement, perform a cost-benefit analysis to determine whether it is
in the Government\'s best interest to relocate. Consider, as
appropriate:

\(i\) The cost of the alternate space compared to the cost of expanding
at the existing location.

\(ii\) The cost of moving.

\(iii\) The cost of duplicating existing improvements.

\(iv\) The cost of the unexpired portion of the firm lease term. If a
termination is possible, use the actual cost of such an action.

\(v\) The cost of disruption to the agency\'s operation.

\(c\) If you determine not to use competitive procedures and the
expansion space is outside the general scope of the lease:

\(1\) If the estimated value of the acquisition does not exceed the
simplified lease acquisition threshold, document the file as required by
570.203-2(b).

\(2\) If the estimated value of the acquisition exceeds the simplified
lease acquisition threshold, prepare a justification for approval under
FAR 6.3 and 506.3.

GSAM\
570-14 APD 2800.12B, 09-01-99

**570.404 Superseding leases.**

\(a\) Consider executing a superseding lease to replace an existing
lease when the Government needs numerous or detailed modifications to
the space that would cause complications or substantially change the
present lease.

\(b\) If the value of the superseding lease exceeds the simplified lease
acquisition threshold, the justification and approval requirements in
FAR 6.3 and 506.3 apply. If the cost does not exceed the simplified
lease acquisition threshold, you may use the simplified procedures in
570.2 and explain the absence of competition in the file.

**570.405 Lease extensions.**

\(a\) This subsection applies to extension of the term of a lease to
provide for continued occupancy on a short term basis.

\(b\) If the value of a lease extension will exceed the simplified lease
acquisition threshold. the justification and approval requirements in
FAR 6.3 and 506.3 apply. For extensions that will not exceed the
simplified lease acquisition threshold, you may use the simplified
procedures in 570.2 and explain the absence of competition in the file.

\(c\) FAR 6.302-1 permits contracting without providing for full and
open competition when the property or services needed by the agency are
available from only one responsible source and no other type of property
or services will satisfy the needs of the agency. This authority may
apply to lease extensions in situations such as the following:

\(1\) The agency occupying the leased space is scheduled to move into
other Federally controlled space, but encounters unexpected delays in
preparing the new space for occupancy.

\(2\) The Government encounters unexpected delays outside of its control
in acquiring replacement space.

\(3\) The Government is consolidating various agencies occupying the
leased space and you need to extend the terms of some leases to
establish a common expiration date.

**SUBPART 570.5 SPECIAL ASPECTS OF CONTRACTING FOR LEASE ALTERATIONS**

**570.501 General.**

\(a\) Acquire alterations through a modification to an existing lease if
you meet all the following conditions:

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APD 2800.12B, 09-01-99 570-15

\(1\) The alterations fall in the general scope of the lease. Consider
whether the work can be regarded as fairly and reasonably an inseparable
part of the lease requirement originally contracted for.

\(2\) The lessor is willing to perform the proposed alterations at a
fair and reasonable price.

\(3\) It is in the Government\'s interest to acquire the alterations
from the lessor.

\(b\) If proposed alterations are outside the general scope of the
existing lease, decide whether to acquire the alterations through
either:

\(1\) A supplemental lease agreement, justified and approved under
570.502-1.

\(2\) Government performance or a separate contract. The lease must
first provide the Government with the right to perform alterations to
the leased space.

**570.502 Alterations by the lessor.**

These procedures apply to alterations you acquire directly from a lessor
by modification or supplement lease agreement.

**570.502-1 Justification and approval requirements.**

If the proposed alterations are outside the general scope of the lease
and you plan to acquire them from the lessor without competition, the
following justification and approval requirements apply:

\(a\) If the alteration project will exceed the simplified lease
acquisition threshold, the justification and approval requirements in
FAR 6.3 and 506.3 apply.

\(b\) If the alteration project will exceed \$2,500, but not the
simplified lease acquisition threshold, you may use simplified
acquisition procedures and explain the absence of competition in the
file.

\(c\) If the alternation project will not exceed \$2,500, no
justification and approval is required.

**570.502-2 Procedures.**

\(a\) [Scope of work]{.underline}. Prepare a scope of work for each
alteration project.

\(b\) [Independent Government estimate]{.underline}. Obtain an
independent Government estimate for each alteration project, including
changes to existing alteration agreements with the lessor.

\(c\) [Request for proposal]{.underline}.

\(1\) Provide the scope of work to the lessor, including any plans and
specifications, and request a proposal. Indicate in the request for
proposal if the Government will make progress payments and provide for
retainage, when appropriate.

GSAM\
570-16 APD 2800.12B, 09-01-99

\(2\) Request sufficient cost or price information to permit a price
analysis.

\(d\) [Audits]{.underline}. If you require cost or pricing data and the
alteration project will exceed \$500,000, request an audit.

\(e\) [Proposal evaluation]{.underline}.

\(1\) Determine if the proposal meets the Government\'s requirements.

\(2\) Analyze price or cost. At a minimum, compare the proposed cost to
the independent estimate and, if applicable, any audit received.

\(3\) Analyze profit following FAR 15.404-4.

\(4\) Document your analysis under this paragraph and the resulting
negotiation objectives.

\(f\) [Price negotiations]{.underline}.

\(1\) Exercise sound judgment. You may make reasonable compromises as
necessary.

\(2\) The negotiated price should provide the lessor with the greatest
incentive for efficient and economical performance.

\(3\) Document negotiations in the contract file.

\(g\) [Award]{.underline}. Use GSA Form 276, Supplemental Lease
Agreement. If the modification does not exceed the simplified
acquisition threshold, you may use GSA Form 300, Order for Supplies or
Services. Reference the lease on the form.

\(h\) [Inspection and payment]{.underline}. Do not make final payment
for alterations until the work is:

\(1\) Inspected by a qualified Government employee or independent
Government contractor.

\(2\) Confirmed as completed in a satisfactory manner.

**570.503 Alterations by the Government or through a separate
contract.**

\(a\) If the Government chooses to exercise its right to make the
alterations rather than contracting directly with the lessor, the
Government may either:

\(1\) Have Federal employees perform the work.

\(2\) Contract out the work using standard contracting procedures that
apply to a construction contract performed on Federal property.

\(b\) If the Government decides to contract for the work, invite the
lessor, as well as all other prospective contractors, to submit an offer
for the project.

GSAM\
APD 2800.12B, 09-01-99 570-17

**SUBPART 570.6 SOLICITATION PROVISIONS AND CONTRACT CLAUSES**

**570.601 FAR provisions and clauses.**

Include provisions or clauses substantially the same as the FAR
provisions and clauses listed below.

+----------------------+-----------------------------------------------+
| **If . . .**         | **Then include . . .**                        |
+----------------------+-----------------------------------------------+
| \(a\) the estimated  | 52.204-3 Taxpayer Identification              |
| value of the         |                                               |
| acquisition exceeds  | 52.219-1 Small Business Program               |
| \$2,500              | Representations                               |
|                      |                                               |
|                      | 52.222-36 Affirmative Action for Workers with |
|                      | Disabilities                                  |
|                      |                                               |
|                      | 52.232-23 Assignment of Claims                |
|                      |                                               |
|                      | 52.233-1 Disputes                             |
+----------------------+-----------------------------------------------+
| \(b\) the estimated  | 52.222-21 Prohibition of Segregated           |
| value of the         | Facilities                                    |
| acquisition exceeds\ |                                               |
| \$10,000             | 52.222-22 Previous Contracts and Compliance   |
|                      | Reports                                       |
|                      |                                               |
|                      | 52.222-25 Affirmative Action Compliance       |
|                      |                                               |
|                      | 52.222-26 Equal Opportunity                   |
|                      |                                               |
|                      | 52.222-35 Affirmative Action for Disabled     |
|                      | Veterans and Veterans of the Vietnam Era      |
|                      |                                               |
|                      | 52.222-37 Employment Reports on Disabled      |
|                      | Veterans and Veterans of the Vietnam Era      |
+----------------------+-----------------------------------------------+
| \(c\) the estimated  | 52.209-6 Protecting the Government's Interest |
| value of the         | when Subcontracting with Contractors          |
| acquisition exceeds\ | Debarred, Suspended, or Proposed for          |
| \$25,000             | Debarment                                     |
+----------------------+-----------------------------------------------+
| \(d\) the estimated  | 52.203-11 Certification and Disclosure        |
| value of the         | Regarding Payments to Influence Certain       |
| acquisition exceeds  | Federal Transactions                          |
| \$100,000            |                                               |
+----------------------+-----------------------------------------------+
| \(e\) the estimated  | 52.203-2 Certificate of Independent Price     |
| value of the         | Determination                                 |
| acquisition exceeds  |                                               |
| the simplified lease | 52.203-7 Anti-Kickback Procedures             |
| acquisition          |                                               |
| threshold.           | 52.209-5 Certification Regarding Debarment,   |
|                      | Suspension, Proposed Debarment, and Other     |
|                      | Responsibility Matters                        |
|                      |                                               |
|                      | 52.215-2 Audit and Records \-- Negotiation    |
|                      |                                               |
|                      | 52.219-8 Utilization of Small Business        |
|                      | Concerns                                      |
|                      |                                               |
|                      | 52.223-6 Drug-Free Workplace                  |
|                      |                                               |
|                      | 52.233-2 Service of Protest                   |
+----------------------+-----------------------------------------------+

GSAM\
570-18 APD 2800.12B, 09-01-99

+----------------------+-----------------------------------------------+
| **If . . .**         | **Then include . . .**                        |
+----------------------+-----------------------------------------------+
| \(f\) the estimated  | 52.219-9 Small Business Subcontracting Plan   |
| value of the         |                                               |
| acquisition exceeds  | 52.219-16 Liquidated Damages - Subcontracting |
| \$500,000            | Plan                                          |
+----------------------+-----------------------------------------------+
| \(g\) the estimated  | 52.219-24 Small Disadvantaged Business        |
| value of the         | Participation Program \-- Targets             |
| acquisition exceeds  |                                               |
| \$500,000 and the    | 52.219-25 Small Disadvantaged Business        |
| acquisition includes | Participation Program \-- Disadvantaged       |
| an evaluation factor | Status and Reporting                          |
| that considers the   |                                               |
| extent of            |                                               |
| participation of     |                                               |
| small disadvantaged  |                                               |
| business concerns in |                                               |
| accordance with FAR  |                                               |
| 19.12.               |                                               |
+----------------------+-----------------------------------------------+
| \(h\) the estimated  | 52.222-24 Preaward On-site Equal Opportunity  |
| value of the         | Compliance Review                             |
| acquisition exceeds\ |                                               |
| \$10 million         |                                               |
+----------------------+-----------------------------------------------+
| \(i\) you require    | 52.215-10 Price Reduction for Defective Cost  |
| cost or pricing data | or Pricing Data                               |
| for work or services |                                               |
| exceeding \$500,000  | 52.215-12 Subcontractor Cost or Pricing Data  |
+----------------------+-----------------------------------------------+
| \(j\) you authorize  | 52.215-5 Facsimile Proposals                  |
| submission of        |                                               |
| facsimile proposals  |                                               |
+----------------------+-----------------------------------------------+
| \(k\) a negotiated   | 52.219-26 Small Disadvantaged Business        |
| acquisition provides | Participation Program \-- Incentive           |
| monetary incentives  | Subcontracting                                |
| based on actual      |                                               |
| achievement of small |                                               |
| disadvantaged        |                                               |
| business             |                                               |
| subcontracting       |                                               |
| targets under FAR    |                                               |
| 19.1203 and          |                                               |
| 519.1203.            |                                               |
+----------------------+-----------------------------------------------+

**570.602 GSAR solicitation provisions.**

Each SFO must include provisions substantially the same as the
following, unless you determine that the provision is not appropriate:

552.270-1 Instructions to Offerors \-- Acquisition of Leasehold
Interests in Real Property. Use Alternate I if you decide that it is
advantageous to the Government to allow offers to be submitted up to the
exact time specified for award. Use

GSAM\
APD 2800.12B, 09-01-99 570-19

Alternate II if the Government intends to award without discussions.
These two alternates are not exclusive.

552.270-2 Historic Preference.

552.270-3 Parties to Execute Lease.

**570.603 GSAR contract clauses.**

Insert clauses substantially the same as the following in solicitations
and contracts for leasehold interests in real property that exceed the
simplified lease acquisition threshold, unless you determine that a
clause is not appropriate. You do not require a deviation under 570.604
to determine that a clause in this section is not appropriate. Use the
clauses at your discretion in actions at or below the simplified lease
acquisition threshold.

552.270-4 Definitions. You must use this clause if you use 570.270-28.\
552.270-5 Subletting and Assignment.\
552.270-6 Maintenance of Building and Premises---Right of Entry.\
552.270-7 Fire and Casualty Damage.\
552.270-8 Compliance with Applicable Law.\
552.270-9 Inspection - Right of Entry.\
552.270-10 Failure in Performance.\
552.270-11 Successors Bound.\
552.270-12 Alterations.\
552.270-13 Proposals for Adjustment.\
552.270-14 Changes.\
552.270-15 Liquidated Damages. Insert this clause in solicitations and
contracts if you\
have a critical requirement to meet the delivery date and you cannot
establish\
an actual cost for the loss to the Government resulting from late
delivery. 552.270-16 Adjustment for Vacant Premises.\
552.270-17 Delivery and Condition.\
552.270-18 Default in Delivery - Time Extensions.\
552.270-19 Progressive Occupancy.\
552.270-20 Payment.\
552.270-21 Effect of Acceptance and Occupancy.\
552.270-22 Default by Lessor During the Term.\
552.270-23 Subordination, Nondisturbance and Attornment\
552.270-24 Statement of Lease.\
552.270-25 Substitution of Tenant Agency.\
552.270-26 No Waiver.\
552.270-27 Integrated Agreement.\
552.270-28 Mutuality of Obligation.\
552.270-29 Acceptance of Space.

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570-20 APD 2800.12B, 09-01-99

**570.604 Deviations to provisions and clauses.**

\(a\) You need a deviation approved under 501.4 to omit any required
provision or clause.

\(b\) You also need an approved deviation to modify the language of a
provision or clause mandated by statute (e.g., GSAR 552.203-5, Covenant
Against Contingent Fees, FAR 52.215-2, Audit and Records \--
Negotiation). The authorizing statute must allow for a waiver.

\(c\) Certain clauses required by non-GSA regulations require approval
of the issuing agency before you can delete or modify them. For example,
52.222-26, Equal Opportunity; 52.222-35, Affirmative Action for Disabled
Veterans and Veterans of the Vietnam Era; and 52.222-36, Affirmative
Action for Workers with Disabilities, require the approval of the
Department of Labor\'s Office of Federal Contract Compliance Programs
before they can be deleted from or modified in the SFO or lease.

**SUBPART 570.7 FORMS**

**570.701 Standard forms.**

Use Standard Form 2, U.S. Government Lease for Real Property, to award
leases unless you use GSA Form 3626 (see 570.702). Delete the reference
to the Standard Form 2-A in paragraph 7.

**570.702 GSA forms.**

\(a\) You may use GSA Form 3626, U.S. Government Lease for Real Property
(Short Form), to award leases if you use the simplified leasing
procedures in 570.2 or if you determine it advantageous to use.

\(b\) You may use GSA Form 276, Supplemental Lease Agreement, for
actions requiring the agreement of both parties. This includes actions
such as amending an existing lease to acquire additional space,
obtaining partial release of space, revising the terms of a lease,
settling restoration claims, and acquiring alterations.

\(c\) You may use GSA Form 1364, Proposal To Lease Space, to obtain
offers from prospective offerors.

GSAM\
APD 2800.12B, 09-01-99 570-21