PRINTING 

PROCUREMENT 

REGULATION 

United States Government Printing Office

GPO Publication 305.3 (Rev. 4-14)

NOTE TO USER

The Printing Procurement Regulation, GPO Publication 305.3, is issued by the Deputy Public 

Printer. The effective date of this revised edition is April 2014. 

i 

TABLE OF CONTENTS 

CHAPTER I. GENERAL 

1. Printing Procurement Regulation ............................................ I–1 

1. Purpose ................................................................................ I–1 

2. Authority ............................................................................. I–1 

3. Applicability ........................................................................ I–1 

4. Arrangement of the PPR ..................................................... I–1 

5. Forms ................................................................................... I–1 

6. Amendment of the PPR ...................................................... I–1 

7. Deviation from the PPR ...................................................... I–1 

2. Definition of Words and Terms ............................................... I–1 

3. Procurement Authority and Responsibility .............................I–3 

1. Scope ................................................................................... I–3 

2. Procurement Authority ....................................................... I–3 

3. Procurement Responsibilities ............................................. I–3 

4. Selection, Nomination, Appointment and

Termination of Appointment of Contracting Officers .. I–3

5. Determination and Finding ................................................. I–4 

6. Ratification of Unauthorized Commitments ...................... I–4 

7. Nonratifiable Commitments ............................................... I–5 

4. General Policies ........................................................................ I–5 

1. Standards of Conduct/Conflict of Interest ......................... I–5 

2. Suspected Antitrust Violations ........................................... I–5 

3. Documentation of Procurement Actions ........................... I–6 

4. Taxes .................................................................................... I–6 

5. Freedom of Information ...................................................... I–6 

6. Liquidated Damages ........................................................... I–6 

7. Defense Priorities System ................................................... I–6 

8. Extraordinary Contractual Actions, Public Law 85–804 .. I–8

9. Variations in Quantity ......................................................... I–8 

10. Subcontracts ...................................................................... I–9 

11. Warranties ......................................................................... I–9 

12. [Reserved] ......................................................................... I–9 

13. Contractor Team Arrangements ....................................... I–9 

5. Contractor Responsibility ......................................................I–10 

1. General ..............................................................................I–10 

2. Responsible Contractor .....................................................I–10 

3. Authority ...........................................................................I–10 

4. Minimum Standards for Responsible Prospective

Contractors ....................................................................I–10 

5. Affirmative Responsibility Determinations .....................I–11 

6. Determinations of Nonresponsibility ...............................I–11 

6. Government-Furnished Property ...........................................I–11 

1. Scope ..................................................................................I–11 

2. General ...............................................................................I–11 

3. Furnishing of GFP .............................................................I–11 

4. Return of Government Property .......................................I–12 

5. Inspection of Returned GFP ..............................................I–12 

7. Small Business ........................................................................I–12 

1. Policy ..................................................................................I–12 

2. Representation by Bidder ..................................................I–12 

8. Contingent Fees ......................................................................I–12 

1. Covenant Against Contingent Fees ..................................I–12 

2. Policy Against Contingent Fees ........................................I–12 

3. Enforcement .......................................................................I–12 

9. Buy American Act ..................................................................I–13 

1. General ...............................................................................I–13 

2. Statutory Requirements and Exceptions ...........................I–13 

3. Implementation ..................................................................I–14 

10. Contract Review Board ........................................................I–14 

1. Review of Proposed Procurement Actions ......................I–14 

2. CRB Members ...................................................................I–14 

3. Concurrence or Nonconcurrence ......................................I–14 

4. Actions Requiring Referring to the CRB ..........................I–15 

5. Actions Requiring Referral to the Managing Director,

Customer Services, the CRB Chairperson, and/or

Other Managing Director’s Designee ...........................I–15 

11. Suspension and Debarment ..................................................I–15 

1. General ...............................................................................I–15 

2. Definitions ..........................................................................I–15 

3. Effect of Suspension or Debarment ..................................I–16 

4. Debarment ..........................................................................I–17 

5. Causes for Debarment .......................................................I–17 

6. Debarment Procedures ......................................................I–17 

7. Period of Debarment .........................................................I–18 

8. Scope of Debarment...........................................................I–18 

9. Suspension .........................................................................I–18 

10. Causes for Suspension .....................................................I–19 

11. Suspension Procedures ....................................................I–19 

12. Period of Suspension .......................................................I–20 

13. Scope of Suspension ........................................................I–20 

14. GPO List of Parties Excluded From Procurement

Programs .........................................................................I–20 

15. Grounds for Listing Firms or Individuals........................I–20
ii GPO PRINTING PROCUREMENT REGULATION 

12. Contractor Financial Difficulty or Bankruptcy.................... I–20 

1. General .............................................................................. I–20 

2. Procedure ........................................................................... I–20 

3. Contractor Decision to Dissolve Its Business .................. I–21 

13. Patents and Copyrights ........................................................ I–21 

1. Scope .................................................................................I–21 

2. Explanation of Terms ....................................................... I–21 

3. Authorization and Consent ............................................... I–21 

4. Policy ................................................................................. I–21 

5. Applicable Clauses ........................................................... I–22 

6. Processing Infringement Claims ...................................... I–22 

14. Bonds .................................................................................... I–23 

1. Use of Bonds .....................................................................I–23 

2. Procedure ........................................................................... I–23 

3. Sureties on Bonds ............................................................. I–23 

15. Procurement Integrity .......................................................... I–24 

1. General ..............................................................................I–24 

2. Applicability ...................................................................... I–25 

3. Definitions ......................................................................... I–25 

4. Statutory and Related Prohibitions, Restrictions, and

Requirements ................................................................. I–26 

5. Disclosure Protection and Marking of Contractor Bid or

Proposal Information and Source Selection ................. I–27 

6. Disqualification ................................................................. I–28 

7. Ethics Advisory Opinions Regarding Prohibitions on a

Former Official’s Acceptance of Compensation From 

a Contractor ................................................................... I–28 

8. Calculating the Period of Compensation Prohibition ...... I–29 

9. Contract Clauses ............................................................... I–29 

10. Violations or Possible Violations ................................... I–29 

11. Criminal and Civil Penalties, and Further

Administrative Remedies ............................................. I–30 

12. Cancellation, Rescission, and Recovery of Funds for

Illegal or Improper Activity .......................................... I–30 

13. Price or Fee Adjustment for Illegal or Improper 

Activity .......................................................................... I–30 

CHAPTER II. PROCUREMENT REPORTING 

[RESERVED] 

1. General .....................................................................................II–1 

CHAPTER III. CONTRACTOR LABOR 

RELATIONS 

1. General ....................................................................................III–1 

1. Policy .................................................................................III–1 

2. Contract Administration ...................................................III–1 

2. Convict Labor .........................................................................III–1 

1. General ..............................................................................III–1 

2. Requirement ......................................................................III–1 

3. Applicability ......................................................................III–1 

3. Contract Work Hours and Safety Standards Act (Other

Than Construction Contracts) ............................................III–1 

1. Requirements of the Act ...................................................III–1 

2. Applicability ......................................................................III–1 

4. Walsh-Healey Public Contracts Act .....................................III–2 

1. Statutory Requirements ....................................................III–2 

2. Applicability .....................................................................III–2 

3. Exemptions .......................................................................III–2 

4. Rulings and Interpretations of the Act .............................III–2 

5. Procedures .........................................................................III–2 

6. Regional Jurisdictions of the Department of Labor, 

Wage and Hour Division ..............................................III–2 

5. Service Contract Act of 1965 ................................................III–3 

1. Basic Requirements ..........................................................III–3 

2. Application .......................................................................III–3 

3. Procedure ..........................................................................III–3 

CHAPTER IV. SOCIOECONOMIC PROGRAMS 

1. [Reserved] ..............................................................................IV–1 

2. Acquisition From People Who Are Blind or

Severely Disabled ..............................................................IV–1 

1. Scope of Section ...............................................................IV–1 

2. Definitions ........................................................................IV–1 

3. General ..............................................................................IV–1 

4. Procurement List ..............................................................IV–1 

5. Purchase Priorities ............................................................IV–1 

6. Procedures .........................................................................IV–1 

7. Purchase Exceptions .........................................................IV–2 

8. Prices .................................................................................IV–2 

9. Quality of Merchandise ....................................................IV–2 

10. Quality Complaints ........................................................IV–2 

11. Specification Changes ....................................................IV–2 

12. Optional Acquisition of Supplies and Services .............IV–2 

13. Communication With the Central Nonprofit Agencies

and the Committee ........................................................IV–2 

14. Replacement Commodities ............................................IV–2 

15. Identification of a Procurement Action as Part of the 

AbilityOne Program .....................................................IV–2 

3. Recovered Materials ..............................................................IV–3 

CHAPTER V. TRANSPORTATION AND 

TRAFFIC MANAGEMENT 

1. Definitions ...............................................................................V–1 

1. F.O.B. Contractor’s City ...................................................V–1 

2. F.O.B. Destination .............................................................V–1 

2. Liability ...................................................................................V–1 

1. F.O.B. Contractor’s City ...................................................V–1 

2. F.O.B. Destination .............................................................V–1 

3. Determination of F.O.B. Status ..............................................V–1 

1. General ...............................................................................V–1 

4. Change in F.O.B. Status .........................................................V–1 

1. General ...............................................................................V–1 

2. Change From F.O.B. Contractor’s City to

F.O.B. Destination .........................................................V–2 

3. Change From F.O.B. Destination to F.O.B.

Contractor’s City ...........................................................V–2
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5. Request for Freight Rates ....................................................... V–2 

6. Ordering Bills of Lading ........................................................ V–2 

1. General .............................................................................. V–2 

2. Procedure ........................................................................... V–2 

7. “Certificate of Conformance,” GPO Form 712 .................... V–3 

1. General .............................................................................. V–3 

2. Procedures ......................................................................... V–3 

CHAPTER VI. CONTRACT FINANCING 

1. Contract Cost Principles and Provisions ..............................VI–1 

1. Scope ................................................................................VI–1 

2. Definitions ........................................................................VI–1 

3. Applicability .....................................................................VI–3 

4. Cost Accounting Standards (CAS) Requirements .........VI–3 

5. Cost Principles .................................................................VI–3 

2. Progress Payments ................................................................VI–3 

1. Scope ................................................................................VI–3 

2. Considerations for Progress Payments ............................VI–3 

3. Solicitation Clause ...........................................................VI–4 

4. Postaward Determinations ...............................................VI–4 

3. Contract Debts .......................................................................VI–4 

1. General .............................................................................VI–4 

2. Definition ..........................................................................VI–5 

3. Responsibilities and Cooperation among

GPO officials ................................................................VI–5 

4. Debt Determination and Collection ................................VI–5 

4. Contract Funding ...................................................................VI–5 

1. Policy ................................................................................VI–5 

2. General .............................................................................VI–5 

3. Contracts Conditioned upon Availability of or

Limitation on Funds......................................................VI–5 

4. Clauses ..............................................................................VI–5 

5. Assignment of Claims ...........................................................VI–5 

1. General .............................................................................VI–5 

2. Conditions Governing the Assignment of Claims ..........VI–5 

3. Contract Clause ................................................................VI–6 

4. Forms for Notice of Assignment .....................................VI–6 

5. Filing Notice of Assignment ...........................................VI–6 

6. Procedures Upon Receipt of Notice of Assignment .......VI–6 

7. Further Assignment and Reassignment ..........................VI–7 

8. Examination of Assignment ............................................VI–7 

9. Release of an Assignment ...............................................VI–7 

10. Transfer of Business and Corporate Mergers ...............VI–7 

CHAPTER VII. CONTRACTING METHODS 

1. Sealed Bidding, Invitation for bids (IFB).............................VII–1 

1. Sealed Bids ......................................................................VII–1 

2. Term Contracts ................................................................VII–1 

3. Print Orders (GPO Form 2511) ......................................VII–1 

4. Display Bids.....................................................................VII–1 

2. Multiyear Term Contracts and Term Contracts with Option

Provisions...........................................................................VII–1 

1. General ............................................................................VII–1 

2. Policy ...............................................................................VII–1 

3. Procedure .........................................................................VII–1 

4. Contract Clauses ............................................................. VII–2 

5. Solicitations ..................................................................... VII–3 

6. Evaluation ....................................................................... VII–3 

7. Exercise of Options ........................................................ VII–3 

3. Two-Step Formal Advertising ............................................ VII–3 

1. General ............................................................................ VII–3 

2. Conditions........................................................................ VII–3

3. Procedures........................................................................ VII–3

4. Small Purchases ................................................................... VII–4 

1. Legal Effect of Quotations ............................................. VII–4 

2. Procedures........................................................................ VII–5

3. Documentation ............................................................... VII–5 

4. Purchase Order Forms .................................................... VII–5 

5. Fixed –Price Indefinite Quantity Contracts......................... VII–5 

6. Negotiation for Public Exigency.......................................... VII–6 

1. Deviation from Negotiation Procedures......................... VII–6 

7. Noncompetitive Purchases .................................................. VII–6 

1. Deviation from Negotiation Procedures ........................ VII–6 

8. Negotiation After Advertising ............................................. VII–7 

1. Deviation from Negotiation Procedures......................... VII–7 

9. Competitive Negotiation ..................................................... VII–7 

1. Scope................................................................................ VII–7

2. General............................................................................. VII–7 

3. Use of Negotiation .......................................................... VII–7 

4. Authorization and Approval ........................................... VII–7 

5. Authorities for Competitive Negotiations and

Authorities for Noncompetitive Negotiations ........... VII–7 

6. Contracting by Competitive Negotiation ....................... VII–8 

10. Simplified Purchase Agreements....................................... VII–8 

1. Scope ............................................................................... VII–8 

2. Definitions ....................................................................... VII–8 

3. Simplified Purchase Agreements ................................... VII–9 

4. Authorizing Use of Simplified Purchase Agreements for 

Federal Customers....................................................... VII–9 

5. Establishment of Simplified Purchase Agreements ....VII–10 

6. Purchases Under Simplified Purchase Agreements ....VII–10 

7. Review Procedures .......................................................VII–11 

CHAPTER VIII. PRELIMINARY 

PROCUREMENT PROCEDURES 

1. Requisition Processing ........................................................VIII–1 

1. Scope...............................................................................VIII–1

2. Authority.........................................................................VIII–1 

3. [Reserved].......................................................................VIII–1 

4. Requisition Forms .........................................................VIII–1 

5. Documentation ..............................................................VIII–1 

6. Assignment of Jacket Numbers ....................................VIII–1 

7. Review of Requisition and Preparation of

Specifications..............................................................VIII–2 

8. Schedules .......................................................................VIII–3 

9. Open Requisitions..........................................................VIII–3 

10. Requests for Waivers ..................................................VIII–3 

11. Changes to Requisitions...............................................VIII–3
iv GPO PRINTING PROCUREMENT REGULATION 

2. Economic Price Adjustment ...............................................VIII–3 

1. General ...........................................................................VIII–3 

2. Application......................................................................VIII–3 

3. Competition to the Maximum Extent Practicable ..............VIII–3 

1. Scope ...............................................................................VIII–3 

2. Applicability ...................................................................VIII–3 

3. Definitions.......................................................................VIII–4 

4. Policy ..............................................................................VIII–4 

5. Use of Competitive Procedures .....................................VIII–4 

6. Circumstances Permitting Competition Other Than to the 

Maximum Extent Practicable.....................................VIII–4 

4. Bidders Mailing List ............................................................VIII–4 

1. General ...........................................................................VIII–4 

2. Eligibility ........................................................................VIII–4 

3. Responsibility .................................................................VIII–4 

4. Contractor Codes ...........................................................VIII–4 

5. Parties Excluded From Procurement Programs ...........VIII–5 

5. Publicizing Procurement Actions........................................VIII–5 

1. Scope ..............................................................................VIII–5 

2. General ...........................................................................VIII–5 

3. Responsibility..................................................................VIII–5 

4. General Requirements....................................................VIII–5 

5. Time of Publicizing .......................................................VIII–5 

6. General Notices and Announcements ...........................VIII–5 

7. Synopses Preparation and Transmittal ..........................VIII–5 

CHAPTER IX. QUALITY ASSURANCE 

1. Quality Assurance Program .................................................. IX–1 

1. Scope ................................................................................. IX–1 

2. Policy................................................................................. IX–1 

3. General ............................................................................. IX–1 

4. Functions, Authorities, Responsibilities, and 

Procedures..................................................................... IX–1 

5. Customer Agency Quality Complaints............................ IX–3 

CHAPTER X. SOLICITATION 

1. Bidder Selection.......................................................................X–1 

1. Bidder Selection Lists.........................................................X–1 

2. Preparation of Invitations for Bid ...........................................X–1

1. Number Solicited ...............................................................X–1 

2. Procedures ..........................................................................X–2 

3. Prebid Conference ..............................................................X–2 

3. Amendment and Cancellation of IFB ....................................X–2 

1. Amendments ......................................................................X–2 

2. Cancellation Prior to Bid Opening ....................................X–2 

4. Bid Openings ...........................................................................X–2 

1. Receipt of Bids ...................................................................X–2 

2. Modification or Withdrawal of Bids .................................X–2 

3. Opening and Recording of Bids ........................................X–2 

4. Attendee Registration .........................................................X–3 

5. Review Listing ...................................................................X–3 

6. Availability of Bid Results ................................................X–3 

7. Postponing Bid Openings ..................................................X–3 

5. Late Bids, Late Modification of Bids, or Late Withdrawal of 

Bids.......................................................................................X–3 

1. General ...............................................................................X–3 

2. Notification to Late Bidders ..............................................X–4 

3. Disposition of Late Submissions ......................................X–4 

4. Records ..............................................................................X–4 

CHAPTER XI. PREAWARD SURVEY 

1. General....................................................................................XI–1 

1. Policy .................................................................................XI–1 

2. Definition...........................................................................XI–1 

3. Importance of Surveys .....................................................XI–1 

4. Contracting Officer’s Role ...............................................XI–1 

5. Preaward Survey Team’s Role .........................................XI–1 

6. Noncompetitive Procurement ..........................................XI–1 

7. Time Available for Conducting Survey ..........................XI–1 

8. Repetitive Survey Requests .............................................XI–1 

2. Initiation of the Preaward Survey Request............................XI–1 

1. Request Form.....................................................................XI–1 

2. Unsatisfactory Performance .............................................XI–2 

3. Part I, General .........................................................................XI–2 

4. Part II, Production ..................................................................XI–2 

1. Procedures .........................................................................XI–2 

2. Production Capability........................................................XI–2 

5. Part III, Quality Assurance Capability ..................................XI–3 

1. Quality Assurance Preaward Survey Team Member ......XI–3 

2. Quality Control Considerations .......................................XI–3 

3. Analysis of Contractor’s Quality Assurance System.......XI–3 

4. Conducting a Quality Assurance Survey ........................XI–3 

5. Concluding the Survey .....................................................XI–3 

6. Quality Control Evaluation and Recommendation .........XI–3 

6. Part IV, Financial Capability .................................................XI–3 

1. Value of Financial Information.........................................XI–3 

2. Procedures..........................................................................XI–3 

3. Loss Contract ....................................................................XI–4 

7. “No Award” or “Partial Award”............................................XI–4 

CHAPTER XII. CERTIFICATION AND AWARD 

1. Evaluation of Bids ............................................................... XII–1 

1. Procedure ........................................................................ XII–1 

2. Cancellation of Invitation After Opening............................ XII–2 

1. Procedure ........................................................................ XII–2 

3. Rejection of Individual Bids ................................................ XII–2 

1. Procedure ........................................................................ XII–2 

4. Minor Informalities or Irregularities in Bids ...................... XII–2 

1. Definition......................................................................... XII–2 

5. Equal Low Bids ................................................................... XII–3 

1. General............................................................................. XII–3 

6. Mistakes in Bid .................................................................... XII–3 

1. General............................................................................. XII–3 

2. Apparent Clerical Mistakes ............................................ XII–3 

3. Other Mistakes Disclosed Before Award ...................... XII–3
TABLE OF CONTENTS v 

4. Disclosure of Mistakes After Award .............................XII–4 

5. Mistakes in Quotations on Small Purchases ..................XII–5 

CHAPTER XIII. CONTRACT ADMINISTRATION 

AND COMPLIANCE 

1. Term Contracts ................................................................... XIII–1 

1. General .......................................................................... XIII–1 

2. Direct Deal Term contracts ........................................... XIII–1 

3. Program Setup Procedures ........................................... XIII–1 

4. Print Order Processing .................................................. XIII–1 

5. Estimating ...................................................................... XIII–2 

2. Contract Modifications ...................................................... XIII–2 

1. General ........................................................................... XIII–2 

2. Processing ...................................................................... XIII–3 

3. Supplemental Agreement for Late Shipments/Late 

Deliveries in Lieu of Terminations for Default ....... XIII–3 

4. Contract File .................................................................. XIII–3 

5. Examples of Contract Modifications ........................... XIII–3 

6. PICS Update .................................................................. XIII–4 

3. Novation and Change of Name Agreements..................... XIII–4 

1. Scope ............................................................................. XIII–4 

2. Agreement to Recognize a Successor in Interest.......... XIII–4 

3. Agreement to Recognize Change of Name

of Contractor............................................................... XIII–5 

4. Processing ...................................................................... XIII–5 

4. Prior-to-Production Samples ............................................. XIII–5 

1. Scope ............................................................................. XIII–5 

2. Solicited Samples........................................................... XIII–5 

3. Unsolicited Samples ..................................................... XIII–6 

5. Contract Compliance ......................................................... XIII–6 

1. Scope ............................................................................. XIII–6 

2. Extension of Schedules.................................................. XIII–6 

3. GPO Forms 714 and 907............................................... XIII–6 

4. Contractor Shipping/Delivery Reporting ..................... XIII–6 

5. Monthly Compliance Letters ........................................ XIII–6 

6. Procedures ..................................................................... XIII–6 

7. Delinquency Verification .............................................. XIII–6 

8. Recording of Shortages as Delinquent.......................... XIII–7 

6. Customer Complaints ........................................................ XIII–7 

1. Scope ............................................................................. XIII–7 

2. Policy ............................................................................. XIII–7 

3. Complaints Processing .................................................. XIII–7 

CHAPTER XIV. CONTRACT TERMINATIONS 

1. Termination for Default .....................................................XIV–1 

1. Scope .............................................................................XIV–1 

2. General ..........................................................................XIV–1 

3. Termination of Contracts for Default ...........................XIV–1 

2. Termination for Convenience.............................................XIV–3 

1. Scope .............................................................................XIV–3 

2. General ..........................................................................XIV–3 

3. Procedure .......................................................................XIV–4 

CHAPTER XV. DISPUTES, CLAIMS, APPEALS, 

AND PROTESTS 

1. Disputes, Claims, and Appeals ............................................XV–1 

1. Basic Policy ....................................................................XV–1 

2. Initiation of a Claim ........................................................XV–1 

3. Contractor Certification ..................................................XV–1 

4. Contracting Officer’s Decision ......................................XV–1 

5. Appeals and Procedures..................................................XV–2 

2. Protests .................................................................................XV–2 

1. Scope ...............................................................................XV–2 

2. Definitions .......................................................................XV–2 

3. General ............................................................................XV–2 

4. Protests to GPO ..............................................................XV–3 

5. Protests to GAO ..............................................................XV–4 

6. Solicitation Provision and Contract Clause ...................XV–7 

CHAPTER XVI. CONTRACT CLAUSES 

1. General ............................................................................... XVI–1 

1. Scope ............................................................................. XVI–1 

2. Applicability .................................................................. XVI–1 

2. GPO Contract Clauses ....................................................... XVI–1 

1. Scope ............................................................................. XVI–1 

2. Solicitation Provisions................................................... XVI–1 

3. Representations and Certifications .............................. XVI–1 

4. Supplemental Specifications ........................................ XVI–1 

5. Contract Clauses ........................................................... XVI–1 

3. Multiyear Procurement ...................................................... XVI–2 

1. Applicability ................................................................. XVI–2 

2. Economic Price Adjustment ........................................ XVI–2 

3. Limitation of Performance and Contractor 

Obligations ................................................................ XVI–3 

4. Notification ................................................................... XVI–3 

4. Clauses to be Used When Applicable ............................... XVI–3 

1. Service Contract Act of 1965 ....................................... XVI–3 

2. Exception ...................................................................... XVI–6 

CHAPTER XVII. PROCUREMENT FORMS 

GPO Form 192a, Transmittal of Accountable and 

Negotiable Documents.............................................XVII–1 

GPO Form 276, Requirements of Contractors Relevant 

to Distribution of Bills of Lading.............................XVII–2 

GPO Form 583, Request for Bills of Lading .................XVII–3 

GPO Form 707, Pre-Award Survey of 

Prospective Contractor ............................................XVII–4 

GPO Form 711, Receipt—U.S. Government 

Printing Office .........................................................XVII–5 

GPO Form 712, Certificate of Conformance .................XVII–6 

GPO Form 714, Record of Visit/Conference/ 

Telephone Call .........................................................XVII–7 

GPO Form 892, Proof Label—Contract Compliance 

Section.......................................................................XVII–8 

GPO Form 892C, Proof Label (Blank) ...........................XVII–9 

GPO Form 905, Labeling and Marking 

Specifications .........................................................XVII–10 

GPO Form 907, Non-Compliance/Change Report ......XVII–11 
vi GPO PRINTING PROCUREMENT REGULATION 

GPO Form 910, Bid ......................................................XVII–12 

GPO Form 911, Settlement Proposal ............................XVII–13 

GPO Form 913, Contract Modification ........................XVII–14 

GPO Form 915, Quality Assurance Random Copies ....XVII–15 

GPO Form 917, Certificate of Selection of 

Random Copies .....................................................XVII–16 

GPO Form 952, Desktop Publishing – Disk 

Information .............................................................XVII–17 

GPO Form 1815, Notice of Quality Defects ................XVII–18 

GPO Form 2153, Instruction to Printing Contractors as 

to the Use of Bills of Lading ..................................XVII–19 

GPO Form 2459, Control and Informational Jacket ....XVII–20 

GPO Form 2511, Print Order .......................................XVII–21 

GPO Form 2524, Solicitation Mailing List 

Application .............................................................XVII–22 

GPO Form 2669, Purchase Order ................................XVII–23 

GPO Form 2672, Certificate of Appointment .............XVII–24 

GPO Form 2673, Appointment of Contracting 

Officer .....................................................................XVII–25 

GPO Form 2678, Departmental Random Copies 

(Blue Label) ............................................................XVII–26 

GPO Form 2686, Quality Assurance Random Copies— 

Sampling/Shipping Instructions ...........................XVII–27 

GPO Form 2692, Contract Compliance Section Letter ...XVII–28

GPO Form 2761, Operations Checklist ........................XVII–29 

GPO Form 3001, GPO Express Participation Request ...XVII–30

GPO Form 3868, Notification of Intent to Publish .....XVII–31 

GPO Form 4044, Simplified Purchase Agreement 

Work Order ............................................................XVII–32 

GPO Form 4045, Deposit Account (Printing 

and Binding) ..........................................................XVII–33 

GPO Form 4046, Billing Address Code (BAC) 

Request ...................................................................XVII–34 

GPO Pub. 300.3, Billing Instructions ..........................XVII–35 

SF 1, Printing and Binding Requisition .......................XVII–36 

SF 25, Performance Bond ............................................XVII–37 

SF 28, Affidavit of Individual Surety ...........................XVII–38 

SF 98, Notice of Intention to Make a Service Contract 

and Response to Notice ........................................XVII–39 

SF 1034, Public Voucher for Purchases and Services 

Other Than Personal .............................................XVII–40 

SF 1103, U.S. Government Bill of Lading ..................XVII–41 

WHD Publication 1313, Employee Rights on 

Government Contracts ..........................................XVII–42 
I–1 

CHAPTER I. GENERAL 

SECTION 1. PRINTING PROCUREMENT 

REGULATION 

1. Purpose. The Printing Procurement Regulation (PPR) is issued to: (i) prescribe uniform policies and procedures for the

procurement of printing, binding, related supplies, and related

services; and, (ii) provide guidance to Agency Publishing Services (APS) personnel in applying those policies and procedures.

2. Authority. The PPR is issued by the Public Printer, pursuant to the authority vested in the Public Printer by Title 44,

United States Code (U.S.C.).

3. Applicability. The PPR shall apply to the procurement of

all printing, binding, related supplies, and related services

made by or through APS. Unless otherwise indicated, the

guidance is equally applicable to both Central Office and Regional Office operations. Where differences exist, they will be

identified.

4. Arrangement of the PPR.

(a) General Plan. The PPR is divided into subject matter

chapters, each of which deals with a separate aspect of printing procurement. Each chapter is further divided into sections 

and paragraphs. 

(b) Paragraph identification and citation. Chapters are

identified by capital Roman numerals. Sections and subsections are identified by Arabic numerals. Alpha and numeric 

identifiers, as appropriate, are used for paragraphs. When citing an individual paragraph, the number indicates the chapter 

and section in which it appears. The first part of the number 

indicates the chapter and is followed by a dash. The second 

portion of the number indicates the section in which the paragraph appears and is followed by a period. The third portion of 

the number, following the period, indicates the specific subsection and paragraph, within the section. Thus, for example, 

this paragraph would be cited as I–1.4(b) indicating paragraph 

(b) of subsection 4 of section 1 of chapter I.

(c) Exhibits. All exhibits will be found at the end of the

chapters in which they are referenced. 

5. Forms. Illustrations of forms used in the procurement of

printing, binding, related supplies, and related services and

brief descriptions of their purpose and use are contained in

chapter XVII.

6. Amendment of the PPR. Changes to the PPR shall be accomplished by the issuance of replacement pages or pen and

ink changes. These changes shall be consecutively numbered

and published under cover of a change transmittal notice in

accordance with GPO Instruction 001.1A, GPO Directives

System, all successor instructions to GPO Instruction 001.1A,

and any other official written guidance addressing the processing of changing the PPR are incorporated by reference. Revisions will be indicated by a solid vertical line in the margin

opposite the changed material. Any recommended revisions to

the PPR shall be submitted to the Director, APS Printing Procurement Policy and Planning.

7. Deviation from the PPR.

(a) Circumstances arise in which the prescribed policies,

procedures and provisions are not totally appropriate for the 

development of a new technique or approach, or for a specific 

contractual situation. In those cases, a deviation may be 

deemed necessary. The term “deviation” includes: 

(1) The issuance and/or use of any policy, procedure,

provision, or instruction of any kind at any stage of the procurement process which is inconsistent with a policy, procedure, or provision set forth in any of the GPO 

publications or directives governing procurement by APS; 

and, 

(2) The use of a clause or provision covering the same

subject matter as a prescribed clause or provision, or the 

modification or omission of a prescribed clause or provision. 

(b) To maintain uniformity to the maximum extent possible, deviations should be kept to a minimum. It is the responsibility of Contracting Officers to request a deviation 

whenever it is required in the best interest of the Government. 

A request for approval of any deviation shall be in the form of 

a determination and findings (D&F), reviewed first by the Office of the General Counsel for legal sufficiency, and then forwarded to the Managing Director, Customer Services, for 

signature. The request shall explain the nature of the deviation 

and provide the reasons necessitating it. Adequate time should 

be allowed for review and approval of the request. The justification and approval shall be documented in the contract file. 

SECTION 2. DEFINITION OF WORDS AND TERMS 

As used throughout this regulation, the following terms shall 

have the meanings set forth in this section, unless the context 
I–2 GPO PRINTING PROCUREMENT REGULATION 

in which they are used clearly requires a different meaning or 

a different meaning is prescribed in a particular chapter. 

“Authorization and consent”—GPO approval for a contractor to infringe on a holder of a U.S. patent, and further, GPO 

consent to allow itself to be sued for damages in the U.S. 

Court of Federal Claims. This does not mean, however, that 

GPO assumes any liability for damages. 

“Bona fide agency”—means an established commercial or 

selling agency, 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”—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. 

“Bond”—a written instrument executed by a bidder or contractor, identified in the instrument as the “principal”, together 

with a third party, identified in the instrument as the “surety”, 

to secure fulfillment by the bidder or contractor of its obligations as set out in the bond and, in the event of its failure to do 

so, to ensure payment of any loss sustained by the party for 

whose protection the bond was furnished, to the extent provided in the bond. 

“Complete termination”—the complete cessation of work 

under a contract by a contractor upon receipt of a notice to 

terminate, or on a specified date. 

“Consent of surety”—an acknowledgment by a surety that 

its bond, given in connection with a contract, continues to apply to the contract as modified. 

“Contract”—a mutually binding legal relationship normally obligating the seller to furnish supplies or services and 

the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of funds 

and that, except as otherwise authorized, are in writing; for 

example, single and multiyear term contracts, one-time award 

purchase orders, print orders, and orders such as small purchases which become effective by written acceptance or by 

performance. It also includes contract modifications. Unless 

otherwise specified when used, the term is used in its allinclusive context. 

“Contract modification”—any written alteration in the 

specifications, delivery point, rate of delivery, contract period, 

price, quantity, or other provisions of an existing contract, 

whether accomplished by unilateral action in accordance with 

a contract clause, or by mutual action of the parties to the contract. It includes bilateral actions, such as supplemental agreements, and unilateral actions, such as change orders, 

administrative changes, plus notices of the exercise of a contract option. 

“Contracting Officer”—any person appointed, with the authority to enter into, administer and terminate contracts, and 

make related determinations and findings. 

“Effective date of termination”—the date upon which a notice of termination first requires a contractor to stop performance, in whole or in part. 

“Government property”—all property owned by or leased 

to the Government or acquired by the Government under the 

terms of a contract. Government property includes (a) Government-furnished property, and (b) that part of contractoracquired property, title to which is vested in the Government. 

“Includes”—means “includes, but is not limited to”. 

“Interested party”—An actual or prospective bidder whose 

direct economic interest would be affected by the award of, or 

failure to award, a contract. 

“May”—is permissive. However, the words “no person 

may...” mean that no person is required, authorized or permitted to do the act prescribed. 

“Offer”—a response to a solicitation that, if properly accepted, would bind the offeror to perform the resultant contract. Under sealed bid procedures, an offer is called a “bid” 

and under negotiated procedures a “proposal”. 

“Partial termination”—the termination of part, but not all, 

of the work that has not been completed and accepted under a 

contract. 

“Penal sum” or “penal amount”—the amount specified in 

a bond (expressed in dollars) as the maximum payment for 

which the surety is obligated. 

“Performance bond”—a bond executed in connection with 

a contract to secure fulfillment of all the contractor’s obligations under such contract. 

“Prime contract”—any contract, as defined above, entered 

into by the GPO. 

“Procurement office”—the office which awards or executes, and administers contracts for printing, binding, related 

supplies, and related services. Unless otherwise specified, 

when used it includes both the Central Office and Regional 

Offices. 

“Program operator”—a Printing Services Specialist or 

Procurement Assistant assigned responsibility for processing 

and administering print orders under a term contract. 

“Quotation”—a response to a request for quotations. A 

quotation is not an offer and cannot be accepted by the Government to form a binding contract. 

“Settlement agreement”—a written agreement, in the form 

set forth in chapter XV, between a contractor and the GPO settling all, or a severable portion, of a settlement proposal. 

“Settlement proposal”—a termination claim submitted by 

the contractor in the form, and supported by the data, required 

by chapter XV. 

“Shall” or “will”—is imperative. 

“Should”—means an expected course of action or policy 

that is to be followed unless inappropriate for a particular circumstance. 

“Subcontract”—any contract, as defined above, other than 

a prime contract, entered into by a prime contractor or subcontractor calling for supplies or services required for the performance of a prime contract. 

“Termination claim”—any claim for compensation made 

by a contractor when a contract has been terminated, in whole 

or in part; and any other claim which chapter XV authorizes to 

be asserted and settled in connection with a termination settlement. 
GENERAL I–3

SECTION 3. PROCUREMENT AUTHORITY AND 

RESPONSIBILITY 

1. Scope. This section sets forth the procurement authority and

responsibility of APS in making purchases of printing, binding, related supplies, and related services for GPO. It describes

the roles of the Managing Director, Customer Services, and

other positions having written Contracting Officer authority

within the Department, from delegations of authority to control and maintenance of records.

2. Procurement Authority.

(a) Public Printer. By the authority of Title 44 United

States Code, and in accordance with the regulations of the 

Joint Committee on Printing (JCP), the Public Printer, may 

make contracts for the procurement of printing, binding, related supplies, and related services. 

(b) Managing Director, Customer Services. The Managing

Director, Customer Services, in accordance with GPO Instruction 110.4J, Nomination, Appointment, and Termination of 

Government Printing Office Contracting Officers, selects and 

nominates to the Assistant Public Printer, Operations persons 

to be considered for appointment as Contracting Officers. 

(c) Contracting Officers. Contracting Officers are authorized to enter into and administer contracts for printing, binding, related supplies, and related services on behalf of GPO 

and to make related determinations and findings within the 

limitations of the authority delegated to them. In the exercise 

of such authority, they are subject to the requirements and 

limitations in GPO Instruction 110.4J and this Regulation. 

3. Procurement Responsibilities.

(a) Managing Director, Customer Services. In accordance

with GPO Instruction 110.5D, Acquisition Authority, Policies, 

and Responsibility, the Managing Director, Customer Services, (or designee), shall be responsible for the following: 

(1) Ensure that contracts, including interagency agreements, are made in accordance with all applicable laws, 

regulations, and directives. 

(2) All procurement requests requiring approval of the

Public Printer and all letters of inquiry to other Government 

agencies regarding anticipated purchases are routed (with 

any necessary justification) through the proper channels 

prior to submission to the Public Printer. 

(3) Ensure that all purchases, including reimbursable interagency agreements, contain the respective justifications 

and concurrences and approval of the Managing Director, 

Customer Services. 

(4) Ensure that emergency purchases are held to an absolute minimum and shall not accept any emergency requests or requisitions for any item unless such purchase 

request or requisition is justified by the originating agency 

as to the exigency of the purchase. 

(5) Ensure that purchase requests or requisitions are not

accepted when, in the opinion of the Managing Director, 

Customer Services, there has been an attempt to circumvent 

the rules and regulations governing competitive negotiation 

and bidding, or where there has been an obvious attempt to 

avoid the necessity of referring the purchase to the JCP. 

(b) Contracting Officers. Contracting Officers assist in fulfilling the responsibilities of the Managing Director, Customer 

Services, to enter into and administer contracts for supplies or 

services on behalf of the Government and in the name of the 

United States. All Contracting Officers shall sign contractual 

documents in their own name. 

(c) Requirements To Be Met Before Entering Into Contracts. No contract shall be entered into unless all applicable 

requirements of law, this Regulation, and GPO directives have 

been met. 

4. Selection, Nomination, Appointment and Termination of

Appointment of Contracting Officers.

(a) Selection. In selecting individuals to serve as Contracting Officers or in positions which include authority to act as 

Contracting Officers, consideration shall be given to experience, training, education, business acumen, judgment, character, reputation, and ethics. In considering experience, training, 

and education, the following shall be evaluated: 

(1) Experience in the field of procurement gained in a

Government or non-Government procurement office, or 

otherwise; 

(2) Formal education or special training, including Government conducted or sponsored courses, in pertinent 

fields, such as business administration, law, accounting, 

engineering, architecture, or related fields; and 

(3) Knowledge of applicable laws, executive orders, and

regulations. 

(b) Nomination. Each nomination shall be made on GPO

Form 2673, “Appointment of Contracting Officer,” signed and 

dated by the Managing Director, Customer Services. This 

form shall become a part of the official file on the Contracting 

Officer. The appropriate APS Director shall first indicate their 

agreement to the nomination by initialing and dating the GPO 

Form 2673. The Managing Director, Customer Services shall 

approve the nomination by signing and dating the GPO Form 

2673 in the appropriate block. Any limitation on the scope of 

authority to be exercised by the Contracting Officer shall be 

entered on the form in the description of duties block. 

(c) Appointment. If the nomination is approved, the Managing Director, Customer Services, shall sign and date a serially 

numbered GPO Form 2672, “Certificate of Appointment.” 

(d) Modification. Modification of a Contracting Officer’s

authority shall be accomplished by completing a separate GPO 

Form 2673 (including updating experience or education). 

Completion of this new GPO Form 2673 shall be done in the 

same manner as a nomination, as described in I-3.4(b) above. 

The modification becomes effective upon the dated signature 

of the Managing Director, Customer Services, and shall be retained as a part of the official file on the Contracting Officer. 

A copy of the signed and dated GPO Form 2673 shall be given 

to the Contracting Officer to be attached to their certificate of 

appointment. 

(e) Termination. The appointment of a Contracting Officer

may be unilaterally terminated or suspended at any time by the 

Managing Director, Customer Services, but no such termination or suspension shall operate retroactively. Unless sooner 

terminated or suspended, the appointment of a Contracting Officer shall automatically cease: (1) upon the expiration date, if 

any, contained in the certificate of appointment; (2) upon reassignment to duties not requiring contracting authority; or (3) 

upon termination of employment with the GPO. The Manag-
I–4 GPO PRINTING PROCUREMENT REGULATION 

ing Director, Customer Services, shall annotate the most recent GPO Form 2673 by providing the reason for such suspension or termination of authority and a copy furnished to the 

subject employee. If, after termination or suspension of an 

employee’s Contracting Officer appointment, that same employee is subsequently reassigned to a position, which requires 

contracting authority, the nomination and approval processes 

shall be the same as those processes described in I-3.4(b)(c). 

5. Determination and Finding(s).

(a) A determination and finding(s) (D&F) constitutes a special form of approval or exercise of judgment required as a 

prerequisite to taking certain actions by procurement officials. 

A D&F must stand alone on its own merits and should ideally 

be confined to a single page, containing all available findings, 

concisely stated, to support the determination. A D&F is specifically used whenever the phrase “determination and finding” or the phrase “determination and findings” or their sole 

acronym “D&F” appear to describe the documentation needed 

to support a contractual action of any kind. Similarly, a D&F 

is to be used wherever the words “determine” or “determination” or any variations on these words appear to require 

documentation in support of any contractual action. 

(b) Pursuant to other topics discussed in the PPR, D&Fs are

utilized for the following—but not all-inclusive—types of 

contractual actions: 

(1) Ratifications;

(2) Quantum meruit claims;

(3) Proposed modification of a contract (purchase order

or print order) involving an increase or decrease in excess 

of $100,000; 

(4) Exercise of options;

(5) Nonresponsibility;

(6) Advance payments;

(7) Deviations from negotiation procedures for public

exigencies, for noncompetitive purchases, and for failed 

advertised solicitations; 

(8) Competitive negotiations whereby the Public Printer

determines it is impracticable to secure competition by advertising [see PPR VII-8.5(e)]; 

(9) Mistakes in bids;

(10) Mistakes in quotations under small purchase procedures, discovered after award and performance has started; 

(11) Negotiations with other bidders for a repurchase,

where the original contractor has been terminated for default; 

(12) Authorizing awards notwithstanding U.S. Government Accountability Office (GAO) protests; 

(13) Requesting a stay in the protest process;

(c) The customary form of a D&F contains:

(1) A title or heading, including—“Determination and

Finding” or “Determination and Findings”; “U.S. Government Printing Office (GPO)”; a brief description at the top 

(e.g., “Nonresponsibility”, “Mistake in Bid Identified After 

Award”); 

(2) An opening statement of authorization and all relevant PPR citations [in the format required by PPR I-1.4(b)] 

to be referenced; 

(3) All alphanumeric identifiers, which identify the specific solicitation, contract, purchase order, print order, etc., 

being impacted by the action(s) discussed in the D&F; 

(4) A single finding or a series of numbered findings

under the subhead, “Findings”; 

(5) One or more determinations under the subhead “Determination”; 

(6) The printed name and the signature of the Contracting Officer; and, 

(7) The date.

6. Ratification of Unauthorized Commitments.

(a) Definitions.

“Ratification,” means the act of approving an unauthorized

commitment by an official who has the authority to do so. 

“Unauthorized commitment,” means an agreement that is 

not binding, solely because the Government representative 

who made it lacked the authority to enter into that agreement 

on behalf of the Government. 

(b) Policy. (1) Positive action should be taken to preclude,

to the maximum extent possible, the need for ratification actions. Although procedures are provided in this paragraph for 

use in those cases where the ratification of an unauthorized 

commitment is necessary, these procedures may not be used in 

a manner that encourages such commitments being made by 

Government personnel. 

(2) Subject to the limitations in paragraph (c) the Managing

Director, Customer Services, may ratify an unauthorized 

commitment. 

(3) The ratification authority in paragraph (b)(2) may be

delegated, but in no case shall the authority be delegated below the level of division head. 

(4) Unauthorized commitments that would involve claims

subject to resolution under the “Disputes” clause should be 

processed in accordance with PPR XV-1, Disputes, Claims, 

and Appeals. 

(c) Limitations. The authority in paragraph (b)(2) may be

exercised only when— 

(1) Supplies or services have been provided to and accepted by the Government or, the Government otherwise 

has obtained or will obtain a benefit resulting from performance of the unauthorized commitment; 

(2) The ratifying official could have granted authority to

enter or could have entered into a contractual commitment 

at the time it was made and still has the authority to do so; 

(3) The resulting contract would otherwise have been

proper if made by an appropriate Contracting Officer; 

(4) The Contracting Officer reviewing the unauthorized

commitment determines the price to be fair and reasonable; 

(5) The Contracting Officer recommends payment, and

the Office of the General Counsel provides a legal sufficiency determination, which supports the Contracting Officer’s recommendation; and, 

(6) Funds are available and were available at the time

the unauthorized commitment was made. 

(d) Procedure. Each unauthorized act will be submitted for

review and possible ratification according to the following: 

(1) The individual having committed the unauthorized

act will prepare a statement of all pertinent facts of the 

transaction, accompanied by a file of all relevant docu-
 GENERAL I–5 

ments and will forward them through the Office of the 

General Counsel (to provide a legal sufficiency determination) to the ratifying official. The file shall also include a 

D&F for the signature of the Managing Director, Customer 

Services, clearly establishing the events, the intended action, and that the D&F is intended to ratify the previously 

unauthorized act. 

(2) The statement shall include a description of any disciplinary action taken or an explanation why none was considered necessary and a description of action taken to 

prevent recurrence of the unauthorized act. 

7. Nonratifiable Commitments. 

(a) If the Contracting Officer, with the advice of the Office 

of the General Counsel that there is “no legal objection,” determines that an unauthorized act cannot be ratified and the 

Government has been enriched by retaining a benefit conferred in good faith, the Contracting Officer shall proceed with 

a quantum meruit analysis. 

(b) To allow a quantum meruit claim, the Contracting Officer shall establish that the— 

(1) goods or services were the result of a GPO initiated 

procurement which would have been a permissible procurement if correct procedures had been followed; 

(2) Government must have received and accepted a 

benefit; 

(3) contractor or other performing party must have acted 

in good faith; and 

(4) amount claimed—or in any event, the amount that 

can be paid on the claim—must represent the reasonable 

value of the benefit received. 

(5) the ordering agency must have sufficient funds 

available for payment of the claimed amount. 

(c) The Contracting Officer shall— 

(1) gather the facts required to support the elements 

listed in (b)(1)–(4); 

(2) prepare a D&F on the facts; and 

(3) provide a recommendation to the Managing Director, 

Customer Services, for a decision on the claim. The recommendation shall contain a statement of “no legal objection” issued by the Office of the General Counsel. 

SECTION 4. GENERAL POLICIES 

1. Standards of Conduct/Conflict of Interest. 

(a) General. Persons who represent the GPO in business 

dealings with commercial contractors must observe the highest 

ethical standards. Individuals should not allow themselves to 

be placed in a position in which a conflict of interest might 

arise, or might reasonably be suspected. Not only must their 

official conduct comply with Federal laws and GPO regulations, it must be such as to avoid any appearance of unethical 

conduct. Accordingly, each person engaged in the procurement of printing, binding, related supplies, and related services 

shall become thoroughly familiar and comply with GPO Instruction 655.3 series, Standards of Conduct for Government 

Printing Office Officers and Employees; GPO Instruction 

655.10 series, Conflict of Interest; and PRA 318.1A, Procurement Integrity. Also of significance is GPO Instruction 

1215.1A, Program to Eliminate Fraud, Waste, and Abuse in 

GPO Programs and Operations, which places responsibility on 

GPO employees for reporting any suspected, attempted or actual illegal activity or misconduct. 

(b) Disqualification requirements. If, during an individual 

procurement action, an actual or apparent conflict of interest 

arises, the involved person shall immediately disqualify themselves from any further participation in the specific procurement action. A written statement giving full details shall be 

promptly submitted through the immediate supervisor to the 

Ethics Officer, Office of the General Counsel, for legal sufficiency, and in turn forwarded to the Managing Director, Customer Services, for such action as may be determined to be 

necessary. 

(c) Contracts with Government employees. Under normal 

circumstances, the Government cannot knowingly contract 

with its employees, or with businesses which are substantially 

owned or controlled by Government employees. If, however, a 

compelling reason exists (e.g. inability to satisfy Government 

requirements from any other source), such a contract may be 

permitted. If it is believed that an exceptional situation exists, 

the proposed contract, appropriately documented, shall be 

forwarded to the Ethics Officer, Office of the General Counsel, for legal sufficiency, and in turn forwarded to the Managing Director, Customer Services, for approval. 

2. Suspected Antitrust Violations. 

(a) General. Unless bids are genuinely competitive, prices 

tend to be higher than they should be. Practices designed to 

eliminate competition or restrain trade, and which may evidence possible violations of the antitrust laws, include: collusive bidding, follow-the-leader pricing, rotated low bids, 

uniform estimating systems, sharing of business, identical 

bids, and similar practices. 

(b) Reporting suspected violations. Any offer or bid received which evidences a violation of the antitrust laws must 

be referred to the Office of Inspector General for action. Accordingly, any suspected violation shall be promptly reported, 

setting forth complete details regarding the circumstances. The 

report shall be submitted to the Managing Director, Customer 

Services, for processing in coordination with the Office of the 

General Counsel. Reports of identical bids or offers under this 

section should be submitted only when there is reason to believe that the bids or offers may not have been arrived at independently. 

(c) Noncollusive bids. By submission of a bid, the bidder in 

the “Certification of Independent Price Determination” on the 

reverse of the bid form, certifies that among other things: 

(1) the prices have been arrived at independently without reference to or agreement with other bidders or with 

any competitor for the purpose of restricting competition; 

(2) the prices bid have not been, and will not be, knowingly disclosed, and no attempts have been made to induce 

any other firm to submit or not to submit a bid; 

(3) the signer of the bid is the one responsible for the 

decision as to the prices bid, and, has not and will not participate in any conduct contrary to (1) or (2) above. 

Normally, a bid cannot be considered for award if any deletions or modifications to the certificate have been made. If, 

however, exception is taken to the disclosure provision, the 

Managing Director, Customer Services, will make the deter-
I–6 GPO PRINTING PROCUREMENT REGULATION 

mination required by paragraph (d) of the certificate. If the 

certificate is suspected of being false, or there is evidence of 

collusion, the matter will be reported in accordance with paragraph (b) above. Also, see the provision “Certificate of Independent Price Determination” in GPO Contract Terms, 

Solicitation Provisions, Supplemental Specifications, and Contract Clauses, GPO Publication 310.2 (hereafter, GPO Contract Terms, Publication 310.2). 

3. Documentation of Procurement Actions. Official records;

i.e., contract files, shall be established and maintained for all

procurement actions. The contract file shall contain documentation, both formal and informal, of all actions taken with respect to the transaction, including final disposition. Such

information may be necessary to provide essential facts for

litigation or congressional inquiries; to furnish information for

GAO investigations or to satisfy other similar requirements.

4. Taxes. The clause “Federal, State and Local Taxes” in GPO

Contract Terms, Publication 310.2, is included by reference in

all contracts and purchase orders. Questions concerning taxes

shall be referred to the Office of the General Counsel.

5. Freedom of Information. Release of information and records to the public is established in GPO Instruction 905.3A,

Policy and Procedure Concerning Public Access to Information and Records of the Government Printing Office.

6. Liquidated Damages.

(a) Application. Normally, GPO contracts for printing,

binding, related supplies, and related services shall not include 

a clause for liquidated damages in the event of a contractor’s 

failure to deliver or perform. Such a clause may be used, however, where the time of delivery or performance is so important that: 

(1) the Government may, at the time of contracting, reasonably expect to suffer damages from late performance; 

and 

(2) it would be difficult or impossible at that time to determine actual damages. 

(b) When a Contracting Officer determines that circumstances warrant the inclusion of the liquidated damages in a 

contract, a memorandum, stating the reasons for the determination, shall be submitted to the appropriate APS Director for 

approval. No contract shall include a liquidated damages 

clause without approval. Upon approval, the “Liquidated 

Damages” clause in GPO Contract Terms, Publication 310.2, 

shall be made applicable to the contract by including a clause 

in the solicitation substantially as follows: 

LIQUIDATED DAMAGES.—If the contractor fails to deliver 

the supplies or perform the services within the time specified 

in the contract, or any authorized extension thereof, the actual 

damage to the Government for the delay will be difficult or 

impossible to determine. Therefore, pursuant to the “Liquidated Damages” clause (GPO Contract Terms, Publication 

310.2), in lieu of actual damages the contractor shall pay to the 

Government as fixed, agreed, and liquidated damages for each 

workday of delay, the amount set forth below. 

Liquidated damages will be assessed against that part or 

parts of an order which have not been shipped to the specified 

destination on the specified date. Liquidated damages will not 

be assessed against that part or parts of an order which have 

been shipped on schedule. 

The amount of damages will be computed at the rate of 

 percent ( %) of the contract price of the quantity not 

shipped in accordance with specifications for each workday 

the contractor is in default of the shipping schedule(s); Provided, That the minimum amount of liquidated damages shall 

not be less than $5.00 for the entire order and not more than $ 

per day on the entire order, except the total damages assessed 

against a contractor shall in no case exceed fifty percent (50%) 

of the total value of the entire order. Liquidated damages will 

not be assessed if the contractor has shipped at least ninety 

percent (90%) of the quantity ordered for shipment to each 

specified destination on or before the scheduled date. 

Liquidated damages will apply to all shipments except: Materials furnished the contractor which are to be returned to the 

Government; sample copies or materials for file or storage 

purposes; and shipments marked either “File Copies” or “Depository Copies” sent to the Government Printing Office, if ordered. However, payment of an order will be withheld until 

evidence of shipment of such material or copies is furnished. 

(c) Rate. The rate at which liquidated damages are to be assessed must be reasonably based on a case-by-case evaluation 

of the procurement requirement. Unless liquidated damages 

are fixed with reasonable reference to probable actual damages, they may be held to be a penalty and therefore unenforceable. 

(d) Excusable delays and liquidated damages. A contractor

shall not be charged with liquidated damages when delay 

arises out of causes beyond the control and without the negligence of the contractor. The rules governing excusable delays 

are set forth in paragraph (c) of the “Default” clause in GPO 

Contract Terms, Publication 310.2. 

(e) Remission of liquidated damages. Upon recommendation of the Public Printer, the Comptroller General of the 

United States may remit all or part of the damages as deemed 

equitable. A request for remission of damages must be made 

in writing by the contractor to the Contracting Officer. Any 

favorable recommendation, with appropriate supporting documentation, will be provided to the appropriate APS Director 

who shall coordinate the recommendation with the Office of 

the General Counsel (to provide a legal sufficiency determination). If the recommendation remains favorable, it shall be 

forwarded to the Public Printer through the Managing Director, Customer Services, and the Assistant Public Printer, Operations. 

(f) Mitigation in default. If a default occurs on a contract

containing a liquidated damages clause, the Contracting Officer shall take action to mitigate liquidated damages by prompt 

efforts to obtain performance by the defaulting contractor or 

by prompt termination of the contract. If the supplies or services are still required after termination, the Contracting Officer shall attempt to repurchase elsewhere within a reasonable 

period of time. (See also XIV–1.3(f) and (g).) 

7. Defense Priorities and Allocations System (DPAS).

(a) General. (1) Policy. In the interest of keeping current

defense programs on schedule and maintaining an administrative means of promptly mobilizing the nation’s economic resources in event of war or national emergency, it is a statutory 

requirement and national policy to require contractors to use 
GENERAL I–7

industrial priority ratings and allotment authority to support 

military procurement. 

(2) Purpose. The purpose of defense priority ratings is not

for delivery priority, but to enable the contractor to obtain 

necessary materials to satisfy the contract and to give Government contracts priority over commercial contracts. 

(3) Regulations. Statutory authority for the system is the

Defense Production Act of 1950, 50 U.S.C. App. 2061, et 

seq.), as amended. Under the act, the Federal Emergency 

Management Agency (FEMA) has responsibility for approving a program for priorities and allocation support and for 

maintaining the listing of authorized programs under Schedule 

I to promote the national defense. Except for FEMA’s responsibility, and pursuant to Title 1 of the act, the administration 

and enforcement of the DPAS are delegated by the President 

to the U.S. Department of Commerce (DOC), the Office of 

Industrial Resource Administration (OIRA). Also under 

Schedule I is a listing of agencies, delegated by OIRA the authority to place rated orders in support of authorized programs. 

OIRA is also responsible for setting forth controlled materials 

in Schedule II and for defining the controlled materials in 

Schedule III. Other DPAS authorities and regulations [e.g., 

Defense Priorities System Regulation 1 (DPS Reg. 1) and Defense Materials System Regulation 1 (DMS Reg. 1)] are set 

forth under 15 CFR 700. 

(4) Required use. When a priority rating is assigned to a

contract or purchase order, the rating is applicable to the prime 

contractor who must extend that rating in writing to any direct 

subcontractors, vendors, and suppliers, who in turn extend the 

rating in writing to their suppliers. The only exception to the 

mandatory use of ratings is an optional exemption for individual purchase orders of $500 or less. 

(b) Priority rating assigned. (1) A rated order is one which

is identified by a priority rating of either DO or DX with a 

program identification symbol. The program identification for 

printed materials is C–9, Miscellaneous. Priority rating DO–

C–9 is commonly used on defense requisitions to GPO. 

(2) Contracts and purchase orders shall contain, at a minimum, the following information in addition to normal contractual requirements to be a valid rated order: 

(i) The priority rating.

(ii) Either of the following certifications: “Certified for

national defense use under DMS Reg. 1,” or “Certified under DPS Reg. 1.” Either of these certifications is acceptable 

on a rated order. 

(iii) The signature of the Contracting Officer.

(iv) The delivery date or dates required.

(3) All rated orders must be accepted by the contractor

unless: 

(i) The prospective purchaser is unwilling or unable to

meet the supplier’s regularly established prices or terms of 

sale or payment. 

(ii) The rated order is for a product or a service which

the supplier does not usually make or perform. 

(iii) The rated order is for a product or material which

the supplier makes or acquires only for its own use. 

(iv) Filling the rated order would stop or interrupt the

supplier’s operations during the next 60 days in a way 

which would cause a substantial loss of total production or 

a substantial delay in operations. 

(v) The rated order is placed by a person who produces

the same product or performs the same service as that ordered. 

(4) Precedence:

(i) All DO ratings have equal preferential status.

(ii) All DO ratings take precedence over unrated orders.

(iii) All DX ratings, which are used for special defense

programs designated by the President to be of the highest 

national priority, have equal preferential status. 

(iv) DX-rated orders take precedence over DO-rated orders and unrated orders. 

(c) Implementation. (1) For requisitions with a national defense priority, the following provision shall be included in the 

contract. 

PRIORITIES, ALLOCATIONS, AND ALLOTMENTS. This contract and any delivery order thereunder is rated and certified for national defense use (Priority Rating DO–C–9). The contractor shall 

follow the provisions of DMS Reg. 1 or DPS Reg. 1 and all other applicable regulations and orders of the Office of Industrial Resource 

Administration (OIRA) in obtaining controlled materials and other 

products and materials needed to fill this contract. 

Contractors are required to follow the provisions of DMS 

Reg. 1 or DPS Reg. 1, and orders of the OIRA in obtaining 

controlled materials and any other products and materials 

needed to fill this order. Copies of DMS Reg. 1 or DPS Reg. 1 

may be obtained from the U.S. Department of Commerce 

(DOC), Office of Industrial Resource Administration (OIRA), 

Washington, DC 20230. 

(2) Requested delivery dates shall be complied with as

practicable. If a delivery schedule cannot be met, the contractor is obligated to notify the Contracting Officer of the delay 

and shall provide a revised schedule and the reason for delay. 

Precedence for filling rated orders shall be given as follows: 

(i) DX-rated orders must be given precedence over DOrated orders or unrated orders and DO-rated orders must be 

given precedence over unrated orders. 

(ii) If there is a conflict between rated orders of equal

preferential status, the contractor must give precedence in 

the order of their receipt. 

(iii) If there is a conflict between rated orders of equal

preferential status received on the same date, precedence 

must be given to the one which has the earliest required delivery date. 

(3) If a solicitation on a rated order receives no response or

timely delivery cannot be obtained, the Contracting Officer 

shall apply for assistance in accordance with paragraph (d). 

(d) Inadequate response or schedule delays. (1) Inadequate

response to solicitations. When there are no bids or proposals 

received as a result of a solicitation or if the bids or proposals 

received do not cover the entire requirement, normal procurement procedures shall be followed in attempting to locate 

sources. If such efforts are unsuccessful, and it is determined 

that the procurement must still be accomplished at that time, 

rated orders shall then be presented to one or more selected 

suppliers or manufacturers qualified to produce the item or 

material. This will be accomplished by issuing a solicitation 

under cover of a letter signed by the Contracting Officer, citing the requirements of the Defense Production Act, OIRA 

regulations, and requesting timely acceptance thereof by the 
I–8 GPO PRINTING PROCUREMENT REGULATION 

contractor. The letter shall also request that any reasons for rejection be promptly furnished in writing, as required by the 

OIRA regulations. 

(2) Schedule delays. If a contractor notifies the Contracting

Officer that a delivery schedule cannot be met, due to an inability to obtain the required materials from subcontractors 

with whom rated orders have been placed, the Contracting Officer shall first ascertain whether the contractor has invoked 

the priority rating in writing in the subcontracts. If invoked, 

the Contracting Officer should then determine if the contractor has made all reasonable efforts to resolve the situation, 

and provide necessary assistance to the contractor. 

(3) Special assistance. If further action is required to obtain

a supplier or expedite delivery, the Director, APS Printing 

Procurement Policy and Planning, shall be contacted to obtain 

special assistance from OIRA. 

8. Extraordinary Contractual Actions, Public Law 85–804.

(a) General. (1) Authority. The Act of August 28, 1958, as

amended (Public Law 85–804); 72 Stat. 972, as amended by 

87 Stat. 605 (50 U.S.C. 1431–1435), as amended, hereinafter 

referred to as “the Act,” empowers the President to authorize 

any agency or department of the Government which exercises 

functions in connection with the national defense to enter into 

contracts or into amendments or modifications of contracts 

and to make advance payments, without regard to other provisions of law relating to the making, performance, amendment, 

or modification of contracts, whenever the agency head deems 

that such action would facilitate the national defense. 

(2) Limitations. The Act provides that nothing therein shall

be construed to authorize: 

(i) the use of cost-plus-a-percentage-of-cost system of

contracting; 

(ii) any contract in violation of existing law relating to

limitation of profits; 

(iii) other than full and open competition for award of

contracts for supplies or services; 

(iv) the waiver of any bid, payment, performance, or

other bond required by law; 

(v) the amendment of any contract negotiated under 10

U.S.C. 2304(a)(15) or 41 U.S.C. 252(c)(13) to increase the 

contract price to an amount higher than the lowest rejected 

bid of any responsible bidder (both of the above code sections relate to negotiated procurement after unsuccessful 

advertising), or 

(vi) the formalization of an informal commitment,

unless the commitment was made at a time when it was 

impracticable to use normal procurement procedures. 

(3) Approval authority. A commitment shall not be made

under the Act for contracts, amendments, or modifications in 

excess of $50,000 without approval of the Managing Director, 

Customer Services. For contractual actions of $50,000 or less 

the APS Directors have approval authority. 

(4) Reporting. All actions taken under the Act are a matter

of public record. Congress shall be notified of all actions taken 

under the authority of this Act by the 15th of March each year. 

(b) Application. (1) Purpose and policy of the Act. The

general purpose of the Act and the regulations thereunder is to 

permit the correction of mistakes in contracts by administrative action during periods of national emergency so as to facilitate the national defense. The authority may not be used 

where other adequate legal authority is applicable. The authority cannot be used to encourage laxity and carelessness on the 

part of any person engaged in the defense effort. 

(2) Standards for use. Action taken under the Act requires a

finding that the national defense will be facilitated thereby. 

(i) Amendments without consideration. If a contractor’s

continued performance on any defense contract is found essential to the national defense and if an actual or threatened 

loss under a contract, however caused, will impair the productive ability of the contractor, the contract may be adjusted without any additional benefit to the Government. 

The contract will, however, only be adjusted to the extent 

necessary to remove the impairment. Losses of a contractor 

resulting from Government action as a party to the contract 

may justify an amendment even though there is no liability 

on the part of the Government for its action. 

(ii) Mistakes. A contract may be amended to mitigate or

correct a mistake. This includes mistakes or ambiguities 

consisting of a failure to clearly express the agreement as 

both parties understood it; a mistake of the contractor 

which was so obvious that it was or should have been obvious to the Contracting Officer; and mutual mistake as to a 

material fact. 

(iii) Informal commitments. Informal commitments may

be formalized under certain circumstances to permit payment to persons who have taken action without a formal defense contract; for example, where any person, pursuant to 

written or oral instructions from an official of an agency 

and relying in good faith upon the apparent authority of the 

official to issue such instructions has arranged to furnish or 

has furnished property or services to the agency or to a contractor or subcontractor without formal contractual coverage for such property or services. Formalization of 

commitments under such circumstances normally will facilitate the national defense by ensuring such persons that 

they will be treated fairly and paid expeditiously. 

(3) Responsibilities of the Contracting Officer. All requests

from contractors for relief or adjustment under the authority of 

the Act shall be referred to the Director, APS Printing Procurement Policy and Planning, for further assistance. The Staff 

shall be responsible for all reporting requirements under the 

Act. 

9. Variations in Quantity.

(a) General. As stated in the “Quantity Variations” clause

in GPO Contract Terms, Publication 310.2, the Government 

will not accept any variations in the quantity of any item 

called for in a contract unless the variation is authorized in the 

solicitation. Variations in quantity should not be authorized 

unless caused by conditions of loading, shipping, packing, or 

for allowances in production processes. In the procurement of 

printing, binding, related supplies, and related services, the latter condition is normally the reason which supports permitting 

quantity variations. If variation in quantity is permitted, acceptance and payment shall be made only to the extent prescribed 

in the contract. 

(1) Any permissible variation may be stated as a percentage or as a specific quantity, and may be an increase, a 

decrease or a combination of both. No permitted variation 
GENERAL I–9

should be greater than that necessary to provide reasonable 

protection to the contractor. 

(2) When it is determined that a quantity variation will

be permitted, provision shall be made in the solicitation to 

that effect and the extent of the allowable variation shall be 

specified. When the solicitation allows a quantity variation, 

the contractor’s offered additional rate or other lesser negotiated rate shall be used to increase or decrease the invoice 

amount in accordance with any allowable variation. 

(b) “Overs” and “Unders.” “Overs” are those items intended to be shipped or delivered in excess of any authorized 

plus variation in quantity. “Unders” are those items constituting the difference between the amount required by the contract, including any authorized minus variation in quantity, 

and the amount to be shipped or delivered. 

(1) Prior to shipment or delivery, the contractor, upon

knowledge of any “over” or “under” quantity shall immediately contact the Contracting Officer for direction. The 

Contracting Officer shall subsequently convey the information to the ordering agency, appropriately documenting the 

contract file. 

(2) Upon acceptance of any “overs” by the agency, the

contract shall be modified reimbursing the contractor at an 

agreed upon rate not to exceed the offered additional rate 

and obtaining the contractor’s agreement by a signed copy 

of the modification. Refusal to accept “overs” shall be conveyed to the contractor. 

(3) Upon acceptance by the ordering agency of any short

shipment, the contractor shall be informed that the contract 

will be modified. The contractor shall be instructed to “go 

back to press” when the shortage is not accepted. 

(4) “Overs” shipped or delivered without direction of the

Contracting Officer and not accepted by the ordering 

agency will be returned to the contractor at the contractor’s 

expense. 

(5) Requests from contractors to ship short shall be considered on an individual basis. Requests from contractors 

with a significant history of such requests should receive 

close scrutiny. When the Contracting Officer becomes 

aware of a pattern of short shipments, that contractor’s performance shall be carefully monitored and evaluated for 

appropriate action. 

10. Subcontracts.

(a) Definitions.

“Consent to subcontract” means the Contracting Officer’s

written consent for the prime contractor to enter into a particular subcontract. 

“Contractor” means the total contractor organization or a 

separate entity of it, such as an affiliate, division, or plant that 

performs the contract. 

“Subcontract” means any contract entered into by a subcontractor to furnish supplies or services for performance of a 

prime contract or a subcontract. It includes but is not limited 

to purchase orders, and changes and modifications to purchase 

orders. 

“Subcontractor” means any supplier, distributor, vendor, or 

firm that furnishes supplies or services to or for a prime contractor or another subcontractor. 

“Predominate production function” means the primary operation or process (e.g. presswork, bindery work, CD-ROM or 

microfiche replication) that is required in contract performance. 

(b) The predominate production function shall not be subcontracted unless authorized by the terms of the contract. 

(c) Production operations other than the predominate production function may be subcontracted unless prohibited by 

the contract. 

(d) Contracting Officers shall indicate in solicitations

whenever subcontracting of the predominate production function is to be permitted or whenever production operations 

other than the predominate production are prohibited from being subcontracted. 

(e) Contractors, whose contract does not permit subcontracting, may make a written request to the Contracting Officer for consent to subcontract, justifying the reasons for the 

request. 

(f) Contracting Officers shall consent to subcontracting

only if consent is in the best interest of the Government. 

(g) Clause. The “Subcontracts” clause in GPO Contract

Terms, Publication 310.2, is included in all contracts by reference. 

11. Warranties.

(a) General. A warranty is a promise or affirmation given

by a seller to a purchaser regarding the nature, usefulness, or 

condition of supplies or performance of services to be furnished. The contract clauses permit GPO to reject supplies 

which do not meet the specifications or to require correction, 

at the contractor’s expense, of defects discovered upon inspection. GPO is further protected against latent defects discovered 

after inspection and acceptance. 

(b) Clause. The “Inspection and Tests” and “Warranty”

clauses in GPO Contract Terms, Publication 310.2, provide for 

correction or rejection of supplies which do not meet specifications. 

12. [Reserved]

13. Contractor Team Arrangements.

(a) Definition. “Contractor team arrangement” means an arrangement in which— 

(1) Two or more companies form a partnership or joint

venture to act as a potential prime contractor; or 

(2) A potential prime contractor agrees with one or more

other companies to have them act as its subcontractors under a specified Government contract or acquisition program 

within the scope of the “Subcontracts” clause. 

(b) General. (1) Contractor team arrangements may be desirable from both a Government and industry standpoint in order to enable the companies involved to (i) complement each 

other’s unique capabilities and (ii) offer the Government the 

best combination of performance, cost, and delivery for the 

system or product being acquired. 

(2) The companies involved normally form a contractor

team arrangement before submitting an offer or bid. However, they may enter into an arrangement later in the acquisition process, but only on competitively negotiated 

procurements. 
I–10 GPO PRINTING PROCUREMENT REGULATION 

(c) Policy. The Government will recognize the integrity and

validity of contractor team arrangements for contracts valued 

in excess of $100,000; provided, the arrangements are identified and company relationships are fully disclosed in an offer 

or bid or, for arrangements entered into after submission of an 

offer, before the contract becomes effective. The Government 

will not normally require or encourage the dissolution of contractor team arrangements. 

(d) Joint Venture Agreement. Agreements shall be signed

by all parties to the joint venture and contain the following before acceptance by the Government: 

(1) The written agreement between the parties shall reserve to the Government the right to enforce the terms of 

the contract both jointly and severably against the coventurers. 

(2) The agreement must contain a statement from the attorney for each venturer that the joint venture is within the 

corporate power of each venturer. 

(3) One party to the joint venture must have total control

of all phases of contract performance. Control must include 

delegated authority to fix the responsibilities of the coventurers. 

(4) One party to the joint venture must perform the contract primary production function. All other parties must 

perform at least one of the remaining production functions 

as described in the solicitation. 

(5) The agreement should identify each venturer’s contribution toward contract completion such as materials, 

manpower, and experience. 

(6) Invoices for all phases of contract performance must

be submitted by one party to the joint venture. All payments will be made in the name of the joint venture. 

(7) The joint venture agreement must be limited solely

to the objective of the contract. 

(8) A copy of the executed agreement must be submitted

with the proposal or bid. 

(e) Limitations. Nothing in this subsection authorizes contractor team arrangements in violation of antitrust statutes or 

limits the Government’s rights to— 

(1) Require consent to subcontracts;

(2) Determine, on the basis of the stated contractor team

arrangement, the responsibility of the prime contractor; 

(3) Provide to the prime contractor data rights owned or

controlled by the Government; 

(4) Pursue its policies on competitive contracting, subcontracting, and component breakout after initial production or at any other time; and 

(5) Hold the prime contractor fully responsible for contract performance, regardless of any team arrangement between the prime contractor and its subcontractors. 

(f) Sufficiency Review of Joint Venture Agreements. The

Contracting Officer must ensure that the documentation for a 

joint venture agreement is sufficient for Government acceptance, that there is no contradiction or ambiguity with antitrust 

statutes, and that there are no limitations on the Government’s 

rights. Therefore, before taking any action regarding a joint 

venture agreement, the Contracting Officer must forward a 

copy of the solicitation [whether or not it included the provision following in I-4.13(g)], a copy of the planned award 

document, and the original submitted joint venture documentation to the GPO Office of General the Counsel for review 

and issuance of a legal sufficiency determination. 

(g) Provision. The following provision shall be included in

solicitations when it is anticipated that contractor team arrangements will be formed. Substitute the words “negotiation” 

and “offeror” for “sealed bidding” and “bidder” in negotiated 

contracts. 

TYPE OF BUSINESS ORGANIZATION—SEALED 

BIDDING 

The bidder, by checking the applicable box, represents that— 

(a) It operates as a corporation incorporated under the laws of the

State of ,  an individual,  a partnership,  a nonprofit 

organization,  a joint venture, or 

(b) If the bidder is a foreign entity, it operates as  an individual,

 partnership,  a nonprofit organization,  a joint venture, or  a

corporation, registered for business in __.

(country) 

SECTION 5. CONTRACTOR RESPONSIBILITY 

1. General. Purchases shall be made from, and contracts shall

be awarded to, responsible prospective contractors only. The

award of a contract solely on the basis of the lowest responsive bid is not to the advantage of the Government if additional procurement or administrative costs could subsequently

result.

2. Responsible Contractor. A responsible contractor is one

who meets the minimum standards set forth in subsection 4 to

the extent that such standards are applicable to the specific

procurement.

3. Authority. The authority for determinations of contractor

responsibility/nonresponsibility rests with the Contracting Officer over whose signature the award of a contract is to be

made.

4. Minimum Standards for Responsible Prospective Contractors. To receive a favorable responsibility rating, a prospective contractor must meet the standards set forth below to

the extent applicable to the specific procurement. The prospective contractor shall:

(a) Have adequate financial resources, or the ability to obtain adequate financial resources to perform the contract; 

(b) be able to comply with the proposed delivery schedules,

taking into consideration other existing commitments, commercial as well as governmental; 

(c) have a satisfactory record of performance in regard to

both quality and timeliness on previously awarded contracts; 

(d) possess, or have the ability to acquire, the necessary

equipment, technical skills, and productive capacity to perform the contract requirement. 

(e) have adequate production controls and quality assurance

methods to satisfy the quality requirements of the contract; 

(f) be able to satisfy any specified special standards of responsibility. Such special standards may be incorporated in 

specifications where the requirements call for unusual expertise, specialized facilities, or location of facilities; and 

(g) be otherwise qualified and eligible to receive an award

under applicable laws and regulations. 
GENERAL I–11

5. Affirmative Responsibility Determinations.

(a) Prospective contractors must affirmatively demonstrate

their responsibility. This may be achieved through satisfactory 

performance on prior similar awards or through the presentation of evidence of their ability to satisfy the contract requirements. A Contracting Officer, prior to making an affirmative 

responsibility determination, shall be satisfied that the available information sufficiently demonstrates that the prospective 

contractor meets the minimum standards set forth in subsection 4. This information shall include: 

(1) Any list of debarred, suspended, or ineligible concerns or individuals; 

(2) any current contractor compliance data which indicates the prospective contractor’s performance in regard to 

timeliness, quality, and business integrity; 

(3) the Bidder’s Mailing List Application (GPO Form

2524); and 

(4) any other known documentation which will offer assistance in the decision-making process (e.g., a recent preaward survey). 

(b) If, in the opinion of the Contracting Officer, the available information is sufficient for an affirmative responsibility 

determination, the Contracting Officer shall so indicate by 

signing the appropriate award documents. On proposed 

awards in excess of $100,000 and requiring CRB approval, 

Contracting Officers shall indicate their affirmative determination on page 1, Preaward Survey (GPO Form 707, Preaward 

Survey of Prospective Contractor) or a computer generated 

version and, where applicable, on the CRB memorandum itself. In the absence of sufficient evidence of a prospective 

contractor’s capability or in the event of conflicting evidence, 

the Contracting Officer may request a full preaward survey as 

prescribed in chapter XI. 

6. Determinations of Nonresponsibility. The Contracting Officer shall make a determination of nonresponsibility if, after

careful consideration of all available information, there is not

a clear indication that the prospective contractor meets the

minimum requirements set forth in subsection 4. Also, doubt

as to the contractor’s productive capacity or financial strength

which cannot be resolved affirmatively shall require a determination of nonresponsibility.

(a) Documentation. (1) Determinations of nonresponsibility, when the proposed award is $100,000 or more, shall 

be documented in the form of a D&F. 

(2) Nonresponsibility determinations on proposed awards

of less than $100,000 shall be documented on an appropriate 

form as to the reason for the determination. 

(3) Copies of nonresponsibility determinations shall be included in the contract file and contractor compliance file. 

(4) Nonresponsibility determinations will be entered by the

appropriate compliance activity in the system of record when 

making responsibility determinations. 

(b) Notification of contractor. The affected contractor shall

be notified of the determination by letter, signed by the Contracting Officer. Copies of the letter shall be made a part of the 

contract file and the contractor’s compliance file. 

(c) Disclosure of data. The details or circumstances resulting in a determination of nonresponsibility shall not be made 

available to anyone outside the Government, except to the affected contractor when deemed necessary by the purchasing 

authority. The disclosure of such information may be made to, 

or summarized for, other Government offices or agencies upon 

request. 

SECTION 6. GOVERNMENT-FURNISHED PROPERTY 

1. Scope. This section sets forth policies with respect to providing Government-furnished property (GFP) for use by contractors performing under contracts with the GPO for printing,

binding, related supplies, and related services.

2. General.

(a) Definition. “Government-furnished property” (“GFP”)

is property in the possession of the Government and subsequently delivered or made available to the prime contractor 

performing under contract with GPO for printing, binding, related supplies, and related services. Government-furnished 

property includes, but is not restricted to, binders, camera 

copy (including artwork, reproduction proofs, etc.), negatives, 

printed matter, labels, bills of lading, paper, book cloth, manuscript copy, transparencies, and electronic media. 

(b) Policy on furnishing material. It is APS policy that, excluding GFP, contractors will furnish all material required for 

the performance of GPO contracts for printing, binding, related supplies, and related services. However, the GPO shall 

furnish material to a contractor when it is determined to be in 

its best interest by reason of economy, standardization, availability, expediting production, or other appropriate circumstances. Material to be furnished by GPO shall be described in 

the solicitation in sufficient detail to permit evaluation by bidders. It is also APS policy to allow prospective bidders—upon 

request—to examine that GFP which will be used as printing 

media under the contract. Such inspections shall be made prior 

to award and only at the GPO or government facility where 

the printing media is located. Telephone responses to bidder 

requests to describe printing media in such detail as to be 

prejudicial to other bidders must be furnished as an amendment to the solicitation. 

(c) Responsibility and liability for GFP. (1) Prime Contractor. Unless otherwise provided in the contract, the contractor 

to whom the contract was awarded assumes the risk of, and 

shall be responsible for, any loss or damage to GFP provided 

under the contract upon its delivery to such contractor. The 

contractor shall be liable for loss, damage, or destruction to 

GFP caused by its negligence. Should the property be destroyed or damaged by an act of God and the contractor is 

shown to have used sound judgment in protecting it, then the 

contractor shall be absolved of liability. 

(2) Subcontractor. No GFP shall be furnished directly to a

subcontractor unless the Contracting Officer is specifically requested to do so by the prime contractor. Such request, however, shall not relieve the prime contractor of total liability for 

the GFP. 

(d) Use of GFP. GFP shall, unless otherwise provided in

the contract or approved by the Contracting Officer, be used 

only in the performance of the contract. 

3. Furnishing of GFP.

(a) Method. All GFP furnished to the contractor shall be

transported via a method that will ensure safe delivery and 
I–12 GPO PRINTING PROCUREMENT REGULATION 

provide the Contracting Officer with a signed receipt showing 

date received by the contractor. Such methods may include 

certified mail and public conveyance such as bus, rail, truck, 

or airplane. 

(b) Contractor requests for materials and supplies. Contracting Officers may, at their option, and when requested by 

the prime contractor, furnish materials or supplies not readily 

obtainable in the open market and which are required by the 

contractor for the performance of the contract. In such event, 

the cost to the Government of the materials or supplies, plus 

any handling and administrative costs, shall be deducted from 

the contract price of the work contracted for in such manner 

and at such times as the Contracting Officer may specify. 

(c) Excessive delay in furnishing GFP. Contractor requests

for progress payments based on excessive Government delay 

shall be processed as prescribed in VI–2 “Progress Payments.” 

4. Return of Government Property. GPO-furnished mechanical or electronic printing media supplied for use in the

completion of the contract, shall be returned by the contractor

as directed in the specifications or upon demand of the Contracting Officer. This material shall be returned immediately

upon completion of the contract without demand by the Government at the contractor’s expense unless the contract specifically provides otherwise. The contractor shall return all

excess paper, supplies, or materials received from the Government resulting from overdelivery of such materials, more

economical production than anticipated, or for any other reason. The excess material shall be returned at Government expense unless the contract specifically provides otherwise. The

contractor shall request advice from the Contracting Officer as

to the disposition of the excess materials. The contractor shall

warrant, in submitting a claim upon the Government resulting

from the contract, that all such materials, supplies, and excess

paper have been returned to the Government. It shall be the responsibility of the contractor to secure evidence of return of

such Government property in the form of delivery receipts

signed by an authorized officer or agent of GPO or any other

receipt acceptable to GPO.

5. Inspection of Returned GFP.

(a) GFP returned directly to ordering agency. Most contracts will specify that the contractor must return GFP used as 

printing media directly to the ordering agency. In such cases, 

the responsibility for inspection shall be that of the ordering 

agency. Instances of returned media which is not in conformance with the contract terms, or not in the same condition as 

when furnished to the contractor shall be reported by the 

agency, through appropriate channels, to the Contracting Officer. The Contracting Officer shall take appropriate action to: 

(1) verify the agency claim; (2) either have the contractor correct the verified deficiency or reduce the contract price by an

amount equal to the Government’s cost for correcting the deficiency.

(b) GFP returned to a GPO facility. All GFP returned to a

specified GPO facility shall be inspected by the Contracting 

Officer or a representative. The inspection shall ensure that the 

GFP is in conformance with the terms of the contract and that 

there has been no damage to it. Where contractor-caused damage or nonconformance to the terms of the contract exists, the 

Contracting Officer shall have the contractor correct the deficiency or reduce the contract price by an amount equal to the 

Government’s cost for correcting the deficiency. 

SECTION 7. SMALL BUSINESS 

1. Policy.

(a) It is the policy of the Government to aid, counsel, assist,

and protect, insofar as possible, the interests of small business 

concerns in order to preserve free competitive enterprise and 

to place with small business concerns a fair proportion of the 

total Government purchases and contracts. 

(b) In support of this policy, the specific policies set forth

below shall be followed. 

(1) Small business concerns shall be afforded an equitable opportunity to compete for contracts. 

(2) The bidders list shall include all known established

small business concerns and those that are also labor surplus area concerns. 

(3) The maximum amount of time practicable shall be

allowed for preparation and submission of bids. 

(4) Delivery schedules shall be established to encourage

small business participation, to the greatest extent consistent with customer requirements. 

(5) Small purchases shall be placed with small business

concerns whenever practicable. 

2. Representation by Bidder. A representation by a bidder

that it is a small business concern shall be accepted as conclusive by the Contracting Officer regarding the firm’s status for

the specific solicitation.

SECTION 8. CONTINGENT FEES 

1. Covenant Against Contingent Fees. Every contract includes by reference the clause “Covenant Against Contingent

Fees” in GPO Contract Terms, Publication 310.2.

2. Policy Against Contingent Fees. A fee, regardless of what

it is called or how it is computed, which is payable based on

the success a representative has in obtaining Government contracts for a client is considered a contingent fee. It is contrary

to public policy to permit the use of a contingent fee arrangement, unless such representatives are bona fide employees of

the contractor or are bona fide established commercial or selling agencies maintained by the contractor for the purpose of

securing business.

3. Enforcement.

(a) Unless exception is taken in the bid, the bidder warrants

that by submission of the bid that no person or company other 

than a bona fide one has been employed to solicit the contract, 

and that there is no agreement to pay any fee contingent upon 

the success of securing the contract. 

(b) If the bidder takes exception to the provision in the bid,

or if misrepresentations or violations of the covenant against 

contingent fees are suspected, the facts shall be provided to the 

Associate General Counsel through the appropriate APS Director for further action. 
GENERAL I–13

SECTION 9. BUY AMERICAN ACT 

1. General.

(a) Policy. The Buy American Act (41 U.S.C. 10a–10d), establishes as a policy of the Government that manufactured materials, supplies, or articles acquired for public use shall be 

substantially constituted from domestically mined or manufactured articles or supplies. 

(b) Definitions. “Component” means an article, material, or

supply incorporated directly into an end product or into another component. 

“End product” means an article, material, or supply to be 

acquired for public use. 

“Domestic end product” means: 

(1) An unmanufactured end product which has been mined

or produced in the United States; or, 

(2) An end product manufactured in the United States if the

cost of the components mined, produced, or manufactured in 

the United States exceed 50 percent of the cost of all its components. The cost of components shall include transportation 

costs to the place of incorporation into the end product and 

shall include duty in the case of components of foreign origin. 

“United States” means the 50 States, the District of Columbia, and outlying areas (i.e., Puerto Rico, American Samoa, 

the U.S. Virgin Islands, and any other place subject to United 

States jurisdiction). 

“Foreign end product” means an end product other than a 

domestic end product. 

“Domestic bid” or “domestic offer” mean either a bid or an 

offer for a domestic end product, including transportation to 

destination. 

“Foreign bid” or “foreign offer” mean either a bid or an offer other than a domestic bid or a domestic offer, including 

transportation to destination and duty. 

2. Statutory Requirements and Exceptions. The Buy American Act requires that in the procurement of supplies and services, only domestic end products shall be acquired for public

use, except for:

(a) End products which are for use outside the United

States. 

(b) End products for which the Public Printer makes a determination that domestic U.S. preference for these end products would be inconsistent with the public interest. This 

exception applies when the GPO has an agreement with a foreign government that provides a blanket exception to the Buy 

American Act. 

(c) End products for which the Contracting Officer makes a

determination that the cost of the domestic U.S. end products 

would be unreasonable. 

(d) End products which the Government determines on behalf of the entire Government are not mined, produced, or 

manufactured in the United States in sufficient and reasonably 

available commercial quantities and of a satisfactory quality. 

The Government determination is published in the Federal 

Register for public comment no less than every five (5) years. 

In addition to the listing of the end products in the Federal 

Register, potential changes may also be made at any time. 

(1) Supplementing the above, a GPO-originated determination of nonavailability for an individual procurement 

must be approved by the Managing Director, Customer 

Services. 

(2) The required determination shall be prepared in substantially the following form for the signature of the Managing Director, Customer Services, and submitted through 

the Office of the General Counsel to provide a legal sufficiency determination at the appropriate level in accordance 

with the above. 

DETERMINATION 

Pursuant to the authority contained in Section 2, Title III of the Act of 

3 March 1933, commonly called the Buy American Act (41 U.S. 

Code 10 a–d), I hereby find: 

(1) The (name of the procurement office) proposes to procure:

(a) (Describe the item(s) to be procured, unit quantity, and purpose for which intended.) 

(b) at the (actual) (estimated) cost of

(State actual or estimated cost including transportation to destination 

and any applicable duty.) 

(c) from (State country of origin and 

name and address of prospective contractor.) 

(2) (Brief statement of the necessity for the procurement.)

(3) (Statement of facts establishing the nonavailability of a similar

item or items of domestic origin.)

Based upon the above showing of fact, it is determined that the 

above described item(s) is (are) not mined, produced, or manufactured, or the articles, materials, or supplies from which it (they) is 

(are) manufactured, are not mined, produced, or manufactured, as the 

case may be, in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality. The requirement cannot be foregone. 

NO LEGAL OBJECTION: 

(Associate General Counsel Signature & Date) 

APPROVED: 

(Managing Director, Customer Services, Signature & Date) 

(3) A validation that the requirement cannot be foregone

shall be obtained from the requiring agency and shall be 

made a part of the contract file to support the statement in 

the determination. 

(4) The determination, dated and signed by the Managing Director, Customer Services, shall be in the official 

purchase order (or print order) file with a copy of the requirement validation and other pertinent information, as 

necessary. 

(5) When a determination has been made that the Buy

American Act does not apply, the contractor will be notified by appropriate means such as a notation in the body of 

the contract or by attaching a copy of the determination to 

the contract. 

(e) End products for which there is a determination stating

that the domestic preference is inconsistent with the public interest, or for which there is a determination stating that the 

cost to the Government is unreasonable. 

(1) In making such determination, bids and proposals

shall be evaluated so as to give preference to domestic bids 

as follows: 

(i) Each foreign bid shall be adjusted for purposes of

evaluation by adding to the foreign bid (inclusive of 
I–14 GPO PRINTING PROCUREMENT REGULATION 

duty) a factor of 6 percent of that bid, except that a 12-

percent factor shall be used instead of the 6-percent factor if the firm submitting the low acceptable domestic 

bid is a small business concern or a labor surplus area 

concern (or both). 

(ii) If an award for more than $100,000 would be

made to a domestic concern if the 12-percent factor is 

applied, but would not be made if the 6-percent factor is 

applied, the case shall be submitted to the Managing Director, Customer Services, for a decision as to whether 

the award to the small business concern or labor surplus 

area concern would involve unreasonable cost or inconsistency with the public interest. 

(iii) If the evaluation procedure results in a tie between a foreign bid and a domestic bid, award shall be 

made on the domestic bid. 

(2) Proposed awards shall be submitted to the Managing

Director, Customer Services, for decision where: 

(i) Rejection of an acceptable low foreign bid is considered necessary to protect essential national security 

interests, such as maintenance of a mobilization base. 

(ii) Rejection of any bid or proposal for other reasons

of the national interest when considered necessary. 

3. Implementation.

(a) Bidders must certify, in the manner directed on the bid,

that the product to be delivered will be of domestic manufacture or origin as defined in the Buy American Act, as 

amended. 

(b) The “Buy American Act” clause in GPO Contract

Terms, Publication 310.2, is included in all contracts by reference. 

SECTION 10. CONTRACT REVIEW BOARD 

1. Review of Proposed Procurement Actions.

(a) The Contract Review Board (CRB) shall review selected APS-proposed procurement actions to ensure that they 

are in the best interest of GPO and to ensure compliance with 

established procurement policy and procedures. 

(b) The CRB provides appraisals of significant proposed

procurement actions at the highest level of competence and 

experience available to APS. These appraisals are supplemental to, not in lieu of, Source Selection Boards (SSBs), and 

normal supervisory and Contracting Officer functions. 

(c) In addition to the guidance provided here and elsewhere

in the PPR, comprehensive guidance on process and documentation requirements are also specified in GPO Directive 

110.15C and its successor directives. 

2. CRB Members. The CRB will consist of not less than three

members selected as follows:

(a) Chairperson:

(1) Director, APS, Printing Procurement Policy and

Planning (APSP4); or a designee in an acting 

capacity, 

(2) A PG–15 Contracting Officer; or,

(3) A PG–14 Contracting Officer.

(b) Second member:

(1) A PG–15 Contracting Officer; or,

(2) A PG–14 Contracting Officer; or,

(3) A PG–13 Contracting Officer.

(c) Third member:

(1) A PG–15 Contracting Officer; or,

(2) A PG–14 Contracting Officer; or,

(3) A PG–13 Contracting Officer.

(d) Contracting Officers, who have made decisions regarding, or are required to sign the award documents of a particular procurement, shall not participate in that CRB action. 

3. Concurrence or Nonconcurrence.

(a) All actions for Board consideration shall be accompanied by a memorandum, signed and dated by the Contracting 

Officer, citing the PPR authority(ies) in support of the action 

where appropriate, and logically setting forth the pertinent 

facts and the recommendation of the Contracting Officer and 

the Source Selection Board, if any. The memorandum shall be 

accompanied by all relevant documents. 

(b) Concurrence or nonconcurrence of each CRB member

must be indicated by the member’s signature on the CRB 

memorandum, together with any reasons for nonconcurrence, 

and dated. The memorandum shall be included in the official 

contract file. In the event that one or more CRB members do 

not concur with the proposed action, the Board will consult 

together to ensure that all facts have been considered before 

returning the proposed action to the Contracting Officer. 

(c) If the Contracting Officer decides to take action contrary to the position taken by a majority of the Board, the Contracting Officer shall promptly inform the Chairperson of the 

proposed action and the reasons therefor. A written statement 

of the proposed conclusion or action and the reasons for the 

conclusion or action, signed and dated by the Contracting Officer, shall be inserted into the official contract file. 

(d) The CRB Chairperson shall maintain a record of all actions submitted to the full Board or to the deciding official for 

claimed mistakes in bid. The record shall include a detailed 

log of actions, which have undergone CRB review, deciding 

official review of mistakes discovered before award, and deciding official review of mistakes discovered after award. The 

record shall also include a library or repository of fully executed CRB memorandums plus copies of mistakes documentation. 

4. Actions Requiring Referral to the CRB. The actions cited

below shall be referred to the CRB for its review. In preparing

for Board submission, the factors set forth under the applicable action and any other appropriate information shall be addressed in addition to – not in lieu of – the requirements of I10.3(a) above.

(a) Prior to Award.

(1) Proposed award over $100,000 in total value or an

award involving Personally Identifiable Information (PII) 

or other sensitive information, regardless of total dollar 

value 

(i) Provide a brief resume of the action and the Contracting Officer’s proposed decision. 

(ii) Include all pertinent information supporting the

award decision and recommendation to the CRB. 

(iii) For all awards involving PII or other sensitive information, provide signed and dated confirmation from 

the GPO’s Federal agency customer that the proposed 
GENERAL I–15

awardee meets all PII or sensitive information handling 

requirements. Provide a copy of the security plan and 

the preaward survey. If unavailable, the agency’s confirmation must include a specific waiver of a contractor 

security plan and preaward survey. 

(2) Proposed cancellation of a solicitation, after bid

opening or closing date for receipt of proposals, and subsequent contemplated resolicitation. [A solicitation may be 

resolicited without CRB review when no bids or proposals 

have been received at time of opening or closing or when 

all bids under an invitation for bids (IFB) are nonresponsive.] 

(i) Provide an analysis of the solicitation defect(s)

causing cancellation. 

(ii) Describe what will be accomplished by cancellation and resolicitation. 

(iii) Include what APS action will be taken to prevent

a recurrence of cancellation and resolicitation. 

(b) Post Award.

(1) Proposed termination of a contract for default over

$25,000. 

(i) Provide an analysis of the APS actions taken prior

to submission to the CRB (e.g., issuance of a “Cure Notice,” “Show Cause” letter, etc.). 

(ii) Describe how the requirements will be met.

(2) Proposed termination of a contract (purchase order

or print order) for the convenience of the Government 

when resolicitation of the same, unchanged, product is required. 

(i) Provide an analysis of the reasons for the termination. 

(ii) Provide an explanation of the need for the resolicitation. 

(3) Proposed settlement of a terminated contract (purchase order or print order), except one terminated for convenience when the settlement is less than $25,000. 

(i) Provide an analysis of the contractor’s settlement

proposal, and how the final settlement was attained. 

(ii) Describe how the requirements will be met.

(4) Proposed modification of a contract (purchase order

or print order) involving an increase or decrease of 

$100,000 or more. 

(i) In a D&F, provide a summary of the current contract (purchase order or print order), and the proposed 

modification. 

(ii) In the D&F, provide verifiable factual data supporting modifying the existing contract (purchase order 

or print order) in lieu of a new procurement. 

(iii) In the D&F, provide verifiable factual data and a

logical rationale supporting that the planned pricing 

for the modification is fair and reasonable. 

(c) Other. The items cited above do not limit the actions,

which may be referred to the CRB. Other procurement actions 

not specifically identified herein should be presented to the 

CRB, when additional judgment, advice, and procurement expertise would assist in resolving an existing or potential problem. The Chairperson shall be contacted for an opinion when 

there is a question whether a proposed action requires CRB 

review. 

5. Actions Requiring Referral to the Managing Director,

Customer Services, the CRB Chairperson, and/or Other

Managing Director’s Designee.

(a) For other than apparent clerical mistakes, any claimed

mistake in bid, which is identified either prior to or following 

an award, must be referred to the Managing Director, Customer Services, for a decision on how the claimed mistake in 

bid is to be processed. The Managing Director may delegate 

this deciding official authority to the CRB Chairperson, and/or 

to another designee. 

(b) PPR XII-6, Mistakes in Bid, CRB Directive 910.1B,

and its successor directives provide comprehensive guidance 

on process and documentation requirements for any mistake in 

bid. 

SECTION 11. SUSPENSION AND DEBARMENT 

1. General. Suspension or debarment is a means by which

GPO may exclude bidders or contractors from participating in

contracts and subcontracts. Each should be used for the purpose of protecting the Government’s interest and not as punishment. To ensure the Government the benefits to be derived

from full and free competition of interested bidders, suspension and debarment should not be instituted for any longer period of time than is necessary to protect the Government’s

interests. See GPO Instruction 110.11B, Contractor Suspension and Debarment Procedures, all successor instructions to

GPO Instruction 110.11B, and any other official written guidance addressing the procedures for suspension and debarment.

2. Definitions.

“Adequate evidence” means information sufficient to support the reasonable belief that a particular act or omission has 

occurred. 

“Affiliates.” Business concerns, organizations, or individuals are affiliates of each other if, directly or indirectly, (1) either one controls or has the power to control the other, or (2) a 

third party controls or has the power to control both. Indications of control include, but are not limited to, interlocking 

management or ownership, identity of interests among family 

members, shared facilities and equipment, common use of 

employees, or a business entity organized following the debarment, suspension, or proposed debarment of a contractor 

which has the same or similar management, ownership, or 

principal employees as the contractor that was debarred, suspended, or proposed for debarment. 

“Agency” means any department, military department or 

defense agency, or other agency or independent establishment 

of the executive, judicial, or legislative branch. 

“Civil judgment” means a judgment or finding of a civil offense by any court of competent jurisdiction. 

“Contractor” means any individual or other legal entity that 

(1) directly or indirectly (e.g. through an affiliate) submits offers for or is awarded, or reasonably may be expected to submit offers for or be awarded, a Government contract, including

a contract for carriage under Government or commercial bills

of lading, or a subcontract under a Government contract; or (2)

conducts business, or reasonably may be expected to conduct

business, with the Government as an agent or representative of

another contractor.
I–16 GPO PRINTING PROCUREMENT REGULATION 

“Conviction” means a judgment or conviction of a criminal 

offense by any court of competent jurisdiction, whether entered upon a verdict or a plea, and includes a conviction entered upon a plea of “nolo contendere.” 

“Debarment” means action taken by a debarring official 

under subsection 4 to exclude a contractor from GPO contracting and GPO-approved subcontracting for a reasonable, specified period; a contractor so excluded is “debarred.” 

“Debarring Official” means the Public Printer or the Public 

Printer’s designee. 

“Indictment” means indictment for a criminal offense. An 

information or other filing by competent authority charging a 

criminal offense shall be given the same effect as an indictment. 

“Ineligible” means excluded from GPO contracting (and 

subcontracting, if appropriate) pursuant to statutory, executive 

order, or regulatory authority; for example, pursuant to the 

Davis-Bacon Act and its related statutes and implementing 

regulations, the Service Contract Act, the Equal Employment 

Opportunity Acts and executive orders, the Walsh-Healey 

Public Contracts Act, the Buy American Act, or the Environmental Protection Acts. 

“Legal Proceedings” means any civil judicial proceeding to 

which the Government is a party or any criminal proceeding. 

The term includes appeals from such proceedings. 

“Notice” means a written communication sent by certified 

mail, return receipt requested, to the last known address of a 

party, its identified 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 days of mailing, receipt shall then be presumed. 

“Preponderance of the evidence” means proof by information that, compared with that opposing it, leads to the conclusion that the fact at issue is more probably true than not. 

“Suspending Official” means the Public Printer or the Public Printer’s designee. 

“Suspension” means action taken by a suspending official 

under subsection 9 to disqualify a contractor temporarily from 

GPO contracting and GPO-approved subcontracting; a contractor so disqualified is “suspended.” 

3. Effect of Suspension or Debarment.

(a) Contractor’s debarred, suspended, or proposed for debarment are excluded from receiving contracts, and the GPO 

shall not solicit offers from, award contracts to, or consent to 

subcontracts with these contractors, unless the Assistant Public Printer, Operations, or a designee determines that there is a 

compelling reason for such action. Contractors debarred, suspended, or proposed for debarment are also excluded from 

conducting business with the Government as agents or representatives of other contractors. 

(b) Contractors included on the GPO List of Parties Excluded From Procurement Programs as having been declared 

ineligible on the basis of statutory or other regulatory procedures are excluded from receiving contracts and, if applicable, 

subcontracts, under the conditions and for the period set forth 

in the statute or regulation. GPO shall not solicit offers from, 

award contracts to, or consent to subcontracts with these contractors under those conditions and for that period. 

(c) Contractors debarred, suspended, or proposed for debarment are excluded from acting as individual sureties. 

(d) Post Bid Opening Procedures. (1) After opening of bids

or receipt of proposals, the Contracting Officer shall review 

the GPO List of Parties Excluded From Procurement Programs. 

(2) Bids received from any listed contractor in response to

an invitation for bids shall be entered on the abstract of bids 

and rejected unless the Assistant Public Printer, Operations, or 

a designee determines in writing that there is a compelling 

reason to consider the bid. 

(3) Proposals, quotations, or offers received from any listed

contractor shall not be evaluated for award or included in the 

competitive range, nor shall discussions be conducted with a 

listed offeror during a period of ineligibility, unless the Assistant Public Printer, Operations, or a designee determines, in 

writing, that there is a compelling reason to do so. If the period of ineligibility expires or is terminated prior to award, the 

Contracting Officer may, but is not required to, consider such 

proposals, quotations, or offers. 

(4) Immediately prior to award, the Contracting Officer

shall again review the list to ensure that no award is made to a 

listed contractor. 

(e) Effect of Action on Existing Contracts. (1) Notwithstanding the debarment, suspension, or proposed debarment of 

a contractor, GPO may continue contracts or subcontracts in 

existence at the time the contractor was debarred, suspended, 

or proposed for debarment unless the Assistant Public Printer, 

Operations or a designee directs otherwise. 

(2) When the circumstances giving rise to the debarment or

suspension also constitute a default in the contractor’s performance of the contract, termination for default under the 

contract’s “Default” clause is appropriate. 

(3) If the contractor presents a significant risk to the Government in completing the current contract, the Contracting 

Officer shall determine whether termination for convenience 

or cancellation under appropriate contract provisions is in the 

Government’s best interest. In making this determination, the 

Contracting Officer shall consult with the Office of the General Counsel (to provide a statement of “no legal objection”) 

and shall consider the following factors: 

(i) Seriousness of the cause for debarment or suspension; 

(ii) Extent of contract performance;

(iii) Potential costs of termination and reprocurement;

(iv) Urgency of the requirement and the impact of the

delay of reprocurement; 

(v) Availability of other safeguards to protect the Government’s interest until completion of the contract. 

(f) GPO should not renew or otherwise extend the duration

of current contracts, or consent to subcontracts, with contractors debarred, suspended, or proposed for debarment, unless 

the Assistant Public Printer, Operations, or a designee states in 

writing the compelling reasons for renewal or extension. 

(g) GPO shall not issue orders under a multiple-award term

contract to contractors debarred, suspended, or proposed for 

debarment, unless the Assistant Public Printer, Operations, or 

a designee states in writing the compelling reasons for such 

action. 
GENERAL I–17

4. Debarment.

(a) It is the debarring official’s responsibility to determine

whether debarment is in the Government’s interest. The debarring official may, in the public interest, debar a contractor for 

any of the causes in subsection 5, using the procedures in subsection 10. The existence of a cause for debarment, however, 

does not necessarily require that the contractor be debarred; 

the seriousness of the contractor’s acts or omissions and any 

remedial measures or mitigating factors should be considered 

in making any debarment decision. Before arriving at any debarment decision, the debarring official should consider factors such as the following: 

(1) Whether the contractor had effective standards of

conduct and internal control systems in place at the time of 

the activity which constitutes cause for debarment or had 

adopted such procedures prior to any Government investigation of the activity cited as a cause for debarment; 

(2) Whether the contractor brought the activity cited as a

cause for debarment to the attention of the appropriate 

Government agency in a timely manner; 

(3) Whether the contractor has fully investigated the circumstances surrounding the cause for debarment and, if so, 

made the result of the investigation available to the debarring official; 

(4) Whether the contractor cooperated fully with Government agencies during the investigation and any court or 

administrative action; 

(5) Whether the contractor has paid or has agreed to pay

all criminal, civil, and administrative liability for the improper activity, including any investigative or administrative costs incurred by the Government, and has made or 

agreed to make full restitution; 

(6) Whether the contractor has taken appropriate disciplinary action against the individuals responsible for the activity which constitutes cause for debarment; 

(7) Whether the contractor has implemented or agreed to

implement remedial measures, including any identified by 

the Government; 

(8) Whether the contractor has instituted or agreed to institute new or revised review and control procedures and 

ethics training programs; 

(9) Whether the contractor has had adequate time to

eliminate the circumstances within the contractor’s organization that led to the cause for debarment; or 

(10) Whether the contractor’s management recognizes

and understands the seriousness of the misconduct giving 

rise to the cause for debarment and has implemented programs to prevent recurrence. 

(b) The existence or nonexistence of any mitigating factors

or remedial measures such as set forth in subsection 4(a) is not 

necessarily determinative of a contractor’s present responsibility. Accordingly, if a cause for debarment exists, the contractor has the burden of demonstrating, to the satisfaction of the 

debarring official, its present responsibility and that debarment 

is not necessary. 

(c) Debarment constitutes debarment of all divisions or

other organizational elements of the contractor, unless the debarment decision is limited by its terms to specific divisions, 

organizational elements, or commodities. The debarring official may extend the debarment decision to include any affiliates of the contractor if they are (1) specifically named, and 

(2) given written notice of the proposed debarment and an opportunity to respond (see subsection 6(c)). 

5. Causes for Debarment.

(a) The debarring official may debar a contractor for a conviction of or civil judgment for: 

(1) Commission of fraud or a criminal offense in connection with (i) obtaining, (ii) attempting to obtain, or (iii) 

performing a public contract or subcontract; 

(2) Violation of Federal or State antitrust statutes relating to the submission of offers; 

(3) Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false 

statements, receiving stolen property; 

(4) Commission of any other offense indicating a lack of

business integrity or business honesty that seriously and directly affects the present responsibility of a Government 

contractor or subcontractor. 

(b) The debarring official may debar a contractor, based

upon a preponderance of the evidence, for: 

(1) Violation of the terms of a Government contract or

subcontract so serious as to justify debarment, such as— 

(i) Willful failure to perform in accordance with the

terms of one or more contracts; or 

(ii) A history of failure to perform, or of unsatisfactory performance of, one or more contracts. 

(2) Any other cause of so serious or so compelling a nature that it affects the present responsibility of a Government contractor or subcontractor. 

(c) The debarring official may debar a contractor based on

debarment by another agency. 

6. Debarment Procedures.

(a) Investigation and Referral. Any constituent element of

GPO that becomes aware of circumstances which may serve 

as the basis for a debarment shall refer those circumstances to 

the debarring official through appropriate channels for consideration of debarment action. However, circumstances that involve possible criminal or fraudulent activities shall first be 

reported to the Office of the Inspector General (OIG) for investigative consideration. If appropriate, the OIG shall make a 

referral to the debarring official. 

(b) Decision-Making Process. These procedures governing

the debarment decision-making process are as informal as is 

practicable, consistent with principles of fundamental fairness. 

These procedures afford the contractor (and any specifically 

named affiliates) an opportunity to submit, in person, in writing, or through a representative, information and argument in 

opposition to the proposed debarment. 

(c) Disputed Material Facts. In actions not based upon a

conviction or civil judgment, if it is found that the contractor’s 

submission in opposition raises a genuine dispute over the 

facts material to the proposed debarment, the GPO shall also: 

(1) Afford the contractor an opportunity to appear with

counsel, submit documentary evidence, present witnesses, 

and confront any person the agency presents; and 

(2) Make a transcribed record of the proceedings and

make it available at cost to the contractor upon request, 
I–18 GPO PRINTING PROCUREMENT REGULATION 

unless the contractor and the agency, by mutual agreement, 

waive the requirement for a transcript. 

(d) Notice of Proposal to Debar. A notice of proposed debarment shall be issued by the debarring official advising the 

contractor and any specifically named affiliates, by certified 

mail, return receipt requested: 

(1) That debarment is being considered;

(2) Of the reasons for the proposed debarment in terms

sufficient to put the contractor on notice of the conduct or 

transaction(s) upon which it is based; 

(3) Of the cause(s) relied upon under subsection 5 for

proposing debarment; 

(4) That, within 30 days after receipt of the notice, the

contractor may submit, in person, in writing, or through a 

representative, information and argument in opposition to 

the proposed debarment, including any additional specific 

information that raises a genuine dispute over the material 

facts; 

(5) Of the GPO’s procedures governing debarment decision-making; 

(6) Of the effect of the issuance of the notice of proposed debarment; and 

(7) Of the potential effect of an actual debarment.

(e) Debarring Official’s Decision. (1) In actions based

upon a conviction or judgment, or in which there is no dispute 

over material facts, the debarring official shall make a decision on the basis of all the information in the administrative 

record, including any submission made by the contractor. If no 

suspension is in effect, the decision shall be made within 30 

working days after receipt of any information and argument 

submitted by the contractor, unless the debarring official extends this period for good cause. 

(2) Resolution of Disputed Facts. (i) In actions in which

additional proceedings are necessary as to disputed material 

facts, written findings of fact shall be prepared. The debarring 

official shall base the decision on the facts as found, together 

with any information and argument submitted by the contractor and any other information in the administrative record. 

(ii) The debarring official may refer matters involving disputed material facts to another official for findings of fact. The 

debarring official may reject any such findings, in whole or in 

part, only after specifically determining them to be arbitrary 

and capricious or clearly erroneous. 

(iii) The debarring official’s decision shall be made after

the conclusion of the proceedings with respect to disputed 

facts. 

(3) In any action in which the proposed debarment is not

based upon a conviction or civil judgment, the cause for debarment must be established by a preponderance of the evidence. 

(f) Notice of Debarring Official’s Decision. (1) If the debarring official decides to impose debarment, the contractor 

and any affiliates involved shall be given prompt notice by 

certified mail, return receipt requested— 

(i) Referring to the notice of proposed debarment;

(ii) Specifying the reasons for debarment;

(iii) Stating the period of debarment, including effective

dates. 

(2) If debarment is not imposed, the debarring official shall

promptly notify the contractor and any affiliates involved, by 

certified mail, return receipt requested. 

7. Period of Debarment.

(a) Debarment shall be for a period commensurate with the

seriousness of the cause(s). Generally, a debarment should not 

exceed 3 years. If suspension precedes a debarment, the suspension period shall be considered in determining the debarment period. 

(b) The debarring official may extend the debarment for an

additional period, if that official determines that an extension 

is necessary to protect the Government’s interest. However, a 

debarment may not be extended solely on the basis of the facts 

and circumstances upon which the initial debarment action 

was based. If debarment for an additional period is determined 

to be necessary, the procedures of subsection 6 shall be followed to extend the debarment. 

(c) The debarring official may reduce the period or extent

of the debarment, upon the contractor’s request, supported by 

documentation, for reasons such as— 

(1) Newly discovered material evidence;

(2) Reversal of the conviction or judgment upon which

the debarment was based; 

(3) Bona fide change in ownership or management;

(4) Elimination of other causes for which the debarment

was imposed; or 

(5) Other reasons the debarring official deems appropriate. 

8. Scope of Debarment.

(a) The fraudulent, criminal, or other seriously improper

conduct of any officer, director, shareholder, partner, employee, or other individual associated with a contractor may be 

imputed to the contractor when the conduct occurred in connection with the individual’s performance of duties for or on 

behalf of the contractor, or with the contractor’s knowledge, 

approval, or acquiescence. The contractor’s acceptance of the 

benefits derived from the conduct shall be evidence of such 

knowledge, approval, or acquiescence. 

(b) The fraudulent, criminal, or other seriously improper

conduct of a contractor may be imputed to any officer, director, shareholder, partner, employee, or other individual associated with the contractor who participated in, knew of, or had 

reason to know of the contractor’s conduct. 

(c) The fraudulent, criminal, or other seriously improper

conduct of one contractor participating in a joint venture or 

similar arrangement may be imputed to other participating 

contractors if the conduct occurred for or on behalf of the joint 

venture or similar arrangement, or with the knowledge, approval, or acquiescence of these contractors. Acceptance of 

the benefits derived from the conduct shall be evidence of 

such knowledge, approval, or acquiescence. 

9. Suspension.

(a) The suspending official may, in the public interest, suspend a contractor for any of the causes in subsection 10 using 

the procedures in subsection 11. 

(b) Nature of Suspension. (1) Suspension is a serious action

to be imposed on the basis of adequate evidence, pending the 

completion of investigation or legal proceedings, when it has 
GENERAL I–19

been determined that immediate action is necessary to protect 

the Government’s interest. In assessing the adequacy of the 

evidence, GPO will consider how much information is available, how credible it is given the circumstances, whether or 

not important allegations are corroborated, and what inferences can reasonably be drawn as a result. This assessment 

should include an examination of basic documents such as 

contracts, inspection reports, and correspondence. 

(2) The existence of a cause for suspension does not necessarily require that the contractor be suspended. The suspending official should consider the seriousness of the contractor’s 

acts or omissions and may, but is not required to, consider remedial measures or mitigating factors, such as those set forth 

in subsection 4(a). A contractor has the burden of promptly 

presenting to the suspending official evidence of remedial 

measures or mitigating factors when it has reason to know that 

a cause for suspension exists. The existence or nonexistence of 

any remedial measures or mitigating factors is not necessarily 

determinative of a contractor’s responsibility. 

(c) Suspension constitutes suspension of all divisions or

other organizational elements of the contractor, unless the suspension decision is limited by its terms to specific divisions, 

organizational elements, or commodities. The suspending official may extend the suspension decision to include any affiliates of the contractor if they are (1) specifically named, and 

(2) given written notice of the suspension and an opportunity

to respond (see subsection 11(c)).

(d) A contractor’s suspension shall be effective throughout

the GPO, unless the Assistant Public Printer, Operations or a 

designee states in writing the compelling reasons justifying 

continued business dealings between the GPO and the contractor. 

(e) Additional Scope. (1) When the suspending official has

authority to suspend contractors from both acquisition contracts pursuant to this subsection and contracts for the purchase of Federal personal property pursuant to FPMR 101–

45.6, that official shall consider simultaneously suspending the 

contractor from the award of acquisition contracts and from 

the purchase of Federal personal property. 

(2) When suspending a contractor from the award of acquisition contracts and from the purchase of Federal personal 

property, the suspension notice shall so indicate, and the appropriate FPMR citations shall be included. 

10. Causes for suspension.

(a) The suspending official may suspend a contractor suspected, upon adequate evidence, of— 

(1) Commission of fraud or a criminal offense in connection with (i) obtaining, (ii) attempting to obtain, or (iii) 

performing a public contract or subcontract; 

(2) Violation of Federal or State antitrust statutes relating to the submission of offers; 

(3) Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false 

statements, receiving stolen property; 

(4) Commission of any other offense indicating a lack of

business integrity or business honesty that seriously and directly affects the present responsibility of a Government 

contractor or subcontractor; or 

(5) Suspension by another agency.

(b) Indictment for any of the causes in (a)(1) through (a)(5)

above constitutes adequate evidence for suspension. 

(c) The suspending official may, upon adequate evidence,

also suspend a contractor for any other cause of so serious or 

compelling a nature that it affects the present responsibility of 

a Government contractor or subcontractor. 

11. Suspension Procedures.

(a) Investigation and Referral. Any constituent element of

GPO that becomes aware of circumstances which may serve 

as the basis for a suspension shall refer those circumstances to 

the suspending official through appropriate channels for consideration of the suspension action. However, circumstances 

that involve possible criminal or fraudulent activities shall first 

be reported to the Office of the Inspector General (OIG), for 

investigative consideration. If appropriate, the OIG shall make 

a referral to the suspending official. 

(b) Decision-Making Process. (1) These procedures governing the suspension decision-making process are as informal 

as is practicable, consistent with principles of fundamental 

fairness. These procedures afford the contractor (and any specifically named affiliates) an opportunity, following the imposition of suspension, to submit, in person, in writing, or 

through a representative, information and argument in opposition to the suspension. 

(2) In actions not based on an indictment, if it is found that

the contractor’s submission in opposition raises a genuine dispute over facts material to the suspension and if no determination has been made, on the basis of Department of Justice 

advice, that substantial interests of the Government in pending 

or contemplated legal proceedings based on the same facts as 

the suspension would be prejudiced, agencies shall also— 

(i) Afford the contractor an opportunity to appear with

counsel, submit documentary evidence, present witnesses, 

and confront any person the agency presents; and 

(ii) Make a transcribed record of the proceedings and

make it available at cost to the contractor upon request, 

unless the contractor and the agency, by mutual agreement, 

waive the requirement for a transcript. 

(c) Notice of Suspension. When a contractor and any specifically named affiliates are suspended, they shall be immediately advised by certified mail, return receipt requested— 

(1) That they have been suspended and that the suspension is based on an indictment or other adequate evidence 

that the contractor has committed irregularities (i) of a serious nature in business dealings with the Government or (ii) 

seriously reflecting on the propriety of the Government 

dealings with the contractor—any such irregularities shall 

be described in terms sufficient to place the contractor on 

notice without disclosing the Government’s evidence; 

(2) That the suspension is for a temporary period pending the completion of an investigation and such legal or 

administrative proceeding as may ensue; 

(3) Of the cause(s) relied upon under subsection 10 for

imposing suspension; 

(4) Of the effect of the suspension;

(5) That, within 30 days after receipt of the notice, the

contractor may submit in person, in writing, or through a 

representative, information and argument in opposition to 

the suspension, including any additional specific informa-
I–20 GPO PRINTING PROCUREMENT REGULATION 

tion that raises a genuine dispute over the material facts; 

and 

(6) That additional proceedings to determine disputed

material facts will be conducted unless (i) the action is 

based on an indictment or (ii) a determination is made, on 

the basis of Department of Justice advice, that the substantial interests of the Government in pending or contemplated 

legal proceedings based on the same facts as the suspension 

would be prejudiced. 

(d) Suspending Official’s Decision. (1) In actions (i) based

on an indictment, (ii) in which the contractor’s submission 

does not raise a genuine dispute over material facts, or (iii) in 

which additional proceedings to determine disputed material 

facts have been denied on the basis of Department of Justice 

advice, the suspending official’s decision shall be based on all 

the information in the administrative record, including any 

submission made by the contractor. 

(2) Resolution of Disputed Facts. (i) In actions in which

additional proceedings are necessary as to disputed material 

facts, written findings of fact shall be prepared. The suspending official shall base the decision on the facts as found, together with any information and argument submitted by the 

contractor and any other information in the administrative record. 

(ii) The suspending official may refer matters involving

disputed material facts to another official for findings of fact. 

The suspending official may reject any such findings, in whole 

or in part, only after specifically determining them to be arbitrary and capricious or clearly erroneous. 

(iii) The suspending official’s decision shall be made after

the conclusion of the proceedings with respect to disputed 

facts. 

(3) The suspending official may modify or terminate the

suspension or leave it in force (for example, see subsection 

7(c) for the reasons for reducing the period or extent of debarment). However, a decision to modify or terminate the suspension shall be without prejudice to the subsequent 

imposition of (i) suspension by any agency, or (ii) debarment 

by any agency. 

(4) Prompt written notice of the suspending official’s decision shall be sent to the contractor and any affiliates involved, 

by certified mail, return receipt requested. 

12. Period of Suspension.

(a) Suspension shall be for a temporary period pending the

completion of investigation and any ensuing legal or administrative proceedings, unless terminated by the suspending official or as provided in this subsection. 

(b) If legal proceedings are not initiated within 12 months

after the date of the suspension notice, the suspension shall be 

terminated unless an Assistant Attorney General requests its 

extension, in which case it may be extended for an additional 

6 months. In no event may a suspension extend beyond 18 

months, unless legal proceedings have been initiated within 

that period. 

(c) The suspending official shall notify the Department of

Justice of the proposed termination of the suspension, at least 

30 days before the 12-month period expires, to give that Department an opportunity to request an extension. 

13. Scope of Suspension. The scope of suspension shall be

the same as that for debarment (see subsection 8), except that

the procedures of subsection 11 shall be used in imposing suspension.

14. GPO List of Parties Excluded From Procurement Programs.

(a) The debarring and suspending official shall be responsible for compilation, maintenance, revision, and distribution of 

a list of firms and individuals suspended or debarred to whom 

contract awards of any nature will not be made, or from whom 

bids or proposals will not be solicited as provided in this section. 

(b) The list shall be distributed monthly to GPO Contracting Officers and shall show at a minimum the following information: 

(1) The name and address of all debarred, suspended, or

ineligible contractors, in alphabetical order, with crossreference when more than one name is involved in a single 

action; 

(2) The termination date for each listing; and

(3) The name and telephone number of the point of contact for the action. 

15. Grounds for Listing Firms or Individuals. Firms or individuals may be placed on the GPO List of Parties Excluded

From Procurement Programs based on the following:

(a) Those listed by the Comptroller General in accordance

with section 3 of the Walsh-Healey Public Contracts Act (41 

U.S.C. § 37) which have violated any of the agreements or 

representations of the Act. 

(b) Those reported by the Secretary of Labor, and listed by

the Comptroller General, to have violated the prevailing wage 

or overtime provisions of any Federal statute. 

(c) Those the Public Printer determines to suspend administratively. 

(d) Those the Public Printer determines to debar administratively. 

SECTION 12. CONTRACTOR FINANCIAL 

DIFFICULTY OR BANKRUPTCY 

1. General.

(a) When it is determined that a contractor is experiencing

financial difficulty or has filed under any of the bankruptcy or 

insolvency laws, it is essential that prompt action be taken to 

ensure that the Government’s rights are protected in any formal proceedings. Terminated contracts as well as any cur-rent 

contracts shall be considered in any contemplated action. 

(b) A contractor, who has filed a petition under the Bankruptcy Code, cannot be terminated for default, due to an automatic stay upon any act to obtain possession or control over 

property of the bankruptcy estate. 

2. Procedure. Upon notification that a contractor is experiencing financial difficulty or has filed under any of the bankruptcy or insolvency laws, the Contracting Officer shall

proceed as set forth below.

(a) Contractor experiencing financial difficulty. First, determine whether the contractor is still capable of meeting the 

requirements of the contract. Intensive monitoring of the con-
GENERAL I–21

tractor’s performance shall be done to determine that satisfactory progress is being made. 

(b) Contractor who has filed for bankruptcy. Upon notification that a contractor has filed, or is suspected to have filed for 

bankruptcy, the Contracting Officer shall: 

(1) Contact the district court which has jurisdiction in

the area of the contractor and obtain confirmation from the 

bankruptcy clerk of the court. If confirmed, the case number, filing date, and date of the first meeting of creditors 

shall be obtained and transmitted by telephone, and confirmed in writing, to the appropriate APS Director, who in 

turn shall notify the Office of the General Counsel and Office of Finance and Administration. 

(2) Determine whether the contractor is capable of completing contract performance. 

(3) Determine the status of any Government-owned

property. 

(4) Furnish a copy of each contract and print order affected, through channels, to the Office of the General 

Counsel, and assist in the preparation and processing of any 

claim. 

3. Contractor Decision to Dissolve Its Business. When it is

learned that a contractor, for whatever reason, intends to dissolve its business or otherwise to cease operations, the Contracting Officer shall:

(a) Determine the status of any contracts with or claims

against the contractor. 

(b) Furnish such information through the appropriate APS

Director to the Office of the General Counsel and Office of 

Finance and Administration. 

(c) In conjunction with the above, undertake necessary action to obtain performance or resolve claims. 

SECTION 13. PATENTS AND COPYRIGHTS 

1. Scope. This section prescribes contract clauses and instructions which define and implement policy with respect to patent

and copyright infringement liability resulting from work performed for the Government.

2. Explanation of Terms.

(a) Patent. A patent is a statutory monopoly granted by the

Federal Government for a limited time to an inventor to exclude others from making, using, or selling the invention. 

(b) Copyright. A copyright is a grant of a monopoly which

gives the author or the creator of an artistic work exclusive 

right to print, reprint, publish, copy, and sell the copyrighted 

work. Examples of matter which may be copyrighted are 

books, periodicals, lectures, dramatic and musical compositions, works of art and their reproduction, scientific drawings 

or plastic works, photographs, computer programs and prints. 

3. Authorization and Consent.

(a) Under 28 U.S.C. 1498, any suit for infringement of a

United States patent based on the manufacture or use by or for 

the United States of an invention described in and covered by 

a patent of the United States by a contractor or by a subcontractor (including lower-tier subcontractors) can be maintained 

only against the Government in the U.S. Court of Federal 

Claims, and not against the contractor or subcontractor, in 

those cases where the Government has authorized or consented to the manufacture or use of the patented invention. 

Accordingly, to ensure that work by a contractor or subcontractor under a GPO contract may not be enjoined by reason of 

patent infringement, authorization and consent shall be given 

as herein provided. The liability of the GPO for damages in 

any such suit against it shall, however, ultimately be borne by 

the contractor or subcontractor in accordance with the terms of 

the “Patent Indemnity” clause in GPO Contract Terms, Publication 310.2. 

(b) It is readily conceivable that a patent infringement may

result in a lawsuit or injunction against an infringer. In the 

event of an infringement, the patent owner’s only legal remedy is to bring a suit for damages against the Government itself in the U.S. Court of Federal Claims. The owner is thus 

assured of reasonable compensation for the infringement of 

the invention. 

(c) Since GPO does not include an “Authorization and

Consent” clause in APS contracts, permission to infringe 

could only be granted to a contractor after award. In order to 

prevent delay of work on a GPO contract, should such a situation arise, permission may be granted by the Contracting Officer for a contractor to use any invention that was patented by 

others in the United States. Permission, if granted, shall be by 

letter. In such cases, GPO would be authorizing the contractor 

to infringe and, in effect, providing the patent holder the opportunity to bring suit against the Government for damages. 

However, the contractor who infringes assumes all liability for 

damages under the “Patent Indemnity” clause. Con-tractor requests for authorization to infringe shall be reviewed by the 

Office of the General Counsel (to provide a statement of “no 

legal objection”) and approved by the Managing Director, 

Customer Services. 

4. Policy.

(a) Review of furnished material. GPO is responsible for

ensuring that no patented or copyrighted items are purchased 

or produced without giving consideration to the Government’s 

liabilities resulting from such purchases or production. The 

initial responsibility rests with all employees reviewing the 

material furnished by the ordering agency for a patent/copyright number or signature line. Generally, printed material will be subject to a copyright; therefore, careful review 

of furnished materials is mandatory. In dealing with the ordering agency every attempt should be made to elicit acceptable 

alternate products since it is the APS objective to procure all 

requirements competitively. 

(b) Contracting Officer responsibility. If it is suspected or

determined that a patent/copyright exists, the Contracting Officer shall be responsible for accomplishing the actions set 

forth below. 

(1) Contact the ordering agency, through established

procedures, to request all available information relative to 

the patent/copyright; i.e., if a waiver exists, who holds the 

patent/copyright, or, whether or not alternate items are acceptable to the agency insisting on this particular item. The 

ordering agency will be required to respond in writing to 

the Contracting Officer. 
I–22 GPO PRINTING PROCUREMENT REGULATION 

(2) Before any action commences on the procurement,

the data will be compiled in report form and submitted to 

the Managing Director, Customer Services, for review. 

(c) Managing Director, Customer Services, responsibility.

After reviewing the furnished information, the Managing Director, Customer Services, shall determine the appropriate action to be taken, as follows: 

(1) Approve action for noncompetitive purchase;

(2) Approve waiver;

(3) Approve request to purchase/produce an alternate

product; or 

(4) Furnish the necessary information for the preparation

of specifications. 

5. Applicable Clauses. There are two clauses in GPO Contract Terms, Publication 310.2, which are applicable to patents

and copyrights.

(a) “Notice and Assistance Regarding Patent and Copyright Infringement” Clause. This clause makes it mandatory 

on the contractor to report to the Contracting Officer each notice or claim of patent or copyright infringement based on the 

performance of the contract. The contractor must report 

promptly and in written detail. The information shall be used 

by the Government in defense of any patent or copyright infringement suits brought against it under the contract. 

(b) “Patent Indemnity” Clause. Through this clause the

contractor is obligated to reimburse the Government for damages incurred by it in the U.S. Court of Federal Claims as the 

result of a patent infringement suit. However, the indemnity 

does not apply if the infringement results from written instructions of the Contracting Officer after award of the contract 

making changes, or additions to, the supplies after performance or delivery by the contractor or the claimed infringement 

is settled without the contractor’s consent, unless required by 

final decree of a court of competent jurisdiction. Since the 

Government furnishes the data (manuscript, camera copy, etc.) 

from which the product will be produced, there is no liability 

on the part of the contractor for copyright infringement under 

the contract. The Government assumes full liability. See I–

13.4 regarding Contracting Officer responsibility for copyrighted data. 

6. Processing Infringement Claims.

(a) Policy. Whenever a claim of infringement of privately

owned rights in patented inventions or copyrighted works is 

asserted against GPO, all necessary steps shall be taken to investigate, and to settle administratively, deny, or otherwise 

dispose of such claim prior to suit against the United States. 

(b) Requirements for filing an administrative claim for patent/copyright infringement. (1) A patent/copyright infringement claim for compensation asserted against the United 

States must be actually communicated to and received by 

GPO. Claims must be in writing and should include the following: 

(i) An allegation of infringement;

(ii) a request for compensation, either expressed or implied; 

(iii) a citation of the patent/copyright alleged to be infringed; 

(iv) a sufficient identification of the alleged infringing

contract such as jacket and/or purchase order numbers; 

(v) as an alternative to (iv) above, a certification that the

claimant has made a bona fide attempt to determine the 

contract which is alleged to infringe, but was unable to do 

so, giving reasons and stating a reasonable basis for the belief that the patent/copyright is being infringed. 

(2) In addition to the information listed in (1) above, the

following material and information is generally necessary in 

the course of processing a claim of infringement. Claimants 

are encouraged to furnish this information at the time of filing 

a claim to permit the most expeditious processing and settlement of the claim. 

(i) A copy of the asserted patent/copyright and identification of all claims of the patent/copyright alleged to be infringed. 

(ii) Identification of all procurements known to claimant

which involve the alleged infringing contract, including the 

identity of the vendor or contractor and the Government 

procuring activity. 

(iii) A detailed identification of the accused article or

process, particularly where the article or process relates to a 

component or subcomponent of the item procured, an element by element comparison of the representative claims 

with the accused article or process. If available, this identification should include documentation and drawings to illustrate the accused article or process in suitable detail to 

enable verification of the infringement comparison. 

(iv) Names and addresses of all past and present licensees under the patent/copyright and copies of all license 

agreements and releases involving the patent/copyright. 

(v) A brief description of all litigation in which the patent/copyright has been or is now involved, and the present 

status thereof. 

(vi) A list of all persons to whom notices of infringement have been sent, including all departments and agencies of the Government, and a statement of the ultimate 

disposition of each. 

(vii) A description of Government employment or military service, if any, by the inventor and/or patent/copyright 

owner. 

(viii) A list of all Government contracts under which the

inventor, patent/copyright owner, or anyone in privity with 

him or her performed work relating to the patented/copyrighted subject matter. 

(ix) Evidence of title to the patent/copyright alleged to

be infringed or other right to make the claim. 

(x) A copy of the Patent Office/Copyright Office file of

each patent/copyright if available to claimant. 

(xi) Pertinent prior art known to claimant, not contained

in the Patent/Copyright Office file, particularly publications 

and foreign art. 

In addition to the foregoing, if claimant can provide a 

statement that the investigation may be limited to the specifically identified accused articles or processes, or to a specific 

procurement, it may materially expedite determination of the 

claim. 

(3) The Contracting Officer shall acknowledge receipt of

the communications alleging infringement. If a communication alleging infringement is received which does not meet the 
GENERAL I–23

requirements set forth above, the sender shall be advised in 

writing: 

(i) that the claim for infringement has not been satisfactorily presented; and 

(ii) of the elements considered necessary to establish a

claim. 

(4) A communication making a proffer of a license in

which no infringement is alleged shall not be considered as a 

claim for infringement. 

(5) All communications received by the Contracting Officer shall be forwarded to the General Counsel through the 

Managing Director, Customer Services. Communications shall 

be accompanied by all pertinent contract information. 

(c) Notification and disclosure to claimants. When a claim

is denied, the Contracting Officer shall so notify the claimant 

or the authorized representative and provide the claimant a 

reasonable rationale of the basis for denying the claim. Disclosure of information or the rationale referred to above shall be 

subject to applicable statutes, regulations, and directives pertaining to security, access to official records, and the rights of 

others. 

(d) Settlement of indemnified claims. Settlement of claims

involving payment for past infringement shall not be made 

without the consent of, and equitable contribution by, each indemnifying contractor involved, unless such settlement is determined to be in the best interests of the Government and is 

coordinated with the Department of Justice with a view to preserving any rights of the Government against the contractors 

involved. If consent of and equitable contribution by the contractors are obtained, the settlement need not be coordinated 

with the Department of Justice. 

SECTION 14. BONDS 

1. Use of Bonds.

(a) Generally, Contracting Officers shall not require performance bonds for other than construction contracts. However, performance bonds may be used as permitted in (d)(1) 

through (3) below. 

(b) The contractor shall furnish all bonds before receiving a

notice to proceed with the work. 

(c) No bond shall be required after the contract has been

awarded if it was not specifically required in the contract, except as may be determined necessary for a contract modification. 

(d) Performance bonds may be required when necessary to

protect the Government’s interest. The following situations 

may warrant a performance bond: 

(1) Government property or funds are to be provided to

the contractor for use in performing the contract or as partial compensation (as in retention of salvaged material). 

(2) A contractor sells assets to or merges with another

concern, and the Government, after recognizing the latter 

concern as the successor in interest, desires assurance that it 

is financially capable. 

(3) Substantial progress payments are made before delivery of end items starts. 

(e) When a performance bond is required, the solicitation

shall specify— 

(1) The requirement for the bond(s);

(2) The penal sum of each bond (expressed either as a

fixed sum or percentage of the contract price); and 

(3) The deadline for submitting acceptable bonds.

(f) The Government may require additional performance

bond protection when a contract price is increased. 

(g) The Contracting Officer must determine the contractor’s responsibility even though a bond has been or can be obtained. 

2. Procedure.

(a) When it is determined to require a performance bond, a

provision substantially as follows shall be included in the invitation for bids (IFB)— 

PERFORMANCE BOND: The successful bidder will be required to execute and return to the GPO a performance bond 

on Standard Form 25 in the penal sum of $——, to insure performance of the contract in accordance with the specifications 

and conditions set forth herein. Such bond, with good and sufficient surety or sureties acceptable to the Government, must 

be provided within 2 weeks after the form has been furnished 

to the contractor by the GPO. 

(b) Four copies of SF 25, “Performance Bond” shall be sent

to the successful bidder requiring execution and return of all 

copies to the Contracting Officer within the specified period of 

time. 

(c) Upon receipt of the executed bond, the Contracting Officer shall, in consultation with the Office of the General 

Counsel (to provide a statement of “no legal objection”) and 

the Office of Finance and Administration, review it for completeness, acceptability of the surety(ies), and legal sufficiency. If determined to be acceptable, the bond shall be 

forwarded to the Office of Finance and Administration for 

safekeeping. Regional Offices shall forward the bond direct to 

the Office of Finance and Administration by certified mail, return receipt requested. 

(d) The contractor shall not be permitted to proceed with

work until notified by the Contracting Officer of acceptance of 

the performance bond. 

(e) When a performance bond is not furnished within the

period specified by the terms of the contract, the contract will 

be subject to termination for default when in the public interest. 

3. Sureties on bonds.

(a) General. Every bond furnished in connection with the

procurement of printing, binding, related supplies, and/or related services shall be supported by corporate or individual 

sureties, or any of the types of security authorized by I–

14.3(d). IFBs may not preclude bidders from offering any of 

the types of surety or security authorized by this subsection, 

unless otherwise authorized by law or regulation. 

(b) Corporate sureties. (1) In connection with contracts to

be delivered or performed in the United States, the Commonwealth of Puerto Rico, and the Virgin Islands, any corporate 

surety offered for a bond furnished the Government must appear on the list contained in Treasury Department Circular 

570, entitled “Companies Holding Certificates of Authority as 

Acceptable Sureties on Federal Bonds and Acceptable Reinsuring Companies.” If the penal amount of a bond exceeds a 

surety’s underwriting limit specified in the Department of the 
I–24 GPO PRINTING PROCUREMENT REGULATION 

Treasury circular, the bond will be acceptable only if the excess over the specified limit is coinsured or reinsured and the 

amount of such coinsurance or reinsurance does not exceed 

the underwriting limit of each coinsurer or reinsurer. Coinsurance or reinsurance agreements shall conform to the Department of the Treasury regulations as set forth in 31 CFR 223.10 

and 223.11. Where reinsurance is contemplated, the Contracting Officer generally will require reinsurance agreements to be 

executed and submitted with the bonds before making a final 

determination on the bonds. 

(2) Requests for status of corporate sureties shall be made

to the Director, APS Printing Procurement Policy and Planning, which will maintain Treasury Department Circular 570 

for APS. Requests may be oral and shall include the penal 

amount of the bond. 

(c) Individual sureties. (1) It is the responsibility of the

Contracting Officer to determine the acceptability of individuals proposed as sureties on bonds. At least two individual sureties must execute the bond and the net worth of each 

individual must be not less than the penal amount of the bond. 

The number and amounts of other bonds upon which a proposed individual surety is bound, and the status of the contracts in connection with which such bonds were furnished, 

must be considered in determining the acceptability of the individual surety. (See also the instructions on the reverse of SF 

28, “Affidavit of Individual Surety.”) 

(2) Each individual surety must execute an SF 28. The information thus provided is helpful in determining the net 

worth of proposed individual sureties. 

(3) In order to ascertain the continuing acceptability of individual sureties, the official executing the certificate of sufficiency on the reverse of SF 28 may be required to execute 

further certificates, as contemplated by instruction 5 on that 

form, with such frequency as the agency may deem necessary 

and appropriate. Further certificates indicating additional assets, or a new surety, may be required to ensure protection of 

the Government’s interest. 

(d) Options in lieu of sureties. Any one or more of the types

of security listed in this paragraph may be deposited by the 

contractor in lieu of furnishing corporate or individual sureties 

on bonds. Where any such type of security is deposited, a 

statement shall be incorporated in the bond form pledging 

such security, and the bond form shall be executed by the contractor as principal. The Contracting Officer shall immediately 

transmit such security to the Office of Finance and Administration ensuring that it is protected against loss and shall ensure the return of such security or its equivalent when, by its 

terms, the obligation of the bond has ceased. 

(1) United States bonds or notes. In accordance with the

provisions of the Act of February 24, 1919, as amended (6 

U.S.C. 15) and Treasury Department Circular No. 154 

dated February 6, 1935 (31 CFR Part 225), any person required to furnish a bond to the Government has the option, 

in lieu of furnishing a surety or sureties thereon, of depositing certain United States bonds or notes in an amount equal 

at their par value to the penal sum of the bond, together 

with a duly executed power of attorney and agreement authorizing the collection or sale of such United States bonds 

or notes in the event of default of the principal on the bond. 

The Contracting Officer shall turn these securities over to 

the Office of Finance and Administration for safekeeping 

and/or deposit. 

(2) Certified or cashier’s checks, bank drafts, money orders, currency, or irrevocable letters of credit. Any person 

required to furnish a bond has the option, in lieu of furnishing surety or sureties thereon, of depositing a certified or 

cashier’s check, a bank draft, a Post Office money order, 

currency, or an irrevocable letter of credit, in an amount 

equal to the penal sum of the bond. Certified or cashier’s 

checks, bank drafts, or Post Office money orders shall be 

drawn to the order of the GPO. 

(3) Consent of surety. In connection with any amendment, modification, or supplemental agreement with respect to which the waiver of notice to the surety contained 

in the bond form is inapplicable and which would otherwise effect the release of a surety, or in any other situation 

as prescribed by each agency, the Contracting Officer shall 

obtain the written consent thereto of the surety or sureties 

on the existing bond or bonds (notwithstanding the fact that 

there may be an additional bond supported by a new surety) 

provided, that no such consent need be obtained if there is 

an increased or additional bond supported by the same 

surety or sureties. 

(4) Furnishing information to sureties. The surety on

any bond executed in connection with a Government contract, upon its written request, shall be furnished with information as to the progress of the work, payments, and the 

estimated percentage of completion. 

SECTION 15. PROCUREMENT INTEGRITY 

1. General

(a) This section implements section 27 of the Office of

Federal Procurement Policy Act (41 U.S.C. 423), as amended 

by section 814 of the Fiscal Year 1990/1991 National Defense 

Authorization Act, Public Law 101-189, section 815 of the 

Fiscal Year 1991 National Defense Authorization Act, Public 

Law 101-510, and section 4304 of the Fiscal Year 1996 National Defense Authorization Act, Public Law 104-106 (hereinafter, the Office of Federal Procurement Policy Act, as 

amended, is referred to as “the Act”). Supplementation of this 

Instruction must be approved at a level not lower than the 

Managing Director, Customer Services. 

(b) Agency employees are reminded that there are other

statutes and regulations that deal with the same or related prohibited conduct, for example: 

(1) The offer or acceptance of a bribe or gratuity is prohibited by 18 U.S.C. 201, 5 U.S.C. 7353, and GPO Instruction 655.3A, Standards of Conduct for Government 

Printing Office Officers and Employees; 

(2) GPO Instruction 655.3A precludes a Government

employee from participating personally and substantially in 

any particular matter that would affect the financial interests of any person from whom the employee is seeking employment; 

(3) Post-employment restrictions on the Public Printer

and the Deputy Public Printer are contained in 18 U.S.C. 

207, which prohibits certain activities by former Government employees, including representation of a contractor 

before the Government in relation to any contract or other 
 GENERAL I–25 

particular matter involving specific parties on which the 

former employee participated personally and substantially 

while employed by the Government; 

(4) GPO Instruction 825.12, Proprietary Information and 

Trade Secrets, places restrictions on the release of information related to procurements and other contractor information which must be protected under 18 U.S.C. 1905; 

(5) Other laws such as the Privacy Act (5 U.S.C. 552a) 

and the Trade Secrets Act (18 U.S.C. 1905) may preclude 

release of information both before and after award (see 

subsection 5); and 

(6) Use of nonpublic information to further an employee’s private interest or that of another and engaging in 

a financial transaction using nonpublic information are 

covered by GPO Instruction 655.3A. 

2. Applicability. 

(a) The restrictions at subsection 4(a) and (b) apply beginning January 1, 1997, to the conduct of every Federal agency 

procurement using competitive procedures for the acquisition 

of supplies or services from non-Federal sources using appropriated funds. 

(b) The requirements of subsection 4(c) apply beginning 

January 1, 1997, in connection with every Federal agency procurement using competitive procedures, for a contract expected to exceed $100,000. Such requirements do not apply 

after the contract has been awarded or the procurement has 

been canceled. 

(c) The post-employment restrictions at subsection 4(d) apply to any former official of a Federal agency, for services 

provided or decisions made on or after January 1, 1997. 

(d) Former officials of a Federal agency whose employment by a Federal agency ended before January 1, 1997, are 

subject to the restrictions imposed by 41 U.S.C. 423 as it existed before Public Law 104-106. Solely for the purpose of 

continuing those restrictions on those officials to the extent 

they were imposed prior to January 1, 1997, the provisions of 

41 U.S.C. 423 as it existed before Public Law 104-106 apply 

through December 31, 1998. 

3. Definitions. 

“Agency ethics official” means the attorney within the Office of the General Counsel designated to serve as Ethics Officer, currently the Deputy General Counsel. 

“Compensation” means wages, salaries, honoraria, commissions, professional fees, and any other form of compensation, provided directly or indirectly for services rendered. 

Compensation is indirectly provided if it is paid to an entity 

other than the individual, specifically in exchange for services 

provided by the individual. 

“Contract,” for purposes of the post-employment restrictions at Section 4(d), includes both competitively awarded and 

non-competitively awarded contracts. 

“Contractor bid or proposal information” means any of the 

following information submitted to a Federal agency as part of 

or in connection with a bid or proposal to enter into a Federal 

agency procurement contract, if that information has not been 

previously made available to the public or disclosed publicly: 

(1) Cost or pricing data as defined by section 304A(h) of 

the Federal Property and Administrative Services Act of 

1949 (41 U.S.C. 254b(h)). 

(2) Indirect costs and direct labor rates. 

(3) Proprietary information about manufacturing processes, operations, or techniques marked by the contractor in 

accordance with applicable law or regulation. 

(4) Information marked by the contractor as “contractor 

bid or proposal information” in accordance with applicable 

law or regulation. 

(5) Information marked by the contractor as restricted 

data. 

“Decision to award a subcontract or modification of subcontract” means a decision to designate award to a particular source. 

“Federal agency” has the meaning provided such term in 

section 3 of the Federal Property and Administrative Services 

Act of 1949 (40 U.S.C. 472), and includes the GPO. 

“Federal agency procurement” means the acquisition (by 

using competitive procedures and awarding a contract) of 

goods or services (including construction) from non-Federal 

sources by a Federal agency using appropriated funds. For 

broad agency announcements and small business innovative 

research programs, each proposal received by an agency shall 

constitute a separate procurement for purposes of the Act. 

“In excess of $10,000,000” means: 

(1) The value, or estimated value, at the time of award of 

the contract, including all options; 

(2) The total estimated value at the time of award of all 

orders under an indefinite-delivery, indefinite-quantity, or 

requirements contract; 

(3) Any multiple award schedule contract unless the 

Contracting Officer documents a lower estimate; 

(4) The value of a delivery order, task order, or an order 

under a Basic Ordering Agreement; 

(5) The amount paid or to be paid in settlement of a 

claim; or 

(6) The estimated monetary value of negotiated overhead or other rates when applied to the Government portion 

of the applicable allocation base. 

“Official” means: 

(1) An officer, as defined in 5 U.S.C. 2104. 

(2) An employee, as defined in 5 U.S.C. 2105. 

(3) A member of the uniformed services, as defined in 5 

U.S.C. 2101(3). 

(4) A special Government employee, as defined in 18 

U.S.C. 202. 

“Participating personally and substantially in a Federal 

agency procurement” is defined as follows: 

(1) Active and significant involvement of the individual 

in any of the following activities directly related to that 

procurement: 

(i) Drafting, reviewing, or approving the specification 

or statement of work for the procurement. 

(ii) Preparing or developing the solicitation. 

(iii) Evaluating bids or proposals, or selecting a 

source. 

(iv) Negotiating price or terms and conditions of the 

contract. 
I–26 GPO PRINTING PROCUREMENT REGULATION 

(v) Reviewing and approving the award of the contract. 

(2) “Participating personally” means participating directly, and includes the direct and active supervision of a 

subordinate’s participation in the matter; 

(3) “Participating substantially” means that the employee’s involvement is of significance to the matter. Substantial participation requires more than official 

responsibility, knowledge, perfunctory involvement, or involvement on an administrative or peripheral issue. Participation may be substantial even though it is not 

determinative of the out-come of a particular matter. A 

finding of substantiality should be based not only on the effort devoted to a matter, but on the importance of the effort. 

While a series of peripheral involvements may be insubstantial, the single act of approving or participating in a 

critical step may be substantial. However, the review of 

procurement documents solely to determine compliance 

with regulatory, administrative, or budgetary procedures, 

does not constitute substantial participation in a procurement. 

(4) Generally, an individual will not be considered to 

have participated personally and substantially in a procurement solely by participating in the following activities: 

(i) Agency level boards, panels, or other advisory 

committees that review program milestones or evaluate 

and make recommendations regarding alternative technologies or approaches for satisfying broad agency level 

missions or objectives; 

(ii) The performance of general, technical, engineering, or scientific effort having broad application not directly associated with a particular procurement, 

notwithstanding that such general, technical, engineering, or scientific effort subsequently may be incorporated into a particular procurement; 

(iii) Clerical functions supporting the conduct of a 

particular procurement; and 

(iv) For procurements to be conducted under the procedures of OMB Circular A–76, participation in management studies, preparation of in-house cost estimates, 

preparation of “most efficient organization” analyses, 

and furnishing of data or technical support to be used by 

others in the development of performance standards, 

statements of work, or specifications. 

“Source selection evaluation board” means any board, 

team, council, or other group that evaluates bids or proposals. 

“Source selection information” means any of the following 

information which is prepared for use by a Federal agency for 

the purpose of evaluating a bid or proposal to enter into a Federal agency procurement contract, if that information has not 

been previously made available to the public or disclosed publicly: 

(1) Bid prices submitted in response to a Federal agency 

invitation for bids, or lists of those bid prices before bid 

opening. 

(2) Proposed costs or prices submitted in response to a 

Federal agency solicitation, or lists of those proposed costs 

or prices. 

(3) Source selection plans. 

(4) Technical evaluation plans. 

(5) Technical evaluations of proposals. 

(6) Cost or price evaluations of proposals. 

(7) Competitive range determinations that identify proposals that have a reasonable chance of being selected for 

award of a contract. 

(8) Rankings of bids, proposals, or competitors. 

(9) Reports and evaluations of source selection panels, 

boards, or advisory councils. 

(10) Other information marked as “SOURCE SELECTION INFORMATION—SEE FAR 3.104” based on a 

case-by-case determination by the head of the agency or 

designee, or the Contracting Officer, that its disclosure 

would jeopardize the integrity or successful completion of 

the Federal agency procurement to which the information 

relates. 

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

(a) Prohibition on disclosing procurement information 

(subsection 27(a) of the Act). 

(1) A person described in paragraph (a)(2) of this subsection shall not, other than as provided by law, knowingly 

disclose contractor bid or proposal information or source 

selection information before the award of a Federal agency 

procurement contract to which the information relates. (See 

subsection 5(a). 

(2) Paragraph (a)(1) of this subsection applies to any 

person who: 

(i) Is a present or former official of the United States, 

or a person who is acting or has acted for or on behalf 

of, or who is advising or has advised the United States 

with respect to, a Federal agency procurement; and 

(ii) By virtue of that office, employment, or relationship, has or had access to contractor bid or proposal information or source selection information. 

(b) Prohibition on obtaining procurement information 

(subsection 27(b) of the Act). A person shall not, other than as 

provided by law, knowingly obtain contractor bid or proposal 

information or source selection information before the award 

of a Federal agency procurement contract to which the information relates. 

(c) Actions required of agency officials when contacted by 

offerors regarding non-Federal employment (subsection 27(c) 

of the Act). If an agency official who is participating personally and substantially in a Federal agency procurement for a 

contract in excess of $100,000 contacts or is contacted by a 

person who is a bidder or offeror in that Federal agency procurement regarding possible non-Federal employment for that 

official, the official shall— 

(1) Promptly report the contact in writing to the official’s supervisor and to the designated agency ethics official (or designee) of the agency in which the official is 

employed; and 

(2) (i) Reject the possibility of non-Federal employment; 

or 

(ii) Disqualify himself or herself from further personal 

and substantial participation in that Federal agency procurement (see subsection 6) until such time as the agency 

has authorized the official to resume participation in such 
GENERAL I–27

procurement, in accordance with applicable agency regulations, on the grounds that— 

(A) The person is no longer a bidder or offeror in that

Federal agency procurement; or 

(B) All discussions with the bidder or offeror regarding possible non-Federal employment have terminated 

without an agreement or arrangement for employment. 

(d) Prohibition on former official’s acceptance of compensation from a contractor (subsection 27(d) of the Act) 

(1) A former official of a Federal agency may not accept

compensation from a contractor as an employee, officer, director, or consultant of the contractor within a period of 1 

year after such former official— 

(i) Served, at the time of selection of the contractor or

the award of a contract to that contractor, as the procuring Contracting Officer, the source selection authority, a 

member of a source selection evaluation board, or the 

chief of a financial or technical evaluation team in a 

procurement in which that contractor was selected for 

award of a contract in excess of $10,000,000; 

(ii) Served as the program manager, deputy program

manager, or administrative Contracting Officer for a 

contract in excess of $10,000,000 awarded to that contractor; or 

(iii) Personally made for the Federal agency—

(A) A decision to award a contract, subcontract,

modification of a contract or subcontract, or a task 

order or delivery order in excess of $10,000,000 to 

that contractor; 

(B) A decision to establish overhead or other rates

applicable to a contract or contracts for that contractor that are valued in excess of $10,000,000; 

(C) A decision to approve issuance of a contract

payment or payments in excess of $10,000,000 to 

that contractor; or 

(D) A decision to pay or settle a claim in excess of

$10,000,000 with that contractor. 

(2) Nothing in paragraph (d)(1) of this subsection may

be construed to prohibit a former official of a Federal 

agency from accepting compensation from any division or 

affiliate of a contractor that does not produce the same or 

similar products or services as the entity of the contractor 

that is responsible for the contract referred to in paragraph 

(d)(1) of this subsection. 

5. Disclosure, protection, and marking of contractor bid or

proposal information and source selection information.

(a) Except as specifically provided for in this subsection, no

person or other entity may disclose contractor bid or proposal 

information or source selection information to any person 

other than a person authorized, in accordance with applicable 

agency regulations or procedures, by the head of the agency or 

designee, or the Contracting Officer, to receive such information. 

(b) Contractor bid or proposal information and source selection information shall be protected from unauthorized disclosure in accordance with applicable law, and agency 

regulations. 

(c) In determining whether particular information is source

selection information, see the definition in subsection 3 and 

consult with agency officials as necessary. Individuals responsible for preparing material that may be source selection information under paragraph (l0) of the definition shall mark the 

cover page and each page that the individual believes contains 

source selection information with the legend “SOURCE 

SELECTION INFORMATION—SEE FAR 3.104.” Although 

the information in paragraphs (1) through (9) of the definition 

in FAR 3.104–3 is considered to be source selection information whether or not marked, all reasonable efforts shall be 

made to mark such material with the same legend. 

(d) Except as provided in paragraph (d)(4) of this subsection, if the Contracting Officer believes that information 

marked as proprietary is not proprietary, information otherwise marked as contractor bid or proposal information is not 

contractor bid or proposal information, or information marked 

in accordance with GPO Instruction 825.12 is inappropriately 

marked, the contractor that has affixed the marking shall be 

notified in writing and given an opportunity to justify the 

marking. 

(1) If the contractor agrees that the marking is not justified, or does not respond within the time specified in the 

notice, the Contracting Officer may remove the marking 

and the information may be released. 

(2) If, after reviewing any justification submitted by the

contractor, the Contracting Officer determines that the 

marking is not justified, the Contracting Officer shall notify 

the contractor in writing. 

(3) Information marked by the contractor as proprietary,

otherwise marked as contractor bid or proposal information, or marked in accordance with GPO Instruction 

825.12, shall not be released until: 

(i) The review of the contractor’s justification has

been completed; or 

(ii) The period specified for the contractor’s response

has elapsed, whichever is earlier. Thereafter, the Contracting Officer may release the information. 

(4) With respect to technical data that are marked proprietary by a contractor, the Contracting Officer shall generally follow the procedures in GPO Instruction 825.12. 

(e) Nothing in this section restricts or prohibits—

(1) A contractor from disclosing its own bid or proposal

information or the recipient from receiving that information; 

(2) The disclosure or receipt of information, not otherwise protected, relating to a Federal agency procurement 

after it has been canceled by the Federal agency, before 

contract award, unless the Federal agency plans to resume 

the procurement; 

(3) Individual meetings between a Federal agency official and an offeror or potential offeror for, or a recipient of, 

a contract or subcontract under a Federal agency procurement, provided that unauthorized disclosure or receipt of 

contractor bid or proposal information or source selection 

information does not occur; or 

(4) The Government’s use of technical data in a manner

consistent with the Government’s rights in the data. 

(f) Nothing in this subsection shall be construed to authorize— 

(1) The withholding of any information pursuant to a

proper request from the Congress, any committee or sub-
I–28 GPO PRINTING PROCUREMENT REGULATION 

committee thereof, a Federal agency, the Comptroller General, or an Inspector General of a Federal agency, except as 

otherwise authorized by law or regulation. Any such release which contains contractor bid or proposal information 

or source selection information shall clearly notify the recipient that the information or portions thereof are contractor bid or proposal information or source selection 

information related to the conduct of a Federal agency procurement, the disclosure of which is restricted by section 27 

of the Act; 

(2) The withholding of information from, or restricting

its receipt by, the Comptroller General of the United States 

in the course of a protest against the award or proposed 

award of a Federal agency procurement contract; 

(3) The release of information after award of a contract

or cancellation of a procurement if such information is contractor bid or proposal information or source selection information which pertains to another procurement; or 

(4) The disclosure, solicitation, or receipt of bid or proposal information or source selection information after 

award where such disclosure, solicitation, or receipt is prohibited by law. See subsection 1(b)(5). 

6. Disqualification.

(a) Contacts through agents. Disqualification pursuant to

subsection 4(c)(2) may be required even where contacts are 

through an agent or other intermediary of the agency official 

or an agent or other intermediary of a bidder or offeror. 

(b) Disqualification notice. In addition to submitting the

contact report required by subsection 4(c)(1), an agency official who must disqualify himself or herself pursuant to subsection 4(c)(2)(ii) shall promptly submit to the Managing 

Director, Customer Services, or designee, a written notice of 

disqualification from further participation in the procurement. 

Concurrent copies of the notice shall be submitted to the Contracting Officer, the source selection authority if the Contracting Officer is not the source selection authority, and the 

agency official’s immediate supervisor. As a minimum, the 

notice shall: 

(1) Identify the procurement;

(2) Describe the nature of the agency official’s participation in the procurement and specify the approximate dates 

or time period of participation; and 

(3) Identify the bidder or offeror and describe its interest

in the procurement. 

(c) Resumption of participation in a procurement.

(1) The individual shall remain disqualified until such

time as the agency has authorized the official to resume 

participation in the procurement in accordance with subsection 4(c)(2)(ii). 

(2) Subsequent to a period of disqualification, if an

agency wishes to reinstate the agency official to participation in the procurement, the Managing Director, Customer 

Services, or designee may authorize immediate reinstatement or may authorize reinstatement following whatever 

additional period of disqualification the Managing Director, 

Customer Services, determines is necessary to ensure the 

integrity of the procurement process. In determining that 

any additional period of disqualification is necessary, the 

Managing Director, Customer Services, or designee shall 

consider any factors that might give rise to an appearance 

that the agency official acted without complete impartiality 

with respect to issues involved in the procurement. The 

Managing Director, Customer Services, or designee shall 

consult with the agency ethics official in making a determination to reinstate an official. Decisions to reinstate an employee should be in writing. It is within the discretion of the 

Managing Director, Customer Services, or designee, to determine that the agency official shall not be reinstated to 

participation in the procurement. 

(3) An employee must comply with the provisions of

GPO Instruction 655.3A regarding any resumed participation in a procurement matter. An employee may not be reinstated to participate in a procurement matter affecting the 

financial interest of someone with whom they are seeking 

employment, unless they receive a waiver pursuant to GPO 

Instruction 655.3A or an authorization in accordance with 

the requirements of GPO Instruction 655.3A, as appropriate. 

7. Ethics advisory opinions regarding prohibitions on a

former official’s acceptance of compensation from a contractor.

(a) An official or former official of a Federal agency who

does not know whether they are or would be precluded by 

subsection 27(d) of the Act (see subsection 4(d)) from accepting compensation from a particular contractor may request advice from the appropriate agency ethics official prior to 

accepting such compensation. 

(b) The request for an advisory opinion shall be submitted

in writing, shall be dated and signed, and shall include all information reasonably available to the official or former official that is relevant to the inquiry. As a minimum, the request 

shall include: 

(1) Information about the procurement(s), or decision(s)

on matters under subsection 4(d)(1)(ii), involving the particular contractor, in which the individual was or is involved, including contract or solicitation numbers, dates of 

solicitation or award, a description of the supplies or services procured or to be procured, and contract amount; 

(2) Information about the individual’s participation in

the procurement or decision, including the dates or time periods of that participation, and the nature of the individual’s 

duties, responsibilities, or actions; and 

(3) Information about the contractor, including a description of the products or services produced by the division or affiliate of the contractor from whom the individual 

proposes to accept compensation. 

(c) Within 30 days after the date a request containing complete information is received, or as soon thereafter as practicable, the agency ethics official shall issue an opinion as to 

whether the proposed conduct is proper or would violate subsection 27(d) of the Act. 

(d) (1) Where complete information is not included in the

request, the agency ethics official may ask the requester to 

provide any information reasonably available to the requester. 

Additional information may also be requested from other persons, including the source selection authority, the Contracting 

Officer, or the requester’s immediate supervisor. 
GENERAL I–29

(2) In issuing an opinion, the agency ethics official may

rely upon the accuracy of information furnished by the requester or other agency sources, unless they have reason to believe that the information is fraudulent, misleading, or 

otherwise incorrect. 

(3) If the requester is advised in a written opinion by the

agency ethics official that the requester may accept compensation from a particular contractor, and accepts such compensation in good faith reliance on that advisory opinion, then 

neither the requester nor the contractor shall be found to have 

knowingly violated subsection 27(d) of the Act. If the requester or the contractor has actual knowledge or reason to believe that the opinion is based upon fraudulent, misleading, or 

otherwise incorrect information, their reliance upon the opinion will not be deemed to be in good faith. 

8. Calculating the period of compensation prohibition.

The 1-year prohibition on accepting compensation (see

subsection 4(d)(1)) begins to run as provided in this subsection: 

(a) If the former official was serving in one of the positions specified in subsection 4(d)(1)(i) on the date of the selection of the contractor, but not on the date of the award of 

the contract, the prohibition begins on the date of the selection of the contractor. 

(b) If the former official was serving in one of the positions specified in subsection 4(d)(1)(i) on the date of the 

award of the contract (whether or not they were serving on 

the date of the selection of the contractor), the prohibition 

begins on the date of the award of the contract. 

(c) If the former official was serving in one of the positions specified in Section 4(d)(1)(ii), the prohibition begins 

on the last date the individual served in that position. 

(d) If the former official personally made one of the decisions specified in subsection 4(d)(1)(iii), the prohibition 

begins on the date the decision was made. 

9. Contract clauses.

(a) The Contracting Officer shall insert the clause at subsection 12, “Cancellation, Rescission, and Recovery of Funds 

for Illegal or Improper Activity,” in solicitations and contracts 

with a value exceeding $100,000. 

(b) The Contracting Officer shall insert the clause at subsection 13, “Price or Fee Adjustment for Illegal or Improper 

Activity,” in solicitations and contracts with a value exceeding 

$100,000. 

10. Violations or possible violations.

(a) If the Contracting Officer receives or obtains information of a violation or a possible violation of subsections 27 (a), 

(b), (c), or (d) of the Act (see subsection 4), the Contracting 

Officer shall determine whether the reported violation or possible violation has any impact on the pending award or selection of the source therefor. 

(1) If the Contracting Officer concludes that there is no

impact on the procurement, the Contracting Officer shall 

forward the information concerning the violation or possible violation, accompanied by appropriate documentation 

supporting that conclusion, to an individual designated in 

accordance with agency procedures. With the concurrence 

of that individual, the Contracting Officer shall, without 

further approval, proceed with the procurement. 

(2) If the individual reviewing the Contracting Officer’s

conclusion does not agree with that conclusion, the individual shall advise the Contracting Officer to withhold 

award and shall promptly forward the information and 

documentation to the Managing Director, Customer Services, or designee. 

(3) If the Contracting Officer concludes that the violation or possible violation impacts the procurement, the 

Contracting Officer shall promptly forward the information 

to the Managing Director, Customer Services, or designee. 

(b) The Managing Director, Customer Services, or designee

receiving any information describing an actual or possible violation of subsections 27 (a), (b), (c), or (d) of the Act, shall review all information available and take appropriate action in 

accordance with agency procedures, such as— 

(1) Advising the Contracting Officer to continue with

the procurement; 

(2) Causing an investigation to be conducted;

(3) Referring the information disclosed to appropriate

criminal investigative agencies; 

(4) Concluding that a violation occurred; or

(5) Recommending an agency head determination that

the contractor, or someone acting for the contractor, has 

engaged in conduct constituting an offense punishable under subsection 27(e) of the Act, for the purpose of voiding 

or rescinding the contract. 

(c) Before concluding that a bidder, offeror, contractor, or

person has violated the Act, the Managing Director, Customer 

Services, or designee may request information from appropriate parties regarding the violation or possible violation when 

considered in the best interests of the Government. 

(d) If the Managing Director, Customer Services, or designee concludes that the prohibitions of section 27 of the Act 

have been violated, the Managing Director, Customer Services, or designee may direct the Contracting Officer to— 

(1) If a contract has not been awarded—

(i) Cancel the procurement;

(ii) Disqualify an offeror; or

(iii) Take any other appropriate actions in the interests of the Government. 

(2) If a contract has been awarded:

(i) Effect appropriate contractual remedies, including profit

recapture as provided for in the clause at subsection 13, “Price 

or Fee Adjustment for Illegal or Improper Activity,” or, if the 

contract has been rescinded under paragraph (d)(2)(ii) of this 

subsection, recovery of the amount expended under the contract; 

(ii) Void or rescind the contract with respect to

which— 

(A) The contractor or someone acting for the contractor

has been convicted for an offense where the conduct

constitutes a violation of subsections 27 (a) or (b) of the

Act for the purpose of either:

(1) Exchanging the information covered by such subsections for anything of value; or

(2) Obtaining or giving anyone a competitive advantage in the award of a Federal agency procurement

contract; or
I–30 GPO PRINTING PROCUREMENT REGULATION 

(B) The head of the agency, or designee, has determined, based upon a preponderance of the evidence, that

the contractor or someone acting for the contractor has

engaged in conduct constituting an offense punishable

under subsection 27(e)(1) of the Act; or

(iii) Take any other appropriate actions in the best interests of the Government. 

(3) Refer the matter to the agency suspension and debarment official. 

(e) The Managing Director, Customer Services, or designee

shall recommend or direct an administrative or contractual 

remedy commensurate with the severity and effect of the violation. 

(f) If the Managing Director, Customer Services, or designee receiving information concerning a violation or possible 

violation determines that award is justified by urgent and 

compelling circumstances, or is otherwise in the interests of 

the Government, the Managing Director, Customer Services, 

may authorize the Contracting Officer to award the contract or 

execute the contract modification after notification to the head 

of the agency in accordance with agency procedures. 

(g) The Managing Director, Customer Services, may delegate his or her authority under this subsection to an individual 

at least one organizational level above the Contracting Officer. 

11. Criminal and civil penalties, and further administrative remedies.

Criminal and civil penalties, and administrative remedies, 

may apply to conduct which violates the Act (see subsection 

4). Conduct which violates the Act may also form the basis for 

bid protests. See subsection 10 for administrative remedies relating to contracts. 

(a) An official who knowingly fails to comply with the requirements of subsection 4 shall be subject to the penalties and 

administrative action set forth in subsection 27(e) of the Act. 

(b) A bidder or offeror who engages in employment discussion with an official subject to the restrictions of Section 4, 

knowing that the official has not complied with Section 

5(c)(1), shall be subject to the criminal, civil or administrative 

penalties set forth in subsection 27(e) of the Act. 

(c) An official who refuses to terminate employment discussions (see subsection 6) may be subject to agency administrative actions under GPO Instruction 655.3A if the official’s 

disqualification from participation in a particular procurement 

interferes substantially with the individual’s ability to perform 

assigned duties. 

12. Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity.

As prescribed in subsection 9(a) insert the following clause 

in solicitations and contracts: 

CANCELLATION, RESCISSION, AND RECOVERY OF 

FUNDS FOR ILLEGAL OR IMPROPER ACTIVITY (MAY 

1999). 

This clause is prescribed for contracts that exceed 

$100,000. 

(a) If the Government receives information that a contractor

or a person has engaged in conduct constituting a violation of 

subsection (a), (b), (c), or (d) of Section 27 of the Office of 

Federal Procurement Policy Act (41 U.S.C. 423) (the Act), as 

amended by section 4304 of the 1996 National Defense Authorization Act for Fiscal Year 1996 (Pub. L. 104-106), the 

Government may— 

(1) Cancel the solicitation, if the contract has not yet

been awarded or issued; or 

(2) Rescind the contract with respect to which—

(i) The contractor or someone acting for the contractor has been convicted for an offense where the conduct 

constitutes a violation of subsection 27 (a) or (b) of the 

Act for the purpose of either— 

(A) Exchanging the information covered by such

subsections for anything of value; or 

(B) Obtaining or giving anyone a competitive advantage in the award of a Federal agency procurement contract; or 

(ii) The Managing Director, Customer Services has

determined, based upon a preponderance of the evidence, that the contractor or someone acting for the contractor has engaged in conduct constituting an offense 

punishable under subsections 27(e)(1) of the Act. 

(b) If the Government rescinds the contract under paragraph (a) of this clause, the Government is entitled to recover, 

in addition to any penalty prescribed by law, the amount expended under the contract. 

(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, regulation, or under this contract. 

13. Price or Fee Adjustment for Illegal or Improper Activity.

As prescribed in subsection 9(b), insert the following 

clause: 

PRICE OR FEE ADJUSTMENT FOR ILLEGAL OR 

IMPROPER ACTIVITY (MAY 1999). 

This clause is prescribed for contracts that exceed 

$100,000. 

(a) The Government, at its election, may reduce the price of

a fixed-price type contract and the total cost and fee under a 

cost-type contract by the amount of profit or fee determined as 

set forth in paragraph (b) of this clause if the Managing Director, Customer Services or designee determines that there was a 

violation of subsection 27 (a), (b), or (c) of the Office of Federal Procurement Policy Act, as amended (41 U.S.C. 423), as 

implemented in section 3.104 of the Federal Acquisition 

Regulation. 

(b) The price or fee reduction referred to in paragraph (a) of

this clause shall be— 

(1) For cost-plus-fixed-fee contracts, the amount of the

fee specified in the contract at the time of award; 

(2) For cost-plus-incentive-fee contracts, the target fee

specified in the contract at the time of award, notwithstanding any minimum fee or “fee floor” specified in the contract; 

(3) For cost-plus-award-fee contracts—

(i) The base fee established in the contract at the time

of contract award; or 
GENERAL I–31

(ii) If no base fee is specified in the contract, 30 percent of the amount of each award fee otherwise payable 

to the contractor for each award fee evaluation period or 

at each award fee determination point. 

(4) For fixed-price-incentive contracts, the Government

may— 

(i) Reduce the contract target price and contract target

profit both by an amount equal to the initial target profit 

specified in the contract at the time of contract award; or 

(ii) If an immediate adjustment to the contract target

price and contract target profit would have a significant 

adverse impact on the incentive price revision relationship under the contract, or adversely affect the contract 

financing provisions, the Contracting Officer may defer 

such adjustment until establishment of the total final 

price of the contract. The total final price established in 

accordance with the incentive price revision provisions 

of the contract shall be reduced by an amount equal to 

the initial target profit specified in the contract at the 

time of contract award and such reduced price shall be 

the total final contract price. 

(5) For firm-fixed-price contracts, by 10 percent of the

initial contract price or a profit amount determined by the 

Contracting Officer from records or documents in existence 

prior to the date of the contract award. 

(c) The Government may, at its election, reduce a prime

contractor’s price or fee in accordance with the procedures of 

paragraph (b) of this clause for violations of the Act by its 

subcontractors by an amount not to exceed the amount of 

profit or fee reflected in the subcontract at the time the subcontract was first definitively priced. 

(d) In addition to the remedies in paragraphs (a) and (c) 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. 

[Reserved] 

II–1 

CHAPTER II. PROCUREMENT REPORTING [RESERVED] 

SECTION 1. GENERAL 

[Reserved] 

III–1 

CHAPTER III. CONTRACTOR LABOR RELATIONS 

SECTION 1. GENERAL 

1. Policy.

(a) It is GPO policy to maintain and encourage the best

possible relations with industry and labor in order that requirements for printing, binding, related supplies, and related 

services may be obtained without delay and at a reasonable 

cost. 

(b) This is not to imply that GPO will become involved in a

contractor’s labor problems. A position shall not be taken on 

the merits of a dispute between private management and labor, 

nor shall conciliation, mediation, or arbitration actions be undertaken. 

2. Contract Administration.

(a) Labor disputes may give rise to work stoppages which

cause delays in the timely performance of GPO contracts. The 

Contracting Officer should impress on contractors that they 

will be held accountable for delays that are reasonably avoidable. It should be emphasized that the standard clauses dealing 

with default, excusable delays, etc., do not relieve contractors 

for delays that are within their control, or their subcontractor’s 

control, such as may be the case with delays precipitated by an 

unfair labor practice of a contractor. 

(b) All printing procurement offices shall cooperate, and

encourage contractors to cooperate, with Federal and state 

agencies responsible for enforcing labor requirements to include health, safety, maximum hours and minimum wages, 

child and convict labor, and equal pay for women. 

SECTION 2. CONVICT LABOR 

1. General. The Act of February 23, 1887 (18 U.S.C. 436),

prohibits the employment of convict labor in contracts entered

into by any Government department or agency.

2. Requirement. In accordance with the policy set forth in the

Act, all contracts shall contain a “Convict Labor” clause. This

clause provides that the contractor agrees not to employ any

person undergoing sentence of imprisonment which has been

imposed by any Federal court or court of a state, the District of

Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, or the Trust Territory of the

Pacific Islands. Reference the Convict Labor clause in GPO

Contract Terms, Publication 310.2, for contents of the clause.

3. Applicability.

(a) The requirement does not prohibit the employment of

persons who: 

(1) are Federal prisoners authorized to work at paid employment; 

(2) are on parole or probation; or

(3) have been pardoned.

(b) The requirement does not apply to a contract—

(1) subject to the provisions of the Walsh-Healey Act

which contains its own provisions relating to the use of 

convict labor; 

(2) for the purchase of supplies and services from Federal Prison Industries, Inc.; or 

(3) for the purchase of finished supplies manufactured in

a state prison and which could be secured in the open market. 

SECTION 3. CONTRACT WORK HOURS AND 

SAFETY STANDARDS ACT (OTHER THAN 

CONSTRUCTION CONTRACTS) 

1. Requirements of the Act.

(a) The Contract Work Hours and Safety Standards Act (40

U.S.C. §§ 327–334) provides that wages for every laborer and 

mechanic be computed on the basis of a standard workweek of 

40 hours. Work in excess of the standard hours is permissible 

provided the employee is compensated at the rate of time and 

one-half the regular wage in excess of the standard hours. 

(b) The contractor is also liable for any wages it has failed

to pay and for additional liquidated damages in the amount of 

$10 per day per employee who has not been paid the required 

overtime. These amounts may be withheld from any payments 

due the contractor from the Government. 

(c) See the “Contract Work Hours and Safety Standard

Act—Overtime Compensation” clause in GPO Contract 

Terms, Publication 310.2, for contents of the clause. 

2. Applicability. The Act applies to all types of contracts,

which involve the use of mechanics or laborers, including apprentices, trainees, watchmen, and guards, except:

(a) Contracts to be performed in foreign countries or territories of the United States except the District of Columbia, 

Puerto Rico, Virgin Islands, Outer Continental Shelf Lands, 

American Samoa, Guam, Wake Island, Eniwetok Atoll, Kwajalein Atoll, and Johnson Island; 

(b) Contracts for the sale of supplies in connection with

which the use of laborers is merely incidental; 
III–2 GPO PRINTING PROCUREMENT REGULATION 

(c) Contracts for materials usually bought in the open market; 

(d) Contracts subject to the provisions of the Walsh-Healey

Act; and 

(e) Contracts of $2,500 or less.

SECTION 4. WALSH-HEALEY PUBLIC CONTRACTS 

ACT 

1. Statutory requirements.

Except for the exemptions at subsection 3, all contracts

subject to the Walsh-Healey Public Contracts Act (41 U.S.C. 

35–45) (Act) and entered into by any executive department, 

independent establishment, or other agency or instrumentality 

of the United States, or by the District of Columbia, or by any 

corporation (all the stock of which is beneficially owned by 

the United States) for the manufacture or furnishing of materials, supplies, articles, and equipment (referred to in this section as supplies) in any amount exceeding $10,000, shall 

include or incorporate by reference the stipulations required 

by the Act pertaining to such matters as minimum wages, 

maximum hours, child labor, convict labor, and safe and sanitary working conditions. See the clause “Walsh-Healey Public 

Contracts Act” in GPO Contract Terms, Publication 310.2. 

2. Applicability.

The requirements in subsection 1 apply to contracts (including for this purpose, indefinite-delivery contracts, basic 

ordering agreements, and blanket purchase agreements) for the 

manufacture or furnishing of supplies that are to be performed 

within the United States, Puerto Rico, or the Virgin Islands, 

and which exceed or may exceed $10,000, unless exempted 

under subsection 3. 

3. Exemptions.

(a) Statutory exemptions. Contracts for acquisition of the

following supplies are exempt from the Act: Any item in those 

situations where the Contracting Officer is authorized by the 

express language of a statute to purchase “in the open market” 

generally or where a specific purchase is made under conditions where immediate delivery is required by the public exigency. 

(b) Regulatory exemptions. (1) Contracts for the following

acquisitions are fully exempt from the Act (see 41 CFR 50–

201.603): 

(i) Supplies manufactured outside the United States,

Puerto Rico, or the Virgin Islands. 

(ii) Purchases against the account of a defaulting contractor where the stipulations of the Act were not included 

in the defaulted contract. 

(iii) Newspapers, magazines, or periodicals, contracted

for with sales agents or publisher representatives, which are 

to be delivered by the publishers thereof. 

(c)(1) Upon the request of the Public Printer, the Secretary 

of Labor may exempt specific contracts or classes of contracts 

from the inclusion or application of one or more of the Act’s 

stipulations; provided, that the request includes a finding by 

the Public Printer stating the reasons why the conduct of Government business will be seriously impaired unless the exemption is granted. 

(2) Those requests for exemption that relate solely to safety

and health standards shall be transmitted to the Assistant Secretary for Occupational Safety and Health, U.S. Department of 

Labor, Washington, DC 20210. All other requests shall be 

transmitted to the Administrator of the Wage and Hour Division, U.S. Department of Labor, Washington, DC 20210. 

4. Rulings and interpretations of the Act.

As authorized by the Act, the Secretary of Labor has issued

rulings and interpretations concerning the administration of 

the Act (see 41 CFR 50–206). The substance of certain rulings 

and interpretations is as follows: 

(a) If a contract for $10,000 or less is subsequently modified to exceed $10,000, the contract becomes subject to the 

Act for work performed after the date of the modification. 

(b) If a contract for more than $10,000 is subsequently

modified by mutual agreement to $10,000 or less, the contract 

is not subject to the Act for work performed after the date of 

the modification. 

(c) If a contract awarded to a prime contractor contains a

provision whereby the prime contractor is made an agent of 

the Government, the prime contractor is required to include 

the stipulations of the Act in contracts in excess of $10,000 

awarded for and on behalf of the Government for supplies that 

are to be used in the construction and equipment of Government facilities. 

(d) If a contract subject to the Act is awarded to a contractor operating Government-owned facilities, the stipulations of 

the Act affect the employees of that contractor the same as 

employees of contractors operating privately owned facilities. 

(e) Indefinite-delivery contracts, including basic ordering

agreements and blanket purchase agreements, are subject to 

the Act unless it can be determined in advance that the aggregate amount of all orders estimated to be placed thereunder for 

1 year after the effective date of the agreement will not exceed 

$10,000. A determination shall be made annually thereafter if 

the contract or agreement is extended, and the contract or 

agreement modified if necessary. 

5. Procedures.

(a) Award. When a contract subject to the Act is awarded,

the Contracting Officer, in accordance with regulations or instructions issued by the Secretary of Labor, shall furnish to the 

contractor DOL publication WH–1313, Notice to Employees 

Working on Government Contracts. 

(b) Breach of stipulation. In the event of a violation of a

stipulation required under the Act, the Contracting Officer 

shall notify the appropriate regional office of the DOL, Wage 

and Hour Division (see subsection 6), and furnish any information available. 

6. Regional jurisdictions of the Department of Labor,

Wage and Hour Division.

Geographic jurisdictions of the following regional offices 

of the DOL, Wage and Hour Division, are shown here, and are 

to be contacted by Contracting Officers in all situations required by this section, unless otherwise specified. 

(a) The Region I office located in Boston, MA, has jurisdiction for Maine, New Hampshire, Vermont, Massachusetts, 

Rhode Island, and Connecticut. 
CONTRACTOR LABOR RELATIONS III–3

(b) The Region II office located in New York, NY, has jurisdiction for New York, New Jersey, Puerto Rico, and the 

Virgin Islands. 

(c) The Region III office located in Philadelphia, PA, has

jurisdiction for Pennsylvania, Maryland, Delaware, Virginia, 

West Virginia, and the District of Columbia. 

(d) The Region IV office located in Atlanta, GA, has jurisdiction for North Carolina, South Carolina, Kentucky, Tennessee, Mississippi, Alabama, Georgia, and Florida. 

(e) The Region V office located in Chicago, IL, has jurisdiction for Ohio, Indiana, Michigan, Illinois, Wisconsin, and 

Minnesota. 

(f) The Region VI office located in Dallas, TX, has jurisdiction for Louisiana, Arkansas, Oklahoma, Texas, and New 

Mexico. 

(g) The Region VII office located in Kansas City, MO, has

jurisdiction for Missouri, Iowa, Nebraska, and Kansas. 

(h) The Region VIII office located in Denver, CO, has jurisdiction for North Dakota, South Dakota, Montana, Wyoming, Colorado, and Utah. 

(i) The Region IX office located in San Francisco, CA, has

jurisdiction for Arizona, California, Nevada, Hawaii, and 

Guam. 

(j) The Region X office located in Seattle, WA, has jurisdiction for Washington, Oregon, Idaho, and Alaska. 

SECTION 5. SERVICE CONTRACT ACT OF 1965 

1. Basic Requirements. The Service Contract Act of 1965 (41

U.S.C. §§ 351, et seq.) requires all contractors holding a Federal service contract to pay their employees engaged in such

work not less than the minimum wage specified in section

6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. §§

201–219) as amended. If a service contract is in excess of

$2,500, the contract shall specify the fringe benefits, working

conditions and minimum wages that service employees will 

receive in accordance with determinations made by the Secretary of Labor. The clause set forth in XVI–4.1 shall be included in all service contracts. 

2. Application. The Service Contract Act applies to contracts

which have as their principal purpose the furnishing of services rather than products. Infrequently, APS will have a requirement which is subject to the Act. These requirements

typically involve either data capture or mailing and distribution services. However, the determination of whether a particular requirement is or is not subject to the Act is often

difficult and involves the interpretation of regulations promulgated by the U.S. Department of Labor.

3. Procedure.

(a) When the Contracting Officer has reason to believe that

a requirement will be subject to the Act, they shall consult 

with APS Printing Procurement Policy and Planning and the 

Office of the General Counsel (to provide a statement of “no 

legal objection”) as to its application. 

(b) When it is determined that the requirement is subject to

the Act, a Standard Form 98, “Notice of Intention to make a 

Service Contract and Response to Notice,” shall be filed with 

the Office of Special Wage Standards, Employment Standards 

Administration, Department of Labor, 30 days prior to any solicitation or commencement of negotiations. When it is not 

possible to comply with this requirement, the Standard Form 

98 shall be filed with the Department of Labor as soon as possible. Award of a contract shall not be delayed awaiting receipt of a wage and benefit determination from the 

Department of Labor. If the Department of Labor subsequently issues such a determination, the contract shall be 

modified accordingly. 

IV–1 

CHAPTER IV. SOCIOECONOMIC PROGRAMS 

SECTION 1. [RESERVED] 

SECTION 2. ACQUISITION FROM PEOPLE WHO 

ARE BLIND OR SEVERELY DISABLED 

1. Scope of Section. This section prescribes the policies and

procedures for implementing the Javits-Wagner-O’Day Act

(41 U.S.C. 46–48c), referred to in this section as “the Act,”

and the rules of the Committee for Purchase from People Who

Are Blind or Severely Disabled (41 CFR part 51). The Federal

Government program implementing the Act is the AbilityOne

Program.

2. Definitions.

“Allocation” means an action taken by a central nonprofit

agency to designate the workshops that will produce definite 

quantities of supplies or perform specific services upon receipt 

of orders from ordering offices. 

“Central nonprofit agency” means the National Industries 

for the Blind (NIB), which has been designated to represent 

workshops serving blind individuals; or the National Industries for the Severely Handicapped (NISH), which has been 

designated to represent workshops serving severely disabled 

individuals other than blind. 

“Committee” means the Committee for Purchase From 

People Who Are Blind or Severely Disabled. 

“Government” or “entity of the Government” means any 

entity of the legislative or judicial branch, any executive 

agency, military department, Government corporation, or independent establishment, the U.S. Postal Service, or any nonappropriated-fund instrumentality of the Armed Forces. 

“Ordering office” means any activity in an entity of the 

Government that places orders for the purchase of supplies or 

services. 

“Procurement List” means a list of supplies (including military resale commodities) and services that the Committee has 

determined are suitable for purchase by the Government under 

the Javits-Wagner-O’Day Act. 

“Workshop for the blind” or “workshop for the other severely handicapped” (referred to jointly as workshops) means 

a qualified nonprofit agency for the blind or for the other severely disabled approved by the Committee to produce a 

commodity for or provide a service to the Government under 

the Act. 

3. General. The Committee is an independent Government activity with members appointed by the President of the United

States. It is responsible for—

(a) Determining those supplies and services to be purchased

by all entities of the Government from workshops for the blind 

and other severely disabled; 

(b) Establishing prices for the supplies and services; and

(c) Establishing rules and regulations to implement the Act.

4. Procurement List.

(a) The Committee publishes a Procurement List of all the

supplies and services required to be purchased from the workshops. The Procurement List is available through the Internet 

or contact the Director, APS Printing Procurement Policy and 

Planning. 

(b) The Internet site for the Procurement List is located at

http://www.abilityone.gov/index.html. 

(c) The Internet site contains not only the Procurement List,

but comprehensive and authoritative guidance on the entire 

AbilityOne Program. 

5. Purchase Priorities. The Act requires the Government to

purchase supplies or services on the Procurement List, at

prices established by the Committee, from qualified workshops if they are available within the period required.

6. Procedures.

(a) General. Ordering offices shall obtain supplies and services on the Procurement List from the central nonprofit 

agency or its designated workshops. 

(b) Compliance with Orders. (1) When a workshop fails to

perform under the terms of an order, the ordering office shall 

make every effort to resolve the noncompliance with the 

workshop involved and to negotiate an adjustment before taking action to cancel the order. If the problem cannot be resolved with the workshop, the ordering office shall refer the 

matter for resolution first to the central nonprofit agency and 

then, if necessary, to the Committee. 

(2) When, after complying with the preceding paragraph,

the ordering office determines that it must cancel an order, it 

shall notify the central nonprofit agency and, if practical, request a reallocation of the order. When the central nonprofit 

agency cannot reallocate the order, it shall grant a purchase 

exception permitting use of commercial sources, subject to 

approval by the Committee when the value of the purchase 

exception is $25,000 or more. 
IV–2 GPO PRINTING PROCUREMENT REGULATION 

7. Purchase Exceptions.

(a) Ordering offices may acquire supplies or services listed

on the Procurement List from commercial sources only if the 

acquisition is specifically authorized in a purchase exception 

granted by the designated nonprofit agency. 

(b) The central nonprofit agency shall promptly grant purchase exceptions when— 

(1) The workshops cannot provide the supplies or services within the time required, and commercial sources can 

provide them earlier in the quantities required; or 

(2) The quantity required cannot be provided economically by the workshops. 

(c) The central nonprofit agency granting the exception

shall specify the quantity and delivery or performance period 

covered by the exception. 

(d) When a purchase exception is granted, the Contracting

Officer shall— 

(1) Initiate purchase action within 15 days following the

date of the exception or any extension granted by the central nonprofit agency; and 

(2) Provide a copy of the solicitation to the central nonprofit agency when it is issued. 

(e) The Committee may also grant a purchase exception

under any circumstances it considers appropriate. 

8. Prices.

(a) The prices on the Procurement List are fair market

prices established by the Committee. 

(b) Prices for supplies are normally adjusted semiannually.

Prices for services are normally adjusted annually. 

(c) The Committee may request APS, through the Director,

APS Printing Procurement Policy and Planning, to assist it in 

establishing or revising the fair market price. The Committee 

has the authority to establish prices without prior coordination 

with a responsible contracting office. 

(d) Price changes shall normally apply to all orders received by the workshop on or after the effective date of the 

change. In special cases, after considering the views of the ordering office, the Committee may make price changes applicable to orders received by the workshop prior to the effective 

date of the change. 

(e) Ordering offices may make recommendations to the

Committee at any time for price revisions for supplies and 

services on the Procurement List. 

9. Quality of Merchandise. Supplies and services provided

by workshops shall comply with the applicable Government

specifications and standards cited in the order. When no specifications or standards exist—

(a) Supplies shall be of the highest quality and equal to

similar items available on the commercial market; and 

(b) Services shall conform to good commercial practices.

10. Quality Complaints.

(a) When the quality of supplies received from workshops

is unsatisfactory, address complaints to the workshop involved, with a copy to the appropriate central nonprofit 

agency. 

(b) When quality problems cannot be resolved by the workshop and the ordering office, the ordering office shall first 

contact the central nonprofit agency and then, if necessary, the 

Committee for resolution. 

11. Specification Changes.

(a) The ordering office shall notify the workshop and appropriate central nonprofit agency of any change in specifications or descriptions. In the absence of such written 

notification, the workshop shall produce the supplies or provide the services under the specification or description cited in 

the order. 

(b) The ordering office shall provide 60-days advance notification to the Committee and the central nonprofit agency on 

actions that affect supplies on the Procurement List and shall 

permit them to comment before action is taken, particularly 

when it involves— 

(1) Changes that require new national stock numbers or

item designations; 

(2) Deleting items from the supply system;

(3) Standardization; or

(4) Developing new items to replace items on the Procurement List. 

(c) When, in order to meet its emergency needs, an ordering office is unable to give the 60-day notification required by 

paragraph (b), the contracting office shall, at the time it places 

the order or change notice, inform the workshop and the central nonprofit agency in writing of the reasons that it cannot 

meet the 60-day notification requirement. 

12. Optional Acquisition of Supplies and Services.

(a) Ordering offices may acquire supplies and services not

included on the Procurement List from a workshop that is the 

low responsive, responsible offeror under a solicitation issued 

by other authorized acquisition methods. 

(b) Ordering offices should forward solicitations to workshops that may be qualified to provide the supplies required. 

13. Communications with the Central Nonprofit Agencies

and the Committee. Any matter requiring referral to the

Committee or central nonprofit agencies shall be coordinated

with the Director, APS Printing Procurement Policy and Planning.

14. Replacement Commodities. When a commodity on the

Procurement List is replaced by another commodity which has

not been previously acquired, and a qualified workshop can

produce the replacement commodity in accordance with the

Government’s quality standards and delivery schedules and at

a fair market price, the replacement commodity is automatically on the Procurement List and shall be acquired from the

workshop designated by the Committee. The commodity being replaced shall continue to be included on the Procurement

List until there is no longer a requirement for that commodity.

15. Identification of a Procurement Action as Part of the

AbilityOne Program. “An AbilityOne Program Procurement” or similar language shall be placed on the first page of

the specifications, on the purchase order, and on each print order.
SOCIOECONOMIC PROGRAMS IV–3

SECTION 3. RECOVERED MATERIALS 

Procurement Instruction 312.1B, Use of Recovered Materials, is incorporated by reference with the same effect as if appearing in full text. 

V–1 

CHAPTER V. TRANSPORTATION AND TRAFFIC MANAGEMENT 

SECTION 1. DEFINITIONS 

1. F.O.B. Contractor’s City. The term “f.o.b. contractor’s

city” means free of expense to the Government delivered: (a)

if stated in the solicitation, on board the indicated type of conveyance of the carrier (or of the Government, if specified) at a

Government-designated point in the city, county, and State or

commercial zone (as prescribed by the Federal Motor Carrier

Safety Administration at subpart B of 49 CFR part 372); (b) if

stated in the solicitation, to a U.S. Postal Service facility; or,

(c) if not stated in the solicitation, on board the indicated type

of conveyance of the carrier (or of the Government, if specified) at the shipping point, which the contractor identified in

its offer. All shipments made outside the shipping point,

whether Government-designated or contractor-offered, will be

made at Government expense.

2. F.O.B. Destination. The term “f.o.b. destination” means

free of expense to the Government, delivered on board the carrier’s conveyance, at a specified delivery point where the consignee’s facility is located, including delivery to specific

rooms when so specified. The term “facility” means plant,

warehouse, store, lot, or other location to which shipment can

be made. All transportation expenses incurred in the delivery

of the finished product shall be borne by the contractor.

3. Government Bill of Lading (GBL). A GBL is an accountable transportation document, authorized and prepared by a

Government official and is used as a receipt of goods.

SECTION 2. LIABILITY 

1. F.O.B. Contractor’s City. The contractor shall be liable

for insuring safe delivery of all items delivered within the contractor’s commercial zone. The Government shall be liable for

the safe delivery of all other shipments, provided that the contractor has met all requirements of the contract relative to

packing and shipping.

2. F.O.B. Destination. The contractor shall be liable for insuring safe delivery of all items delivered to the point(s) of destination specified in the contract.

3. GBL. The Government shall be liable for safe delivery of

shipments picked up by the designated carrier.

SECTION 3. DETERMINATION OF F.O.B. STATUS 

1. General. Contracts for which definite delivery information

and instructions are available shall be designated as “f.o.b.

destination” except:

(a) When the requisition is accompanied by Government

bills of lading (GBL) or whenever the requisition indicates 

that GBL’s will be furnished by the ordering agency. 

(b) Orders for which the distribution list is not available at

the time the specifications are written. 

(c) Orders that are classified, sensitive, or require exclusive

use of a vehicle. 

(d) All bulk shipments for the military, regardless of

weight, that ship to overseas or foreign destinations, and a foreign or overseas consignment, for any agency, that exceeds 

20,000 pounds to a single destination. 

(e) Shipments that exceed 20,000 pounds to a single destination, unless, in the opinion of the Contracting Officer: 

(1) evaluation of f.o.b. contractor’s city offers would result in delay of award; or 

(2) there is inadequate time to issue GBL’s for an atdestination procurement. 

(f) GBL’s will be furnished for any shipments designated to

ship f.o.b. contractor city, except for shipments to deliver to a 

point within the same commercial zone as the contractor indicated as the shipping point in its offer. If, however, the Contracting Officer deems it advisable and desirable to order 

certain or all shipments made by parcel post or small parcel 

carrier, and the contractor is so directed, all costs thereof must 

be prepaid by the contractor. The contractor shall be reimbursed for such costs upon presentation with the voucher of 

parcel post or small-parcel carrier receipts, properly filled out, 

stamped or receipted by the Postal Service or small-parcel carrier. Refer to the “Payments on Purchase Order” clause in 

GPO Contract Terms, Publication 310.2. The method of shipping will be furnished with each order. Instructions for the 

preparation and distribution of GBL’s will be furnished with 

the GBL’s. The contractor’s contractual obligations will not be 

considered satisfied until it has complied with these instructions. 

SECTION 4. CHANGE IN F.O.B. STATUS 

1. General. If, after contract award, the Contracting Officer

makes a change in the contractor’s f.o.b. status, the procedures

in this section shall be followed.
V–2 GPO PRINTING PROCUREMENT REGULATION 

2. Change From F.O.B. Contractor’s City to F.O.B. Destination. Should a contract which was awarded with delivery

terms of f.o.b. contractor’s city be changed to f.o.b. destination, the Transportation and Logistics Branch, Quality Control

& Inventory Management Division (QC & IMD), shall be notified immediately. The contractor shall be advised to return

any GBL’s that have been issued. The contractor will be reimbursed for the incurred additional shipping costs not included

in the original bid. The Contracting Officer shall request from

the contractor a submission of the additional transportation

charges incurred by the change to f.o.b. destination. Additionally, the Contracting Officer shall request from the Transportation and Logistics Branch, QC & IMD, an estimate of the

transportation costs for the order. Upon receipt, these two sets

of charges shall be compared. If the contractor’s charges are

less than or equal to the estimate, the Contracting Officer shall

issue a contract modification in an amount equal to the contractor’s claim for the additional transportation charges. If the

contractor claims the charges are greater than the amount estimated, additional documentation will be necessary to verify

the accuracy of the charges. If, with assistance from the

Transportation and Logistics Branch, QC & IMD, the additional charges are deemed to be fair and reasonable, a contract

modification shall be issued for the amount claimed. However,

if there is still doubt about the legitimacy of the charges, the

Contracting Officer may request an audit of the charges. Prior

to the audit, a contract modification less than or equal to the

estimate may be issued and then an adjustment made, if

needed, following the audit report. The Contracting Officer

shall ensure that the Government receives consideration for

changes made at the contractor’s request. The Chief, Transportation and Logistics Branch, QC & IMD, shall furnish the

specific information upon which the estimate is based when

requested by the Contracting Officer, (i.e., tender numbers,

carriers, prices, etc.).

3. Change From F.O.B. Destination to F.O.B. Contractor’s

City

(a) General. In the event the contractor has quoted prices

f.o.b. destination, the Contracting Officer may, at his or her

option, order material shipped f.o.b. contractor’s city and furnish GBL’s for such shipments. GBL’s shall be ordered for the

contractor through the Transportation and Logistics Branch,

QC & IMD, in accordance with VI–6.

(b) Primary Method. In cases where the Contracting Officer changes f.o.b. destination to f.o.b. contractor’s city, a deduction of the cost will be made from the contractor’s 

voucher. If shipments are ordered by parcel post, or any premium method, a deduction of the applicable published commercial freight cost will be made from the voucher, and 

adjustment will be made for any premium shipping costs prepaid by the contractor upon presentation with the voucher of 

parcel post receipts properly filled out, stamped, or receipted 

by the post office; freight receipts indicating the actual pickup 

date and the signature of the carrier; or any other receipt form 

evidencing payment of postage or shipping costs which may 

be acceptable to the Contracting Officer. Parcel post charges 

or freight charges must be included on Standard Form 1034 as 

a separate item, supported by the paid receipts. Such receipts 

cannot be returned as they become a permanent part of the 

contract file. 

(c) Alternate Method. A contract change of this nature

would require the Contracting Officer to obtain from the contractor a breakdown of the transportation charges contained in 

its original bid. The amount of the purchase order reduction 

shall be determined by comparing the transportation costs as 

indicated on the issued GBL’s to the transportation cost 

breakdown submitted by the contractor. If the claim of the 

contractor is equal to or greater than the GBL charges, the 

purchase order shall be reduced in the amount of the claim. If 

the claim is less than the amount of the GBL’s, the Contracting Officer can require an audit or any other additional documentation necessary to reach a fair and reasonable settlement. 

A contract modification shall be issued by the Contracting Officer reflecting the negotiated reduction in contract price. The 

Chief, Transportation and Logistics Branch, QC & IMD, shall 

furnish the specific information upon which the GBL charges 

are based when requested by the Contracting Officer (i.e., tender numbers, carriers, prices, etc.). 

SECTION 5. REQUEST FOR FREIGHT RATES 

Freight rate requests needed in the certification and award 

process to determine the lowest overall bidder, shall be made 

to the Transportation and Logistics Branch, QC & IMD, on a 

local form, and in a manner similar to that shown in exhibit 

V–1. The results of telephonic freight rate requests to the 

Transportation and Logistics Branch, QC & IMD, from GPO’s 

Regional Offices shall also be recorded on such form which 

shall serve as a permanent record in the contract file. The request to the Transportation and Logistics Branch, QC & IMD, 

shall include two copies of the form, specifications, and distribution lists. The Chief, Transportation and Logistics Branch, 

QC & IMD, shall furnish the specific information upon which 

the freight rates are based when requested by the Contracting 

Officer (i.e., tender numbers, carriers, prices, etc.). 

SECTION 6. ORDERING BILLS OF LADING 

1. General. All GBL’s required by APS shall be ordered

through the Transportation and Logistics Branch, QC & IMD.

The only exception shall be those GBL’s furnished with the

requisition by, and in the name of, the ordering agency. The

ordering agency shall assume full responsibility for those

GBL’s which they furnish. They shall be furnished to the contractor by APS personnel. For those GBL’s processed through

the Transportation and Logistics Branch, QC & IMD, they

shall furnish instructions to the contractor as to how to complete the GBL and distribute the various copies thereof. The

Transportation and Logistics Branch, QC & IMD, shall furnish the GBL’s directly to the contractor by certified mail (return receipt requested) or overnight carrier.

2. Procedure. GBL’s shall be ordered from the Transportation

and Logistics Branch, QC & IMD, by completing GPO Form

583, “Request for Bills of Lading.” The Transportation and

Logistics Branch, QC & IMD, shall be furnished the completed GPO Form 583, any GBL’s furnished by the ordering

agency, along with two copies of the specifications and/or two

copies of distribution lists. A copy of the requisition (SF–1)
TRANSPORTATION AND TRAFFIC MANAGEMENT V–3 

shall be furnished when the order is classified or upon request 

of the Transportation and Logistics Branch, QC & IMD. The 

Transportation and Logistics Branch, QC & IMD, shall mail 

the GBL’s to the contractor and the return receipt shall serve 

as APS’s record of receipt or the Transportation and Logistics 

Branch, QC & IMD, may use overnight carrier. 

SECTION 7. “CERTIFICATE OF CONFORMANCE,” 

GPO Form 712 

1. General. The use of GPO Form 712 shall be required in

conjunction with Postal Service Form 3615 “Application to

Mail Without Affixing Postage Stamps,” on all one-time procurements and term contracts that require the use of Government-furnished permit imprint (penalty) mailing.

2. Procedures. To ensure the correct disposition of permit imprint (penalty) mail by suppliers and reimbursement to the

Postal Service for mailing services, the following applies:

(a) The customer agency will obtain a mailing permit imprint from the Postal Service for the class of mail intended to 

be used and forward a completed P.S. Form 3615 to GPO attached to the requisition. 

(b) IFBs for procurements requiring suppliers to use permit

imprint mail shall include: 

(1) That permit imprint class or rate endorsement is correctly described. 

(2) The statement “Bidder must specify in the bid the

address of the post office which will be used.” 

(3) The clause:

Certificate of Conformance: When using “Permit imprint” labels 

the contractor must use GPO Form 712, “Certificate of Conformance,” in conjunction with P.S. Form 3615 “Applications to 

Mail Without Affixing Postage Stamps” which shall be supplied 

by the GPO. Two copies of this certificate of conformance must 

accompany the contractor’s billing. Mailings shall be made in accordance with “Certificate of Conformance—Terms and Conditions,” which appear on the back of GPO Form 712. Failure to 

submit this certificate will delay payment. 
V–4 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT V–1 

REQUEST FOR FREIGHT RATES

CUSTOMER SERVICES – AGENCY PUBLISHING SERVICES

Please furnish the shipping costs to be applied in determining the low bid on Jacket _______________ 

shipping f.o.b. contractor's city in accordance with the attached shipping instructions. 

Please return to Customer Services by ___________________________________________________ 

Product ___________________________________________________________________________ 

 No. 1 No. 2 No. 3 No. 4 

Lbs. Per 1,000 Copies 

 of Product

Contractor's City 

 State/Zip Code 

Bid Price 

Discount 

Net Bid 

Shipping Cost 

Total 

 No. 5 No. 6 No. 7 No. 8 

Lbs. Per 1,000 Copies 

 of Product

Contractor's City 

 State/Zip Code 

Bid Price 

Discount 

Net Bid 

Shipping Cost 

Total 

Certifier _______________________________ Team or Region _________________________

Date _________________________________ 

 Freight Rate Specialist ___________________

Phone ________________________________ Date __________________________________
VI–1 

CHAPTER VI. CONTRACT FINANCING 

SECTION 1. CONTRACT COST PRINCIPLES AND 

PROVISIONS 

1. Scope. This section describes the applicability of the cost

principles and provisions.

2. Definitions. When used in cost principles and provisions,

the following terms shall have the meaning contained in this

section:

“Accrued benefits cost method” means an actuarial cost 

method under which units of benefit are assigned to each cost 

accounting period and are valued as they accrue; i.e., based on 

the services performed by each employee in the period involved. The measure of normal cost under this method for 

each cost accounting period is the present value of the units of 

benefit deemed to be credited to employees for service in that 

period. The measure of the actuarial liability at a plan’s inception date is the present value of the units of benefit credited to 

employees for service prior to that date. (This method is also 

known as the unit credit cost method.) 

“Accumulating costs” means collecting cost data in an organized manner such as through a system of accounts. 

“Actual cash value” means the cost of replacing damaged 

property with other property of like kind and quality in the 

physical condition of the property immediately before the 

damage. 

“Actuarial assumption” means a prediction of future conditions affecting pension costs; e.g., mortality rate, employee 

turnover, compensation levels, pension fund earnings, and 

changes in values of pension fund administrative expenses, 

and which assigns the cost of such benefits and expenses to 

cost accounting periods. 

“Actuarial gain and loss” means the effect on pension cost 

resulting from differences between actuarial assumptions and 

actual experience. 

“Actuarial liability” means pension cost attributable, under 

the actuarial cost method in use, two years before the date of a 

particular actuarial valuation. As of such date, the actuarial liability represents the excess of the present value of the future 

benefits and administrative expenses over the present value of 

future contributions, for the normal cost for all plan participants and beneficiaries. The excess of the actuarial liability 

over the value of the assets of a pension plan is the unfunded 

actuarial liability. 

“Actuarial valuation” means the determination, as of a 

specified date, of the normal cost, actuarial liability, value of 

the assets of a pension fund, and other relevant values for the 

pension plan. 

“Allocate” means to assign an item of cost, or a group of 

items of cost, to one or more cost objectives. This term includes both direct assignment of cost and the reassignment of 

a share from an indirect cost pool. 

“Automatic data processing equipment (ADPE),” as used in 

this part means: 

(a) Digital and analog computer components and systems, irrespective of type of use, size, capacity, or price; 

(b) All peripheral, auxiliary, and accessorial equipment

used in support of digital and/or analog computers, either 

cable connected, or “self standing,” and whether selected or 

acquired with the computers or separately; 

(c) Punched card machines (PCM) and systems used in

conjunction with or independently of digital or analog computers; and 

(d) Digital and analog terminal and conversion equipment that is acquired solely or primarily for use with a system which employs a computer or punched card machine. 

“Business unit” means any segment of an organization, or 

an entire business organization, which is not divided into segments. 

“Compensated personal absence” means any absence from 

work for reasons such as illness, vacation, holidays, jury duty, 

military training, or personal activities for which an employer 

pays compensation directly to an employee in accordance with 

a plan or custom of the employer. 

“Cost input” means the cost, except general and administrative (G&A) expenses, which for contract costing purposes is 

allocable to the production of goods and services during a cost 

accounting period. 

“Cost objective,” as used in this part means a function, organizational subdivision, contract, or other work unit for 

which cost data are desired and for which provision is made to 

accumulate and measure the cost of processes, products, jobs, 

capitalized projects, etc. 

“Cost of capital committed to facilities” means an imputed 

cost determined by applying a cost of money rate to facilities 

capital. 

“Deferred compensation” means an award made by an employer to compensate an employee in a future cost accounting 

period or periods for services rendered in one or more cost accounting periods before the date of receipt of compensation by 

the employee. This definition shall not include the amount of 

year-end accruals for salaries, wages, or bonuses that are to be 
VI–2 GPO PRINTING PROCUREMENT REGULATION 

paid within a reasonable period of time after the end of a cost 

accounting period. 

“Defined-benefit pension plan” means a pension plan in 

which the benefits to be paid, or the basis for determining such 

benefits, are established in advance and the contributions are 

intended to provide the stated benefits. 

“Defined-contribution pension plan” means a pension plan 

in which the contributions to be made are established in advance and the benefits are determined thereby. 

“Directly associated cost” means any cost which is generated solely as a result of the incurrence of another cost, and 

which would not have been incurred had the other cost not 

been incurred. 

 “Estimating costs” means the process of forecasting a future result in terms of cost, based upon information available 

at the time. 

“Expressly unallowable cost” means a particular item or 

type of cost which, under the express provisions of an applicable law, regulation, or contract, is specifically named and 

stated to be unallowable. 

“Facilities capital” means the net book value of tangible 

capital assets that are subject to amortization. 

“Final cost objective” means a cost objective that has allocated to it both direct and indirect costs and, in the contractor’s accumulation system, is one of the final accumulation 

points. 

“Fiscal year,” as used in this part, means the accounting period for which annual financial statements are regularly prepared, generally a period of 12 months, 52 weeks, or 53 

weeks. 

“General and administrative (G&A) expense” means any 

management, financial, and other expense which is incurred 

by or allocated to a business unit and which is for the general 

management and administration of the business unit as a 

whole. G&A expense does not include those management expenses whose beneficial or causal relationship to cost objectives can be more directly measured by a base other than a 

cost-input base representing the total activity of a business unit 

during a cost accounting period. 

“Home office” means an office responsible for directing or 

managing two or more, but not necessarily all, segments of an 

organization. It typically establishes policy for, and provides 

guidance to, the segments in their operations. It usually performs management, supervisory, or administrative functions, 

and may also perform service functions in support of the operations of the various segments. An organization which has 

intermediate levels, such as groups, may have several home 

offices which report to a common home office. An intermediate organization may be both a segment and a home office. 

“Immediate-gain actuarial cost method” means any of the 

several actuarial cost methods under which actuarial gains and 

losses are included as part of the unfunded actuarial liability of 

the pension plan, rather than as part of the normal cost of the 

plan. 

“Indirect cost pools,” as used in this section means grouping of incurred costs identified with two or more cost objectives, but not identified specifically with any final cost 

objective. 

“Insurance administration expenses” means the contractor’s 

costs of administering an insurance program; e.g., the costs of 

operating an insurance or risk-management department, processing claims, actuarial fees, and service fees paid to insure 

companies, trustees, or technical consultants. 

“Intangible capital asset” means an asset that has no physical substance, has more than minimal value, and is expected to 

be held by an enterprise for continued use or possession beyond the current accounting period for the benefits it yields. 

“Labor cost at standard” means a preestablished measure of 

the labor element of cost, computed by multiplying labor-rate 

standard by labor-time standard. 

“Labor-rate standard” means a preestablished measure, expressed in monetary terms, of the price of labor. 

“Labor-time standard” means a preestablished measure, 

expressed in temporal terms, of the quantity of labor. 

“Material cost at standard” means a preestablished measure 

of the material elements of cost, computed by multiplying material-price standard by material-quantity standard. 

“Material-price standard” means a preestablished measure, 

expressed in monetary terms, of the price of material. 

“Material-quantity standard” means a preestablished measure, expressed in physical terms, of the quantity of material. 

“Moving average cost” means an inventory costing method 

under which an average unit cost is computed after each acquisition by adding the cost of the newly acquired units to the 

cost of the units of inventory on hand and dividing this figure 

by the new total number of units. 

“Normal cost” means the annual cost attributable, under the 

actuarial cost method in use, to years subsequent to a particular valuation date. 

“Original complement of low cost equipment” means a 

group of items acquired for the initial outfitting of a tangible 

capital asset or an operational unit, or a new addition to either. 

The items in the group individually cost less than the minimum amount established by the contractor for capitalization 

for the classes of assets acquired but in the aggregate they represent a material investment. The group, as a complement, is 

expected to be held for continued service beyond the current 

period. Initial outfitting of the unit is completed when the unit 

is ready and available for normal operations. 

“Pay-as-you-go cost method” means a method of recognizing pension cost only when benefits are paid to retired employees or their beneficiaries. 

“Pension plan” means a deferred compensation plan established and maintained by one or more employers to provide 

systematically for the payment of benefits to plan participants 

after their retirements, provided that the benefits are paid for 

life or are payable for life at the option of the employees. Additional benefits such as permanent and total disability and 

death payments, and survivorship payments to beneficiaries of 

deceased employees may be an integral part of a pension plan. 

“Pension plan participant” means any employee or former 

employee of an employer or any member or former member of 

an employee organization who is or may become eligible to 

receive a benefit from a pension plan which covers employees 

of such employer, or members of such organization who have 

satisfied the plan’s participation requirements or whose beneficiaries are receiving or may be eligible to receive any such 

benefit. A participant whose employment status with the employer has not been terminated is an active participant of the 

employer’s pension plan. 
CONTRACT FINANCING VI–3

“Pricing” means the process of establishing a reasonable 

amount or amounts to be paid for supplies or services. 

“Profit center,” as used in this part means the smallest organizationally independent segment of a company charged by 

management with profit and loss responsibilities. 

“Projected average loss” means the estimated long-term 

average loss per period of comparable exposure to risk of loss. 

“Projected benefit cost method” means any of the several 

actuarial cost methods which distribute the estimated total cost 

of all the employees’ prospective benefits over a period of 

years, usually their working careers. 

“Proposal” means any offer or other submission used as a 

basis for pricing a contract, contract modification, or termination settlement, or for securing payment thereunder. 

“Residual value” means the proceeds, less removal and 

disposal cost, if any, realized upon disposition of a tangible 

capital asset. It usually is measured by the net proceeds from 

the sale or other disposition of the asset, or its fair value if the 

asset is traded in on another asset. The estimated residual 

value is a current forecast of the residual value. 

“Segment” means one or two or more divisions, product 

departments, plants, or other subdivisions of an organization 

reporting directly to a home office, usually identified with responsibility for profit and/or producing a product or service. 

The term includes Government-owned contractor-operated 

(GOCO) facilities, and joint ventures and subsidiaries (domestic and foreign) in which the organization has a majority ownership. The term also includes those joint ventures and 

subsidiaries (domestic and foreign) in which the organization 

has less than a majority of ownership, but over which it exercises control. 

“Self-insurance” means the assumption or retention of the 

risk of loss by the contractor, whether voluntarily or involuntarily. Self-insurance includes the deductible portion of purchased insurance. 

“Self-insurance charge” means a cost which represents the 

projected average loss under a self-insurance plan. 

“Service life” means the period of usefulness of a tangible 

capital asset (or group of assets) to its current owner. The period may be expressed in units of time or output. The estimated service life of a tangible capital asset (or group of 

assets) is a current forecast of its service life and is the period 

over which depreciation cost is to be assigned. 

“Spread-gain actuarial cost method” means any of the several projected benefit actuarial cost methods under which actuarial gains and losses are included as part of the current and 

future normal costs of the pension plan. 

“Standard cost” means any cost computed with the use of 

preestablished measures. 

“Tangible capital asset” means an asset that has physical 

substance, more than minimal value, and is expected to be 

held by an enterprise for continued use or possession beyond 

the current accounting period for the services it yields. 

“Termination gain or loss” means an actuarial gain or loss 

resulting from the difference between the assumed and actual 

rates at which pension plan participants separate from employment for reasons other than retirement, disability, or 

death. 

“Unallowable cost” means any cost which, under the provisions of any pertinent law, regulation, or contract, cannot be 

included in prices, cost reimbursements, or settlement under a 

Government contract to which it is allocable. 

“Variance” means the difference between a preestablished 

measure and an actual measure. 

“Weighted average cost” means an inventory costing 

method under which an average unit cost is computed periodically by dividing the sum of the cost of beginning inventory 

plus the cost of acquisition by the total number of units included in these two categories. 

3. Applicability.

(a) Fixed-price contracts. Cost principles shall be used (1)

in pricing negotiated fixed-price contracts, subcontracts, and 

modifications to contracts and subcontracts for supplies or 

services whenever cost analysis is performed, or (2) when a 

fixed-price contract clause requires the determination or negotiation of costs. However, application of cost principles to 

fixed-price contracts and subcontracts shall not be construed 

as a requirement to negotiate agreement on individual elements of cost in arriving at agreement on the total price. The 

final price accepted by the parties reflects agreement only on 

the total price. Further, notwithstanding the mandatory use of 

cost principles, the objective will continue to be to negotiate 

prices that are fair and reasonable, cost and other factors considered. 

(b) Additional. The Contracting Officer shall also use the

cost principles as a basis for: 

(1) Proposing, negotiating, or determining costs under

terminated contracts; 

(2) Price redetermination of price redetermination contracts. 

(3) Pricing changes and other contract modifications;

and 

(4) Settlement of claims arising out of contracts.

4. Cost Accounting Standards (CAS) Requirements. The

standards and regulations of the Cost Accounting Standards

Board (CASB) are not applicable to GPO procurement contracts for printing, binding, related supplies, and related services. However, certain cost principles do incorporate specific

CAS, or portions of standards, for the purpose of determining

allowability of costs on GPO procurement contracts for printing, binding, related supplies, and related services. Contractors

are subject to these CAS only to that extent.

5. Cost Principles. GPO Instruction 305.9, Contract Cost

Principles and Procedures, is incorporated by reference with

the same force and effect as if presented in full text.

SECTION 2. PROGRESS PAYMENTS 

1. Scope. This section covers matters generally relevant before

contract award, but does not preclude postaward unanticipated

circumstances arising during contract performance.

2. Considerations for Progress Payments.

(a) Progress payments may be made on the basis of paper

costs or predelivery expenditures incurred by the contractor as 

work progresses under the contract. This form of contract financing does not include— 

(1) Payments based on the percentage of completion accomplished; 
VI–4 GPO PRINTING PROCUREMENT REGULATION 

(2) Payments for partial deliveries accepted by the Government; or 

(3) Partial payments for a contract termination proposal.

(b) Subject to paragraph c below, the Contracting Officer

may provide for progress payments if the contractor (1) will 

not be able to bill for the first delivery of products, or other 

performance milestones, for a substantial time after work must 

begin, and (2) will make expenditures for contract performance during the predelivery period that have a significant impact on the contractor’s working capital. Progress payments 

may also be authorized, particularly for small suppliers, if the 

contractor demonstrates actual financial need or the unavailability of private financing. 

(c) To reduce undue administrative effort and expense, the

Contracting Officer generally should not provide for progress 

payments on contracts of less than $100,000 unless— 

(1) The contractor is a small business concern and the

contract will involve approximately $60,000 or more; or 

(2) The contractor will perform a group of small contracts at the same time and the total impact on working 

capital is equivalent to a single contract of $100,000 or 

more. 

3. Solicitation clause. The following language shall be included in solicitations where progress payments are anticipated:

PROGRESS PAYMENTS—Upon request of the contractor, progress 

payments shall be made to the contractor for purchased paper in 

amounts approved by the Contracting Officer upon the following 

terms and conditions: 

(1) Computation of amounts. Each progress payment for paper

will be made upon the submission of paid invoices or vouchers evidencing the actual cost of paper to which the contractor has gained title. 

(2) Recovery of progress payments. Vouchers or invoices submitted by the contractor for payment shall be satisfied less the amount of 

progress payments paid for the quantity of paper required to produce 

the items delivered until such items as the total of all progress payments has been recovered. 

(3) Reduction or suspension. The Government reserves the right

to withhold or reduce progress payments if in the opinion of the Contracting Officer the contractor is in such unsatisfactory financial condition or has so failed to make progress as to endanger contract 

performance and recoupment of progress payments. 

(4) Title to material and work. When any progress payment is

made under the contract, title to paper acquired and work performed 

under the contract shall vest in the Government, and title to all like 

property thereafter acquired or produced by the contractor and properly chargeable to the contract under generally accepted accounting 

principles shall vest in the Government. The contractor shall repay to 

the Government an amount equal to that portion of the progress payments allocable to material lost, stolen, destroyed, or damaged. Upon 

completion of performance of all obligations of the contractor under 

the contract, title to all property and work not delivered to and accepted by the Government under the contract and to which title had 

vested in the Government under the contract shall vest in the contractor. 

(5) Records and reports. The contractor shall maintain reasonable

controls for proper administration of this clause and shall furnish 

such statements and information as may reasonably be requested by 

the Contracting Officer. The Government shall be afforded reasonable opportunity to examine the contractor’s books, records, and accounts. 

(6) Default. If a contract is terminated for default, the contractor

shall, upon demand, pay to the Government the amount of progress 

payments, less any amount payable to the contractor in accordance 

with the default clause. 

(7) Reservation of rights. The rights and remedies of the Government provided in this clause shall not be exclusive and are in addition 

to any other rights and remedies provided by law or under the contract. 

4. Post Award Determinations.

(a) Unanticipated circumstances arising during contract

performance amending a contract and warranting progress 

payments include, but are not limited to— 

(1) The Government’s failure to furnish GFP in conformance with the contract. 

(2) A unilateral contract modification temporarily suspending performance exceeding 1 month. 

(b) Circumstances in which the contractor requests post

award progress payments which result in an amended contract 

shall require consideration from the contract in the form of: 

(1) Monetary consideration by reduction of the contract

price, or 

(2) A nonmonetary consideration giving the government

a benefit. 

(c) Supplemental agreements providing for progress payments in (a) above shall state in part: 

This supplemental agreement to jacket , 

Purchase Order is to (1) adjust the shipping 

schedule and (2) amend the Payments on Purchase Order and 

Partial Payment clauses in GPO Contract Terms, Publication 

310.2, to provide limited payment prior to shipment, all in 

consideration of the Government’s failure to deliver Government-furnished (name supplies) in accordance with contract 

requirements. Accordingly, it is agreed that: 

(1) The ship complete date is changed from , 

to “within workdays from the receipt of Governmentfurnished (name supplies).” 

(2) The Partial Payment clause in GPO Contract Terms,

Publication 310.2, is amended to include: “Upon completion of all printing operations but prior to packing and 

shipment, payment will be made for 80% of the costs incurred as follows: 

Bid price $ 

Less cartons, packing, and shipping $ 

Total $ × .80 = 

(3) When limited payment is made under this contract, title

to all work produced and material acquired shall vest in the 

Government. Notwithstanding the foregoing, the contractor 

shall bear the risk of loss of property, title to which vests in the 

Government pursuant to this clause. In the event of the loss or 

damage to, or destruction of, any such property prior to delivery to and acceptance by the Government, the contractor shall 

promptly replace such property at no additional cost to the 

Government or upon demand return any partial payment made 

pursuant to this clause. 

The foregoing provides a full and complete adjustment for any 

and all claims whatsoever resulting from changes ordered. 

SECTION 3. CONTRACT DEBTS 

1. General. Contract debts arise in various ways. The following are some examples:

(a) Damages or excess costs related to defaults in performance. 
CONTRACT FINANCING VI–5

(b) Breach of contract obligations concerning progress

payments, or Government-furnished property. 

(c) Government expense of correcting defects.

(d) Overpayments related to errors in quantity or billing or

deficiencies in quality. 

2. Definition. “Responsible official” means the Contracting

Officer or the official(s) of the Office of Finance and Administration to administer the collection of contract debts and applicable interest.

3. Responsibilities and cooperation among GPO officials.

(a) To protect the Government’s interests, Contracting Officers, disbursing officials, and auditors shall cooperate fully 

with each other to— 

(1) Discover promptly when a contract debt arises;

(2) Ascertain the correct amount of the debt;

(3) Act promptly and effectively to collect the debt;

(4) Administer deferment of collection agreements; and

(5) Provide up-to-date information on the status of the

debt. 

(b) For most kinds of contract debts, the official(s) of the

Office of Finance and Administration has (have) the primary 

responsibility for determining the amounts of and collecting 

contract debt. 

4. Debt determination and collection.

(a) If any indication of a contract debt arises, the responsible official shall determine promptly whether an actual debt is 

due the Government and the amount. Any unwarranted delay 

may contribute to— 

(1) Loss of timely availability of the funds to the jacket

for which the funds were initially provided; 

(2) Increased difficulty in collecting the debt; or

(3) Actual monetary loss to the Government.

(b) In determining the amount of any contract debt, the responsible official shall fairly consider both the Government’s 

claim and any contract claims by the contractor against the 

Government. This determination does not constitute a settlement of such claims, nor is it a Contracting Officer’s final determination. 

(c) Control records for each contract debt and procedures

for tax credit, contract debt negotiation, pricing agreement 

with refund, payment demand of contract debt, withholding 

and setoff, collection deferment, and interest charges and credits shall be established and administered by the official(s) of 

the Office of Finance and Administration. 

SECTION 4. CONTRACT FUNDING 

1. Policy. No Contracting Officer or employee may create or

authorize an obligation in excess of the funds available or in

advance of appropriations, unless otherwise authorized by law.

2. General.

(a) Firm fixed-price, negotiated, and term contracts are

fully funded from obligated funds. 

(b) Multiyear contracts may cross fiscal years as authorized

in subsection 3 below. 

3. Contracts Conditioned upon Availability of or Limitation on Funds.

(a) Firm Fixed-Price Contracts. (1) Contracting actions on

proposed firm fixed-price contracts may be initiated and properly chargeable unless: 

(i) The authorizing SF–1 contains conditions limiting

funds, or 

(ii) The IFB contains a clause estimating the quantity,

subject to a plus or minus percentage, that will be determined at time of award because of funding constraints. 

(2) After bid opening and prior to award, the Contracting

Officer shall inform the customer agency of the low responsive bid to— 

(i) determine if additional funds will be allotted should

bids exceed those funds authorized in (a)(1)(i), 

(ii) ascertain an exact quantity within any plus or minus

percentage. 

(b) Multiyear Procurement. (1) The Contracting Officer

shall not accept supplies or services under a contract conditioned upon the availability of funds until the Contracting Officer has given the contractor notice, to be confirmed in 

writing, that funds are available. 

(2) When a contract contains the clause, “Limitation of Performance and Contractor Obligations,” the Contracting Officer, prior to the end of the fiscal year, shall notify the 

contractor in writing that— 

(i) Additional funds have been allotted,

(ii) The contract is not to be further funded and that the

contractor should submit a proposal for an adjustment of 

fee, if any, based on work completed in relation to total 

work called for under the contract; 

(iii) The contract is to be terminated; or

(iv) (A) The Government is considering whether to allot

additional funds or increase the estimated cost, (B) the contractor is entitled by the contract terms to stop work when 

the funding or cost limit is reached, and (C) any work beyond the funding or cost limit will be at the contractor’s 

risk. 

(3) Upon learning that a partially funded contract will receive no further funds, the Contracting Officer shall promptly 

give the contractor written notice of the decision not to provide funds. 

4. Clauses (See XVI–3. Multiyear Procurement).

SECTION 5. ASSIGNMENT OF CLAIMS 

1. General. The Assignment of Claims Act of 1940, as

amended, (31 U.S.C. 3727, 41 U.S.C. 15) permits contractors

to assign their claims against the Government for moneys due

or to become due to a bank, trust company, or other financing

institution. The Act further provides that an assignee receiving

payment under an assignment is not, because of any liability

of the assignor to the United States or any department or

agency of the Government, whether arising from or independently of the assigned contract, liable or obligated to make restitution, refund, or repayment to the United States.

2. Conditions Governing the Assignment of Claims.

(a) The Act permits the assignment of funds due under a

contract providing: 
VI–6 GPO PRINTING PROCUREMENT REGULATION 

(1) the contract provides for payment aggregating

$1,000 or more; 

(2) the payments are assigned to a bank, trust company,

or other financing institution, including any Federal lending 

agency; and 

(3) the contract does not forbid assignment.

(b) An assignment may be made to only one party and shall

cover all amounts payable under the contract which have not 

already been paid. Any assignment may be made to one party 

as agent or trustee for two or more parties participating in the 

financing. In accordance with the statute, there shall be no further assignment unless expressly permitted by the contract. 

The “Assignment of Claims” clause in GPO Contract Terms, 

Publication 310.2, permits further assignment or reassignment. 

(c) When there is a valid assignment, the assignee must

give written notice of the assignment, together with a copy of 

the instrument of assignment, to the Contracting Officer, the 

Office of Finance and Administration, and the surety or sureties upon the bonds, if any. 

3. Contract Clause. The “Assignment of Claims” clause is

applicable to all contracts by reference.

4. Forms for Notice of Assignment. The format shown in exhibit VI–1 is suggested for use by the assignee in providing

the notice of the assignment as required by VI–5.2(c).

5. Filing Notice of Assignment. The assignee is required to

send four signed copies of the notice, one for each party specified in VI–5.2(c), together with one true copy of the instrument of the assignments (a certified true duplicate or a

photostatic copy of the original).

6. Procedures upon Receipt of Notice of Assignment.

(a) All assignment papers are to be sent to the Contracting

Officer who awarded the contract on behalf of the GPO. 

(b) All assignment papers are to be date-stamped on the reverse side immediately upon receipt. 

(c) The Contracting Officer is to examine the notice of assignment, instrument of assignment, and the contract involved 

to determine that the assignment is in proper form, has been 

properly executed, and that the contractor is empowered under 

the contract to make the assignment (see PPR VI–5.2). If the 

assignment is not in order, or if postaward payment processing 

has been initiated by the Office of Finance and Administration 

on single bid purchase orders, return all the assignment papers 

to the assignee with an explanation of the objections to the 

proposed assignment. 

(d) If the assignment is in order, the Contracting Officer is

to document the contract file to indicate that an assignment 

has been sent to GPO for acceptance and enter the assignment 

in the office logbook designated for this purpose. Each APS 

Director shall ensure that the logbook is maintained 

(e) The Contracting Officer shall then forward the assignment papers with a covering memorandum (see paragraph (g)) 

to the Office of the General Counsel to review and to provide 

a statement of “no legal objection” or to notify the Contracting 

Officer that there is a “legal objection.” If General Counsel 

has a “legal objection,” the Contracting Officer shall return all 

assignment papers to the assignee with an explanation of the 

“legal objection” to the proposed assignment. If legally sufficient, General Counsel will return the material to the Contracting Officer with a notation of “no legal objection.” The 

Contracting Officer shall then forward the assignment papers 

with covering memorandum (see paragraph (g)) to the Office 

of Finance and Administration through the appropriate APS 

Director. 

(f) If the assignment is in order, an employee of the Office

of Finance and Administration will notify the Contracting Officer that the assignment has been accepted and processed. 

The Contracting Officer will send an acknowledgement of assignment to the assignee upon receipt of notice of acceptance 

and processing from the Office of Finance and Administration. 

If the Office of Finance and Administration is unable to process the assignment, all assignment papers are to be returned to 

the Contracting Officer with the appropriate explanation. 

(g) The following memoranda are suggested for use when

forwarding assignments to the Office of the General Counsel 

and Office of Finance and Administration: 

Subject: Assignment of Claim 

Contract: 

Contractor: 

Assignee: 

To: Office of the General Counsel 

The attached assignment of claim was submitted to me by the assignee. I have reviewed this assignment, the contract, and chapter VI, 

section 5 of the Printing Procurement Regulation. The conditions for 

assignment have been met and the assignment is in proper form. 

I believe the assignee to be a bank, trust company, or other financing institution, and will request confirmation by the Office of Finance 

and Administration prior to acceptance of the assignment. 

Please review this material and return to me with a notation of “no 

legal objection” or with a notation of “legal objection” [accompanied 

by a description of the cause(s) for the “legal objection”], as appropriate. 

CONTRACTING OFFICER 

Attachment 

—————— 

Subject: Assignment of Claim 

Contract: 

Contractor: 

Assignee: 

To: Office of Finance and Administration 

The attached assignment of claim was submitted to me by the assignee. I have reviewed this assignment, the contract, and chapter VI, 

section 5 of the Printing Procurement Regulation. The conditions for 

assignment have been met and the assignment is in proper form. 

I believe the assignee to be a bank, trust company, or other financing institution, and request your confirmation prior to acceptance of 

the assignment. 

This material has been reviewed by the Office of the General 

Counsel and returned with no legal objection. 

Please notify me when you have processed this assignment request so that the assignee may be informed that the assignment has 

been accepted. 

CONTRACTING OFFICER 

Attachment 
CONTRACT FINANCING VI–7

7. Further Assignment and Reassignment. Contracts which

permit assignment of claims also permit the further assignment and reassignment by the assignee to another bank, trust

company, or other financing institution under the “Assignment

of Claims” clause. Copies of a written notice of further assignment and reassignment and the copy of the instrument

shall be processed in the same manner as the initial notice of

assignment.

8. Examination of Assignment. In reviewing an assignment

to determine if it is in proper form, properly executed, and one

that the contractor is entitled to make under the contract, the

Contracting Officer shall ascertain that the conditions set forth

below have been satisfied.

(a) The contract has been duly executed (see chapter XII).

Notices of assignment of claims for moneys due or to become 

due under a contract received prior to execution of the contract 

shall be immediately returned to the assignee unacknowledged. 

(b) The contract is one under which claims may be assigned

under the provisions of the Act. In rare cases, SECRET or 

CONFIDENTIAL contracts will contain provisions prohibiting assignment of claims thereunder. It should be noted that 

assignment of claims under SECRET or CONFIDENTIAL 

contracts, permitting the assignment thereof, should not be acknowledged by Contracting Officers until adequate steps have 

been taken to protect the interest of the Government. 

(c) The assignment covers all amounts payable under the

contract, and not already paid, and is not made to more than 

one person, and the assignee is a bank, trust company, or other 

financing institution, including any Federal lending agency. 

The Office of Finance and Administration will further review 

for these criteria considering the payment provisions. 

(d) The assignment shall cover only claims for moneys due

or to become due under the contract involved. It must not 

cover any of the obligations or duties of the contractor under 

the contract. The Contracting Officer shall be sure that the 

copy of the instrument of assignment which is submitted is a 

duplicate of the original instrument, or has been certified as a 

true copy, acknowledged as such before a notary public or 

other officer authorized by law to administer oaths. Care shall 

also be taken to ascertain that the assignment has been properly executed. 

(1) Assignments by corporations should be executed by

an authorized representative, attested by the secretary or assistant secretary of the corporation, with the seal of the corporation impressed upon the assignments or in lieu of such 

seal, accompanied by a certified copy of a resolution of the 

corporation board of directors authorizing the representative involved to execute the assignment. 

(2) If the contractor is a partnership, the instrument of

assignment may be signed by one partner, provided that it 

is accompanied by a duly acknowledged certificate to the 

effect that the signer is a general partner of the partnership. 

(3) If the contractor is an individual, the assignment

must be signed by such individual, and duly acknowledged 

before a notary public or other person authorized to administer oaths. 

(e) If there have been previous assignments of claims under

the contract, unless assignments to more than one person 

thereunder are permitted by the contract provisions, the previous assignments have been fully released. Note that further assignment and reassignment is authorized as pointed out in VI–

5.7. 

9. Release of an Assignment. The release of an assignment is

required whenever there has been a further reassignment or

where further payments to the contractors are anticipated under the contract after the contractor-assignor’s obligation to

the original assignee has been satisfied.

10. Transfer of Businesses and Corporate Mergers. Transfers of an entire business, corporate mergers, and assignments

by the operation of law, each of which may affect the assignment of claims under a contract, are not prohibited by the Federal statutes and hence do not depend upon the Assignment of

Claims Act of 1940, as amended, for their validity. However,

in the case of transfer of a business or corporate mergers, notices of assignment of claims under the contract made by the

transferee or successor corporation should not be acknowledged until the transferee or successor corporation involved

has been recognized by GPO as the lawful successor in interest of the Government contract. Similarly, before acknowledging an assignment made by a party who is a transferee by

operation of law, the Contracting Officer should require the

submission of a certified copy of the document evidencing the

transfer by operation of law. Procedures for novation agreements are covered in XIII–3.
VI–8 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT VI–1 

NOTICE OF ASSIGNMENT

Date 

To: (Address to one of the parties specified in VI–5.2(c)) 

This has reference to Contract No. dated , entered into between (contractor’s name and address) and (Government Agency, Name of Office, and address), for (describe nature of the contract). 

PLEASE TAKE NOTICE that moneys due or to become due under the contract described above have been assigned to the undersigned pursuant to the provisions of the Assignment of Claims Act of 1940, as amended. 54 Stat. 

1029: 65 Stat. 41 (31 U.S.C. 3727, 41 U.S.C. 15). 

A true copy of the instrument of assignment executed by the contractor on (Date) is attached 

to the original hereof. 

Payments due or to become due under such contract should be made to the undersigned assignee. 

Please return to the undersigned the three enclosed copies of this notice with appropriate notations showing the 

date and hour of receipt and duly signed by the person. 

Receipt is hereby acknowledged of the addressee. 

Very truly yours, 

(Name of assignee) 

 By: 

(Signature of signing officer) 

 Title: 

 (Title of signing officer) 

(Address of assignee) 

ACKNOWLEDGMENT 

Receipt is hereby acknowledged of the above notice and a copy of the above mentioned instrument of assignment. 

These were received at a.m. (p.m.) on , 20 . 

 

 (Signature) 

 

 (Title) 

On behalf of 

(Name of addressee of this notice) 

 
VII–1 

CHAPTER VII. CONTRACTING METHODS 

SECTION 1. SEALED BIDDING, INVITATION FOR 

BIDS (IFB) 

1. Sealed bids. Sealed bidding is the preferred method for procurements that cannot be made through the small purchase

procedure. Written specifications and a bidders list of suppliers shall be prepared. The number of potential suppliers invited shall depend upon the value and complexity of the

procurement to ensure adequate competition. IFBs shall be

mailed, sent by facsimile, emailed, or posted to the website,

schedule permitting. A sufficient amount of time shall be allowed for submission of bids. A provision may be included in

the specifications authorizing facsimile response in lieu of

sealed bids. Bids shall be opened publicly at the designated

hour and date.

2. Term contracts.

(a) This type of contract is used when repetitive orders are

anticipated during the contract period. When requirements can 

be forecast with relative accuracy, such as for a periodical, and 

when one contractor can satisfy the total requirement, a single 

award is made. 

(b) A sufficient number of potential suppliers shall be invited to bid to ensure adequate competition. The multipleaward term contract differs from the single-award contract in 

that quite often a single contractor would be unable to supply 

all of the Government’s requirements and the requirements are 

less specific and less constant. However, the solicitation process is the same as for single-award contracts. 

3. Print orders (GPO Form 2511).

(a) An agency requisition received for products that meet

the requirements of an existing term contract may be converted to a print order and offered to suppliers in accordance 

with the established sequence of bidders. The sequence may 

be established for the term of the contract through an estimate 

of the requirements called the basis of award, or a sequence 

established for each print order through abstracting each bidder’s offered price against the requirements of that order. 

(b) In converting requisitions to term contract print orders,

the economy of the procurement must be a consideration; e.g., 

long-run jobs should not be placed on short-run contracts. 

4. Display bids. Complex procurements requiring suppliers to

inspect GFP should be made through this technique. Written

specifications shall be developed and, along with the bidding

forms, may either be mailed, sent by facsimile, emailed, or

posted to the website, schedule permitting, to potential suppliers or may be picked up when the GFP is inspected. Suppliers 

should be cautioned that inspection of the GFP is a part of the 

specifications and that no additional payment will be allowed 

for the correction of errors due to failure to examine the GFP. 

A sufficient number of potential suppliers shall be invited to 

bid to ensure adequate competition. 

SECTION 2. MULTIYEAR TERM CONTRACTS AND 

TERM CONTRACTS WITH OPTION PROVISIONS 

1. General

(a) Multiyear contracts and the use of options are contracting methods to acquire printing, binding, related supplies, and 

related services, covering more than one (1) year but not more 

than five (5) years. 

(b) The GPO revolving fund, which is available without

fiscal year limitation, is authorized by 44 U.S.C. 309(a). Further, GPO is authorized annually to enter into contracts and to 

make commitments without regard to fiscal year limitations. 

2. Policy

Use of multiyear and option contracting is recommended to

take advantage of one or more of the following: 

(a) Lower costs.

(b) Enhancement of standardization.

(c) Reduction of administrative burden in the placement

and administration of contracts. 

(d) Substantial continuity of production or performance,

thus avoiding annual startup costs, preproduction testing costs, 

make-ready expenses, and phaseout costs. 

(e) Stabilization of contractor work forces.

(f) Avoidance of the need for establishing quality control

techniques and procedures for a new contractor each year. 

(g) Broadening the competitive base with opportunity for

participation by firms not otherwise willing or able to compete 

for lesser quantities, particularly in cases involving high 

startup costs. 

(h) Providing incentives to contractors to improve productivity through investment in capital facilities, equipment, and 

advanced technology. 

3. Procedure.

(a) The Contracting Officer may enter into multiyear or option contracts if it is determined that— 

(1) The need for the supplies or services is reasonably

firm and continuing over the period of the contract; and 
VII–2 GPO PRINTING PROCUREMENT REGULATION 

(2) A multiyear or option contract will serve the best interests of the Government by encouraging full and open 

competition or promoting economy in administration, performance, and operation of APS programs. 

(b) Multiyear and option contracts shall be divided into periods of one year each. 

(c) Multiyear or option contracts may be initiated either by:

(1) ordering agency written requests; or

(2) the contracting officer.

(d) By issuing an annual requisition, the ordering agency’s

funds are obligated and thus made available to GPO. Funds for 

each print order, as they are issued against the contract, are obligated in the GPO revolving fund. In the event funds are not 

made available by the ordering agency for any succeeding fiscal year, cancellation shall be effected. 

(e) In order to ensure that all potential bidders are thoroughly aware of how multiyear and option contracting is accomplished, use of presolicitation conferences may be 

advisable. 

4. Contract Clauses. Multiyear and option contracts shall

include the following as appropriate:

(a) A clause, substantially as follows and prominently displayed on page 1 of solicitations for multiyear contracts: 

CONTRACT TERM—The term of this contract is for years 

(or months). Special attention is directed to the following 

clauses in this contract: “Economic Price Adjustment,” “Paper 

Price Adjustment,” “Limitation of Performance and Contractor 

Obligations” and “Notification”. 

(b) A clause, substantially as follows and displayed on page

1 of solicitations for option contracts: 

CONTRACT TERM—The term of this contract is for 1 year (base 

year) and option year(s). Attention is directed to the clauses “Economic Price Adjustment,” “Paper price Adjustment,” and “Option to 

Extend the Contract Term” 

(c) The following clause in solicitations for option contracts: 

OPTION TO EXTEND THE CONTRACT TERM. The Government 

may extend the term of this contract by written notice to the contractor not later than 30 days before the contract expires. If the Government exercises an option, the extended contract shall be considered to 

include this clause. The duration of this contract, including the exercise of any options under this clause, shall not exceed [insert time period]. 

Notwithstanding the above, and at the request of the Government, the 

term of the contract may be further extended (e.g. unforeseen delay 

or protest precludes making award on follow-on contract) for such 

period of time as may be mutually agreeable to the GPO and the contractor. 

(d) The clauses “Economic Price Adjustment,” “Limitation

of Performance and Contractor Obligations,” and “Notification,” as set forth in XVI–3. 

5. Solicitations. Solicitations for multiyear contracts shall reflect all the factors to be considered for evaluation, specifically including the following:

(a) The requirements, by item or service, for the—

(1) First program year; and

(2) First program year and for the multiyear contract including the requirements for each program year. 

(b) When previous acquisitions of the item or service have

been made with competition, a provision that a price may be 

submitted— 

(1) For the total requirements of the first program year,

or for the total multiyear requirements, or both; or 

(2) Only for the total multiyear requirement, and that

prices on a single-year basis will not be considered when 

(i) competition in future acquisitions would be impracticable after award of a contract covering the first program year

requirement and (ii) it is necessary to prevent a first program year “buy-in.”

(c) When previous acquisitions for the item or service have

been made without competition, and a first program year 

“buy-in” is not anticipated, include— 

(1) A provision that a price must be submitted for the

first program year requirements, that a price may be submitted for the total multiyear requirements, and that an offer on only the multiyear requirements will be 

nonresponsive; and 

(2) A provision that if only one offer on the multiyear

requirements is received that is both responsive and from a 

responsible offeror, the Government reserves the right to 

disregard the offer on the multiyear requirements and make 

an award only for the first program year requirements; or 

(d) When competition after the first program year would be

impracticable after award of a contract covering the first program year requirement, and it is necessary to prevent a first 

program year “buy-in,” include— 

(1) A provision that a price may be submitted only on

the total multiyear requirement and that prices on a singleyear basis will not be considered for the purpose of award. 

(2) A provision that if only one offer on the multiyear

requirements is received that is both responsive and from a 

responsible offeror, the Government reserves the right to 

cancel the solicitation and resolicit on a single-year basis 

by whatever procedures are then appropriate. 

(e) A provision that the unit price of each item or service in

the multiyear requirement shall be the same for all program 

years (level unit price) included. (Note that the use of an economic price adjustment clause might effect the level unit 

price.) 

(f) Criteria for comparing the lowest evaluated submission

on the first program year’s requirement against the lowest 

evaluated submission on the multiyear requirements. 

(g) Criteria for evaluation factors other than price where the

acquisition is on the basis of price and other factors. 

(h) A provision that if the Government determines before

award that only the first program year requirements are 

needed, the Government may evaluate offers and make award 

solely on the basis of price offered on that year’s requirements. 

(i) A provision specifying a separate cancellation ceiling

(on a percentage or dollar basis) and dates applicable to each 

program year subject to a cancellation. 

(j) A prominently placed provision directing attention to the

multiyear features of the solicitation, and to— 

(1) The clause, “Limitation of Performance and Contractor Obligations,” which limits the payment obligation of the 
CONTRACTING METHODS VII–3

Government to the requirements of the first program year 

and to those requirements of succeeding program years 

funded by the Government; and, 

(2) The cancellation ceiling set forth in the schedule.

(k) A statement that award will not be made on less than

the first program year requirements. 

(l) In the event the solicitation is only for supplies and delivery destinations are unknown— 

(1) A definite place or places as the point to which transportation costs will be computed (but only for the purpose 

of evaluation); and 

(2) Insert a provision, Destination Unknown.

(m) If Government administrative costs are to be used as a

factor in evaluation, the dollar amount of those costs. Unless 

Government administrative costs incident to annual contracting and administration can be reasonably established, they 

shall not be used as a factor for evaluation. 

(n) When Government property is provided, it may be used

on a rent-free basis. The solicitation shall then contain detailed 

procedures for eliminating competitive advantage. 

6. Evaluation. In addition to the factors in subsection 5, the

Contracting Officer shall comply with the following:

(a) Evaluation of offers shall involve (1) determination of

the lowest overall evaluated cost to the Government for both 

the multiyear and the first program year acquisition, and (2) 

comparison of the cost of buying the total requirement under a 

multiyear acquisition with the cost of buying the total requirement in successive independent acquisitions. 

(b) The cancellation ceiling shall not be a factor for evaluation. 

(c) If Government property is provided, the Contracting Officer shall, for evaluation purposes, add an amount for the use 

of such property computed to eliminate competitive advantage 

to each offeror’s unit price for the first program year requirement and the unit price for the multiyear requirements. 

(d) When the solicitation only provides for submission of

prices for the total multiyear quantity, submission of prices for 

the single-year quantity will be disregarded but will not render 

the offer nonresponsive as to any alternative multiyear submission by the offeror. 

(e) To determine the lowest evaluated unit price, the Contracting Officer shall compare the lowest evaluated offer on 

the first program year alternative against the lowest evaluated 

offer on the multiyear alternative as follows: 

(1) Multiply the evaluated unit price for each item of the

lowest evaluated offer on the first program year alternative 

by the total number of units of that item required by the 

multiyear alternative. 

(2) Add the total amount for all the items to the dollar

amount of any administrative costs identified in the solicitation. 

(3) Compare this result against the total evaluated price

of the lowest offer on the multiyear alternative. 

(4) Where the multiyear acquisition is being computed

on a basis other than price alone, the Contracting Officer 

shall conduct the evaluation based on the evaluation factors 

contained in the solicitation. 

(5) The evaluation procedures contained in this paragraph may be modified if necessary to meet the unique circumstances of a particular acquisition. 

7. Exercise of Options.

(a) When making a determination to exercise or not to exercise an option, Contracting Officers shall: 

(1) Ensure that funds are or will be available;

(2) confirm that the option requirement is still needed;

and 

(3) conduct an informal analysis of prices or examine

the marketplace for indications that the option price is either the more advantageous offer or not. 

(b) All documentation shall be placed in the contract file

folder. 

(c) Contractors shall be notified a minimum of 30 days before the end of the current contract of the decision to exercise 

or not to exercise an option. 

SECTION 3. TWO-STEP FORMAL ADVERTISING 

1. General. Two-step formal advertising is designed to obtain

the benefits of formal advertising without adequate specifications and is conducted in two steps:

(a) Step 1 consists of the request for submission, evaluation, and discussion (if necessary) of a technical proposal. 

Price is expressly disregarded. 

(b) Step 2 incorporates the submission of sealed bids by

those firms whose technical proposals were deemed acceptable by the Government in step 1. Bids are evaluated and 

award made according to chapter XII. 

2. Conditions

(a) Two-step formal advertising shall be used in preference

to negotiation when all of the following conditions are present: 

(1) Available specifications or purchase descriptions are

not definite or complete or may be too restrictive to permit 

full and free competition without technical evaluation, and 

any necessary discussion, of the technical aspects of the requirement to ensure mutual understanding between each 

source and the Government. 

(2) Definite criteria exist for evaluating technical proposals. 

(3) More than one technically qualified source is expected to be available. 

(4) Sufficient time will be available for use of the twostep method. 

(5) A firm-fixed-price contract or a fixed-price contract

with economic price adjustment will be used. 

(b) Multiyear contracting does not preclude the use of twostep formal advertising. 

3. Procedures

(a) Step one. (1) Requests for technical proposals shall be

distributed to qualified sources and shall be published in the 

Government-wide Point of Entry (GPE) and the GPO website. 

The request must include, as a minimum, the following: 

(i) A description of the supplies or services required.

(ii) A statement of intent to use the two-step method.

(iii) The requirements of the technical proposal.

(iv) The evaluation criteria.
VII–4 GPO PRINTING PROCUREMENT REGULATION 

(v) A statement that the technical proposals shall not include prices or pricing information. 

(vi) The date, or date and hour, by which the proposal

must be received. 

(vii) A statement that, (A) in the second step, only bids

based upon technical proposals determined to be acceptable, either initially or as a result of discussions, will be 

considered for award, and (B) each bid in the second step 

must be based on the bidder’s own technical proposals. 

(viii) A statement that (A) offerors should submit proposals that are acceptable without additional explanation or 

information, (B) the Government may make a final determination regarding a proposal’s acceptability solely on the 

basis of the proposal as submitted, and (C) the Government 

may proceed with the second step without requesting further information from any offeror; however, the Government may request additional information from offerors of 

proposals that it considers reasonably susceptible of being 

made acceptable, and may discuss proposals with their offerors. 

(ix) A statement that a notice of unacceptability will be

forwarded to the offeror upon completion of the proposal 

evaluation and final determination of unacceptability. 

(x) A statement either that only one technical proposal

may be submitted by each offeror or that multiple technical 

proposals may be submitted. When specifications permit 

different technical approaches, it is generally in the Government’s interest to authorize multiple proposals. 

(2) Information on delivery or performance requirements

may be of assistance to bidders in determining whether or not 

to submit a proposal and may be included in the request. The 

request shall also indicate that the information is not binding 

on the Government and that the actual delivery or performance 

requirements will be contained in the invitation issued under 

step two. 

(3) Upon receipt, the Contracting Officer shall—

(i) Safeguard proposals against disclosure to unauthorized persons; 

(ii) Observe disclosure and use of data restrictions; and

(iii) Remove any reference to price or cost.

(4) The Contracting Officer shall establish a time period for

evaluating technical proposals. The period may vary with the 

complexity and number of proposals involved. However, the 

evaluation should be completed quickly. 

(5)(i) Evaluations shall be based on the criteria in the request for proposals and not consideration of responsibility. 

Proposals shall be categorized as— 

(A) Acceptable;

(B) Reasonably susceptible of being made acceptable; or

(C) Unacceptable.

(b) Any proposal which modifies or fails to conform to the

essential requirements or specifications of the request for 

technical proposals shall be considered nonresponsive and 

categorized as unacceptable. 

(6)(i) The Contracting Officer may proceed directly with 

step two if there are sufficient acceptable proposals to ensure 

adequate price competition under step two, and if further time, 

effort, and delay to make additional proposals acceptable and 

thereby increase competition would not be in the Government’s interest. If this is not the case, the Contracting Officer 

shall request bidders whose proposals may be made acceptable, to submit additional clarifying or supplementing information. The Contracting Officer shall identify the nature of 

the deficiencies in the proposal or the nature of the additional 

information required. The Contracting Officer may also arrange discussions for this purpose. No proposal shall be discussed with any offeror other than the submitter. 

(ii) In initiating requests for additional information, the

Contracting Officer shall fix an appropriate time for bidders to 

conclude discussions, if any, submit all additional information, 

and incorporate such additional information as part of their 

proposals submitted. Such time may be extended at the discretion of the Contracting Officer. If the additional information 

incorporated as part of a proposal within the final time fixed 

by the Contracting Officer establishes that the proposal is acceptable, it shall be so categorized. Otherwise, it shall be categorized as unacceptable. 

(7) When a technical proposal is found unacceptable (either

initially or after clarification), the Contracting Officer shall 

promptly notify the offeror of the basis of the determination 

and that a revision of the proposal will not be considered. 

Upon written request, and as soon as possible after award, the 

Contracting Officer shall debrief unsuccessful offerors. 

(8) Late technical proposals are governed by GPO Contract

Terms, Publication 310.2, Solicitation Provisions. 

(9) If it is necessary to discontinue two-step formal advertising, the Contracting Officer shall include a statement of the 

facts and circumstances in the contract file. Each offeror shall 

be notified in writing. When step one results in no acceptable 

technical proposal or only one acceptable technical proposal, 

the acquisition may be continued by negotiation under the authority of VII–8. 

(b) Step two. (1) Formal advertising procedures shall be followed except that invitations for bids will— 

(i) Be issued only to those offerors submitting acceptable technical proposals in step one; 

(ii) Include the statement, “Step 2 of Two-Step Formal

Advertising”; 

(iii) Prominently state that the bidder shall comply with

the specifications and the bidder’s technical proposal; and 

(iv) Not be synopsized in the GPE and/or the GPO website as an acquisition opportunity nor publicly posted. 

(2) The names of firms that submitted acceptable proposals

in step one will be listed in the GPE and the GPO website for 

the benefit of prospective subcontractors. 

SECTION 4. SMALL PURCHASES 

1. Legal effect of Quotations

(a) A quotation is not an offer and, consequently, cannot be

accepted by the Government to form a binding contract. 

Therefore, issuance by the Government of an order for supplies or services in response to a supplier’s quotation does not 

establish a contract. The order is an offer by the Government 

to the supplier to buy certain supplies or services upon specified terms and conditions. A contract comes into being when 

the supplier accepts the offer. 

(b) When appropriate, the Contracting Officer may request

the supplier to indicate acceptance of an order by notification 

to the Government, preferably in writing. In other circum-
CONTRACTING METHODS VII–5

stances, the supplier may indicate acceptance by furnishing the 

supplies or services ordered or by proceeding with the work to 

the point where substantial performance has occurred. 

(c) If the Government issues an order resulting from a quotation, the Government may (by written notice to the supplier, 

at any time before acceptance occurs) withdraw, amend or 

cancel its offer. 

2. Procedures.

(a) This subsection prescribes policies and procedures for

the acquisition of supplies and nonpersonal services, from 

commercial sources, the aggregate amount of which does not 

exceed $100,000. 

(b) Competition and price reasonableness. (1) Sufficient

competition shall be obtained when making small purchases to 

ensure that the procurement is reasonable, considering price 

and other factors including administrative costs of the purchase. If known, the previous supplier shall be invited to make 

a quotation. 

(2) All Requests for Quotations (RFQ) must be rotated

among qualified available sources. RFQ's shall not be solicited 

on a preferential basis. 

(3) Adequacy of price competition for a given procurement

shall be based on whether the foregoing conditions are satisfied. Generally, in making this judgment, the fewer the number of quotations, the greater the need for close evaluation. 

(4) If the order is for an amount not greater than $2,500,

and the price quoted is fair and reasonable, only one quotation 

is required. Such purchases shall be rotated among qualified 

suppliers. Records of these purchases shall include a justification as to how the price was determined to be fair and reasonable. The justification may be in the form of an estimate, 

previous or similar procurements, or any other method of substantiating a fair market price. 

(5) To provide competition, generally three or more quotations shall be requested for small purchases over $2,500, and 

the RFQ will be posted on the GPO website. While each RFQ 

may not result in a quotation, efforts should be directed to obtain a reasonable number of quotations. When only one quotation is received, or if the price variance between quotations 

appears to reflect a lack of true competition, documentation 

shall be included in the contract file setting forth the basis for 

the determination by the Contracting Officer that the price is 

fair and reasonable. 

(6) The contract file shall include all sources solicited and

all quotations received. Each quotation received must include 

proof of the date and time that the quotation was received by 

the appropriate procurement office (e.g., a date and time 

stamp) or Quick Quotes. 

(c) The responsible firm with the lowest acceptable quotation shall be issued a purchase order, signed by the Contracting Officer. 

3. Documentation. When oral or faxed price quotations are

obtained, or when quotations are received through GPO’s

Quick Quotes, records, handwritten or otherwise, shall be established which clearly reflect the propriety of the order. At a

minimum, the contract file shall include: (a) company and personnel names of the sources solicited; (b) date, time, and manner of communication; (c) company and personnel name and

title from any source submitting a quotation or other response; 

(d) price(s) and other terms such as payment discounts quoted

by each; (e) name of person calling out each solicitation, if

applicable; and (f) name of the person receiving each quotation, if applicable.

4. Purchase Order Forms. Purchase orders include an area

for detailed specifications. Specifications are to be completed

using GPOPROC or similar computer system. If GPOPROC

or a similar computer system is not usable or available, the entire purchase order may be completed with ballpoint pen. Typing is not required. When used as the request for quotations

prior to award, the information required on the purchase order

forms shall be completed and included in the request for quotations.

SECTION 5. FIXED-PRICE INDEFINITE QUANTITY 

CONTRACTS. 

(a) A fixed-price indefinite quantity contract may be used

in sealed bidding (other than term contracts) or small purchase 

solicitations to provide for the supply of the most copies for a 

stated fixed-price. 

(b) When a requisition stipulates a maximum dollar amount

and the agency either describes its need in terms of obtaining 

the most copies for the stipulated maximum dollar amount or 

otherwise intentionally omits a reference to a specific quantity, 

solicitations that are f.o.b. destination or f.o.b. destination with 

non-reimbursable mail shall be developed to acquire the most 

copies possible. 

(c) An agency’s fixed-price without identification of quantity constitutes a mandatory spending limit, which shall not be 

exceeded and shall include all handling and incidental GPO 

costs (e.g., press sheet inspections). 

(d) Solicitations shall include a statement that—

(1) the requirement is for a complete product including

all production and distribution costs; 

(2) bidders or business entities submitting quotations

shall submit a total quantity—not a total price; and, 

(3) when applicable, an additional total price (based on

the added rate) for rider and/or Superintendent of Documents copies is required. 

(e) Bids or quotations shall be evaluated, and award shall

be made to the bidder or business entity submitting a quotation, which unequivocally states that it shall supply— 

(1) the most copies for the stated fixed-price, when rider

and/or Superintendent of Documents copies are not required; or, 

(2) the lowest overall cost per copy, when rider and/or

Superintendent of Documents copies are required. 

(f) Insert a provision, substantially as follows, when rider

and/or Superintendent of Documents copies are required: 

BIDS OR QUOTATIONS: The bidder or business entity submitting a quotation shall bid or shall quote the maximum quantity, inclusive of all costs (including non-reimbursable mail, if 

applicable), that shall be delivered to the [Government-provided 

name of agency] per specification requirements for a total of 

[Government-provided dollar amount]. In addition, the bidder or 

business entity submitting a quotation shall bid or shall quote a 

separate additional price for the [Government-provided separate 

number] of copies for the Superintendent of Documents (SuDocs). 
VII–6 GPO PRINTING PROCUREMENT REGULATION 

The price for the SuDocs quantity shall be based on a continuing 

run of the quantity produced for the [Government-provided name 

of agency], exclusive of all basic or preliminary charges. Bids or 

quotations shall include the cost of all materials and operations for 

the total quantity ordered. Bids or quotations shall be prepared in 

conformance with the Schedule of Prices. 

BASIS FOR AWARD: The contract shall be awarded to that responsible bidder or responsible business entity submitting a bid or 

a quotation, whose bid or quotation conforming to the solicitation, 

provides the lowest overall cost per copy to the Government, including prompt payment discount. The lowest overall cost per 

copy shall be calculated by dividing the total price (total calculated by adding the [Government-provided dollar amount] for the 

[Government-provided name of agency] plus the total bid or 

quoted pricing for the SuDocs quantity) by the total number of 

copies to be delivered (total calculated by adding the bid or 

quoted number of copies to be delivered to the [Governmentprovided name of agency] plus the [Government-provided number] of copies to be delivered to SuDocs). See Schedule of Prices. 

SCHEDULE OF PRICES 

Quantity Price

[Government-provided name of 

agency] ________________ 

[$Government-provided]

Superintendent of Documents 

(SuDocs) 

[Government-provided] $________________ 

Total Quantity and Total Pricing ________________ $________________ 

Total Pricing ÷ Total Quantity = Price per Copy $________________ 

(g) Insert a provision, substantially as follows, when rider

and/or Superintendent of Documents copies are not required: 

BASIS FOR AWARD: Award shall be made to the bidder or 

business entity submitting a bid or a quotation, whose bid or quotation specifies the most copies to be delivered to the [Government-provided name of agency] for an all-inclusive, fixed-price 

total of [Government-provided dollar amount]. Bidders or businesses submitting quotations shall submit a total quantity—not a 

total price. In the event of a tie quantity, award shall be determined by the lowest total price after consideration of prompt 

payment discount. In the event there is still a tie, see PPR XII. 

Additionally, the bid or quotation shall include separate unit pricing for each additional [Government-provided number] copies. 

SECTION 6. NEGOTIATION FOR PUBLIC EXIGENCY 

1. Deviation from Negotiation Procedures.

(a) Determination. A D&F, in the format of exhibit VII–1

and signed by the Contracting Officer and approved by an 

APS Director, shall be placed in the contract file folder. When 

possible, the Contracting Officer should request assistance regarding the D&F (or any process arising from or under public 

exigency circumstances) from the Associate General Counsel 

in GPO’s Office of the General Counsel to ascertain whether 

or not there is a legal objection. 

(b) Solicitation. When possible, at least three qualified suppliers shall be solicited. However, that number shall be increased as necessary to ensure adequate competition. A list of 

prospective offerors and written specifications shall be developed. The written specifications shall be provided to the prospective offerors via telephone or transmit via facsimile or 

email. They shall be afforded adequate time in which to submit their offers. Where time does not permit, and the specifications are not too complex, the Printing Services Specialist 

will carefully read the specifications to the suppliers. Suppliers 

shall be advised that (1) offers will be accepted until a specific 

time and date, and (2) GPO Contract Terms, Publication 

310.2, and the representations and certifications on the reverse 

of the bid form (Form 910) apply. Also, facsimile bids are acceptable with the insertion of the provision “Facsimile Bids” 

in GPO Contract Terms, Publication 310.2. 

(c) Award. If applicable, the purchase order shall reference

that the bid was made in response to a telephone solicitation 

and that the written specifications are precedent. 

SECTION 7. NONCOMPETITIVE PURCHASES 

1. Deviation From Negotiation Procedures.

(a) Presolicitation. (1) The Contracting Officer shall first

be satisfied that the requirement is validly noncompetitive. To 

aid in this judgment, justification must be obtained from the 

requesting agency adequate to support a noncompetitive determination. Justification should be provided in writing before 

the Contracting Officer takes any further action. In urgent 

situations, the justification may be obtained orally, documented for the file using GPO Form 714 or similar documentation, and subsequently confirmed in writing by the agency. If 

the item is deemed or suspected to be proprietary, the requirements of I–13 shall also be satisfied. 

(2) Once satisfied that competition cannot be obtained, the

Contracting Officer shall prepare a memorandum to the Managing Director, Customer Services, setting forth the facts, to 

include an estimate of the cost of the item and recommended 

action. This memorandum shall be supported by the following 

documentation, as a minimum: 

(i) a copy of the requisition;

(ii) the agency justification; and,

(iii) a D&F (see exhibit VII–2);

(iv) other pertinent information.

The Contracting Officer shall forward the memorandum 

through the APS Director and then through the Associate 

General Counsel to ascertain whether or not there is a legal 

objection. If there is no legal objection, the Associate General 

Counsel shall forward the memorandum to the Managing Director, Customer Services, for approval. If any problems are 

identified by the Associate General Counsel or the Managing 

Director, Customer Services, the memorandum shall be returned to the Contracting Officer for resolution. No solicitation shall be issued until approval has been obtained. 

(3) If the noncompetitive procurement is estimated to exceed $100,000, a D&F shall be prepared, using the format in 

exhibit VII–2. The D&F shall be signed by the Contracting 

Officer. If the Associate General Counsel advises that the 

D&F is legally sufficient, the Associate General Counsel will 

forward the D&F to the Managing Director, Customer Services, who will indicate approval on the D&F and return the 

original to the Contracting Officer. The signed original shall 

be placed in the official contract file. 

(b) Solicitation. (1) A solicitation document, including

specifications, shall be prepared and forwarded to the supplier. 

The form and format of the currently used “Invitation for Bid” 

may be employed. The supplier shall be provided GPO Form 

910, “Bid,” on which to submit its offer. 

(2) In urgent circumstances, an email or facsimile solicitation and offer may be authorized. 
CONTRACTING METHODS VII–7

(3) The solicitation shall specify a closing date for receipt

of the supplier’s offer. The maximum possible time for preparation and submission of the offer shall be allowed. 

(4) An offer received for a noncompetitive procurement

shall not be publicly opened. No information contained in the 

offer shall be made available to the public, or to anyone within 

the Government who does not have a legitimate interest in the 

offer. 

SECTION 8. NEGOTIATION AFTER ADVERTISING 

1. Deviation from Negotiation Procedures.

(a) Resolicitation. (1) If an advertised solicitation fails because of unreasonable bid prices received or the lack of receiving any responsive bids, the Contracting Officer shall first 

consider readvertising for the requirement, provided that time 

or other circumstances permit. If an IFB is to be canceled and 

resolicited because of unreasonable prices, CRB approval is 

required (see I–10.4(b)). If no responsive bids were received, 

the Contracting Officer shall have a new bidders mailing list 

developed which will provide reasonable assurance of responses. 

(2) If time or other circumstances do not allow for readvertising, the Contracting Officer may negotiate for the requirement under the authority of this section, provided that, the 

Contracting Officer believes adequate competition and reasonable prices can be obtained through negotiation. 

(b) Approval for negotiation. If the Contracting Officer is

convinced that negotiation after advertising is the appropriate 

method by which to procure the requirement, they shall so 

recommend to the Managing Director, Customer Services, by 

memorandum. The memorandum shall set forth the pertinent 

circumstances of the case (e.g., why readvertisement is not 

feasible, how prices were determined to be unreasonable, etc.), 

and shall be supported by the case file and any other pertinent 

information. A D&F shall be prepared to accompany the 

memorandum, using the format in exhibit VII–3. The Managing Director, Customer Services, will sign the D&F if approved. The signed original will be returned to the Contracting 

Officer to be placed in the official contract file. 

(c) Notification to bidders. Upon receipt of the signed D&F

approving negotiation, the Contracting Officer shall promptly 

notify each responsible supplier who submitted a bid (in the 

case of unreasonable prices) or each supplier on the bidders 

mailing list (in the case of no responsive bids received) of the 

Government’s intent to negotiate the instant requirement and 

afford them the opportunity to participate in negotiations. 

Their responses shall be documented and included in the contract file. Those suppliers who submitted bids will be considered as the basis for beginning negotiation. They will be 

afforded an opportunity to submit modifications to their initially submitted bids at this time. When no bids have been received, the suppliers who wish to participate in the negotiation 

will be advised that they should submit their offers based on 

the IFB as originally issued (or as amended). A closing date 

for receipt of offers or modifications will be established and 

provided to the interested suppliers. They shall also be advised 

at that time that offers or modifications received after the close 

of business on that specified date will be processed in accordance with the provision “Late Submissions, Modifications, 

and Withdrawals of Bids,” in GPO Contract Terms, Publication 310.2. Additionally, all interested suppliers will be advised of the possibility that award may be made without 

further discussion. 

SECTION 9. COMPETITIVE NEGOTIATION 

1. Scope. This section covers policies and procedures governing contracting by negotiation except small purchases and

two-step formal advertising.

2. General. Compared to formal advertising, negotiation is a

more flexible procedure that includes the receipt of proposals

from offerors, permits bargaining, and usually affords offerors

an opportunity to revise their offers before award of a contract.

Bargaining—in the sense of discussion, persuasion, alteration

of initial assumptions and positions, and give-and-take—may

apply to price, schedule, technical requirements, type of contract, or other terms of a proposed contract.

3. Use of Negotiation.

(a) Procurement may be accomplished by negotiation pursuant to any of the authorities specified. However, procurement shall continue to be made by sealed bid procedures when 

practicable, even though existing conditions and circumstances would otherwise satisfy the requirements of this chapter. 

(b) When procurement is to be accomplished by use of negotiation, offers shall be solicited from the maximum number 

of qualified sources consistent with the nature and requirements of the item(s) to be procured. 

(c) Negotiated procurements shall be on a competitive basis

to the maximum practicable extent. 

(d) Each purchase order issued pursuant to this section shall

include a statement, indicating the authority under which the 

procurement was made, as follows: 

Negotiated pursuant to the authority of (insert authority). 

4. Authorization and Approval. No contract shall be entered

into as a result of negotiation unless—

(a) The contemplated contract action comes under one of

the authorizations permitting negotiation; 

(b) All required determinations and findings have been

made; and 

(c) All required clearances and approvals have been obtained. 

5. Authorities for Competitive Negotiations and Authorities for Noncompetitive Negotiations.

(a) Small Purchases. (1) Authority. Purchases not in excess

of $100,000 are accomplished by negotiation pursuant to the 

authority of 41 U.S.C. 5(1). 

(2) Application. Small purchase procedures are designed to

reduce the administrative costs associated with the procurement of comparatively low-dollar-value requirements for 

printing, binding, related supplies, and related services and 

sufficiently simple to allow telephone description in enough 

detail to permit intelligent quotations. 

(3) Limitations. (i) The small purchase limitation under this

authority shall not exceed $100,000. 

(ii) Negotiations initiated under another authority shall be

cited as the negotiation authority for any resulting contract 
VII–8 GPO PRINTING PROCUREMENT REGULATION 

even though the contract is for less than the small purchase 

limitation. 

(b) Public Exigency. (1) Authority. Pursuant to the authority

of 41 U.S.C. 5(2), purchases of printing, binding, related supplies, and related services may be negotiated in lieu of formal 

advertising, when the public exigency will not permit delay 

occasioned by advertising. 

(2) Application. This method of procurement shall be used

on an emergency basis only. In order for this authority to be 

used, the need must be compelling and of unusual urgency, as 

when the Government would be seriously injured, financially 

or otherwise, if the supplies or services contracted for were not 

furnished by a certain time and when they could not be procured by that time by means of formal advertising. 

(3) Limitations. (i) Contracts negotiated under this authority

shall be supported by a D&F justifying its use, signed by the 

Contracting Officer, and approved by the appropriate APS Director. 

(ii) This authority shall not be used when negotiation is authorized for purchases not in excess of the applicable small 

purchase limitation. 

(c) Noncompetitive Purchase. (1) Authority. Pursuant to the

authority of 41 U.S.C. 5(3), purchases and contracts may be 

negotiated when only one source of supply is available. 

(2) Application. Illustrative circumstances in which this authority may be used are: 

(i) When supplies or services can be obtained only from

one person or firm (“sole source of supply”). 

(ii) When competition is precluded because of the existence of patent rights, copyrights, secret processes, control 

of basic raw material, or similar circumstances (however, 

the mere existence of such rights or circumstances does not 

in and of itself justify the use of this authority). 

(iii) When it is impossible to draft adequate specifications or any other adequately detailed description of the required supplies or services. 

(3) Limitations. Contracts negotiated under this authority

shall be supported by a D&F justifying its use, signed by the 

Contracting Officer, accompanied by a statement of no legal 

objection from the Associate General Counsel, and approved 

by the Managing Director, Customer Services. 

(d) Negotiation After Advertising. (1) Authority. Authority

to accomplish purchases of printing, binding, related supplies, 

and related services by negotiation after formal advertising 

was given by the JCP by letter of November 30, 1979. Such 

purchases may be made if: 

(i) the bid prices received after advertising are unreasonable as to all or part of the requirement; 

(ii) the bid prices were not independently reached in

open competition (i.e., were collusive); or 

(iii) “no bid” responses were received.

(2) Application. This authority is designed to cope with

cases where bids received after advertising are too high, although not actually identical or apparently collusive, cases of 

indicated possible collusive bidding, or where “no bid” responses are received. Indications of possible violation of antitrust laws or collusive bidding are to be reported in accordance 

with I–4.2. Where, after advertising, some of the bids do not 

appear reasonable, and the reasonable bids do not cover the 

full quantity required, the Contracting Officer may, at their 

discretion, accept the reasonable bids. Negotiation for the balance of the quantity required is subject to the requirements of 

paragraph (3) below. 

(3) Limitations. This authority, supported by a D&F, shall

not be used unless the Managing Director, Customer Services, 

has determined that the bid prices received after advertising 

are unreasonable, were not independently reached in open 

competition, or that “no bid” responses were received. After 

determination by the Managing Director, Customer Services, 

and the rejection of all bids, no contract shall be negotiated 

unless: 

(i) In the case of unreasonable prices, each responsible

bidder who submitted a bid, or in the case of no bids received, each supplier on the bidder’s mailing list is notified 

of the intent to negotiate and is given a reasonable opportunity to negotiate; and 

(ii) the negotiated price is the lowest negotiated price offered by a responsible bidder. 

(iii) The negotiated price is lower than the lowest rejected bid price of a responsible bidder, as determined by 

the Managing Director, Customer Services. 

(e) Competitive Negotiation. (1) Authority. Pursuant to the

authority of 44 U.S.C. 311, the Public Printer may negotiate 

purchases and contracts for supplies or services for which the 

Public Printer determines that it is impracticable to secure 

competition by advertising. 

(2) Limitations. The Public Printer may not award a contract under this section unless the justification (D&F) for this 

use of negotiation is in writing and a certification is made as to 

the accuracy and completeness of the justification. The justification shall set out facts and circumstances that clearly and 

convincingly establish that advertising would not be practicable for such contract. This justification is final and a copy 

thereof shall be maintained in GPO for at least 6 years after 

the date of the determination. The Public Printer has designated the Managing Director, Customer Services, to sign the 

D&F (see exhibit VII-4) and certify as to the accuracy and 

completeness of the justification. 

6. Contracting by Competitive Negotiation. Competitive

negotiation shall be conducted in accordance with the policies

and procedures set forth in the current Materials Management

Acquisition Regulation (MMAR), Part 15, Contracting by Negotiation.

SECTION 10. SIMPLIFIED PURCHASE 

AGREEMENTS 

1. Scope.

This section prescribes policies and procedures for establishing and using Simplified Purchase Agreements (SPAs). 

These agreements are established between the U.S. Government Printing Office and individual vendors and are to be used 

to place individual work orders not to exceed $10,000 for 

originating office copies by agency or GPO personnel. 

2. Definitions.

“Authorized individual”—a person who has been empowered to sign Work Orders by their agency’s Letter of Procurement Authority submitted to GPO and completing the required 

training to purchase products and services on the SPA. 
CONTRACTING METHODS VII–9

“Authorized official”—a person at a Federal agency who 

has the authority to authorize individuals at that agency to 

purchase printing, binding, related supplies, and related services under their procurement authority. 

“Best value”—a procurement method whereby originally 

specified factors other than price are included in the award decision. These could be schedule, quality, business practices, 

etc. 

“Contractor”—a supplier/vendor certified by the GPO to 

perform on a SPA. 

“Memorandum of agreement”—a signed document between GPO and a Federal agency that establishes what each 

activity will be responsible for under the SPA. 

“Originating office”—an entity of a Federal agency that 

places work orders for printing, binding, related supplies, and 

related services. 

“Proposal”—a supplier/vendor response to a SPA solicitation. 

“Purchase order”—a numbered letter or form issued by 

GPO establishing an agreement between GPO and certified 

contractors. 

“Quotation”—a response to a request for quotations. A 

quotation is not an offer and cannot be accepted by the Government to form a binding contract. 

“Request for quotations (RFQ)”—a document, which identifies the specific requirements for the product or service the 

purchaser wants a contractor to supply a dollar figure for. 

“Supplier/vendor”—a company capable of furnishing 

printing, binding, related supplies, and related services. 

“Work order”—a signed document issued to a certified 

contractor by an authorized individual within an originating 

office describing the product or service to be furnished. Copies of a work order are used as delivery tickets and as vouchers for billing. 

3. Simplified Purchase Agreements.

(a) A Simplified Purchase Agreement (SPA) is a simplified

method of filling anticipated non-repetitive needs for printing, 

binding, related supplies, and related services with qualified 

sources. It is a written instrument of agreement, established 

between the GPO and a contractor, that contains— 

(1) Terms, conditions, and clauses such as Contract

Terms, GPO Publications 310.1, 310.2 and 310.3 which 

will be a part of each order placed under the SPA, and 

(2) A listing of possible printing, binding, related supplies, and related services for vendors to be able to indicate 

what they intend to provide. 

(b) SPAs are designed to reduce administrative costs in accomplishing small dollar purchases through the use a simplified vehicle for direct agency purchase of printing, binding, 

related supplies, and related services up to the purchase limitation established by the SPA. 

(c) SPAs shall be established with contractors who are

likely to provide competitive quotations. 

(d) SPAs should be used by authorized individuals responsible for providing printing, binding, related supplies, and related services for offices, installations, projects, or functions. 

Such levels, for example, may be organized supply points, independent or detached field units, or one-person posts or activities. 

(e) A contract is formed under the SPA when the contractor

begins substantial performance on a work order placed under 

the SPA. 

(f) Each SPA shall provide for discontinuing its future applicability upon 30 days written notice by either the contractor 

or GPO. 

(g) Discontinuing or modifying a SPA shall not affect any

prior contract incorporating the SPA. 

(h) A SPA shall not—

(1) Cite appropriations or obligate funds;

(2) State or imply any agreement by the Government to

place future contracts or orders with the contractor; or 

(3) Be used in any manner to restrict competition.

4. Authorizing Use of Simplified Purchase Agreements for

Federal Customers.

(a) The following are circumstances under which GPO

Contracting Officers may authorize the use of Simplified Purchase Agreements for Federal customers and subsequently 

execute a memorandum of agreement (MOA) between the 

originating office and the GPO: 

(1) When a variety of printing, binding, related supplies,

and related services are to be purchased on a simplified basis and the circumstances are not conducive to the establishment of a requirements term contract. 

(2) If there is a need to provide direct commercial

sources of supply for one or more originating office in a 

given area that do not otherwise have the authority to purchase. 

(3) In any other case in which the writing of numerous

purchase orders can be avoided through the use of this procedure. 

(b) When any of the above circumstances apply, the originating office shall supply to the GPO Contracting Officer the 

following: 

(1) Letter of Procurement Authority. A letter of procurement authority for those individuals, who are being 

granted contracting authority under a SPA. At a minimum, 

this letter must list each individual, their email address, 

phone number, and the dollar level (up to and including 

$10,000), for which the individual may place orders. This 

letter must be signed and dated by an individual at the Federal agency, who has the authority to delegate contracting 

authority to the individuals listed. The letter must contain 

the following certification: 

“I hereby authorize the following individuals to make 

single purchases of up to and including (insert $10,000 or a 

lower monetary amount), under GPO SPA (insert applicable number). I further certify that I am the head of the procuring activity or a designee appointed by the head of the 

procuring activity and that this delegation is in compliance 

with applicable agency regulations.” 

Since the authorizing individual’s procurement authority 

under the SPA comes from their own agency, when their 

agency regulations are more restrictive than GPO’s, the 

agency’s regulations take precedence. 

(2) Memorandum of Agreement. A GPO Contracting

Officer will furnish the originating office a Memorandum 

of Agreement (MOA) which is a signed document between 
VII–10 GPO PRINTING PROCUREMENT REGULATION

GPO and a Federal agency that establishes what each activity will be responsible for under the SPA.

(3) Standard Form 1. A Standard Form 1 (SF1) must 

be furnished before the originating office will be authorized 

to use the SPA. Each fiscal year, the originating office 

must submit a new SF1 in order to continue using the SPA.

 (c) Training. After all of the proper documentation has 

been received by the Contracting Officer, each individual 

identified on the letter of procurement authority shall be provided with training on the proper usage of the SPA.

5. Establishment of Simplified Purchase Agreements. 

(a) SPAs are to be established between GPO and suppliers/vendors that are capable of providing the products or services offered. GPO will issue a purchase order number for each 

certified contractor. 

(b) SPAs shall not contain pricing data. 

(c) SPAs shall contain the following requirements and 

statements: 

(1) Description of agreement. (i) A requirement for the 

contractor to describe in its proposal the products or services that are proposed to be supplied under the SPA. Such 

descriptions may include a checklist of products or services. 

(ii) A statement that the contractor is obligated to provide a list of individuals authorized to provide quotations 

and commit the contractor to terms of individual orders under the SPA. This list must be provided to the GPO with 

the proposal in response to the government’s request for 

proposal.

(iii) A statement that the contractor shall provide a quotation and delivery commitment for supplies or services 

when requested by an authorized agency representative. 

Contractors, at their option, may propose an alternate 

schedule or respond with a “no quote”. 

(2) Ordering Authority. A statement that GPO will provide contractors notice of individuals authorized to solicit 

quotations and place work under the SPA. This will be a 

list of individuals identified by name, position title, and 

their authorized limit and shall be furnished to the contractor by the Contracting Officer and updated on a regular basis. The statement must indicate that should work be 

accepted by an unauthorized user or over a designated 

user’s authorized limit, it may be cause for non-payment 

for work performed on those orders.

(3) Extent of obligation. A statement that the Government is obligated only to the extent of purchases actually 

made under the SPA. 

(4) Pricing. A statement that the prices to the Government shall be as low or lower than those charged the contractor’s most favored customer for comparable quantities 

under similar terms and conditions, in addition to any discounts for prompt payment. Superintendent of Document 

copies are to be priced at an added rate exclusive of preliminary or makeready costs. 

(5) Purchase limitation. A statement specifying that the 

dollar limitation for each work order under the SPA is 

$10,000 for printing, binding, related supplies, and related 

services, exclusive of copies ordered by the Superintendent 

of Documents. 

(6) Work order. A requirement that all shipments or deliveries shall be accompanied by a copy of the work order 

which shall be used as a delivery receipt. 

6. Purchases Under Simplified Purchase Agreements. 

(a) The use of a SPA does not authorize purchases that are 

not otherwise authorized by law or regulation. 

(b) No SPA is to be established in lieu of a viable direct 

deal term contract established by GPO where such contract is 

the best vehicle to obtain the products and services to be ordered.

(c) The existence of a SPA does not justify purchasing from 

only one source. Purchases at fair and reasonable prices under 

$2,500 may be made without competition. Purchases of

$2,500 or more require solicitation with three or more vendors. 

(d) Orders are to be placed on the basis of best value. Best 

value will be determined on the basis of the quotation that 

conforms to the job requirements and is the most advantageous to the government, price and other factors considered. 

Other factors that will be considered are responsiveness, business practices, convenience, courtesy, attention to detail and 

elements of past performance including work quality, reliability, and schedule compliance. 

(e) To the extent practicable, orders for products and/or 

services of the same type should be placed with more than one 

supplier. All competitive sources should be given an equal opportunity to furnish products or services under SPAs.

(f) If SPA available sources are insufficient to provide 

competition for a particular order, the Contracting Officer 

shall—

(1) solicit agreements from additional sources to expand 

the contractor base, or 

(2) acquire the requirement using another acquisition 

method.

(g) Documentation of purchases under SPAs shall be limited to essential information and forms, as follows: 

(1) Requests for quotations under SPAs may be made 

orally. A work order, GPO Form 4044, shall be issued to 

document the conversation and ensure that the contractor

and the originating agency agree concerning the transaction. 

(2) When direct delivery is made, the work order shall 

show the date delivery was made and the services that were 

performed. The receipt and acceptance of supplies or services shall be documented by signature and date on the work 

order by an authorized Government representative after 

verification and notation of any exceptions. For jobs delivered to a common carrier for delivery, the work order shall 

be documented by signature and date by the authorized representative of the carrier who will obtain their customary 

receipt from the Government at the time of delivery. 

 (h) Work Order. The work order/delivery receipt shall contain the following minimum information: 

(i) Name of contractor. 

(ii) SPA number. 

(iii) Date of purchase. 

(iv) Purchase order number. 

(v) Work order number. 

(vi) Jacket number. 
CONTRACTING METHODS VII–11

(vi) Jacket number.

(vii) Itemized list of Government furnished property.

(viii) Quantity and price for the originating office copies

plus a separate quantity and price for Superintendent of 

Documents copies if ordered. 

(ix) Detailed description of the product or service required. 

(x) Date of delivery or shipment.

(xi) Address of delivery.

An originating office may use a work order of their own 

development to meet their specific requirements. However, all 

work orders must contain the elements in (i) through (xi) 

above. 

(i) Modifications. (1) Modifications within SPA limits are

to be handled by the originating office. The modification will 

be accomplished by annotating the original work order with a 

summary of the change and its cost. The originating office 

shall furnish a copy of the annotated work order to the contractor and to the GPO Contracting Officer in the same manner as the initial work order. The appropriate regional or 

central office team shall update the procurement system as to 

the change in the comment screen and enter the dollar amount 

into the appropriate field for billing purposes. The contractor 

shall be sent an email that this has been accomplished in order 

to receive proper payment. 

(2) When a change causes the order to exceed the SPA cost

limit ($10,000 limit per order to the originating office or the 

amount designated on the letter of procurement authority), a 

formal modification must be written. Only a GPO Contracting 

Officer can issue a formal modification to a contractor on an 

individual order after placement under a SPA. 

7. Review procedures.

(a) The GPO Contracting Officer that entered into the SPA

shall— 

(1) Ensure that a sufficient random sample of SPA work

orders are reviewed at least annually to ensure that the 

MOA is being followed by the originating Federal agency. 

(2) Ensure each SPA is reviewed annually and, if necessary, updated at that time; and 

(3) Maintain awareness of changes in market conditions,

sources of supply, and other pertinent factors that may warrant making new agreements with different suppliers or 

modifying existing agreements. 
VII–12 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT VII–1 

AUTHORITY TO NEGOTIATE AN INDIVIDUAL CONTRACT FOR THE PUBLIC EXIGENCY

DETERMINATION AND FINDINGS 

Upon the basis of the following determination and findings, the proposed contract described below may be negotiated 

without formal advertising pursuant to the authority of 41 U.S.C. 5(2). 

FINDINGS 

1. The Government Printing Office proposes to procure by negotiation Requisition Number (1) which was 

received on (2) and which is required for the (3) . The estimated cost of the proposed 

procurement is $ and the required ship date is (5) . 

2. The purpose of this procurement is: (4) . 

3. The use of formal advertising for the proposed contract is impracticable because it would delay the (3) 

approximately (6) days in performing its mission during such period. 

DETERMINATION 

The proposed contract is one for which the public exigency will not permit the delay incident to formal advertising. 

Date: 

Contracting Officer (Signature) 

APPROVED: 

Date: 

APS Director (Signature) 

Description of Requisition 

Notes: (1) Requisition Number. 

(2) Date requisition was received. 

(3) Name of agency requesting procurement. 

(4) State the purpose of the procurement for example, to provide IRS with new tax forms due to changes in 

tax legislation. 

(5) Required ship date. 

(6) Estimated number of days delay expected if formally advertised. 
 CONTRACTING METHODS VII–13 

EXHIBIT VII–2 

AUTHORITY TO NEGOTIATE A NONCOMPETITIVE PURCHASE

DETERMINATION AND FINDINGS 

Upon the basis of the following determination and findings, the proposed contract described below may be negotiated 

without formal advertising pursuant to the authority of 41 U.S.C. 5(3). 

FINDINGS 

The Government Printing Office proposes to procure by negotiation (insert description, quantity and estimated cost of 

product or service) from (insert name of supplier). 

Procurement by negotiation of the above described (insert name of product or service) is necessary because (provide 

explanation/reason why procurement must be noncompetitive). 

DETERMINATION 

The proposed contract is for property for which competition is impossible. 

 

 Contracting Officer Date 

Approved: 

 

Managing Director, Customer Services Date 
VII–14 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT VII–3 

AUTHORITY TO NEGOTIATE AN INDIVIDUAL CONTRACT AFTER ADVERTISING

DETERMINATION AND FINDINGS 

Upon the basis of the following determination and findings, which I hereby make as Managing Director, Customer 

Services, the proposed contract described below may be negotiated without formal advertising pursuant to the 

authority of the Joint Committee on Printing letter dated November 30, 1979. 

FINDINGS 

The Government Printing Office proposes to procure by negotiation (insert description, quantity of product or 

service). 

Procurement by negotiation of the above described (insert description of product or service) is necessary because 

(insert reason, e.g., “bid prices received after formal advertising are unreasonable,” “bid prices received after formal 

advertising were not independently reached,” or “no responsive bids were received after formal advertising.” Also, 

provide explanation as to how conclusion was reached, e.g., number of bidders solicited; number of responsive bids 

received and bid; price of each; reasons for determination of each nonresponsive bid; how bid prices were determined 

to be unreasonable or indications of collusive prices; or other information pertinent to the procurement). 

DETERMINATION 

The proposed contract is for property or services for which (bid prices received after formal advertising are 

unreasonable or—bid prices received after formal advertising were not independently reached—or no responsive bids 

were received after formal advertising). 

 

Managing Director, Customer Services Date 
 CONTRACTING METHODS VII–15 

EXHIBIT VII–4 

AUTHORITY FOR COMPETITIVE NEGOTIATION WHEN IMPRACTICABLE TO SECURE 

COMPETITION BY ADVERTISING

DETERMINATION AND FINDINGS 

Authority to negotiate an individual contract upon the basis of the following determination and findings, the proposed 

contract described below may be negotiated without sealed bidding pursuant to the authority of 44 U.S.C. 311(b). 

FINDINGS 

The Government Printing Office proposes to procure by competitive negotiation (describe procurement). The 

estimated cost of this system is (give estimate). 

Procurement by competitive negotiation of the above described system is necessary because the 

functional/performance requirements dictate that offerors explain in detail how they will comply with the 

specifications, including in-depth discussions of the strengths and weaknesses of offers. Without such discussion it 

would be impossible to ascertain which offer best suits the Government’s needs. Because of the impossibility of 

drafting detailed specifications or any other adequate description of the required services, it is impractical to secure 

competition by sealed bidding. 

DETERMINATION 

I determine that the proposed contract is for property and services for which it is impracticable to obtain competition 

by sealed bidding. I certify that this Determination and Findings is essentially accurate and complete. 

 

 Managing Director, Customer Services Date 

VIII–1 

CHAPTER VIII. PRELIMINARY PROCUREMENT PROCEDURES 

SECTION 1. REQUISITION PROCESSING 

1. Scope. This section sets forth the responsibilities and procedures for the review, acceptance, recording, and processing

of requisitions for printing, binding, related supplies, and related services.

2. Authority. The authority and responsibility for requisition

processing rests within APS.

3. [Reserved]

4. Requisition Forms.

(a) Standard Forms 1 and 1c. Standard Forms 1 and 1c,

Printing and Binding Requisition, are the basic forms used to 

requisition printing, binding, related supplies, and related services from the GPO Central Office or from Regional Offices. 

The use of the prescribed requisition forms are required: (1) to 

request individual (one-time) requirements; (2) to request the 

establishment of, or fiscal year renewal of, a term contract or 

SPA; and, (3) to place work on an existing term contract 

which was established for use by another agency, providing 

such placement does not interfere with the contract schedules 

for work normally placed under that contract. The forms provide appropriate spaces where basic information and a complete description of the requirements are entered. If additional 

information or more detailed specifications and distribution 

are necessary, they may be attached. The requisition must be 

signed by an authorized agency representative. Copy, negatives, art, electronic media, and related material should accompany the requisition when it concerns an individual (onetime) requirement. While requisitions may be used to request 

that work be placed under term contracts, actual placement requires the development of a print order from the requisition. 

(b) GPO Form 2511, Print Order is used to place orders on

term contracts. If a determination is made that a requisitioned 

printing requirement should be procured under a term contract, 

a print order must be developed from the requisition before 

such placement can be made. 

(c) GPO Form 4044, Work Order is used to place orders on

SPAs. 

(d) Requisition numbers. Agency requisition numbers may

not exceed 18 alphanumeric characters. 

5. Documentation. Time-stamping and recording of requisitions. Each requisition and GPO-placed print order, upon receipt, will be time-stamped. The jacket number shall be

entered on the requisition. The following will be recorded by 

fiscal year in a requisition register: 

(1) Requisition Number;

(2) Jacket Number;

(3) Date Received; and,

(4) Program/Print Order Number.

6. Assignment of Jacket Numbers.

(a) Strapped jackets. Requisitions shall be reviewed to

identify an agency’s individual requirements that may be ideally grouped together (strapped). Examples of requirements 

with strapping potential include: Same trim size, paper, binding, etc.; similar substrates such as metals or plastics; or, GFP 

common to multiple jobs. Requisitions from different customer agencies exhibiting similar job characteristics may be 

strapped only upon documented justification that economy 

will be realized and with the approval of the appropriate APS 

Director. 

(b) One-time and small purchase procurements. One jacket

number shall be assigned to each requisition regardless of the 

number of riders except: 

(1) When the requirements of the requisition are to be

solicited separately (e.g. composition separately from printing and binding); or, 

(2) When dividing a requirement according to distribution. 

On such occasions, separate jackets will be assigned to 

each aspect of the procurement and will carry a modification 

of the original requisition number. 

(c) Term contracts (open jackets). Each requisitioning

agency or bureau which has been given authority to place print 

orders under a term contract will be assigned an open jacket 

number for that contract. Open jacket numbers shall not be assigned to rider requisitions. These requisitions will use the 

same jacket number assigned to the ordering agency. Open 

jacket numbers remain active for one fiscal year. 

(d) Regional Office jacket numbers. Jacket numbers in the

500, 600, and 700 series have been reserved for exclusive use 

by the Regional Offices. One series is to be used for one fiscal 

year and the others the following two fiscal years. This procedure is to continue on an alternating basis. Jacket numbers reserved for program use are to be taken from the beginning of a 

respective series. 

(e) Simplified Purchase Agreements (SPAs). Each requisitioning agency or bureau, which has been given the authority 

to place work orders under a SPA, will be assigned an open 
VIII–2 GPO PRINTING PROCUREMENT REGULATION 

jacket number for that SPA. Open jacket numbers remain active for one fiscal year. 

7. Review of Requisition and Preparation of Specifications

(a) Agency authorization and billing information. Requisitions must be reviewed to ensure that the appropriate boxes in 

the requisition heading have been filled in, that the required 

billing information has been furnished, and that it contains the 

proper authorization. 

(b) Printing requirements resulting from contracts for

equipment and services and grants. Qualified agents of requiring agencies such as contractors for equipment and services 

and grantees wishing to purchase Government-related printing 

shall request their grantor agency to submit a printing and 

binding requisition (SF–1) to GPO. Upon performance of the 

service, GPO will bill the grantor agency. 

(c) Presidential seal or signature. Requests for printing that

require the reproduction of the President’s or Vice President’s 

signature must be submitted to the Managing Director, Customer Services, through the appropriate APS Director, for approval. Such approval must also be gained for the 

reproduction of the Presidential Seal, Vice Presidential Seal, 

or the Coat of Arms of the Executive Office of the President. 

(d) Production and shipping instructions. (1) Completeness

of requisition. Requisitions should be reviewed to make certain that all appropriate production requirements are noted and 

that no ambiguity exists. 

(2) GFM. GFM received shall be reviewed. If the GFM is

not fully ready for production, a determination must be made 

as to whether such additional preparation is to be performed 

by the GPO or to be made a part of the specifications. 

(3) Distribution lists. A distribution list shall be reviewed

for completeness and accuracy. A copy is to be attached to the 

requisition and retained in the contract file, and one copy is 

sent to the contractor. 

(4) Bills of lading. When requested by the department or

agency, shipment may be made on GPO or departmental bills 

of lading. This requirement should be indicated on the requisition. When bills of lading are to be issued by the agency, it is 

the responsibility of APS to furnish the agency information 

necessary to issue the bills of lading immediately following 

award. 

(e) Superintendent of Documents, Sales, Depository, and

File copies. (1) Responsibility. It is the responsibility of APS, 

on an individual requisition or print order basis, to determine 

whether the Superintendent of Documents (Supt. Docs.) shall 

be contacted for consideration of sales, depository, and file 

copies. For assistance in these determinations, the following 

guidelines are provided: 

Publications to be submitted for Supt. Docs. consideration: 

Unclassified technical and informational reports 

Bibliographies 

National forest descriptive folders 

Publications in numbered series 

Anything on popular interest subjects; i.e., energy, taxes, history, 

parks and forests, home economics, outdoor recreation, public lands, 

etc. 

Bureau reports 

Annual reports 

Maps 

Military manuals of public interest 

Publications not to be submitted: 

Forms 

Memos and letters 

Local installation telephone directories 

Classified security information 

(2) Submission to Supt. Docs. All requests for Supt. Docs.

consideration shall be properly documented on GPO Form 

3868, Notification of Intent to Publish. This form is to be 

submitted via remote telecopier directly to the Library Technical Information Services (LTIS). The telecopier number is 

202–512–1196. LTIS will answer such requests within 24 

hours of receipt. All requests will be answered even if there is 

no requirement for Superintendent of Documents’ copies. If a 

response is not provided within four (4) hours, telephone inquiries can be made at 202–512–1585. It is possible that LTIS 

did not receive the original transmission from APS. 

(3) Processing Supt. Docs. requirements. Once LTIS has

established total Supt. Docs. requirements, quantities for each 

are documented on GPO Form 2712 and returned to the appropriate APS office. This information shall be used to establish the distribution and to incorporate the Supt. Docs. 

requirements into the specifications. (Requests for sales copies 

require the submission by Supt. Docs. of a rider requisition. 

However, orders may be processed on a “requisition to come” 

basis.) 

(4) Determination of Supt. Docs. requirements for publications procured under term contracts. It is the responsibility of 

APS to obtain Supt. Docs. requirements for term contracts at 

the time the contracts are being established or renewed. This 

responsibility, however, only applies to term contracts under 

which all the products to be ordered can be identified prior to 

program commencement. For general usage term contracts or 

for term contracts under which miscellaneous publications will 

be ordered, Supt. Docs. requirements must be obtained on an 

individual print order basis. 

(5) GPO Form 3868, “Notification of Intent to Publish.”

When an agency desires to have a publication sold by Supt. 

Docs., it must submit a GPO Form 3868 with the requisition. 

In addition, a copy of the requisition and GPO Form 3868 

should be sent simultaneously to Superintendent of Documents, Sales Service, Documents Control Branch, Government Printing Office, Washington, DC 20401. 

(f) Agency requests or limitations. (1) Requests for specific

contractors or for particular categories of contractors. Occasionally a requisition will contain a request to include a particular contractor or to restrict bidding to a specific category of 

contractors (e.g., small business or minority-owned firms). In 

such circumstances, where these requests cannot be fully accommodated, the Contracting Officer should: (i) determine the 

origin and reasons for such requests, (ii) explain GPO’s obligation to employ competitive bidding, (iii) indicate what efforts will be made to satisfy the spirit of the request (e.g., 

including such contractors on the bid list); and (iv) encourage 

agencies to recommend additional firms that could be furnished questionnaires and thus become potential bidders. In no 

case should these requests be disregarded. If agreement with 

the agency cannot be reached, it should be brought to the attention of the appropriate APS Director for resolution. 
PRELIMINARY PROCUREMENT PROCEDURES VIII–3 

(2) Geographical limitations. It is GPO policy to provide

for maximum competition consistent with the requirements of 

the items to be procured. An important element of this policy 

is to use no geographical limitations on solicitation, unless justifiable reasons exist for doing so. When an agency requisition 

contains a requirement for a restriction, the agency should be 

contacted and a concerted effort made to obtain relief from the 

requested restriction. The most desirable result is the elimination of the restriction entirely. If, however, it cannot be eliminated, the agency should be encouraged to permit the use of a 

competitive area as wide as possible through the use of the following provision to be included in the invitation for bid: 

PRODUCTION AREA: It is assumed that all production facilities 

used in the manufacture of the product(s) ordered under this contract will be located (insert assumed production area). Any bidder 

intending to use production facilities outside of this area must furnish information, with the bid, which will on its face demonstrate 

the bidder’s ability to meet the schedule requirements. The determination by the Government of the acceptability of this information in no way relieves the successful bidder of the responsibility 

for compliance with these schedule requirements. 

If the agency insists on retaining the restriction due to the 

need for onsite inspections and time or budgetary constraints, 

and properly justifies its request, the following provision will 

be included in the invitation for bids: 

RESTRICTION ON LOCATION OF PRODUCTION FACILITIES: All production facilities used in the manufacture of the 

product(s) ordered under this contract must be located (insert production area). 

Both provisions deal with the question of contractor responsibility. The result of the contact with the agency should 

be documented, to include the date of contact and the person 

contacted, and made a part of the contract file. An invitation 

for bid containing an area restriction shall not be issued unless 

approved by the appropriate APS Director on the Standard 

Form 1. A request for small purchase quotations with an area 

restriction may be issued with the Contracting Officer’s approval on the Standard Form 1 and without the APS Director’s 

approval. 

8. Schedules. Schedules should be reviewed for reasonableness and conformance to contract requirements.

9. Open Requisitions.

(a) New term contracts. Upon receipt of a requisition for

the establishment of a new term contract, it shall be processed 

in accordance with the applicable procedures prescribed in 

subsections 5, 6, and 7 of this section. In addition, the following must be accomplished: 

(1) review all furnished materials, including the “Term

Contract Requirements” form, to ensure that the information necessary to prepare the specifications is complete; 

(2) establish whether the contract will be for multiple or

single award; 

(3) assign a program number;

(4) determine the effective date;

(5) review any geographical restrictions [see VIII–

1.7(f)(2)] and assess the sufficiency of adequate potential 

contractors and justifications; 

(6) determine whether the contract is to be GPO-handled

or direct deal; and 

(7) coordinate any suggested changes or requests for additional information with the agency’s designated contact. 

(b) Fiscal year renewal of term contracts. It is the responsibility of APS to maintain current files of all open requisitions and to notify agencies, at least 4 months prior to the end 

of the fiscal year, when new requisitions for the next fiscal 

year are required. Upon receipt of new requisitions, new jacket 

numbers must be assigned and files updated. All necessary information must then be furnished to the agency for its records. 

10. Requests for Waivers. Waiver requests submitted to APS

will be forwarded to the Managing Director, Customer Services, through the appropriate APS Director for determination.

11. Changes to Requisitions. No employee of the GPO shall

make any changes to requisitions, print orders, or any other

type of printing, binding, related supplies, and related services

specifications or instructions, unless such changes are properly

authorized. The name of the individual authorizing the change

and any memoranda pertinent to the change shall be attached

to or written upon the requisition. Any changes shall be initialed and dated by the person making the change.

SECTION 2. ECONOMIC PRICE ADJUSTMENT 

1. General. The fixed-price contract with an economic price

adjustment provision is designed to provide for the upward

and downward revision of contract price(s) upon the occurrence of certain contingencies which are specifically defined

in the “Economic Price Adjustment” clause in the contract.

Use of this type of contract is appropriate when serious doubt

exists as to the stability of market or labor conditions which

will exist during an extended period of contract performance

and when contingencies which would otherwise be included in

the contract price(s) can be identified and covered separately

by a price adjustment clause. Price adjustments based on established prices should normally be restricted to industry-wide

contingencies and price adjustments based on labor or material

costs should be limited to contingencies beyond the control of

the contractor. Price adjustments are based on an increase or

decrease from specified labor or material cost standards or indices made applicable to the contract.

2. Application. The “Economic Price Adjustment” clause in

XVI–3.3 shall be included in all multiyear and option year

term contracts, unless the Contracting Officer deems otherwise.

SECTION 3. COMPETITION TO THE MAXIMUM 

EXTENT PRACTICABLE 

1. Scope. This section prescribes policies and procedures to

promote competition to the maximum extent practicable in the

acquisition process.

2. Applicability.

This section applies to all acquisitions except—

(a) Contract modifications that are within the scope and

under the terms of an existing contract (but see 6(c)); 
VIII–4 GPO PRINTING PROCUREMENT REGULATION 

(b) Print orders placed under requirements contracts or

definite-quantity contracts; or 

(c) Print orders placed under indefinite-quantity contracts

that were entered into pursuant to this section when the contract was awarded and all responsible sources were realistically permitted to compete for the requirements contained in 

the order. 

(d) The placement of simplified purchase agreement (SPA)

orders, provided that all responsible sources were permitted to 

compete. 

3. Definitions.

“Competition to the maximum extent practicable,” when

used with respect to the contract action, means that all responsible sources are permitted to compete. 

“Sole source acquisition” means a contract for the purchase 

of supplies or services that is entered into or proposed to be 

entered into after soliciting and negotiating with only one responsible source. 

4. Policy.

(a) Contracting Officers shall promote and provide for

competition to the maximum extent practicable in soliciting 

bids and offers and awarding Government contracts. 

(b) Contracting Officers shall provide for competition

through the use of the competitive procedure or combination 

of competitive procedures that is best suited to the circumstances of the contract action. Contracting Officers must use 

good judgment in selecting the procedure that best meets the 

needs of the Government. 

5. Use of Competitive Procedures.

The competitive procedures available for use in fulfilling

the requirement for competition are as follows: 

(a) Sealed bids (see VII–1);

(b) Small purchases (see VII–4);

(c) Public exigency (see VII–5);

(d) Negotiation after advertising (see VII–7);

(e) Negotiation (see VII-8)

(f) Simplified purchase agreements (SPAs) (see VII–9);

and, 

(g) Combination of competitive procedures. If sealed bids

are not appropriate, Contracting Officers may use any combination of competitive procedures [e.g., two-step sealed bidding (see VII–3)]. 

6. Circumstances Permitting Competition Other Than to

the Maximum Extent Practicable.

(a) Only one responsible source and no other supplies or

services will satisfy requirements. When the supplies or services required are available from only one responsible source 

(see VII–8.5(c)). 

(b) Public exigency. When the need for supplies or services

is of such an unusual and compelling urgency that the Government would be seriously injured unless permitted to limit 

the number of sources from which bids or proposals are solicited, competition to the maximum extent practicable need not 

be provided for (see VII–8.5(b). 

(c) Duplication of cost not expected to be recovered

through competition. Notwithstanding paragraph 2(a), modifications to increase up to 50 percent of the contract, purchase 

order, or print order quantity—and to increase the dollar value 

of the quantity increase by $100,000 or less—are permitted to 

preclude duplicate prepress and makeready costs. Increases 

greater than 50 percent of the contract, purchase order, or print 

order quantity—when the dollar value of the quantity increase 

exceeds $100,000—shall be submitted to the Contract Review 

Board for concurrence with a justification in the form of a Determination and Findings signed by the Contracting Officer 

(See I–10). 

(d) Other cardinal changes negotiated in accordance with

these regulations. 

SECTION 4. BIDDERS MAILING LIST 

1. General. A bidders mailing list, which is a file of commercial vendors who are eligible to bid on GPO procurement actions for printing, binding, related supplies, and related

services, shall be maintained by APS.

2. Eligibility. A commercial printing vendor, who registers on

Contractor Connection, will be placed on the bidders mailing

list. The vendor will be classified as to what type of procurements the firm is capable of producing based upon the information disclosed in its application.

3. Responsibility.

(a) The Director, Printing Support Operations (PSO), shall:

(1) Maintain a bidders mailing list of all vendors eligible

to bid on GPO procurements for printing, binding, related 

supplies, and/or related services. 

(2) Assign contractor codes.

(3) Classify vendors according to their production capabilities. 

(4) Update vendor applications currently on file to reflect any status changes. 

(5) Prepare bid lists for individual procurements in accordance with X–1 using vendors from the appropriate 

classification of the current bidders mailing list. 

4. Contractor Codes.

(a) All vendors on the bidders mailing list are to be assigned an eight-digit contractor’s code. The last five digits are 

to be unique to a given vendor and the first three digits indicate in what state or U.S. territory the vendor is located. The 

three digit codes and their corresponding States and territories 

are: 

010 Alabama 270 Nevada 

015 Alaska 280 New Hampshire 

020 Arizona 290 New Jersey 

030 Arkansas 300 New Mexico 

040 California 310 New York 

050 Colorado 320 North Carolina 

060 Connecticut 330 North Dakota 

070 Delaware 340 Ohio 

080 District of Columbia 350 Oklahoma 

090 Florida 360 Oregon 

100 Georgia 370 Pennsylvania 

105 Hawaii 380 Rhode Island 

110 Idaho 390 South Carolina 

120 Illinois 400 South Dakota 

130 Indiana 410 Tennessee 

140 Iowa 420 Texas 

150 Kansas 430 Utah 
PRELIMINARY PROCUREMENT PROCEDURES VIII–5 

160 Kentucky 440 Vermont 

170 Louisiana 450 Virginia 

180 Maine 460 Washington 

190 Maryland 470 West Virginia 

200 Massachusetts 480 Wisconsin 

210 Michigan 490 Wyoming 

220 Minnesota 500 Canal Zone 

230 Mississippi 510 Puerto Rico 

240 Missouri 520 Virgin Islands 

250 Montana 530 Wake 

260 Nebraska 540 Guam 

(b) Before any number is assigned, ensure that the vendor’s application is properly completed. 

(c) Check the deletion list and the list of current contractor

code numbers. Do not assign any number that appears on either of the lists. 

(d) Assign the number that will place the vendor’s name in

alphabetical order or as close in order as is practicable. 

(e) If the vendor requests that its solicitation be sent to an

address different than the one listed in block one then the solicitation mailing address should be given a “000” State code 

and the vendor’s manufacturing specialties should be entered 

into the automated bid list system (ABLS) under that “000” 

listing. In addition, the address in block one should receive the 

proper State code and no manufacturing specialties. 

(f) If the addresses in blocks 1 and 2 on the vendor’s mailing list application are the same then no “000” should be 

given—only the appropriate State code with the vendor’s 

manufacturing specialties entered into the ABLS under that 

listing. 

(g) If a vendor has multiple locations, all of those locations

should have the same 5-digit contractor code number except as 

noted in paragraph (h). 

(h) If a vendor has more than one location in one State then

the second, third, etc. listings should use the same code number plus one. Example: 

190 24678 (1st location) 

190 24679 (2nd location—same state) 

190 24680 (3rd location—same state) 

If the next number is not available, then use the first one 

that is. If a vendor requests that certain locations only receive 

solicitations from a particular region, then the “900” state code 

applicable to that region should be assigned to the vendor 

along with the five-digit number. 

(i) Vendor’s manufacturing specialties should only be listed

under one code number unless specifically requested otherwise by the vendor in the application. 

(j) No two vendors should receive the same five-digit contractor code number. The fact that their State code numbers 

may differ is irrelevant. 

(k) After assigning a new contractor code number, record it

on the master bidders list along with the vendor’s name and 

address. 

(l) Contractor code numbers can be assigned to vendors

who have not submitted a Contractor Connection application 

or submitted a mailing list application. They are to be assigned 

using the same criteria as mentioned in paragraphs (c), (d), (g), 

(j), and (k), of this subsection, and should only be given to 

GPO personnel that request a number be issued and not directly to a vendor that requests one. If a vendor, already on the 

bidders list, requests its own contractor code number, that information may be released. 

5. Parties Excluded From Procurement Programs. A list of

debarred/suspended contractors shall be maintained by APS

Printing Procurement Policy and Planning and furnished to

APS Contracting Officers. This list is to be reviewed prior to

issuance of each solicitation to ensure that none are sent to any

listed firm or individual.

SECTION 5. PUBLICIZING PROCUREMENT ACTIONS 

1. Scope. This section prescribes policies and procedures for

publicizing procurement opportunities and award information

other than publicizing those opportunities at the GPE and the

GPO website.

2. General. The primary purpose of the GPE is to provide industry with information concerning current Government contracting opportunities, including information as to the identity

and location of Government contracting offices and prime

contractors having a current or potential need for certain types

of products or services.

3. Responsibility. Contracting Officers are responsible for ensuring that all award synopses are entered in the GPE and the

GPO website. A copy of each synopsis (or amendment) shall

be placed in the contract folder.

4. General Requirements. The following items should be

published in the GPE and the GPO website:

(a) Proposed term contracts for which the total value for the

term of the contract is estimated to exceed $100,000. 

(b) Contracts that were awarded for $100,000 or more.

(c) Any proposed sealed-bid or competitively negotiated

procurements that can be anticipated in sufficient time to allow potential offerors an opportunity to request a solicitation, 

except procurements not able to meet the time constraints in 

subsection 5(a). 

(d) Names of suppliers submitting acceptable proposals in

step 1 of a two-step procurement. 

Note: Items which are classified and meet the above requirements shall be published unless the publication would reveal 

any classified material pertaining to the procurement. 

5. Time of Publicizing.

(a) To allow vendors who are not on the current bidders

mailing list time to request and receive solicitations, proposed 

procurements shall be publicized as soon as possible in the 

GPE. 

(b) Procurement awards should be published as soon as the

information becomes available. 

(c) Corrections to any already published advertisement

should be made as soon as possible, but only if there is a major change in the solicitation and there is sufficient time to 

publish the corrections. 

6. [Reserved]

7. [Reserved]

IX–1 

CHAPTER IX. QUALITY ASSURANCE 

SECTION 1. QUALITY ASSURANCE PROGRAM 

1. Scope. This section describes APS policy regarding the

quality of commercially procured printed products. It further

describes the primary components, functions, and responsibilities of the Quality Assurance Program.

2. Policy. The quality of products procured through APS shall

conform to the requirements of the specifications agreed to

with the customer agencies.

3. General.

The APS Quality Assurance Program is designed to ensure

that the agreed upon quality requirements of the customer 

agency are achieved in a consistent and a cost-effective manner. It encompasses the entire procurement process, from receipt of the requisition through final acceptance of the finished 

product. The basic purposes of the Quality Assurance Program 

are to: 

(1) Provide for consistency in the review and consideration of customer requested quality requirements, levels of 

quality, and quality assurance procedures; 

(2) ensure that any recommended changes to customer

requests are properly coordinated with, and agreed to, by 

the customer; 

(3) provide for conveyance of these requirements to industry through properly prepared specifications; 

(4) ensure that awards are made only to responsible contractors who have demonstrated their ability to produce the 

required quality; 

(5) provide guidance in the performance of specified

post-award quality assurance functions; 

(6) provide guidance in the gathering of samples for inspection; 

(7) ensure prompt, effective action in response to product rejections by GPO and to complaints of product quality 

by customer agencies; and 

(8) ensure full documentation of all actions taken.

(b) Quality Assurance Through Attributes Program

(QATAP). The QATAP forms an integral part of APS’s Quality Assurance Program. Its primary function is to describe 

quality in terms of definable and measurable attributes. This 

allows for quality requirements to be quantitatively stated in 

specifications and for products to be assessed as defective or 

non-defective based on objective measurements. These measurements, in turn, form the basis for acceptance or rejection of 

the product and are used as a guide for determining the applicable discount to be taken from the contract price should the 

customer agency decide to accept defective items. 

(c) Documents of Reference. The QATAP was developed

under the framework of APS’s Quality Assurance Program. 

Therefore, much of the documentation which describes the 

various aspects of the QATAP also prescribes the basic functions, authorities, responsibilities, and procedures for quality 

assurance generally. This documentation is contained in the 

various publications listed below. To avoid having to repeat 

their contents in this section, you are encouraged to read and 

understand these publications and to retain them for future reference. 

(1) GPO Technical Report No. 26. This document explains the principles of using quality attributes in a graphic 

arts quality assurance program, and the applicability of 

these principles to products procured by GPO. 

(2) QATAP Technical Manual, GPO Pub. 355.1. This

document describes how to perform the various tasks in the 

program, and explains the reasons for some of the methods. 

(3) QATAP Procedures Manual, GPO Pub. 350.1. This

document describes who performs what tasks and the sequence in which the tasks are to be performed. 

(4) Quality Assurance Through Attributes Contract

Terms, GPO Pub. 310.1. This document is incorporated by 

reference into most contracts of procured products. It specifies the attributes and their allowable tolerances and includes the methods for assessing product quality. 

(5) ANSI/ASQ Z1.4-2008, American National Standard,

Sampling Procedures and Tables for Inspection by Attributes. This document provides the sampling plans by which 

products will be inspected for acceptance or rejection. 

(6) Documents of Reference (1) through (4) may be obtained by writing to the U.S Government Printing Office, 

Bid Room, 732 North Capitol Street, NW, Washington, DC 

20401-0001. 

(7) Document of Reference (5) may be obtained by contacting the American National Standards Institute (ANSI) 

at www.ansi.org. 

4. Functions, Authorities, Responsibilities, and Procedures.

The purpose here is to describe the primary components of the

Quality Assurance Program, emphasize their importance, and

provide coverage of the aspects of quality assurance not specifically addressed in the above-listed publications. When any

of the above publications do have direct application, specific

reference will be made to them.
IX–2 GPO PRINTING PROCUREMENT REGULATION 

(a) Initial Determination of Required Quality. Customer

agencies are the best judges of their quality requirements. 

They have the authority to include on the requisition any special requests concerning the quality requirements of product 

components and production processes. They may also request 

special quality assurance measures (e.g., samples, proofs, 

press sheet inspections) they may deem necessary to ensure 

that their requirements are met. All quality requests by customer agencies are subject to review and acceptance by GPO. 

(Specific guidance on how to make determinations of required 

quality has been provided to agencies in the publication entitled “Selecting Product Quality Levels for Printing and Binding.”) 

(b) Review of Requisitions. Requisitions shall be reviewed

for evaluation of quality requests by customer agencies and for 

establishing quality requirements in the absence of such requests. The primary considerations for assessing the quality 

requirements of a given product include: 

(1) The intended end use of the product (e.g., permanence requirements, fidelity of illustrations, etc.); 

(2) the nature and quality of the Government-furnished

materials to be used in the production of the product; 

(3) production economies;

(4) schedule;

(5) stated limitations (e.g., dollar and geographical limits); 

(6) potential of restricting competition unnecessarily;

and 

(7) what, if any, quality assurance requirements are necessary. 

In no case shall the requested quality requirements of the 

customer agency be ignored or changed until agreement with 

such changes is obtained from the agency printing authority. 

(More specific guidance for determinations of required quality 

is contained in the QATAP Technical Manual. The QATAP 

Procedures Manual, in turn, prescribes the appropriate authorities and procedures for quality determinations and for resolving disputes with agencies over quality levels.) 

(c) Specification Development. Specifications shall be developed to explicitly prescribe quality requirements to industry. Every effort shall be made to define specific tolerances, 

endurance requirements, etc., for each product component. In 

situations where quality requirements cannot be explicitly defined through QATAP, reference shall be made to the “Quality” clause in GPO Contract Terms, Publication 310.2, shall 

prevail. 

(1) Primary Considerations in Specification Development: (i) Precise descriptions of required quality; 

(ii) inclusion of all required post-award quality assurance requirements (e.g., bid samples, press sheet inspections, etc.); 

(iii) inclusion of any specified standards against which

the quality of the finished product will be evaluated; 

(iv) methods for drawing inspection samples when the

contractor is required to draw them; and, 

(v) incorporation of the actions the Government will

take in the event of noncompliance with the quality requirements. 

(2) Incorporation of Quality Assurance Through Attributes Contract Terms. Specific guidance for the inclusion of 

Quality Assurance Through Attributes terms in applicable 

specifications is contained in the QATAP Technical Manual. The authorities for resolving problems and for ensuring 

fulfillment of the necessary procedures involved are prescribed in the QATAP Procedures Manual. 

(d) Solicitation and Award. The production requirements of

any given product have a direct bearing on which contractors 

are to be included in the bidders’ list. Therefore, in the development of bidders’ lists for products having special quality requirements, only those firms who have the potential to 

produce the required quality shall be included on the lists. 

Also included shall be any eligible vendors requested for inclusion by the customer agency. 

(e) Production Quality Control. The control of the quality

of a product during manufacture is the responsibility of the 

commercial contractor. 

(f) Post-Award Quality Assurance Requirements. All specified quality assurance requirements shall be administered or 

performed by APS. While the customer agency has the authority to participate in these activities (e.g., the review of bid or 

prior-to-production samples, participation in press sheet inspections, etc.), such participation shall be at the direction of 

APS. The Contracting Officer shall make the final determination as to conformance to specifications. 

(g) Assistance from other Departments. When APS is unable to make a proper determination as to whether items submitted or produced by contractors in response to quality 

assurance requirements are equal to the specifications, they 

shall request assistance from other sources. However, the final 

determination as to conformance with the specifications rests 

with the Contracting Officer. 

(h) Retention of Products, Product Components, Press

Sheets, etc. In many instances the items approved under quality assurance requirements will be later used for comparison 

against the quality of the finished product. Approved products 

and approval documentation shall be retained by the Quality 

Control for Procured Printing, APS, and in the contract file. 

(i) Inspection and Tests. The inspection and test of products

procured under GPO contracts shall be performed in accordance with the “Inspection and Tests” clause in GPO Contract 

Terms, Publication 310.2. 

(j) Gathering of Inspection Samples. The various methods

by which samples may be obtained and specifics as to how 

they are to be drawn are contained in the QATAP Technical 

Manual. 

(k) Basic Inspection Procedures. The basic procedures to

be followed when performing acceptance sampling of products produced under GPO contracts shall be as follows: 

(1) Sample copies shall first be visually examined for

apparent defects; 

(2) if no defects are found, the product shall be determined to be acceptable and no further action shall be taken 

other than the documentation of the inspection results; 

(3) if defects are detected, the defects shall be measured

against the specifications to determine the acceptability of 

the product; 

(4) if, after such measurements, the product is determined to be non-rejectable, this fact shall be so documented 

and no further action shall be taken; 
QUALITY ASSURANCE IX–3

(5) if the extent of the defects are determined to be cause

for rejection of the product, these findings shall be properly 

documented, and both the affected contractor and customer 

agency shall be promptly notified; 

(6) once a product is determined to be rejectable, all actions taken to resolve the contractual aspects of the rejection shall be in accordance with the agency’s 

recommendation to have the defects corrected; have the 

product reprinted; or, to accept the defective items at an 

appropriate reduction in the contract price. 

Specific guidance for the inspection and tests of finished 

products is contained in the QATAP Technical Manual. Procedures for reporting inspection results, and the appropriate 

actions to be taken in the event of a rejection, are contained in 

the QATAP Procedures Manual. 

(l) Inspection of Two Sample Copies. Under selected printing and binding contracts, the contractor is required to submit 

at least two sample copies of the product produced. In all instances, these two samples shall be inspected for conformance 

to specifications. (Specific instructions on the inspection of 

two sample copies, and the procedures to be followed in the 

event of rejection, are contained in the QATAP Procedures 

Manual.) 

(m) Departmental Random Copies (Blue Label) Procedure.

Within the limitations of the contract, every order, except orders for products listed below, shall contain instructions to the 

contractor to draw random samples and place them in a container identified by a blue label. Customer agencies shall be 

instructed that the container should accompany any quality 

complaint submitted to the GPO and that it should be the last 

container to be distributed. This procedure does not replace 

the need for either the two samples requested in paragraph (l) 

above or the random samples required for QATAP in paragraph (k) above. Exceptions to this procedure are orders for 

marginally punched continuous forms, classified work, microfiche, numbered products, and jobs of such small quantity that 

sampling is impracticable. Notwithstanding the exceptions and 

the minimum requirements, Contracting Officers may invoke 

this procedure for any order they deem appropriate. 

(n) Quality Assurance Random Copies (QARCs) Procedure. Subject to financial considerations, appropriate documentation shall be kept of all actions taken in regard to the 

quality of products produced under GPO contracts. Such 

documentation shall include records and results of all telephone conversations, copies of all correspondence, change orders, etc. This documentation shall be made a part of the 

contract file and the contractor compliance file. 

5. Customer Agency Quality Complaints.

(a) Departmental random copies shall accompany an

agency’s complaint (GPO form 1815) in the original shipping 

container in an unopened state. Containers that have been 

opened or tampered with shall bear a statement from the 

agency or departmental account representative, explaining the 

reason for its condition and attest that the contents have not 

been disturbed. The statement shall be attached to the complaint document. 

(b) The shipping container contents shall be examined by

the Quality Assurance Section to ensure compliance with the 

selection plan and that a completed certificate (GPO form 917) 

is enclosed. Samples will be inspected in accordance with 

QATAP, and the results furnished to the departmental account 

representative. 

(c) In the event the tested samples do not support the complaint, a further sampling may be conducted by either agency 

or GPO personnel under a plan furnished by the Quality Assurance Section. Expertise in the form of knowledge of the 

contractors’ quality performance history, Contracting Officer’s judgment, and quality personnel experience shall be utilized in the resolution of the complaint under such further 

sampling. 

(d) Documentary evidence pertaining to samples suspected

of not being gathered according to the selection plan shall be 

filed and maintained for a period of 1 year. Subsequent occurrences of the same nature by the same contractor, within the 1-

year period, shall be brought to the attention of the appropriate 

APS Director for further action. 

X–1 

CHAPTER X. SOLICITATION 

SECTION 1. BIDDER SELECTION 

1. Bidder Selection Lists.

(a) Purpose. This subsection provides guidance in the selection of prospective bidders. 

(b) Policy. The policy for bidder selection is to—

(1) afford all bidders an opportunity to bid by rotating

the bid list and posting specifications on Contractor Connection; 

(2) ensure that “no bid” responses are minimized by judiciously selecting a portion of the bid list; 

(3) include bidders suggested by customer agencies;

(4) include previously successful bidders; and

(5) ensure that competition to the maximum extent practicable is maintained. 

(c) Master bidders list. The Director, PSO, shall maintain

the master bidders list. 

(d) Review procedures. (1) Specifications. Upon receipt,

specifications shall be reviewed to determine: 

(i) The appropriate size of the proposed bidders list consistent with the nature and value of the procurement (see 

X–2.1); 

(ii) the predominant production requirement. This determination establishes the appropriate bid category from 

which the prospective bidders shall be selected. 

(iii) the Product Quality Level (PQL). When the procurement includes quality attributes, quality shall be a consideration when determining prospective bidders’ 

capability to meet the specified requirements; 

(iv) whether any geographical restrictions are included

(see VIII–1.7(f)(2)); 

(v) if there are any unusual requirements within the predominant production requirement which may further restrict the number of firms capable of producing the product 

(e.g., large fold-ins, process color, etc.); and 

(vi) whether distribution could affect the choice of vendors to be included on the list (e.g., large quantities delivered to one or two destinations could be cause for including 

mostly those firms near the destinations). 

(2) Operations Checklist (GPO Form 2761) and requisitions. These forms, where applicable, shall be reviewed for: 

(i) previous jacket number on reprints;

(ii) any special requests for the inclusion of particular

firms; and 

(iii) any special agency requests to include a particular

category of firms (see VIII–1.7(f)(1)). 

(3) Written Requests. Determine if any firms have requested, in writing, to be included on the bidders list. 

(e) Bid list development. (1) A separate bid list shall be

compiled for each: 

(i) Separate jacket,

(ii) aspect of a separated procurement, or

(iii) set of strapped jackets.

(2) The bid list shall be compiled by:

(i) Including the previous successful contractor if the job

has been procured before; 

(ii) including all eligible firms which have requested a

solicitation in writing; 

(iii) including all eligible firms requested for inclusion

by the customer agency; and 

(iv) complete the bidders list from ABLS.

(f) Geographical restrictions. If a geographical restriction

has been approved, the list is developed as stated above except 

that in completing the list from ABLS, only those firms located within the geographically restricted area shall be included. Selection of such firms may be accomplished by 

utilizing regional cost codes, State codes, or ZIP codes or in 

the case of IRS bid lists, the three (west, central, east) or five 

(western, north central, south central, northeast, southeast) regional codes may be used. 

(g) Bid list review. Once the desired number of prospective

bidders is selected, the list shall be reviewed to assess, based 

on experience, the probability of receiving bids. 

SECTION 2. PREPARATION OF SOLICITATIONS 

1. Number Solicited. The number of firms solicited shall depend on the complexity and value of the procurement. The

previous supplier shall be invited to bid on procurements of

reprints and term contracts. The following may be used as a

general guide:

(a) Sealed Bids. One-time bids and term contracts in this

category should require 20 invitations, if available, or more 

depending upon the dollar value of the procurement. The 

number may be increased for large volume contracts. 

(b) Display Bids. Between 10 and 20 invitations, if available, should be issued depending upon the value and complexity of the procurement. 

(c) Small Purchases. Generally, three probable suppliers

are adequate to solicit quotations over $2,500. Additional 

firms may be added to ensure competition. 

(d) Simplified Purchase Agreements (SPAs). Furnish solicitations to the maximum practicable number of sources, gener-
X–2 GPO PRINTING PROCUREMENT REGULATION

ally three. However, to further reduce administrative costs for 

work valued at $2,500 or less, a single quotation may be solicited. 

2. Procedures.

(a) Prospective bidders shall be identified in a typed or

printed listing generated by the bid room. 

(b) The jacket or program number, issue date of IFB, type

of procurement (display bid, normal bid) and the bid list creator’s initials shall be indicated at the top of the typed or 

printed listing. The bid opening date and hour shall be entered 

at the bottom. For each vendor solicited, include the code 

number, name, address, and phone number. 

(c) Each IFB, when mailed, will consist of the following:

(1) A copy of the specifications.

(2) GPO Form 910, “Bid”.

(3) GPO Form 184, bid return envelope.

(4) The bid opening time and date shall be stamped on

GPO Forms 910 and 184.

(d) Each IFB, when faxed, will consist of the following:

(1) A copy of the specifications.

(2) A copy of GPO Form 910, “Bid”.

(3) The bid opening time and date shall be stated on

GPO Form 910.

3. Pre-bid conference.

A pre-bid conference may be used, generally in a complex

acquisition, as a means of briefing prospective bidders and explaining complicated specifications and requirements to them 

as early as possible after the invitation has been issued and before the bids are opened. It shall never be used as a substitute 

for amending a defective or ambiguous invitation. 

SECTION 3. AMENDMENT AND CANCELLATION OF 

IFB 

1. Amendments.

(a) If, after issuance of an IFB but before the time set for

opening of bids, it becomes necessary to make changes in 

specifications such as quantities, delivery schedules, correction of errors or ambiguities, opening dates, etc., such changes 

shall be accomplished by issuance of an amendment and the 

bid opening date extended if necessary. The amendment shall 

be sent to each bidder to whom the IFBs have been furnished, 

shall be posted on the GPO website, and sent to any bidder 

who has furnished a bid. 

(b) Before issuing an amendment to an IFB, the period of

time remaining until the time set for opening and the need for 

extending this period must be considered. Where only a short 

time remains before the time set for opening, consideration 

should be given to an extension of the opening date. 

(c) Each amendment issued to an IFB shall:

(1) be serially numbered, starting with the numeral “1”;

(2) include the jacket or program number;

(3) clearly state the changes made and the extension of

the opening date, if any. If no extension of the time set for 

opening is involved, the amendment shall so state; and 

(4) include instructions to potential suppliers for acknowledging receipt of the amendment and information 

concerning the effect of failure to acknowledge or return 

the amendment. Amendments may be acknowledged by 

written notice or by facsimile and must be received in the 

office designated in the IFB not later than the exact time set 

for bid opening. 

(d) If any information given to a prospective supplier concerning an IFB is necessary to other prospective suppliers in 

submitting bids on the invitation or if the lack of such information would be prejudicial to uninformed suppliers, such information shall be furnished promptly to all other prospective 

suppliers as an amendment to the invitation. The amendment 

shall be issued in sufficient time to permit receipt and consideration by all prospective bidders. 

2. Cancellation Prior to Bid Opening.

(a) IFBs may be canceled prior to bid opening, when there

is no longer a requirement for the material or service or where 

amendments to the invitation would be of such magnitude that 

a new invitation is desirable. When an invitation is canceled, 

bids which have been received shall be returned unopened to 

the bidders and a written notice of the cancellation shall be 

sent to all prospective bidders to whom IFBs were issued and 

posted to the GPO website. 

(b) The notice of cancellation shall identify the IFB, briefly

explain the reason the invitation is being canceled, and where 

appropriate, ensure prospective bidders of an opportunity to 

bid on any resolicitation of bids or any future requirements for 

the type of material or services involved. 

SECTION 4. BID OPENINGS 

1. Receipt of Bids. Bids received prior to the time of bid

opening shall be time-stamped and stored unopened in a

locked cabinet or safe to prevent the possibility of loss or tampering. Where possible, only one employee, plus minimum

backup personnel, should be designated to receive, timestamp, and handle bids. Facsimile bids permitted by the IFB

shall be sealed in an envelope. Facsimile machines should be

in a secured, restricted access area. The jacket/program number and bid opening date and time shall be written on the envelope.

2. Modification or Withdrawal of Bids. Bids may be modified or withdrawn by written notice or by facsimile and must

be received in the office designated in the IFB not later than

the exact time set for opening of bids. Bidders shall be informed that, in the case of modifications or withdrawals sent

by mail, the IFB must be identified on the envelope. Modifications received by facsimile shall be sealed in an envelope by

the proper official who shall write thereon: the date and time

of receipt, by whom sent, the IFB number, and his or her signature. No information contained therein shall be disclosed before the time set for bid opening. A bid may be withdrawn in

person by a bidder or authorized representative, if proper identification is made and a signed receipt for the bid is obtained,

but only if the withdrawal is prior to the exact time set for

opening of bids.

3. Opening and Recording of Bids.

(a) Bids shall be publicly opened. At the exact hour set for

opening, bids shall be opened by the bid opening official or 

designee who shall display duplicate bids for examination by 

interested persons while carefully safeguarding the original. 
SOLICITATION X–3

Original copies of bids may be examined by the public only 

under the immediate supervision of the bid opening official 

and under conditions that preclude the possibility of destruction, substitution, or alteration of the bid. Recording of bids 

shall be completed as soon after bid opening as practicable. A 

“no bid” submitted by a bidder shall be indicated by the figure 

“4”. The certifier processing the procurement must initial and 

date the abstract attesting to its accuracy. 

(b) Unidentified bids may be opened solely for the purpose

of identification but only by an authorized official. If a sealed 

bid is opened by mistake, the person opening the bid will immediately write their signature and position title on the envelope and deliver it to the Contracting Officer. The Contracting 

Officer shall annotate the envelope with an explanation of the 

opening, the date and time opened, and their signature. Bids 

opened by mistake or for identification purposes shall be resealed in the envelope and the information contained therein 

shall not be disclosed prior to the public bid opening. They 

shall then be reopened at the correct time set for opening bids. 

4. Attendee Registration. All non-Federally employed persons attending bid openings must register in a log. The attendees shall sign their name and the name of the firm they

represent.

5. Review Listing. Each procurement office shall have a listing of each day’s bid results available for review. The listing

shall include the jacket or program number, each bidder’s offer, and discount. The listing shall be:

(a) Available for examination by the public; and,

(b) kept on file for a period of 1 year.

6. Availability of Bid Results.

(a) Bid results are public information and may be given to

anyone requesting them. However, certain rules apply: 

(1) Bid results may be made public any time after bid

opening on IFBs. 

(2) Potential bidders shall not be told who or how many

other bidders are competing until after bid opening. 

(b) Small purchase quotations, the number of prospective

suppliers solicited, and their standing (high, low, etc.) in sequence, shall not be divulged prior to the Contracting Officer’s signature on the purchase order. 

7. Postponing Bid Openings.

(a) A bid opening may be postponed even after the time

scheduled for bid opening (but otherwise in accordance with 

X–4.3) and— 

(1) The Contracting Officer has reason to believe that

the bids of an important segment of bidders have been delayed for causes beyond their control and without their fault 

or negligence (e.g., flood, fire, accident, weather conditions, or strikes); or 

(2) Emergency or unanticipated events interrupt normal

governmental processes so that the conduct of bid openings 

as scheduled is impractical. 

(b) At the time of a determination to postpone a bid opening under (a)(1) above, an announcement of the determination 

shall be publicly posted. If practical before issuance of a formal amendment of the invitation, the determination shall be 

otherwise communicated to prospective bidders who are likely 

to attend the scheduled bid opening. 

(c) In the case of (a)(2) above, the Contracting Officer may

proceed with the bid opening as soon as practical after the 

time scheduled for opening without prior amendment to the 

invitation for bids or notice to bidders. In such cases, the time 

of actual bid opening shall be deemed to be the time set for bid 

opening for the purpose of determining “late bids” under Section 5. A note should be made on the abstract of bids or otherwise added to the file explaining the circumstances of the 

postponement. 

SECTION 5. LATE BIDS, LATE MODIFICATION OF 

BIDS, OR LATE WITHDRAWAL OF BIDS 

1. General. Bids received in the office designated in the IFB

after the exact time set for opening are “late bids.”

(a) A late bid, modification of bid, or withdrawal of bid

shall not be considered unless received before contract award, 

and either— 

(1) It was sent to a contracting office by registered or

certified mail not later than 5 calendar days before the bid 

receipt date specified; 

(2) It was sent by mail (or, if authorized by the solicitation, was sent via facsimile) and it is determined by the 

Government that the late receipt was due solely to mishandling by the Government after receipt at the Government 

installation; or 

(3) It was sent to a contracting office by U.S. Postal

Service Express Mail Next Day Service—Post Office to 

Addressee not later than 5 p.m. at the place of mailing 2 

working days prior to the date specified for receipt of bids. 

The term working days excludes weekends and Federal 

holidays. 

(b) The only acceptable evidence to establish the date of

mailing of a late bid, modification, or withdrawal sent to a 

contracting office either by registered or certified mail is a 

U.S. Postal Service postmark both on the envelope or wrapper 

and on the original receipt from the U.S. Postal Service. Both 

postmarks must show a legible date, or the bid, modification, 

or withdrawal shall be deemed to have been mailed late. (The 

term 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 on the date of mailing by employees 

of the U.S. Postal Service. Therefore, bidders should request 

the postal clerk to place a legible hand cancellation bull’s-eye 

postmark on both the receipt and the envelope and wrapper.) 

(c) The only acceptable evidence to establish the time of

receipt at the Government installation is the time/date stamp of 

such installation on the bid wrapper or other documentary evidence of receipt maintained by the installation. 

(d) The only acceptable evidence to establish the date of

mailing of a late bid, modification, or withdrawal sent by U.S. 

Postal Service Express Mail Next Day Service—Post Office to 

Addressee is the date entered by the post office receiving clerk 

on the “Express Mail Next Day Service—Post Office to Addressee” label and the postmark on the envelope or wrapper 

and on the original receipt from the U.S. Postal Service. 

“Postmark” has the same meaning as defined in paragraph (b) 
X–4 GPO PRINTING PROCUREMENT REGULATION 

of this subsection. Therefore, bidders should request the postal 

clerks to place a legible hand cancellation bull’s-eye postmark 

on both the receipt and the envelope or wrapper. 

(e) Notwithstanding the above, a late modification of an

otherwise successful bid which makes its terms more favorable to the Government will be considered at any time it is received and may be accepted. 

2. Notification To Late Bidders. When a bid, modification of

bid, or withdrawal of bid is received late and it is clear from

available information that it cannot be considered, the Contracting Officer shall promptly notify the bidder accordingly.

However, when a late bid, modification of bid, or withdrawal

of bid, is transmitted to a contracting office by registered or

certified mail or by U.S. Postal Service Express Mail Next

Day Service—Post Office to Addressee and is received before

award, the bidder shall be promptly notified substantially as

follows:

Your bid in response to Jacket (or Program) number ———— 

dated ———— for ———— [insert product] was received after 

the time for opening specified in the Invitation. Accordingly, your 

bid will not be opened or considered for award unless there is received from you by ———— [insert date] the original post office 

receipt for (insert one of the following as appropriate): 

(a) Registered or certified mail showing a date of mailing not

ater than the fifth calendar day before the date specified for opening (e.g., a bid submitted in response to a solicitation requiring receipt of bids by the 20th of the month must have been mailed by 

the 15th or earlier); or 

l

(b) U.S. Postal Service Express Mail Next Day Service—Post

Office to Addressee showing a date of mailing not later than 5 

p.m. two Federal working days prior to the date specified for

opening.

3. Disposition of Late Submissions. Late bids, modification

of bids, or withdrawal of bids that are not considered for

award shall be held unopened, unless opened for identification, until after award and then retained with other unsuccessful bids. However, any bid bond or guarantee shall be

returned.

4. Records. The following shall, if available, be included in

the contract file folder with respect to each late bid, modification of bid, or withdrawal of bid:

(a) A statement of the date and hour of mailing, filing, or

delivery; 

(b) A statement of the date and hour of receipt;

(c) The determination, with supporting facts, as to whether

or not the late bid was considered for award; 

(d) A statement of the disposition of the late bid; and

(e) The envelope, or other covering, if the late bid was considered for award. 
XI–1 

CHAPTER XI. PREAWARD SURVEY 

SECTION 1. GENERAL 

1. Policy. It is GPO policy that contracts be awarded only to

responsible contractors as set forth in chapter I, section 5. To

ascertain that a contractor is responsible, the Contracting Officer needs all the pertinent information that can be furnished

concerning prospective contractors. One of the best sources of

such information is furnished by a properly conducted on-site

preaward survey. An on-site preaward survey shall be conducted when the Contracting Officer deems necessary.

2. Definition. A preaward survey is an evaluation of a prospective contractor’s capability to perform under the terms of

a proposed contract. Such evaluation is used by the Contracting Officer in determining the prospective contractor’s responsibility. The evaluation may be accomplished by use of: (a)

data on hand; (b) data from another Government agency or

commercial source; (c) on-site inspection of plant and facilities to be used for performance on the proposed contract; (d)

any combination of the foregoing.

3. Importance of Surveys. Preaward surveys serve the Government’s interests in several important ways. They help the

Government obtain the economical benefits of doing business

with capable contractors and avoid the diseconomies of dealing with nonresponsible contractors. They promote public

confidence and help foster the integrity of Government procurement. Most importantly, sound awards lead to the timely

delivery of quality supplies and services at reasonable prices

which promote the national interest.

4. Contracting Officer’s Role. A preaward survey provides

vital information to the Contracting Officer leading to a decision whether to execute a contract on behalf of the Government. It is the duty of the Contracting Officer to award

contracts to responsible contractors only. The Contracting Officer’s determination of the responsibility or nonresponsibility

of a prospective contractor must be supported by the facts of

the particular case and reflect the pertinent conditions and circumstances existing at the time of award. When the Contracting Officer is unable to determine the responsibility of a

contractor due to insufficient information, they may use any

appropriate means necessary, including an on-site preaward

survey to obtain additional information. The Contracting Officer has broad discretion in deciding whether the prospective

contractor is responsible and this discretion extends not only

to a prospective contractor’s financial capability, but to the

firm’s judgment, skill, capacity, integrity, and ability to meet

quality and schedule requirements. A prospective contractor 

must demonstrate affirmatively its responsibility. 

5. Preaward Survey Member(s) Role. By implication, the

individual(s) conducting a preaward survey has the duty to report the facts about a contractor’s capability, and has broad

discretion in making recommendations to the Contracting Officer relative to the proposed award. However, it is emphasized that such recommendations must be based on the

pertinent facts existing at the time of the survey, and not on

mere wishful thinking, suspicion, distrust or dislike. Conducting a preaward survey requires in-depth knowledge of various

technical areas in order to make the necessary professional

judgments regarding a contractor’s capability to perform in

accordance with the terms and conditions of a proposed contract. The completion of a successful preaward survey involves expertise in several areas, such as finance, production,

quality assurance, transportation/packaging, and safety.

6. Noncompetitive Procurement. The fact that a requirement

is to be procured noncompetitively should not influence the

findings and recommendations of the persons performing the

survey.

7. Time Available for Conducting a Preaward Survey. If a

full preaward survey cannot be accomplished within the time

allowed, the individual(s) performing the survey will supply a

definite recommendation by the date required based on the

material at hand or developed by that time. The basis for the

recommendation and the factors for which no data or only partial data could be obtained will be indicated.

8. Repetitive Survey Requests. Where the previous, complete, favorable preaward survey on a prospective contractor

has been forwarded to the Contracting Officer and there follows repetitive requests for determining capability to perform,

a complete preaward survey of a prospective contractor need

not be resubmitted if the previous recommendation was for

“complete award.” Instead, only the GPO Form 707, part I,

should be transmitted to the Contracting Officer if it is mutually determined that this satisfies the need.

SECTION 2. INITIATION OF THE PREAWARD 

SURVEY REQUEST 

1. Request Form. GPO Form 707, Preaward Survey of Prospective Contractor, is the approved forms for requesting and

reporting the results of preaward surveys. The request will in-
XI–2 GPO PRINTING PROCUREMENT REGULATION 

dicate the scope of the survey and those factors to be investigated will be identified by the purchasing office in part I, section III, of GPO Form 707. A survey may be requested by 

telephone or by email. A copy of the specifications shall be 

furnished with the request by the purchasing office. 

2. Unsatisfactory Performance. The purchasing office will

also furnish with the request for a preaward survey available

information regarding previous unsatisfactory performance by

the contractor.

SECTION 3. PART I, GENERAL 

1. Section I—Request. This section of the form is prepared by

the office requesting the survey. It constitutes the formal request for a survey of a prospective contractor and it is normally sent, through the appropriate APS Director to the

Regional Office having knowledge of the prospective contractor, unless Central Office APS performs the survey. The form

shall be submitted with a copy of the specifications.

2. Section II—Data. This section is not used by APS.

3. Section III—Factors to be Investigated. The requesting office shall indicate the factors that it desires to be investigated

by checking the appropriate box(es) in column (a) of this section. The individual(s) conducting the preaward survey will

indicate the results of the investigation by checking the applicable box(es) in columns (b) or (c).

(a) Technical capability. Determination is established by

completion of part II, section II. 

(b) Production capability. Determination is established by

completion of part II, sections VI through X. 

(c) Plant facilities and equipment. Determination is established by completion of part II, sections IV and V. 

(d) Financial capability. Determination is established by

completion of part IV. 

(e) Quality assurance capability. Determination is established by completion of part III. 

(f) Transportation. Determination is established by completion of part II, section IV. 

(g) Security clearance. Determination is established by

completion of part II, section IV. 

(h) Labor resources. Determination is established by completion of part II, section II and section III. 

(i) Performance Record. Determination is established by

completion of part II, section IX. 

(1) A “Satisfactory” or “Unsatisfactory” entry will be

made after evaluation of the contractor’s current contract 

delinquency rate. The evaluation should include consideration of the causes for the delinquencies and a list of the 

number of jobs shipped, the number delinquent and the 

percentage which is delinquent should be recorded. 

(2) In addition, consideration should be given to the action which has been taken by the contractor to correct the 

delinquencies. 

(j) Ability to meet required schedule. Determination is established by completion of part II, sections VI through X, and 

all other blocks which contain a time element. The recommendation shall be based on the prospective contractor’s ability to meet the contract schedule. 

(k) Other. If the proposed contract contains any unusual requirements, a determination of the contractor’s ability to provide them is established by completion of part I, section III, 

block 12. 

SECTION 4. PART II, PRODUCTION 

1. Procedures. The individual(s) conducting the preaward survey should review the past performance of the contractor.

(a) If the procurement will involve any significant or unusual elements, these elements should be discussed with the 

individual(s) conducting the preaward survey by the Printing 

Services Specialist or Contracting Officer. 

(b) From a production standpoint, an evaluation will be

made of the proposed contractor’s available facilities and its 

capability to meet the requirements of the procurement under 

consideration. 

2. Production Capability.

(a) Interview with management. (1) Background. The individual(s) conducting the preaward survey should conduct an 

interview with the management of the company. During the 

interview the company’s background and history should be 

reviewed to obtain evidence of its stability and reputation. 

(2) Review of specifications. The specifications will be reviewed with the bidder to ensure understanding of the requirements. Experience has demonstrated that a misinterpretation of the specifications has often resulted in delinquent 

contracts and defaults. Any unresolved, significant misinterpretations should be brought to the attention of the Contracting 

Officer for resolution. 

(3) Personnel. Availability of necessary personnel should

be reviewed with the bidder’s personnel staff. Information regarding labor relations and expirations of any bargaining 

agreements should be reported. 

(4) Inspection of plant facilities. Such factors as storage,

layout, production equipment, special processing equipment, 

material handling equipment, receiving and shipping facilities, 

fire prevention equipment, general housekeeping, and plant 

facilities should be considered. The survey should include a 

review of the accessibility of the plant to railroad, freight or 

air terminals and the availability of packing and packaging facilities. 

(5) Related previous production. In a narrative supplement,

state whether the contractor’s performance has been satisfactory, marginal or unsatisfactory. Also indicate the number of 

Government contracts which the contractor holds and the 

number which is delinquent or in default. Actual and potential 

delinquencies and defaults as well as previous delinquencies 

and defaults shall be identified. Include the causes and the corrective actions which have been taken or planned. This will 

permit the Contracting Officer to determine if the causes are 

attributable to the contractor or Government. 

(6) Current production. In this section the current backlog

of Government and civilian contracts utilizing the same 

equipment/personnel is related to the production and delivery 

requirements of the specifications. 

(7) Delivery schedule. The delivery schedule of the proposed contract will be discussed with production and material 
PREAWARD SURVEY XI–3

control personnel. The company’s plan for meeting this delivery schedule should be evaluated. 

(8) Capacity. The production backlog will be evaluated to

determine the amount of Government and commercial business that is currently in the firm’s possession. Capacity is disclosed by comparing the production backlog with the delivery 

schedule of the contract and other business that the contractor 

reasonably expects to obtain. If the contractor’s production 

backlog is incompatible with the delivery schedule of the contract, a “no award” shall be recommended. 

SECTION 5. PART III, QUALITY ASSURANCE 

CAPABILITY 

1. Quality Assurance Preaward Survey Member(s). Individual(s) conducting the quality assurance preaward survey

must be familiar with the quality control systems employed by

contractors and the quality control requirements set forth in

the specifications.

2. Quality Control Considerations. The recommendation in

the quality assurance report provides Contracting Officers

with information on the prospective contractor’s quality control capabilities. In making a recommendation, the individual(s) conducting the quality assurance preaward survey will

consider all appropriate factors of quality control. These factors generally involve the following areas:

(a) The nature and quantity of the items being procured or

serviced. 

(b) The contractor’s experience with items identical or

similar to those being procured or serviced. 

(c) The history of the contractor regarding quality control

both as a commercial and Government supplier. 

(d) The contractor’s understanding of the specifications,

and requirements for inspection, testing, and control of product quality. 

(e) The degree to which the contractor employs sound

commercial quality control practices. 

3. Analysis of Contractor’s Quality Assurance System. The

individual(s) conducting the quality assurance preaward survey must ascertain if the quality control system employed by

the contractor will ensure the quality of workmanship required.

4. Conducting a Quality Assurance Survey. When a survey

of quality assurance is required, the individual(s) conducting

the quality assurance preaward survey is responsible for the

accuracy of the information obtained concerning the contractor’s inspection or quality control system. The plant survey

should include an interview with the contractor’s quality control management personnel.

(a) The individual(s) conducting the quality assurance preaward survey will contact the appropriate level of quality control management at the facility. The purpose of the review will 

be clearly explained and the quality requirements of the procurement discussed. The company’s history will be reviewed 

to provide evidence of the integrity and reputation of its inspection and quality control operation. 

(b) The individual(s) conducting the quality assurance preaward survey will review the quality assurance aspects of the 

proposed contract with the contractor to ensure that the contractor is familiar with the requirements. Misunderstandings of 

quality requirements, which cannot be satisfactorily resolved 

between the contractor and the individual(s) conducting the 

quality assurance preaward survey, will be brought to the attention of the Contracting Officer. 

5. Concluding the Survey. Any shortcomings observed in the

contractor’s quality control system will be discussed with the

contractor. The objective of this discussion will be the improvement or correction of deficiencies.

6. Quality Control Evaluation and Recommendation. The

quality assurance recommendation will be based upon facts

obtained from historical data and/or upon the on-site survey.

The basis for the recommendation shall be provided in the report. The information required by Form 707, part III, covers

the basic quality control factors. If a detailed analysis is required, Form 707 should be supplemented by additional information.

SECTION 6. PART IV, FINANCIAL CAPABILITY 

1. Value of Financial Information. An essential factor in a

preaward survey is the analysis of a contractor’s financial

status. Such an analysis indicates whether a prospective contractor is capable of financing the proposed contract.

2. Procedures. The following guides set forth topics of primary interest when making a financial analysis but they do not

attempt to prescribe detailed, technical, and analytical procedures.

(a) General. (1) The purpose of making a financial analysis

of a company prior to awarding a contract is to avoid placing 

contracts with financially unstable companies and to minimize 

costly and time-consuming delays in performance. 

(2) The scope of a financial analysis can vary. In some

cases, a sound decision may be made after a relatively simple 

review of a company’s financial position and production 

commitments. Other cases may necessitate a thorough study of 

financial statements, evaluation of credit resources and personal interviews with management, creditors and financing institutions. The scope of an analysis should vary with the 

degree of financial stability of the contractor. The normal 

processing period allowed for a preaward survey precludes an 

exhaustive analysis of every case. 

(3) The use of basic, analytical techniques usually indicates

the financial integrity and strength of most companies. Applied on a uniform basis, this approach serves as an effective 

means of ferreting out the marginal or complex cases which 

require more detailed study. 

(4) Information suitable for measuring financial integrity

and strength can be developed from financial statements, 

credit agency reports, financial institutions and creditors. If the 

bidder is unable or unwilling to comply with requests for financial information, the financial analyst will recommend “No 

Award”. 

(b) Rates and ratios. (1) A quantitative measure of strength

can be obtained through the use of rates and ratios. The availability of funds to meet current obligations can be determined, 

in part, through the application of the current ratio. The cur-
XI–4 GPO PRINTING PROCUREMENT REGULATION 

rent ratio equals current assets divided by current liabilities. A 

high current ratio is more favorable than a low current ratio. 

(2) In addition to knowing the dollar amount of assets

available to meet financing requirements, it is equally important to know whether these assets represent a ready source of 

adequate cash. Through the construction of turnover rates for 

noncash current assets, the relative liquidity of such items may 

be determined. 

(3) Working capital, which is the excess of current assets

over current liabilities, is an important factor. In addition to 

serving as a basis for measuring ability to meet current financing requirements, working capital represents a primary means 

of estimating the financial ability of a company regarding future commitments. 

(4) Another measure of prospective financial capability is

derived from the relationship of the amount of funds provided 

by owners to that provided by creditors. In general, the greater 

the capital contribution by owners, the stronger the financial 

position. 

(5) These ratios can be used to develop some insight and

understanding of a company’s financial position. 

(c) Trends. (1) Use of the above procedures and other related factors provide evidence of the financial condition of a 

company. Financial stability is best disclosed by means of 

trends. A comparison of significant elements taken from a series of financial statements will indicate trends and may indicate items which merit further study. 

(2) Some of the most important elements for which trends

should be developed are cash, current assets, current liabilities, 

working capital, total liabilities, net worth, sales and profit. 

(3) The discovery of conflicting or counter trends may indicate a matter which merits further study. If the profit trend 

reveals an increase in earnings and, conversely, working capital is steady or decreasing, it may be desirable to prepare a 

statement showing the source and application of funds to determine the manner in which funds are being employed. 

(d) Backlog. (1) The goal of a financial capability analysis

is to judge whether the financial resources of a company will 

be adequate for the volume of business expected during the 

performance of the proposed contract. 

(2) A statement of backlog will be obtained from the company showing the total value of unfilled orders, a breakdown 

of the total between Government and commercial orders and 

the scheduled monthly average of production computed in dollars. 

(3) Every effort will be made to obtain maximum cooperation from contractors when obtaining backlog information. 

(e) Credit agency reports. Full use of credit agency reports

(e.g. Dun and Bradstreet) is encouraged where information 

maintained on a company does not provide an adequate basis 

for a decision. 

(f) Additional analysis. The preliminary analysis will usually indicate that the company is financially capable. However, if the preliminary analysis discloses that the company 

may not be financially capable, a comprehensive analysis 

should be performed. 

3. Loss Contract. If, in the course of conducting a financial

examination as to the prospective contractor’s financial ability

to perform the proposed work, it becomes apparent that a loss

contract would ensue, a comment should be made on the company’s ability to withstand the loss.

SECTION 7. “NO AWARD” OR “PARTIAL AWARD” 

If “No Award” or “Partial Award” is recommended, the basis for the recommendation must be explained. All recommendations shall be submitted to the Contracting Officer.
XII–1 

CHAPTER XII. CERTIFICATION AND AWARD 

SECTION 1. EVALUATION OF BIDS 

1. Procedure. After opening and abstracting bids, Printing

Services Specialists shall evaluate all responses to determine

the lowest responsive bid, the responsibility of the low responsive bidder, and whether the price bid is fair and reasonable to

the Government. In the case of term contracts, determinations

shall be made as to reasonableness of all prices offered by

each supplier to whom award is recommended. In addition, the

Printing Services Specialist shall accomplish the actions listed

below.

(a) Check jacket numbers, solicitation numbers, and other

workpapers to make certain that they are in agreement as to 

identification data (jacket No., requisition No., etc.). 

(b) Review the solicitation and bids to ensure that bidders

have taken no exception to the specifications. 

(c) Compare the bid price with the unit price(s) from each

bid received to ensure accuracy of extension. Check the additional rate to ensure that it is reasonably lower than the actual 

unit rate. The additional rate should exclude all preliminary 

costs. 

(d) In evaluating bids, Government transportation costs, if

applicable, for shipment of Government-furnished material 

and shipment of the printed product shall be added to each 

supplier’s bid price. 

(e) For evaluation purposes, deduct from the bid price

prompt payment discounts of 20 days or more. 

(f) Determine that the bid is signed and that the price is fair

and reasonable. Consider conducting a preaward survey (see 

chapter XI). 

(g) If bid samples are required by the IFB, send the number

required together with two copies of the specifications to 

Quality Control and Technical Department for evaluation (in 

Regional Offices, send samples and specifications to the appropriate APS Director. If the bid samples were required by a 

request from the ordering agency, samples shall also be sent to 

the agency for consideration. Since test results have a direct 

bearing on the responsiveness of the bid, the Contracting Officer shall review all negative test results to ensure the applicability of the tests in accordance with the specifications. 

(h) If bid samples are not required by the IFB, but samples

are furnished with a bid, they will be disregarded, unless it is 

clear from the bid or accompanying papers that it was the bidder’s intention to so qualify the bid. Where a bid is so qualified, the samples shall be processed in accordance with 

paragraphs (g), (i), and (j) of this subsection provided that it 

can be determined that the samples conform to the specifications without complex and time-consuming tests. If a positive 

determination that the samples conform to the specifications 

cannot be made the bid may be rejected. 

(i) If the evaluation of the low bid is favorable, initial and

date at the bottom of each copy of the successful bid. Circle 

the successful supplier in red on both copies of the bid abstract. 

(j) If the evaluation is unfavorable and award is not recommended to the low bidder for any reason, attach a statement 

as to the reason for nonaward to the face of the next low responsive bid received from the responsible bidder to whom 

award is recommended. 

(k) Consider the requirements for Contract Review Board

actions at this point in the certification process. (See I–10) 

(l) If Government bills of lading are required, complete

GPO Form 583, Request for Bills of Lading and furnish to the 

Transportation and Logistics Branch, QC & IMD, with two 

copies of specifications and distribution lists along with a certified label and registered receipt addressed to the vendor to 

whom award is being made. 

(m) Furnish a written estimate to the agency.

(n) Issue a purchase order (GPO Forms 2669, 2675 or

2676) containing the following: 

(i) Contracting Officer’s signature.

(ii) Object class.

(iii) State and contractor codes.

(iv) Cost (estimated if term contract and some one-time

procurements such as: composition, aggregate, and marginally punched continuous awards). Not to appear on Part 1 

(contractor’s copy) for term contracts. 

(v) Date the order was prepared.

(vi) Name and address of supplier.

(vii) Shipping instructions (per specifications).

(viii) Date of shipment/delivery.

(ix) Jacket number, department name and requisition

number. 

(x) Quantity (including allowable variation in quantity if

applicable) and description (books, forms, etc.). 

(xi) Unit and total prices.

(xii) Payment discount.

(xiii) The statement, “In strict accordance with your

(‘quotation’ if small purchase or ‘bid’ if sealed bid) 

No. dated and our specifications.” 

Include a reference to bid samples if the award was made in 

accordance with the supplier’s samples. 
XII–2 GPO PRINTING PROCUREMENT REGULATION 

(o) Furnish the successful supplier with:

(1) Parts 1 and 2 of the purchase order.

(2) Two copies of the solicitation including any amendments. 

(3) “Public Voucher for Purchases and Services Other

Than Personal,” SF 1034 (1 copy) and SF 1034a (3 copies). 

(4) Government-furnished material (camera copy, negatives, samples, electronic media, etc.). 

(5) Requisite number of GPO Forms 712, “Certificate of

Conformance” (only if postage and fees paid labels are furnished) (see chap. XVII). 

(6) Proof, preproduction, and/or shipping labels as applicable. 

These items shall be furnished to the contractor by a means 

(e.g., certified mail, return receipt requested, or GPO Form 

711 “Receipt”) that will ensure a return receipt to the Government. 

SECTION 2. CANCELLATION OF INVITATION 

AFTER OPENING 

1. Procedure. The following applies to the cancellation of a

solicitation after bid opening.

(a) Preservation of the integrity of the competitive bid system and prevention of unnecessary exposure of bid prices dictate that, after bids have been opened, award must be made to 

that responsible bidder who submitted the lowest responsive 

bid, unless there is a compelling reason to reject all bids and 

cancel the invitation. Wherever possible, changes in requirements shall be made prior to bid opening. 

(b) IFBs may be canceled after opening but prior to award

and all bids rejected, only where such action is clearly in the 

best interest of the Government. Approval of the Contract Review Board (See I-10) shall be obtained prior to the proposed 

cancellation of the IFB and subsequent contemplated resolicitation. (A solicitation may be resolicited without CRB review 

when no bids have been received at the time of opening or 

when all bids under an IFB are nonresponsive.) The following 

are examples of circumstances which may justify cancellation 

of an IFB after opening: 

(1) Inadequate, ambiguous, or otherwise deficient specifications were cited in the IFB. 

(2) The supplies or services are no longer required.

(3) The IFB did not provide for consideration in the

evaluation of bids of all costs to the Government, such as 

the cost of transporting Government-furnished property to 

the successful bidder’s plant. 

(4) Bids received indicate that the needs of the Government can be satisfied by a less expensive article than the 

one specified in the IFB. 

(5) All otherwise acceptable bids received are at unreasonable prices. 

(6) The bids were not independently arrived at in open

competition, were collusive, or were submitted in bad faith. 

(7) For other reasons cancellation is clearly in the Government’s interest. 

(c) When it is determined that all bids should be rejected,

the Contracting Officer shall notify each bidder who responded of the rejection and state the reason for such action. 

SECTION 3. REJECTION OF INDIVIDUAL BIDS 

1. Procedure. The following applies to rejection of individual

bids.

(a) Any bid which fails to conform to the essential requirements of the IFB such as specifications, shall be rejected as 

nonresponsive. 

(b) Ordinarily, a bid shall be rejected where conditions are

imposed by the bidder which would modify requirements of 

the IFB or limit liability to the Government so as to provide an 

advantage over other bidders. For example, bids shall be rejected in which the bidder: 

(1) Attempts to protect against future changes in conditions such as increased costs. 

(2) Fails to state a price and, in lieu thereof, states that

price shall be “price in effect at time of delivery.” 

(3) States a price but qualifies such price as being subject to “price in effect at time of delivery.” 

(4) Where not authorized by the invitation, qualifies the

bid contingent on receipt or nonreceipt of award under a 

separate procurement. 

(5) Limits rights of Government under any contract

clause. 

(c) A low bidder may be requested to delete objectionable

conditions from the bid if these conditions do not affect the 

substance, as distinguished from the form of the bid. A condition affects the substance of a bid when it changes price, quantity, quality or delivery of the items offered. 

(d) Any bid may be rejected if the Contracting Officer determines in writing that it is unreasonable as to price. 

(e) Bids received from parties excluded from procurement

programs shall be rejected if the period of suspension, debarment, or ineligibility has not expired as of the bid opening 

date. 

(f) Low bids received from firms determined to be nonresponsible shall be rejected. 

(g) A bid will be rejected on which the name or signature of

someone authorized to sign bids is merely a facsimile. The 

term facsimile does not include facsimiles transmitted and reproduced on electronic equipment. The bid will be declared 

nonresponsive unless a properly signed and executed document containing an effective authorization for executing 

documents by facsimile signature precedes or accompanies 

each bid for which the contractor wishes to be considered. 

(h) The original copies of all rejected bids, and any written

findings with respect to such rejections, shall be preserved 

with the papers relating to the procurement. 

(i) When a determination has been made to reject all bids,

the Contracting Officer shall notify each bidder that all bids 

have been rejected, stating the reason for such action. 

SECTION 4. MINOR INFORMALITIES OR 

IRREGULARITIES IN BIDS 

1. Definition. A minor informality or irregularity is one which

is merely a matter of form and not of substance, or pertains to

some immaterial or inconsequential defect or variation of a bid

from the exact requirement of the IFB, the correction or

waiver of which would not be prejudicial to other bidders. The

defect or variation in the bid is immaterial and inconsequential
CERTIFICATION AND AWARD XII–3 

when its effect on price, quantity, quality, or delivery is trivial 

or negligible when contrasted with the total cost or scope of 

the supplies or services being procured. The Contracting Officer shall either give the bidder an opportunity to cure any deficiency resulting from a minor informality or irregularity in a 

bid or waive such deficiency, whichever is to the advantage of 

the Government. Examples of minor informalities or irregularities include: 

(a) Failure of bidder to return the number of copies of

signed bids required by the IFB. 

(b) Failure to furnish required information as to whether or

not the bidder is a large or small business. 

(c) Failure of bidder to sign the bid, but only if the unsigned bid is accompanied by other material indicating the 

bidder’s intention to be bound by the unsigned bid document, 

such as the submission of a bid guarantee, or a letter signed by 

the bidder with the bid referring to and clearly identifying the 

bid itself. 

(d) Failure of a bidder to acknowledge receipt of an

amendment to an IFB but only if: 

(1) The bid received clearly indicates that the bidder received the amendment, such as where the amendment 

added another item to the IFB and the bidder submitted a 

bid thereon; or 

(2) The amendment involves only a matter of form or is

one which has either no effect or merely a trivial or negligible effect on price, quantity, quality or delivery of the 

item bid upon. 

SECTION 5. EQUAL LOW BIDS 

1. General. When two or more low bids are received which

are equal in all respects, taking into consideration costs of

transportation, payment discounts, and any factors properly to

be considered for bid evaluation purposes, award is to be made

to the equal low bidder as determined by the following sequence:

(a) Small business concerns which are also labor surplus

area concerns. 

(b) Other small business concerns.

(c) Other business concerns which are also labor surplus

area concerns. 

(d) Other business concerns.

(e) If two or more bidders still remain equally eligible for

award, award shall be made by drawing of lots. A written 

statement shall be included in the contract file as to how lots 

were drawn, by whom, and who witnessed the drawing. 

SECTION 6. MISTAKES IN BID 

1. General. After the opening of bids, the Contracting Officer

shall examine all bids for mistakes. In cases of apparent mistake and in cases where the Contracting Officer has reason to

believe that a mistake may have been made, the bidder shall

be advised of the suspected mistake and requested to verify

the bid. If the bidder alleges a mistake, the matter shall be

processed in accordance with this section. Such actions shall

be taken prior to award.

2. Apparent Clerical Mistakes.

(a) Any clerical mistake, apparent on its face in the bid,

may be corrected by the Contracting Officer before award. 

The Contracting Officer shall first obtain from the bidder a 

verification of the bid intended. Examples of apparent mistakes are— 

(1) Obvious misplacement of a decimal point;

(2) Obviously incorrect discounts (for example, 1 percent 10 days, 2 percent 20 days, 5 percent 30 days); 

(3) Obvious reversal of the price f.o.b. destination and

price f.o.b. origin; and 

(4) Obvious mistake in designation of unit.

(b) Correction of the bid shall be effected by attaching the

verification to the original bid and a copy of the verification to 

the duplicate bid. Correction shall not be made on the face of 

the bid; however, it shall be reflected in the award document. 

3. Other Mistakes Disclosed Before Award.

(a) The Managing Director, Customer Services, is authorized to make the administrative determinations described in 

this subsection in connection with mistakes in bids alleged after opening of bids but before award. The Managing Director, 

Customer Services, may delegate this deciding official authority to the CRB Chairperson, and/or to another designee. 

(Hereafter in this subsection and the remainder of section 6, 

the Managing Director, Customer Services, the CRB Chairperson, and or another designee are individually referred to as 

“the deciding official.”) The authority to permit correction of 

bids is limited to bids which, as submitted, are responsive to 

the IFB, and may not be used to permit correction of bids to 

make them responsive. 

(b) If a bidder requests permission to correct a mistake (see

exhibit XII–1) and clear and convincing evidence establishes 

both the existence of the mistake and the bid actually intended, 

the deciding official may make a determination permitting the 

bidder to correct the mistake; provided, that if correction 

would result in displacing one or more lower bids, such a determination shall not be made unless the existence of the mistake and the bid actually intended are ascertainable 

substantially from the invitation and the bid itself. 

(c) If (1) a bidder requests permission to withdraw a bid

(see exhibit XII–2) rather than correct it, (2) the evidence is 

clear and convincing both as to the existence of a mistake and 

as to the bid actually intended, and (3) the bid, both as uncorrected and as corrected, is the lowest received, the deciding official, CRB, may make a determination to correct the bid and 

not permit its withdrawal. 

(d) If, under paragraphs (b) or (c) of this subsection, (1) the

evidence of a mistake is clear and convincing only as to the 

mistake but not as to the intended bid, or (2) the evidence reasonably supports the existence of a mistake but is not clear and 

convincing, the deciding official may make a determination 

permitting the bidder to withdraw the bid. 

(e) If the evidence does not warrant a determination under

paragraphs (b), (c), or (d) of this subsection, the deciding official may make a determination that the bid be neither withdrawn nor corrected. 

(f) Suspected or alleged mistakes in bids shall be processed

as follows. A mere statement by Contracting Officers that they 

are satisfied that an error was made is insufficient. 
XII–4 GPO PRINTING PROCUREMENT REGULATION 

(1) The Contracting Officer shall immediately request

the bidder to verify the bid. Action taken to verify bids 

must be sufficient to reasonably assure the Contracting Officer that the bid as confirmed is without error, or to elicit 

the allegation of a mistake by the bidder. To ensure that the 

bidder will be put on notice of a mistake suspected by the 

Contracting Officer, the bidder should be advised as appropriate— 

(i) That its bid is so much lower than the other bids or

the Government’s estimate as to indicate a possibility of 

error; 

(ii) Of important or unusual characteristics of the solicitation specifications; 

(iii) Of changes in requirements from previous purchases of a similar item; or 

(iv) Of any other information, proper for disclosure,

that leads the Contracting Officer to believe that there is 

a mistake in bid. 

(2) If the bid is verified as correct, the Contracting Officer shall consider the bid as originally submitted. If the 

time for acceptance of bids is likely to expire before a decision can be made, the Contracting Officer shall request all 

bidders whose bids may become eligible for award to extend the time for acceptance of their bids. If the bidder 

whose bid is believed erroneous does not (or cannot) grant 

an extension of time, the bid shall be considered as originally submitted (but see subparagraph (4) below). If the 

bidder alleges a mistake, the Contracting Officer shall advise the bidder to make a written request to withdraw or 

modify the bid. The request must be supported by a signed 

and dated written statement and shall include all pertinent 

evidence such as the bidder’s file copy of the bid, the original worksheets and other data used in preparing the bid, 

subcontractors’ quotations, if any, published price lists, and 

any other evidence that establishes the existence of the error, the manner in which it occurred, and the bid actually 

intended. 

(3) When the bidder furnishes evidence supporting an

alleged mistake, the Contracting Officer shall refer the 

case, by memorandum, to the deciding official, together 

with the following data: 

(i) A signed copy of the bid involved.

(ii) A copy of the invitation for bids and any specifications or drawings relevant to the alleged mistake. 

(iii) An abstract or record of the bids received.

(iv) The bidder’s written request to withdraw or modify the bid, together with the bidder’s written statement 

and supporting evidence. 

(v) A written statement by the Contracting Officer

setting forth— 

(A) A description of the supplies or services involved;

(B) The expiration date of the bid in question and of

the other bids submitted;

(C) Specific information as to how and when the mistake was alleged;

(D) A summary of the evidence submitted by the bidder;

(E) In the event only one bid was received, a quotation

of the most recent contract price for the same or

similar supplies or services involved or, in the absence of a recent comparable contract, the Contracting Officer’s estimate of a fair price for the 

supplies or services; 

(F) Any additional pertinent evidence; and

(G) A recommendation that either the bid be considered for award in the form submitted, or the bidder

be authorized to withdraw or correct the bid.

(vi) A D&F for the deciding official to sign, conforming to the recommendation of the Contracting Officer. 

(4) Where the bidder fails or refuses to furnish evidence

in support of a suspected or alleged mistake, the Contracting Officer shall consider the bid as submitted unless (i) the 

amount of the bid is so far out of line with the amounts of 

other bids received or with the amount estimated by the 

Contracting Officer or determined by the Contracting Officer to be reasonable, or (ii) there are other indications of error so clear, as to reasonably justify the conclusion that 

acceptance of the bid would be unfair to the bidder or to 

other bona fide bidders. If the circumstances in (i) and (ii) 

of this paragraph prevail, the Contracting Officer shall recommend the bid be rejected. Attempts made to obtain the 

information required and the action taken with respect to 

the bid shall be fully documented. 

(g) Each contract file folder shall contain copies of all determinations made in accordance with this subsection, the 

facts involved, and the action taken in each case. 

4. Disclosure of Mistakes After Award.

(a) When a mistake in a contractor’s bid is not discovered

until after the award, the mistake may be corrected by contract 

modification if correcting the mistake would be favorable to 

the Government without changing the essential requirements 

of the contract. 

(b) In addition to the case contemplated in paragraph (a),

the deciding official is authorized to make a determination— 

(1) To rescind a contract;

(2) To reform a contract (i) to delete the items involved

in the mistake; or (ii) to increase the price if the contract 

price, as corrected, does not exceed that of the next lowest 

acceptable bid under the original invitation for bids; or 

(3) That no change shall be made in the contract as

awarded, if the evidence does not warrant a determination 

under paragraphs (b)(1) or (2) of this subsection. 

(c) Determinations under paragraphs (b)(1) and (2) above

may be made only on the basis of clear and convincing evidence that a mistake in bid was made. In addition, it must be 

clear that the mistake was (1) mutual, or (2) if unilaterally 

made by the contractor, so apparent as to have charged the 

Contracting Officer with notice of the probability of the mistake. 

(d) Each proposed determination shall be sent to the Office

of the General Counsel to provide a statement of “no legal objection.” 

(e) Mistakes alleged or disclosed after award shall be processed as follows: 

(1) The Contracting Officer shall request the contractor

to support the alleged mistake by submission of written 

statements and pertinent evidence, such as (i) the contractor’s file copy of the bid, (ii) the contractor’s original work-
CERTIFICATION AND AWARD XII–5 

sheets and other data used in preparing the bid, (iii) subcontractors’ and suppliers’ quotations, if any, (iv) published 

price lists, and (v) any other evidence which will serve to 

establish the mistake, the manner in which it occurred, and 

the bid actually intended. 

(2) The case file concerning the alleged mistake shall be 

referred to the deciding official and contain the following: 

(i) All evidence furnished by the contractor in support of the alleged mistake. 

(ii) A signed statement by the Contracting Officer— 

(A) Describing the supplies or services involved; 

(B) Specifying how and when the mistake was alleged 

or disclosed; 

(C) Summarizing the evidence submitted by the contractor and any additional evidence considered pertinent; 

(D) Quoting, in cases where only one bid was received, 

the most recent contract price for the supplies or 

services involved or, in the absence of a recent 

comparable contract, the Contracting Officer’s estimate of a fair price for the supplies or services 

and the basis for the estimate; 

(E) Setting forth the Contracting Officer’s opinion 

whether a bona fide mistake was made and whether 

the Contracting Officer was, or should have been, 

on constructive notice of the mistake before the 

award, together with the reasons for, or data in 

support of, such opinion; 

(F) Setting forth the course of action with respect to 

the alleged mistake that the Contracting Officer 

considers proper on the basis of the evidence, and 

if other than a change in contract price is recommended, the manner by which the supplies or services will otherwise be acquired; and 

(G) Disclosing the status of performance and payments 

under the contract, including contemplated performance and payments. 

(iii) A signed copy of the bid involved. 

(iv) A copy of the invitation for bids and any specifications or drawings relevant to the alleged mistake. 

(v) An abstract of written record of the bids received. 

(vi) A written request by the contractor to reform or 

rescind the contract, and copies of all other relevant correspondence between the Contracting Officer and the 

contractor concerning the alleged mistake. 

(vii) A copy of the contract and any related change 

orders or supplemental agreements. 

(viii) A D&F for the deciding official to sign, conforming to the recommendation of the Contracting Officer. 

(f) A record of (1) all determinations made in accordance 

with this subsection, (2) the facts involved, and (3) the action 

taken in each case shall be included in the contract file. 

5. Mistakes in Quotation on Small Purchases. 

(a) A written offer submitted on a term contract or normal 

bid differs contractually from a quotation on a small purchase. 

A written offer, if responsive to the solicitation and submitted 

by a responsible offeror becomes an effective contract upon 

acceptance by the Government. The contract is bilateral since 

the parties have indicated their mutual assent. A request for 

quotations and a quotation in response, such as occurs with 

small purchases, becomes an effective unilateral contract 

when the contractor who has been issued the purchase order 

(the Government’s offer) signs the order or begins work on the 

requirement (the contractor’s acceptance). The distinction between bilateral and unilateral contracts as to the effective contract date, affects the administrative procedures utilized in 

handling a claim of mistake in quotation. The procedures used 

for a bilateral contract mistake-in-bid claim have been previously discussed in this section. Claims of mistakes in oral 

small purchase quotations fall into the following categories. 

(1) Suspected mistakes in quotation. Whenever the Contracting Officer suspects that a mistake may have been 

made in a small purchase quotation, the supplier shall be 

requested to review and confirm the accuracy of its quotation. The requirement shall be orally repeated if the original 

request for quotation was delivered orally. The contractor 

shall not be notified of the percentage or dollar difference 

between the low quotation and next low quotation. 

(2) Mistakes claimed prior to the issuance of a purchase 

order. Should the contractor claim a mistake in quotation at 

this point the Contracting Officer may take any one of three 

actions: 

(i) allow the contractor to withdraw its quotation; 

(ii) accept a corrected quotation; or 

(iii) negotiate a change in quotation. 

(3) Mistakes claimed after the issuance of a purchase 

order but prior to contractor performance. Technically, in 

this area the Contracting Officer can take actions similar to 

those described in the preceding paragraph within the following guidelines: 

(i) Cancel the purchase order. If the claim of mistake 

does not appear fair and reasonable or the integrity of 

the competitive system is jeopardized, the Contracting 

Officer may cancel the purchase order. The procurement 

then could be offered to the next lowest supplier or resolicited. 

(ii) Allow the contractor to correct its quotation up to 

an amount not greater than the next low quotation, providing the Contracting Officer determines that any upward correction is fair and reasonable. 

(4) Mistakes after the contractor has begun performance. Mistakes falling into this category shall be handled in 

the same manner as any post-award mistake in bid as covered previously in this section. 

(b) Special considerations. If a small purchase is of a particularly critical nature or the prospective contractor has a history of claiming mistakes in quotation, the Contracting Officer 

can require the awarded contractor to return a signed copy of 

the purchase order as verification of the contractor’s acceptance of the order. This will lessen the delay in procuring the 

requirement, should there be a claim of mistake in quotation, 

by establishing an effective contract date as early as possible. 
XII–6 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT XII–1 

PERMISSION TO CORRECT

DETERMINATION AND FINDINGS 

In accordance with PPR XII–6 (GPO Pub. 305.3) and upon the basis of the findings set forth below, I hereby make the 

following administrative determination. 

Findings 

ABC Company has requested permission to correct its bid under IFB No. 00000, Program 000–S, because of a mistake discovered before award. 

Clear and convincing evidence has been presented that ABC Company made a bona fide error in bid under IFB No. 

00000, Program 000–S. 

Clear and convincing evidence has been presented as to the bid actually intended. 

Determination 

ABC Company shall be permitted to correct its bid. 

 

 Chairperson, Contract Review Board Date 

EXHIBIT XII–2 

PERMISSION TO WITHDRAW

DETERMINATION AND FINDINGS 

In accordance with PPR XII–6 (GPO Pub. 305.3) and upon the basis of the findings set forth below, I hereby make the 

following administrative determination. 

Findings 

ABC Company has requested permission to withdraw its bid under IFB No. 00000, Program 000–S, because of a mistake discovered before award. 

The evidence presented reasonably supports the existence of a mistake. 

Clear and convincing evidence has not been presented as to the bid actually intended. 

Determination 

ABC Company is permitted to withdraw its bid from consideration. 

 

 Chairperson, Contract Review Board Date 
XIII–1 

CHAPTER XIII. CONTRACT ADMINISTRATION AND COMPLIANCE

SECTION 1. TERM CONTRACTS 

1. General. Term contracts are established to facilitate agency

requirements that are recurrent over a period of time, normally

one year. GPO Form 2511, Print Order is used to place orders

against a term contract. Placement of print orders can be handled in one of two ways: by GPO personnel or directly by customer agencies. Term contracts which allow customer

agencies to place print orders directly with the contractor are

commonly known as “direct-deal term contracts.” However,

emphasis should always be placed on the fact that these are

GPO contracts and all associated administrative functions, except those specifically delegated to the customer agency, are

the responsibility of GPO. All requests for direct-deal authority from the customer agency shall be thoroughly evaluated to

ensure they meet the conditions as set forth in this section.

2. Direct-Deal Term Contracts.

(a) Purpose. The purpose of direct-deal term contracts is to

ensure that agency needs for printing, binding, related supplies, and related services are met in the most effective and efficient manner possible. 

(b) Renewal of Direct-Deal Authority. It is the responsibility of the Contracting Officer to review each direct-deal term 

contract and its usage by the agency to verify the agency’s adherence to the contract. The Contracting Officer shall do so 

prior to issuance of the agency term-contract renewal letter. 

The review shall include, as a minimum: The placement of orders and adherence to contract schedules and specifications. If 

the Contracting Officer is not convinced that direct-deal authority should be continued, the customer agency shall be notified that upon expiration of the current term contract, directdeal authority shall be rescinded. Approval must be obtained 

from the appropriate APS Director before direct-deal authority 

can be rescinded from a customer agency. 

3. Program Setup Procedures. The Printing Services Specialist shall certify the program in accordance with chapter

XII. In addition, the steps listed below shall be followed for

setting up programs in order to place print orders against term 

contracts: 

(a) A purchase order shall be prepared for approved contractors in accordance with XII–1.1. 

(b) A transmittal letter to the agency shall be prepared in

sufficient number of copies for distribution and shall contain 

required information and any special instruction as appropriate. 

(c) An appropriate letter is forwarded to successful contractors. 

(d) For contracts that are utilized by multiple agencies, a

block of print order numbers shall be assigned to each agency 

to ensure accurate and efficient administration of the program. 

(e) A review of the contract file shall be made by the Printing Services Specialist to ensure that all pertinent data is in the 

file, i.e., bid specifications, requisition, CRB memorandum, 

abstract, letter of award or sequence letter, etc. 

4. Print Order Processing.

(a) Print Orders Placed by GPO. (1) Agencies submit print

orders to GPO when printing and binding services are required. Upon receipt of the print order a review shall be made 

by the Printing Services Specialist and/or the Procurement 

Technician to determine that the work is within the scope of 

the contract and that the print order is properly filled out to include the following information: 

(i) Department, title of publication, and contractor’s

name (if single award; if multiple award contract, add after 

placement of print order). 

(ii) Date, print order and jacket numbers, shipping date

(ensuring compliance with contract schedule), object class, 

state and contractor’s codes, program and requisition numbers, and proper billing information [including line of accounting (LOA), if applicable]. If single award contract, the 

purchase order number, state and contractor’s codes should 

be included. In multiple award contracts, this information 

shall be added after placement of the print order. 

(iii) Complete proof information including proof schedule when date can be determined. 

(iv) Color of ink(s), number of pages for cover and text

(estimated pages when actual number cannot be determined), kind of paper, number and size of fold-ins, amount 

and kind of material furnished to contractor, method of 

binding and stock property number when paper is furnished 

by GPO. 

(v) Total number of copies (including depository, file,

sales or other rider distribution when required) and trim 

size. 

(vi) Quantity breakdown with complete delivery instructions for each increment to each destination. 

(vii) Signature and title of person(s) duly authorized to

sign. 

(2) When the above requirements have been satisfied, the

order may be placed. In the case of a single award contract, 

the order is automatically placed with the successful contrac-
XIII–2 GPO PRINTING PROCUREMENT REGULATION 

tor. Under a multiple award contract, the lowest contractor in 

the sequence is solicited first. If the required ship date cannot 

be met, the second low contractor is then solicited. If that contractor cannot meet the ship date, the program operator shall 

continue to solicit in the established sequence until the order is 

placed, or any cut-off point is reached. The date the order is 

mailed to, or picked up by (or made available to), the contractor must be entered on the print order. 

(3) If the order is submitted and contains an item not included in the schedule of prices, and does not change the basic 

product, it may be placed on the contract with the approval of 

the Contracting Officer. The solicitation shall be made but the 

item not covered by the contract must have a price submitted 

for it by the contractor. The contractor must offer a price for 

this additional work and the Printing Services Specialist must 

ensure that an analysis is made to determine that the price is 

fair and reasonable. Once this determination has been made 

and a total price has been reached, a contract modification 

shall be issued incorporating the additional item and its price 

in the contract, and, thereafter, the order placed with the contractor. 

(4) Contractors refusing to accept an order with the requested ship date on multiple award term contracts shall be 

required to provide the best date that can be met. The name of 

the contractor’s representative and “best date” shall be documented. When an order has been solicited to the entire approved listing and the original ship date is not accepted, the 

agency shall be contacted and advised of the range of dates 

that can be met. The agency shall be requested to identify the 

latest possible date it can accept. The order shall again be solicited with the new date, in sequence, until it is placed. In individually abstracted orders, the solicitation shall be made 

only to those contractors whose prices are determined to be 

fair and reasonable. In the event the ordering agency still insists on the original ship date, or one which is unacceptable to 

all approved contractors on the listing, the order may be procured as a one-time sealed bid or small purchase. 

(5) Procurement personnel shall identify and document (in

the award sequence): date; company and representative to 

whom the solicitation was made; contractor’s best date if refused because of schedule; and agency authority changing 

shipping/delivery date if required. 

(b) Print Orders Placed by Agencies. (Direct Deal Term

Contract). (1) As detailed in (a)(1) of this subsection, each 

print order received by GPO shall be reviewed for (i) completeness and (ii) compliance to the contract specifications. 

(2) If the review of any print order reveals infractions of the

terms of the contract or the procedures stated in the transmittal 

letter to the customer agency (except clerical errors, unless of 

a recurring nature), a letter of warning shall be issued to the 

customer agency. If additional infractions are found after the 

warning letter has been issued, the Contracting Officer shall 

initiate the necessary actions to rescind the customer agency’s 

direct-deal authority. Final revocation by the Contracting Officer requires the approval of their APS Director. 

(3) On request, accompanied by adequate justification of

future compliance, the Contracting Officer may reinstate direct-deal authority. 

(c) All Print Orders. (1) Immediately after order placement

as detailed in paragraph (a) of this subsection, or after receipt 

and review of print orders placed by agencies as detailed in 

paragraph (b) of this subsection, enter print order information 

into the current procurement system. 

(2) The following applies when a voucher is received prior

to receipt of the print order. Request the originating agency to 

immediately submit the print order. If necessary, use the information posted by the Office of Finance and Administration 

for system entry. In addition to reviewing the print order received from the agency as detailed in paragraph (b) of this 

subsection, check to ensure that the agency submitted print order is the same as the print order received from the contractor 

with the voucher. 

5. Estimating. All print orders shall contain an estimate from

the schedule of prices. The surcharge shall not be included. In

no event shall the contractor’s copy include an estimate.

SECTION 2. CONTRACT MODIFICATIONS 

1. General.

(a) Definition. Contract modifications are defined as any

changes to an existing contract. They include alterations in the 

specifications,

 delivery point, rate of delivery, contract period, price, quantity, or other provision of the contract. Modifications can be accomplished by a written bilateral agreement 

or by a written unilateral action in accordance with a contract 

clause. Examples of contract clauses that give the Government 

a unilateral right to change a contract are “Changes” and “Paper Price Adjustment.” 

(b) Contracting Officer decision. It is not mandatory for the

Contracting Officer to make the requested change and modify 

the contract. When the Contracting Officer deems that it 

would be in the best interest of the Government, such as where 

the modification would significantly change the product, the 

Contracting Officer has the option to terminate the original 

contract for the convenience of the Government and readvertise with revised specifications. In such cases, the termination 

shall be made in accordance with XIV–2. 

(c) Bilateral Agreements, Unilateral Actions, and Administrative Changes. (1) Bilateral agreements are required when 

the proposed modifications affect substantial or material aspects of the contract not covered in the original contract. Substantial or material aspects of the contract include, but are not 

limited to, quantity, contract provisions, contract period, etc. 

To consummate the bilateral agreement a supplemental agreement shall be issued requiring the signature of both the Contracting Officer and the contractor. A supplemental agreement 

shall include a description of the modified or additional requirement and the agreed upon consideration for its performance. 

(2) If the modification is authorized by a contract clause,

the Contracting Officer has the unilateral right to issue a 

change order. Before issuing a change order under the 

“Changes” clause, the Contracting Officer shall try to reach an 

equitable adjustment and issue a supplemental agreement in 

accordance with (c)(1) above. If an equitable adjustment can-



 Specification—a technical description which defines the material, product, or service being procured. The specification may be a 

design, functional, or performance specification or a combination of 

all three. 
CONTRACT ADMINISTRATION AND COMPLIANCE XIII–3 

not be reached, two documents shall be issued: (i) the change 

order and (ii) the supplemental agreement once equitable adjustment has been reached. Change orders require the signature of the Contracting Officer only. The contractor is required 

to comply with the requested change regardless of whether a 

bilateral agreement has been reached. If a significant cost increase could result from a modification, and time does not 

permit negotiation of a price, at least a maximum price shall 

be negotiated and included in the modification. 

(3) Administrative changes, such as correction of a typographical error on the purchase order, which do not materially 

affect the contract, are also unilateral actions. They are effected through issuance of a change order.

2. Processing.

(a) CRB concurrence. All modifications meeting the criteria set forth in PPR I-10.4(c) are to be submitted to the CRB. 

(b) GPO Form 913. All contract modifications shall be issued by the Contracting Officer in writing on GPO Form 913, 

Contract Modification, except those described in XV– 2 or 

appended with a statement of “no legal objection” issued by 

the Office of the General Counsel. 

(c) Description of Modification. All contract modifications

shall include a complete description of the change. 

(d) Modification Number. Each contract modification shall

contain a modification number which is to be entered into 

PICS (Procurement Information and Control System) with 

other descriptive data. 

(e) GPO Form 913. The modification shall distinguish between a change order and supplemental agreement on Form 

913. The authority for issuing the change order/supplemental

agreement shall be stated on the appropriate line. Change orders may be issued pursuant to the “Changes” clause or other

contract clause. Supplemental agreements are entered into pursuant to mutual agreement.

(f) Oral Notification. If oral notice of the modification is

made to a contractor the conversation shall be documented on 

GPO Form 714 and placed in the contract file. The written 

modification shall be issued without delay. 

3. Supplemental Agreement for Late Shipments/Deliveries

in Lieu of Terminations for Default.

(a) General. The decision to allow a contractor to deliver

late rather than terminating for default is made only where it is 

determined to be in the best interest of the Government. Such 

decisions are at the discretion of the Contracting Officer in the 

administration of the contract. It must be clearly understood 

that use of this procedure is a limited alternative course of action, and is not a policy for circumventing termination for default procedures. 

(b) Justification for Issuing Supplemental Agreements for

Late Shipments. The following are circumstances which may 

make it practical, and in the best interest of the Government, 

for a Contracting Officer to allow a contractor to deliver late: 

(1) The supplies are not available from alternative

sources; or 

(2) Termination and repurchase action will unduly delay

the receipt of urgently needed supplies. 

(c) Consideration. (1) To allow a contractor to deliver late

rather than terminating the contractor for default, an equitable 

adjustment providing the Government with favorable consideration may be obtained. Consideration will be in the form of: 

(i) Reduction in the contract price; or

(ii) Improvement in the terms of the contract which will

provide the Government with an advantage not previously 

called for by the basic contract. 

(2) In determining consideration, the following factors

should be evaluated to the extent information is available: 

(i) The probable reduction in bid price(s) if the delivery

period, as extended, had originally been called for in the 

specifications; 

(ii) The probable damages suffered by the Government

because of the delay; and 

(iii) the value of the extension to the contractor in terms

of: 

(A) Savings in contract performance; and

(B) Potential damages if default action had been taken.

(3) No precise formula can be developed for determining

the consideration which should be obtained in all cases. This is 

a matter of individual judgment and can only be handled on a 

case-by-case basis. Delivery schedules should be extended 

only when the consideration obtainable is realistic and equitable under the existing circumstances, and is of such significance as to clearly substantiate the fact that it is the policy of 

the Government to protect the integrity of the competitive bidding system by insisting on timely contract performance. 

(4) When monetary considerations are agreed upon to allow

a contractor to deliver late in lieu of termination for default, 

the consideration shall be documented by supplemental 

agreement. This may be accomplished by either one of two 

methods: 

(i) By agreement on a lump sum to be paid by the contractor to the Government; or 

(ii) By a reduction in the contract price.

(5) The statement “This supplemental agreement is not to

be construed as a waiver of any rights or remedies the Government may have under the contract as a result of any further 

delinquency” will be included in all such supplemental agreements. 

4. Contract File. The contract file shall contain:

(a) Copy of the supplemental agreement containing the signatures of the Contracting Officer and the contractor or a copy 

of the change order containing the Contracting Officer’s signature. If the contractor acknowledges the change order, the 

copy containing the contractor’s signature shall be placed in 

the file; 

(b) A memorandum justifying the issuance of the modification; 

(c) Evidence supporting costs which may be comprised of

previous same or similar prices, GPO estimate, or other acceptable documentation; 

(d) Copy of GPO Form 714, documenting all conversations

with the contractor regarding the change; 

(e) Any other related documents.

5. Examples of Contract Modifications (not all inclusive).

(a) Change Order. (1) Shipping destination has changes using GBL’s. 
XIII–4 GPO PRINTING PROCUREMENT REGULATION 

(2) To correct spelling of contractor’s name on the purchase order. 

(3) Notification to a contractor that the price allowed for

paper has increased/decreased under the “Paper Price Adjustment” clause. 

(4) Notification to a contractor that the contractual pricing

has increased/decreased under the “Economic Price Adjustment” clause. 

(b) Supplemental Agreement. (1) Quantity has been increased. 

(2) An equitable adjustment has been reached after issuance

of a change order. 

(3) An extension of shipping schedules beyond those authorized under the terms of the contract. 

(4) New requirements for incorporation into the contract.

6. PICS or Successor System Update. Schedule changes and

equitable adjustments authorized by contract modification

shall be entered in PICS. (See chapter VII, section 9, Simplified Purchase Agreements, for PICS or successor system updates, which cover simplified purchase agreement (SPA)

modifications.)

SECTION 3. NOVATION AND CHANGE OF NAME 

AGREEMENTS 

1. Scope. This section prescribes the policies and procedures

for the (a) recognition of a successor in interest to a GPO contract(s) when such interests are acquired as the result of a

transfer of all assets of a contractor or any part of those assets

that may be involved in the performance of the contract and

(b) a change of a name of a contractor.

2. Agreement to Recognize a Successor in Interest.

(a) The transfer of a GPO contract is prohibited. If it is in

the best interest of the Government, GPO may recognize a 

third party as the successor in interest to a GPO contract when 

the third party’s interest in the contract arises out of the transfer of all the assets of the contractor or of all of that part of the 

contractor’s assets involved in the performance of the contract. 

Examples include, but are not limited to the following: 

(1) Sale of such assets, with appropriate provisions for

assumption of liabilities; 

(2) Transfer of such assets pursuant to a merger or a

consolidation of a corporation; and 

(3) Incorporation of a proprietorship or partnership, or

formation of a partnership. 

(b) The GPO is generally not so much interested in what

assets are transferred or in what manner the transfer of property or interest is accomplished. When requested to concur in a 

novation agreement, the GPO’s main concerns are: 

(1) Whether the proposed transfer is, in fact, a successor

in interest to the GPO contract; and 

(2) Whether it is consistent with GPO’s interest to concur in the novation agreement. 

Accordingly, the GPO has the discretion to either treat the 

contract as annulled by the assignment or recognize the assignment if it is in the GPO’s best interests. 

(c) A novation agreement is the legal instrument executed

by the contractor (transferor), the successor in interest (transferee), and GPO by which, among other things, the contractor 

guarantees performance of the contract, the successor assumes 

all obligations under the contract, and GPO recognizes the 

transfer of assets. GPO’s recognition of a third party as the 

successor in interest to a GPO contract is signified by the Contracting Officer’s execution of the novation agreement which 

sets forth the obligations of the parties as the result of transferring the assets related to the GPO contract. The successor’s 

obligation to perform a given contract is further set forth in a 

modification to the contract. 

(d) When a contractor requests that the GPO recognize a

successor in interest, the contractor shall be required to provide four signed copies of the proposed novation agreement to 

the GPO and one copy of any of the following that the Contracting Officer deems appropriate: 

(1) A properly authenticated copy of the instrument by

which the transfer of assets was effected; for example: bill 

of sale, certificate of merger, official copy of transfer, or 

court decree; 

(2) A list of all affected contracts and purchase orders

which have not been finally settled between the contractor 

and the GPO, showing the contract number, the name and 

address of the office handling the contract, the total dollar 

value of each contract as amended and the balance remaining unpaid; 

(3) A certified copy of the resolutions of each of the

boards of directors of the corporate parties authorizing the 

transfer of assets; 

(4) A properly authenticated copy of the certificate and

articles of incorporation of the transferees if such corporation was formed for the purpose of receiving the assets involved in the performance of the GPO contracts; 

(5) Opinion of legal counsel for the contractor and the

successor regarding the effective date of the transfer and 

that the transfer was properly effected in accordance with 

applicable law; 

(6) Evidence of the capability of the successor to perform the contracts; 

(7) A certified copy of the minutes of any stockholders’

meetings of the corporate parties necessary to approve the 

transfer of assets; 

(8) Consent of sureties on all the contracts where bonds

have been furnished or a statement from the contractor that 

no bond is required. 

(e) When it is in the best interest of the GPO to recognize a

successor in interest to a Government contract, the Contracting 

Officer shall execute an agreement with the contractor and the 

successor which shall ordinarily provide in part that: 

(1) The successor assumes all the contractor’s obligations under the contract; 

(2) The contractor waives all rights under the contract

against the GPO; 

(3) The contractor guarantees performance of the contract by the successor (a satisfactory performance bond may 

be accepted in lieu of such guarantee); 

(4) Nothing shall relieve the contractor and the successor from compliance with any Federal law; and 

(5) A format for such an agreement, for use when the

transferor and transferee are corporations and all the assets 

of the transferor are transferred, is set forth in exhibit XIII–

1. This format may be adapted to fit specific cases and may
CONTRACT ADMINISTRATION AND COMPLIANCE XIII–5 

be used as a guide in preparing similar agreements for use 

in other situations. 

3. Agreement to Recognize Change of Name of Contractor.

(a) When only a change of name is involved so that the

rights and obligations of the parties remain unaffected, an 

agreement shall be executed between the parties to reflect the 

contractor’s change of name. Four signed copies of the change 

of name agreement and one copy of each of the following 

shall be forwarded by the contractor to GPO: 

(1) A copy of the document by which the change of

name was effected, authenticated by a proper official of the 

State having jurisdiction; 

(2) Opinion of legal counsel for the contractor regarding

the effective date of the change of name and that the 

change of name was properly effected in accordance with 

applicable law; and 

(3) A list of all affected contracts and purchase orders

which have not been finally settled between the contractor 

and the GPO showing the contract number, the name and 

address of the office handling the contract, the total dollar 

value of each contract as amended and the balance remaining unpaid. 

(b) A format for an agreement which may be used or

adapted for specific cases is set forth in exhibit XIII–2. A formal agreement is required only when there are unsettled contracts in being. When no such contracts exist, the contractor 

shall be required to update Contractor Connection to ensure 

that the master inventory of bidders is maintained current. 

4. Processing.

(a) When on notice that a novation or change of name is

contemplated or proposed, the Contracting Officer shall furnish four copies of the appropriate agreement format (exhibit 

XIII–1 or 2) to the contractor, accompanied by necessary instructions for completion of the form. The instructions shall 

provide, as a minimum: 

(1) that an original and three copies of the proposed

agreement be completed, signed by the concerned parties, 

and returned to the Contracting Officer; and 

(2) the identification of the information to accompany

the proposed agreement, as required by the Contracting Officer pursuant to subsections 2(d) or 3 of this section, as 

appropriate. 

(b) The Contracting Officer processing a proposed agreement shall contact those procurement offices identified as having contracts with the contractor to determine if there are any 

objections to the proposed agreement. Any objections shall be 

resolved before an agreement is executed. 

(c) All novation agreements and change of name agreements, prior to execution shall be reviewed by the Office of 

the General Counsel to provide a statement of “no legal objection” or to notify the Contracting Officer that there is a “legal 

objection” [accompanied by the cause(s) for the “legal objection”], as appropriate. 

(d) Executed agreements shall be distributed as follows:

(1) The signed original copy shall be retained by the

Contracting Officer executing the agreement. 

(2) The duplicate signed copy shall be provided to the

contractor. 

(3) A copy shall be provided to each procurement office

identified as having a contract with the contractor. 

(e) After execution and distribution, each affected procurement office shall execute a contract modification for each 

contract identified, incorporating a summary of the agreement. 

SECTION 4. PRIOR-TO-PRODUCTION SAMPLES 

1. Scope. This section prescribes policies and processing procedures for solicited and unsolicited prior-to-production samples sent to GPO.

2. Solicited Samples. Prior-to-production samples furnished

to the Contracting Officer as required by the contract shall be

processed as set forth below.

(a) Verification shall be made that the samples are as required, including the correct number of copies. 

(b) If samples meet the general requirements of the specifications through visual inspection, their receipt shall be recorded showing date received and identification data such as 

Jacket/Program number. If samples are not as required and 

additional ones are requested from the contractor, the period 

for approval/disapproval by the Government as indicated in 

the specifications shall not begin until proper samples are received by the Contracting Officer. 

(c) If applicable, an appropriate number of samples (minimum of two), properly identified, plus one copy of the specifications shall be forwarded to the Quality Control and 

Technical Department for testing. The Quality Control and 

Testing Department shall evaluate the samples for conformance with specifications and report their findings to the Contracting Officer. Regional Office Contracting Officers shall 

forward samples through the appropriate APS Director to the 

Quality Control and Inventory Department, Testing and Technical Services Division. 

(d) If the customer agency’s requisition indicates that they

shall be furnished prior-to-production samples, the Contracting Officer shall send the requested number to the customer 

simultaneously with those sent to Quality Control and Testing 

Department. In Regional Offices, samples for the customer 

shall be sent directly to the address shown on the requisition. 

(e) If the samples are approved by Quality Control and

Testing Department, and the customer, if applicable, the Contracting Officer shall notify the contractor immediately by 

telephone. The telephone approval shall be confirmed in writing referencing the date of the approval. 

(f) If the samples are found to be not equal to specifications, the contractor shall be notified immediately by telephone (and confirmed in writing) of the area(s) of deficiency 

and requested to furnish additional samples for testing unless: 

(1) The Contracting Officer determines that the procurement is critical and furnishing additional samples 

would jeopardize shipping on schedule or; 

(2) Customer agency samples are approved and Quality

Control and Testing Department tested samples contain deficiencies (or vice versa); 

(g) If the Contracting Officer conditionally waives further

samples as permitted in (f)(1) and (2) the contractor shall be 

advised: (1) of the area(s) of deficiency; (2) that further samples are not required; and (3) that approval is conditioned 
XIII–6 GPO PRINTING PROCUREMENT REGULATION 

upon the delivered product being equal to the specifications in 

all areas. Written conditional approval shall be sent to the contractor. 

3. Unsolicited Samples. Prior-to-production samples not required under the terms of the contract shall be returned to the

contractor as prescribed below.

(a) Upon receipt of unsolicited samples the Contracting Officer shall notify the contractor immediately, by telephone, 

that the samples will be returned. Except as provided in 3(b) 

below, the samples shall not be tested and shall be returned to 

the contractor by return mail and a record of such action shall 

be placed in the contract file. 

(b) Unsolicited samples may be tested at the request of the

contractor. However, the contractor shall be advised that there 

will be no extension of the shipping schedule due to such testing by GPO. The samples shall be tested by Quality Control 

and Testing Department in accordance with the procedures in 

this section. Unsolicited samples shall not be sent to the customer for testing unless there is compelling reason to do so. 

The results of test findings shall be provided to the contractor 

by telephone and confirmed in writing. 

SECTION 5. CONTRACT COMPLIANCE 

1. Scope. This section deals with the performance of contractors in complying with the requirements of contracts and purchase orders primarily relating to shipping/delivery. Nothing

in this section shall supersede the Contracting Officer’s responsibility for ensuring that GPO is contracting with responsible contractors (see I–5). Contracting Officers shall continue

to exercise judgment based upon the particular circumstances

of each case.

2. Extension of Schedules.

(a) All adjustments in schedules must be supported by adequate documentation and processed in accordance with the 

“Notice of Compliance with Schedules” clause set forth in 

GPO Contract Terms, Publication 310.2. 

(b) Automatic extensions [paragraph (c)(1) of the clause]

shall be documented by receipts or notations recorded on GPO 

forms 714 or 907 for GFP or proofs. 

(c) Negotiated extensions [paragraphs (c)(2) through (c)(5)

of the clause] shall be documented by contractor correspondence or signed copies of modifications. 

3. GPO Forms 714 and 907.

(a) When complete, both forms shall document:

(1) Government caused delays, such as late furnished

GFP, 

(2) contracts placed on “hold,” pending disposition of

contractor initiated inquiries, or 

(3) potential delivery problems encountered during contract performance. 

(b) Adequate notes shall also be recorded, such as:

(1) The date problem or question arose,

(2) date of resolution, and

(3) name of individuals involved.

(c) The appropriate compliance activity should be notified

at the time of the delay and whenever any order is removed 

from a “hold” status. The appropriate schedule adjustment will 

then be entered into PICS or successor system by the compliance activity. 

4. Contractor Shipping/Delivery Reporting.

(a) Contractor information on shipping/delivery status received via toll free WATS line in central office or GPO form 

138 or telephone in Regional Offices shall be entered in PICS 

or successor system under the appropriate heading. 

(b) Daily Exception Report. All orders that have not been

reported to the compliance activity by the contractor will appear in the Daily Exception Report. The compliance activity 

will contact each contractor that appears in the report to obtain 

the shipping/delivery status. 

5. Monthly Compliance Letters.

(a) All shipping related data must be entered into PICS or

successor system not later than the third workday of the month 

following the month to be reported. 

(b) To emphasize the importance GPO places on schedule

compliance, letters, using the following criteria, shall be sent 

to contractors experiencing delinquencies during the report 

month: 

(1) Category 1, a delinquency rate exceeding 0% (no delinquencies) but no greater than 4% (three or more items); 

or, 

(2) Category 2, a delinquency rate exceeding 4% but no

greater than 15% (three or more items) or any late for one 

or two items total; or, 

(3) Category 3, a delinquency rate exceeding 15% (three

or more items). 

6. Procedures.

(a) Using data entered into PICS or successor system prior

to the third workday of the month, Information Technology 

and Systems Department (IT&S) will generate all letters 

which shall be mailed upon signature of the Compliance Officer, located at GPO’s Central Office. 

(b) The Contract Compliance Section will have copies of

monthly compliance letters available. 

(c) Replies from contractors, regarding disputed items in

the compliance letters, shall be directed to the regional or central office from which the original purchase order was issued. 

Each regional or central office compliance section shall update 

PICS or successor system upon finding for the contractor on a 

disputed item. 

(d) Once the contractor’s letter of response has been processed and the PICS or successor system has been updated, the 

contractor will be sent a completed GPO Form 2692, Contract 

Compliance Section Letter. The letter, which when completed, 

will inform the contractor of the current status of our compliance records after the processing of their letter. 

7. Delinquency Verification.

(a) Upon receipt of vouchers for payment, the Office of Finance and Administration copies the accompanying shipping 

documents using the voucher imaging system. 

(b) The Compliance Section will randomly access this imaging system for discrepancies (late orders) between the promised date entered in PICS or successor system and the actual 

date indicated by the shipping documents; and will inform the 

appropriate compliance activity of discrepancies. 
CONTRACT ADMINISTRATION AND COMPLIANCE XIII–7 

(c) Contractors shall be contacted on each delinquent order

to confirm promised/actual dates as reflected in the delinquency verification. Complete GPO form 714. 

(d) If the same contractor appears in another delinquency

verification: 

(1) For the second and third occurrences within 6

months of the first verification, issue form letter No. 1 (exhibit XIII–3). 

(2) For the fourth occurrence within 3 months of the first

verification and after the second issuance form letter No. 1, 

issue form letter No. 2 (exhibit XIII–4). 

(3) For the fifth occurrence within 3 months of the first

verification and after the issuance of form letter No. 2, issue form letter No. 3 (exhibit XIII–5). 

(e) When a contractor confirms the actual date as identified

in the delinquency verification, each compliance activity shall 

update PICS or successor system under the “actual ship” date. 

(f) The purpose of the letters is to emphasize to contractors

the importance of supplying correct information and to put 

them on written notice of the change that is being made in 

contract compliance records. The criteria for each letter is outlined above but this is not intended to supersede the use of 

judgment in the determination of the administrative action initiated by a Contracting Officer in response to each individual 

situation. 

8. Recording of shortages as delinquent.

If a contractor ships any order with a shortage, that order

shall be recorded in PICS or successor system as having 

shipped late. The date to be used is either the date that the department gives its approval for the shortage or the date that the 

contractor ships the shortage copies, whichever is appropriate. 

Further, it shall be recorded on the order’s comment screen in 

PICS or successor system that the order is counted as late due 

to a shortage. 

SECTION 6. CUSTOMER COMPLAINTS 

1. Scope. This section sets forth policy, responsibility, and

procedures for the processing of official customer agency

complaints regarding contractor performance under GPO contracts for printing, binding, related supplies, and related services.

2. Policy. It is the policy of APS to act quickly and responsibly in regard to the resolution of complaints received from

customer agencies. The goal is to reduce such complaints to a

minimum by taking appropriate action to resolve potential

problems before they reach the customer.

3. Complaints Processing.

(a) Customer agencies. Complaints from customer agencies

shall be submitted in writing, through the appropriate printing 

officer, to the proper GPO office. This requirement does not, 

however, preclude agencies from notifying GPO by telephone 

of problems requiring immediate attention, providing such notifications are made to the proper GPO office, who concurs in 

the urgency. In such cases, immediate action shall be taken to 

resolve the problem. The telephone complaint shall be fully 

documented. This documentation becomes the official complaint correspondence, subject to letter confirmation by the 

agency printing authority. 

(b) Central Office. All customer complaints regarding contractor quality performance shall be submitted through the appropriate APS team to Quality Control for Procured Printing 

(QCPP). The APS team (either the Contracting Officer or 

their representative) shall document each quality complaint 

and other complaints in the complaints record book with the 

following: 

Jacket/Program Number Contractor Name 

Print Order Number (when applicable) Nature of Complaint 

Agency Name Name of employee who 

will handle the complaint 

Whether or not the complaint addresses quality, a copy of 

all complaint correspondence shall be filed in the contract file. 

The record book shall be reviewed daily to determine which 

complaints remain unresolved. 

(c) Regional Offices. Complaints received in the Regional

Offices shall be processed in the same manner as described in 

4(b) of this subsection, except that they shall be received directly from the customer agency and directed to the attention 

of the Regional Office Manager or designee. 

(d) QCPP Weekly Report. QCPP shall issue a consolidated

weekly report of all quality complaints to all APS Contracting 

Officers, located in the Central Office and in all Regional Offices, where applicable. The weekly report shall identify the 

status of each quality complaint. 

(e) Unresolved Complaints. Every effort shall be made to

resolve complaints as soon as possible. Any delay in resolution shall be promptly communicated to the customer agency. 

(f) Documentation. Copies of the complaint correspondence and all documents pertinent to complaint resolution 

shall be made a part of the contract file and the contractor 

compliance file. Such information shall be readily available to 

the Contracting Officer for assistance in responsibility determinations. In addition, a permanent record shall be maintained 

of all complaints received, including the date of resolution and 

notification of the agency. This information will be used for, 

among other things, analyzing complaint trends. 
XIII–8 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT XIII–1 

AGREEMENT

This Agreement entered into as of , 20 by and between , a corporation duly organized and existing under the laws of the State of , (hereinafter referred to as the “Transferor”) , a corporation duly organized and existing under the laws of the State of with its principal office in the City of 

 (hereinafter referred to as the “Transferee”); and the United States of America (hereinafter referred to as the 

“Government”). 

WITNESSETH THAT 

1. WHEREAS, The Government, represented by various Contracting Officers of the United States Government

Printing Office, has entered into certain contracts and purchase orders with the Transferor, namely , 

and the term “the contracts” as hereafter used means the above contract purchase orders and print orders, and all other 

contracts and purchase orders, including modifications thereto, heretofore made between the Government, represented 

by various Contracting Officers of the above named agency and Transferor (whether or not performance and payment 

have been completed and releases executed, if the Government or the Transferor has any remaining rights, duties, or 

obligations thereunder), and including modifications thereto hereafter made in accordance with the terms and conditions of such contracts and purchase orders between the Government and the Transferee; 

2. WHEREAS, as of , 20 , the Transferor assigned, conveyed, and transferred to the Transferee all the assets of

the Transferor by virtue of a Bill of Sale between the Transferor and Transferee; 

3. WHEREAS, as of , 20 , the Transferee, by virtue of said assignment, conveyance, and transfer, has acquired

all the assets of the Transferor; 

4. WHEREAS, by virtue of said assignment, conveyance, and transfer, the Transferee has assumed all the duties,

obligations, and liabilities of the Transferor under the contracts; 

5. WHEREAS, the Transferee is in a position fully to perform the contracts and such duties and obligations as may

exist under the contracts; 

6. WHEREAS, it is consistent with the Government’s interest to recognize the Transferee as the successor party to

the contracts; 

7. WHEREAS, there has been filed with the Government evidence of said assignment, conveyance,

and transfer;

NOW THEREFORE, in consideration of these premises, the parties hereto agree as follows:

1. The Transferor hereby confirms said assignment, conveyance, and transfer to the Transferee and does hereby release and discharge the Government from, and does hereby waive, any and all claims, demands, and rights against the 

Government which it now has or may hereafter have in connection with the contracts. 

2. The Transferee hereby assumes, agrees to be bound by, and undertakes to perform each and every one of the

terms, covenants, and conditions contained in the contracts. The Transferee further assumes all obligations and liabilities of and all claims and demands against the Transferor under the contracts, in all respects as if the Transferee were 

the original party to the contracts. 

3. The Transferee hereby ratifies and confirms all actions heretofore taken by the Transferor with respect to the

contracts with the same force and effect as if the action had been taken by the Transferee. 

4. The Government hereby recognizes the Transferee as the Transferor’s successor in interest in and to the contracts. The Transferee hereby becomes entitled to all right, title, and interest of the Transferor in and to the contracts in 

all respects as if the Transferee were the original party to the contracts. The term “Contractor” as used in the contracts 

shall be deemed to refer to the Transferee rather than to the Transferor. 

5. Except as expressly provided herein, nothing in this Agreement shall be construed as a waiver of any rights of

the Government against the Transferor. 

6. Notwithstanding the foregoing provisions, all payments and reimbursements heretofore made by the Government

to the Transferor and all other actions heretofore taken by the Government pursuant to its obligations under any of the 

contracts shall be deemed to have discharged pro tanto the Government’s obligations under the contracts. All payments and reimbursement made by the Government after the date of this Agreement in the name of or to the Transferor shall have the same force and effect as if made to said Transferee and shall constitute a complete discharge of 

the Government’s obligations under the contracts, to the extent of the amounts so paid or reimbursed. 

7. The Transferor and the Transferee hereby agree that the Government shall not be obligated to pay or reimburse

either of them for, or otherwise give effect to, any costs, taxes, or other expenses, or any increases therein, directly or 

indirectly arising out of or resulting from (a) said assignment, conveyance and transfer or (b) this Agreement, other 
CONTRACT ADMINISTRATION AND COMPLIANCE XIII–9 

than those which the Government, in the absence of said assignment, conveyance, and transfer, or this Agreement, 

would have been obligated to pay or reimburse under the terms of the contracts. 

8. The Transferor hereby guarantees payment of all liabilities and the performance of all obligations which the 

Transferee (a) assumes under this Agreement, or (b) may hereafter undertake under the contracts as they may hereafter be amended or modified in accordance with the terms and conditions thereof, and the Transferor hereby waives notice of and consents to any such amendment or modification. 

9. Except as herein modified, the contracts shall remain in full force and effect. 

IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the day and year first 

above written. 

 UNITED STATES OF AMERICA 

 By 

 Title 

 

(Transferor) 

 

 By 

 Title 

(corporate seal) 

 (Transferee) 

 By 

 Title 

(corporate seal) 
XIII–10 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT XIII–2 

CHANGE OF NAME AGREEMENT

This Agreement entered into as of , 20 by and between the (hereinafter referred to as the “Contractor”), a corporation duly organized and existing under the laws of the State of , 

and the United States of America (hereinafter referred to as the “Government”). 

WITNESSETH THAT 

1. WHEREAS, the Government, represented by various Contracting Officers of the Government Printing Office, 

has entered into certain contracts and purchase orders with the contractor as set forth in the attached list marked “Exhibit A” to this Agreement and herein incorporated by reference and the term “the contracts” as hereinafter used 

means the above contracts and purchase orders, and all other contracts and purchase orders, including modifications 

thereto, entered into between the Government, represented by various Contracting Officers of the Government Printing Office and the Contractor whether or not performance and payment have been completed and releases executed, if 

the Government or the Contractor has any remaining rights, duties, or obligations thereunder; 

2. WHEREAS, the , by an amendment to its certificate of incorporation dated , has changed its 

corporate name to ; 

3. WHEREAS, a change of corporate name only is accomplished by said amendment, so that rights and obligations of the Government Printing Office and of the Contractor under the contracts are unaffected by said change; and 

4. WHEREAS, there has been filed with the Government Printing Office documentary evidence of said change in 

corporate name. 

NOW THEREFORE, in consideration of the premises, the parties hereto agree that the contracts covered by this 

Agreement are hereby amended by deleting therefrom the name “ “ wherever it appears in the contracts and substituting therefor the name “ .” 

IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the day and year first 

above written. 

 UNITED STATES OF AMERICA 

 By 

 Title 

 By 

 Title 

(corporate seal) 

CERTIFICATE 

I, , certify that I am the Secretary of , named above, that who signed 

this agreement on behalf of said corporation was then of said corporation and that this Agreement was 

duly signed for and in behalf of said corporation by authority of its governing body and is within the scope of its corporate powers. 

Witness my hand and the seal of said corporation this day of , 20 . 

 (corporate seal) By 
CONTRACT ADMINISTRATION AND COMPLIANCE XIII–11 

EXHIBIT XIII–3 

FORM LETTER #1 

(USE CURRENT GPO SEAL AND LETTERHEAD) 

Date 

Name 

Company 

Street Address 

City, ST Zip Code 

Dear : 

Your firm has failed to ship the requirements for Contract Number Or Other Contract Identification Information in 

accordance with the scheduled contract date. This order was previously reported as shipped on Date. However, when 

you submitted your voucher for payment, the shipping document you enclosed indicated a shipping date of Date. 

We wish to express our dissatisfaction with your performance. More importantly, we want to emphasize our disappointment that representatives of your firm furnished erroneous information concerning the status of the requirement. 

A written explanation of your non-compliance and erroneous information and the steps you intend to take to preclude such matters from occurring in the future is requested by Date. Address your reply to the undersigned, Mail 

Stop , at the above address. 

Sincerely, 

Name 

Compliance Officer 
XIII–12 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT XIII–4 

FORM LETTER #2 

(USE CURRENT GPO SEAL AND LETTERHEAD) 

Date 

Name 

Company 

Street Address 

City, ST Zip Code 

Dear : 

Your firm has failed to ship the requirements for in accordance with the scheduled contract date. The failure 

to meet this schedule has inconvenienced and embarrassed an agency of the United States Government. 

This order was previously reported as shipped on . However, when you submitted your voucher for payment, the shipping document you enclosed indicated a shipping date of . 

We wish to express our dissatisfaction with your performance and your continued disregard for your contractual 

obligations. More importantly, we want to emphasize our disappointment that representatives of your firm have repeatedly supplied erroneous information concerning the status of Government Printing Office orders. Please be advised that the penalty for making false statements to the Government is prescribed in 18 U.S.C. 1001. 

It has been brought to your attention that erroneous shipping information has been furnished by representatives of 

your firm on the following dates and orders: 

(Jacket or Prog. w/P.O. # per our letter dated . 

(Jacket or Prog. w/P.O. # per our letter dated . 

In all cases, these discrepancies have been confirmed by letter, addressed to your attention. 

Delivery of a product when required and under the conditions specified are essential provisions of any contract and 

are obligations a contractor must meet. Furnishing erroneous information, intentionally or unintentionally, certainly 

reflects on the integrity of a contractor. 

A copy of this letter will be included in your contract compliance file and the substance will be considered whenever your firm is in line for award. 

A written explanation of your non-compliance and erroneous information and the steps you intend to take to preclude such matters from occurring in the future is requested by . Address your reply to the undersigned, U.S. 

Government Printing Office, . 

Sincerely, 

Name 

Compliance Section 
CONTRACT ADMINISTRATION AND COMPLIANCE XIII–13 

EXHIBIT XIII–5 

FORM LETTER #3 

(USE CURRENT GPO SEAL AND LETTERHEAD) 

Date 

Name 

Company 

Street Address 

City, ST Zip Code 

Dear : 

It has been brought to your attention that erroneous shipping information has been furnished by representatives of 

your firm on the following dates and orders: 

(Jacket or Prog. w/P.O. # per our letter dated . 

(Jacket or Prog. w/P.O. # per our letter dated . 

In all cases, these discrepancies have been confirmed by letters addressed to the attention of . To date, the 

only letter to which you have responded to is our letter dated . 

(Repeat or summarize the steps that the contractor claimed they were going to implement to correct the problem). 

Unfortunately, since the time I received your letter, another case of erroneous information has been discovered. 

Jacket Or Prog. W/P.O. # was previously reported as shipped on ; however, when you submitted your voucher 

for payment the shipping document you enclosed indicated a shipping date of . 

It appears that the problem of erroneous information supplied by your firm may go beyond the case which we have 

brought to your attention thus far. In order to accurately determine what your compliance record is for the months of 

 , I am enclosing a list of the orders which were due to ship for these months, and I am requesting copies 

of your shipping receipts for each of these orders. 

As per our telephone conversation regarding this matter, I will expect these documents by . Address your reply to the undersigned, U.S. Government Printing Office, PSO, Washington, DC 20401.. 

A copy of this letter will be included in your contract compliance file and the substance will be considered whenever your firm is in line for award. 

Sincerely, 

Name 

Compliance Section 

XIV–1 

CHAPTER XIV. CONTRACT TERMINATIONS 

SECTION 1. TERMINATION FOR DEFAULT 

1. Scope. This section sets forth policies and procedures for

the utilization and application of the “Default” clause in GPO

Contract Terms, Publication 310.2.

2. General.

(a) Termination for default is the exercise of a contractual

right of the Government to terminate the contract in whole or 

in part by reason of the contractor’s failure, actual or anticipatory, to perform its obligations under the contract. 

(b) If, after issuance of a notice of termination for default, it

is determined that the contractor was not in default or that the 

default was excusable, the clause provides that a termination 

for default shall be deemed to have been a termination for 

convenience, and that the rights and obligations of the parties 

shall be governed accordingly. 

(c) Notwithstanding the determination in (b), the contract

may be reinstated by mutual agreement where the Contracting 

Officer determines that such reinstatement is in the best interest of GPO. 

(d) In addition to the termination rights and remedies provided in the “Default” clause, the GPO may, in appropriate 

cases, pursue termination or cancellation rights and remedies 

provided by law. 

3. Termination of Contracts for Default.

(a) GPO’s right to terminate for default. The GPO has the

right, subject to the notice requirements of the clause, to terminate the whole, or any part of the contract for default if the 

contractor (1) fails to make delivery of the supplies or to perform the services within the time specified in the contract, (2) 

fails to perform any other provision of the contract, or (3) fails 

to make progress so as to endanger performance of the contract. 

(b) Effect of termination for default. (1) Under a termination for default the Government is not liable for the contractor’s costs on undelivered work, and is entitled to the 

repayment of progress payments, if any, applicable to such 

work. Pursuant to paragraph (e) of the “Default” clause, the 

GPO may elect to require the contractor to transfer title and 

deliver to the GPO completed articles and materials, in the 

manner and to the extent directed by the Contracting Officer. 

The Contracting Officer shall not use the “Default” clause as 

authority to acquire any completed articles or materials unless 

they have made certain the GPO does not already have title 

under some other provision or clause of the contract. In the 

event materials are to be acquired by the GPO under the authority of the “Default” clause for the purpose of furnishing 

the materials to any other contractor, the Contracting Officer 

shall take such action only after giving due consideration to 

the difficulties that such contractor may encounter in making 

use of the materials. 

(2) Subject to the provisions of (b)(3), the GPO shall pay to

the contractor the contract price for any completed supplies, 

and the amount agreed upon by the Contracting Officer and 

the contractor for any materials acquired by the GPO pursuant 

to the “Default” clause. 

(3) To protect GPO from overpayment for any completed

articles or materials that might result from failure to make 

provisions for the GPO’s potential liability to laborers and 

those who provide supplies to the contractor for lien rights 

outstanding against such articles or materials after the GPO 

has paid the contractor, the Contracting Officer shall take one 

or more of the following measures before making the payment 

referred to in (b)(2): 

(i) Determine whether the payment bonds, if any, furnished by the contractor are adequate to satisfy all lienors’ 

claims; or whether it is feasible to obtain similar bonds to 

cover outstanding liens; 

(ii) require the contractor to furnish appropriate statements from laborers and materialmen disclaiming any lien 

rights they may have to the supplies and materials; 

(iii) obtain appropriate agreement by the GPO, the contractor and lienors ensuring release of GPO from any potential liability to the contractors or lienors; 

(iv) withhold from the amount otherwise due for the

supplies or materials such amount as the Contracting Officer determines to be necessary to protect the GPO’s interest, but only if the measures set forth in (i), (ii) and (iii) 

cannot be accomplished or are otherwise deemed inadequate; 

(v) take any other action the Contracting Officer deems

appropriate considering the particular circumstances and 

the degree of the contractor’s solvency. 

(4) The contractor is liable for any excess costs incurred in

procuring supplies and services similar to those terminated for 

default and for any other damages, whether or not repurchase 

is effected. 

(c) Procedure. (1) Paragraph (a)(1) of the “Default” clause

covers situations where the contractor has in fact defaulted by 

failure to make delivery of the supplies or to perform the services within the time specified by the contract or any author-
XIV–2 GPO PRINTING PROCUREMENT REGULATION 

ized extension thereof. In such situations, no notice of failure 

by the contractor or of the possibility of termination for default is required by the terms of the clause to be sent to the 

contractor prior to the actual notice of termination. However, 

it is recommended that where practicable, the contractor 

should be given an opportunity to explain the failure before 

any termination for default is made. In this case, a “Show 

Cause” notice should be issued (see exhibit XIV–1 for sample). Normally, the Show Cause notice should allow at least 

five (5) calendar days for receipt of a response from the contractor; however, where there exist more pressing circumstances, a shorter response time may be allowed. If the 

Government has taken any action which might be construed as 

a waiver of the contract delivery schedule date, a preliminary 

notice shall be sent to the contractor setting a new date by 

which the contractor will be permitted to make delivery or 

complete performance, reserving the GPO’s right under the 

“Default” clause. Dependent upon the circumstances in each 

case, such a preliminary notice (i) shall call the contractor’s attention to its contractual liabilities should the contract be terminated for default under subparagraph (a)(1) of the clause, 

(ii) may request an explanation of the contractor’s failure, (iii)

may state that failure of the contractor to present such explanation may be taken as an admission that no valid explanation

exists and (iv) may invite the contractor to discuss the matter

at a conference.

(2) Subparagraph (a)(2) of the “Default” clause covers

situations in which the contractor fails to perform any of the 

other provisions of the contract (such as not furnishing a required performance bond) or fails to make progress so as to 

endanger performance of the contract in accordance with its 

terms. In either of such situations, the Contracting Officer 

must formally notify the contractor of such failure and allow a 

period of time which is determined to be reasonable for cure 

of the failure before issuing a notice of termination. Normally 

this period should be at least five (5) calendar days. If the 

Contracting Officer determines that a shorter period is reasonable, and sufficient time remains in the contract delivery 

schedule, such shorter period may be authorized, provided the 

determination is supported and documented in the contract 

file. If the time remaining in the contract delivery schedule is 

not sufficient to permit a realistic “cure” period, the “Cure Notice” shall not be issued. If it is determined that termination is 

in the best interest of the Government, the termination shall be 

processed in accordance with XIV–1.3(c)(1) above. The Cure 

Notice shall set forth in concise but complete form all of the 

provisions of the contract which the contractor has failed to 

meet or a summary of the findings which have demonstrated 

that the contractor has failed to make acceptable progress in 

the performance of the contract, or both. The extent of detail 

to be included will vary depending upon the nature and 

amount of previous correspondence with the supplier; but any 

such previous correspondence relied upon shall be specifically 

referenced in the preliminary notice (see exhibit XIV–2 for 

sample letter). The preliminary notice: (i) shall state that a notice of termination for default may be issued upon expiration 

of the five-day (5-day) period (or other period the Contracting 

Officer determines to be reasonable) unless the failure to perform or to make adequate progress in performance has been 

cured; (ii) shall call the contractor’s attention to the contractual liabilities in the event the contract is terminated for default; (iii) shall request an explanation of the contractor’s 

failure to perform the contract; (iv) may state that failure of 

the contractor to present such explanation may be taken as an 

admission that no valid explanation exists; and (v) may invite 

the contractor to discuss the matter at a conference. 

(3) The Contracting Officer shall consider the following

factors in determining whether to terminate a contract for default: 

(i) The terms and conditions of the contract and applicable laws and regulations; 

(ii) The specific failure of the contractor and the excuses, if any, made by the contractor for such failure; 

(iii) The availability of the supplies or services from

other sources; 

(iv) The urgency of the need for the supplies or services

and the period of time which would be required to obtain 

sources as compared with the time in which delivery could 

be obtained from the delinquent contractor; 

(v) The effect of a termination for default upon the contractor’s capability as a supplier under other contracts; 

(vi) The effect of a termination for default on the ability

of the contractor to liquidate progress payments; 

(vii) The availability of funds to finance repurchase

costs which may prove to be uncollectible from the defaulted contractor, and the availability of funds to finance 

termination costs if the default is determined to be excusable; and 

(viii) Any other pertinent facts and circumstances.

(4) If, after compliance with the procedures in subparagraphs 3(c)(1)–(3) above and the CRB requirements of I–

10.4(c)(1), the Contracting Officer determines that termination 

for default is proper, a notice of termination shall be issued 

(see exhibits XIV–3 and 4 for sample) which shall: 

(i) Set forth the contract number and date;

(ii) Describe the acts or omissions constituting the default; 

(iii) State that the contractor’s right to proceed with performance of the contract (or a specified portion of the contract) is terminated; 

(iv) State that the supplies or services terminated may be

procured against the contractor’s account, and that the contractor may be held liable for any excess costs; 

(v) State that the GPO reserves all rights and remedies

provided by law or under the contract, in addition to charging excess costs; and 

(vi) State that the notice constitutes a final decision of

the Contracting Officer, that the contractor is in default as 

specified and that the contractor has the right to appeal under the “Disputes” clause set forth in GPO Contract Terms, 

Publication 310.2. 

(5) The termination notice shall receive the same distribution as the contract. In addition, a copy shall be furnished to 

the surety, if any, and Office of Finance and Administration 

shall be advised of the default by memorandum. The GPO’s 

Office of Finance and Administration shall withhold further 

payments under the terminated contract pending instructions 

which shall be given when sufficient information is available. 

(6) If the contractor is in default and the Contracting Officer has not been able to determine, prior to issuance of the no-
CONTRACT TERMINATIONS XIV–3

tice of termination, whether the contractor’s failure to perform 

arose from causes beyond the control and without the fault or 

negligence of the contractor, the Contracting Officer shall 

make a written decision on that point as soon as possible after 

issuance of the notice of termination. Such decision shall be 

delivered promptly to the contractor with a notification of the 

right to appeal the decision as specified in the “Disputes” 

clause. 

(d) Procedure in lieu of termination for default. The following courses of action, among others, are available to the 

Contracting Officer in lieu of termination for default, when in 

the best interest of the Government: 

(1) Permit the contractor, the surety, or the guarantor to

continue performance of the contract, with consideration, 

under a revised delivery schedule; 

(2) Permit the contractor to continue performance of the

contract by means of a subcontract or other business arrangement with an acceptable third party, provided the 

rights of the GPO are adequately preserved; or 

(3) Execute a no-cost termination settlement agreement,

if the requirement for the supplies and services specified in 

the contract no longer exists and the contractor is not liable 

to the GPO for damages as provided below. 

(e) Documentation in contract file. In all cases where a

contract is terminated for default or where a procedure authorized by the above is followed, the contract file shall be well 

documented to explain fully the reasons for the action taken. 

At a minimum the documentation should contain the following: 

(1) Synopsis of events which caused termination of the

contract. Refer to documents in the contract file folder 

which contain detailed information: i.e., “Cure Notice” or 

“Show Cause” notice. 

(2) A statement on disposition of all Governmentfurnished property and Government acquired property. 

(3) Details as to whether the procurement involved an

outside interest, such as protests by unsuccessful offerors, 

GAO or congressional inquiries or any other special circumstances. 

(f) Repurchase against contractor’s account. (1) Where the

supplies or services are still required after termination and the 

contractor is liable for excess costs, repurchase of supplies or 

services which are the same as or similar to those called for in 

the contract shall be made against the contractor’s account as 

soon as possible after termination. The repurchase shall be 

made at a price as reasonable as can be obtained considering 

quality and the time within which the supplies or services are 

required. The contract of repurchase may be made for a quantity in excess of the undelivered quantity terminated for default, when such excess quantity is needed so long as this does 

not result in paying a higher unit price than available for the 

undelivered quantity. Excess costs may be charged against the 

defaulting contractor for no more than the undelivered quantity terminated for default, including any variation in quantity 

permitted in the repurchase contract, not to exceed the undelivered quantity plus or minus any variation permitted in the 

defaulted contract. 

(2) If the repurchase is for a quantity not in excess of the

undelivered quantity terminated for default, requirements for 

advertising are not mandatory. However, the Contracting Officer should use sealed bidding procedures except where negotiation is necessary. If the Contracting Officer decides to 

negotiate the repurchase contract with bidders who submitted 

bids on the original solicitation, the reason shall be noted in 

the contract file folder and the procurement shall be identified 

as a repurchase in accordance with the provisions of the Default clause in the defaulted contract. If the repurchase is for a 

quantity in excess of the undelivered quantity terminated for 

default, the entire quantity shall be treated as a new procurement for the purpose of determining whether advertising or 

negotiation should be used. 

(3) If the repurchase is awarded at a price in excess of the

supplies terminated, the Contracting Officer shall: 

(i) advise the Office of Finance and Administration that

such a repurchase has been made; 

(ii) provide the jacket number, the purchase order number and contractor’s name for both the terminated and new 

contracts; and, 

(iii) request that excess costs be computed at the expiration of the repurchased contract. 

(4) The Office of Finance and Administration shall make a

written demand on the defaulted contractor for the total 

amount of such excess including increases or decreases in 

other costs such as transportation and discounts. If the contractor fails to make payment, the Office of Finance and Administration shall take appropriate action to collect the amount due. 

(g) Other damages. (1) If a contract is terminated for default or if a course of action in lieu of termination for default is 

followed, the Contracting Officer shall promptly determine 

and demand any liquidated damages to which the GPO may be 

entitled under the contract. Pursuant to the contract provisions 

for liquidated damages, such damages are in addition to any 

excess cost of reprocurement. 

(2) If the GPO has suffered any other damages as a result of

the contractor’s default, the Contracting Officer shall, on the 

basis of legal advice, take appropriate action to assert the 

GPO’s claim for such damages. 

SECTION 2. TERMINATION FOR CONVENIENCE 

1. Scope. This section sets forth policies and procedures relating to the complete or partial termination of contracts for the

convenience of the Government and the policies and procedures relating to the settlement of claims arising from the termination action.

2. General. Contracts may be terminated for the convenience

of the Government when the Contracting Officer determines

that, for reasons other than the default of the contractor, it is in

the best interest of the Government to discontinue all, or some

part, of the remaining work under an uncompleted contract. A

Contracting Officer shall not terminate a contract for convenience if the contractor is in inexcusable default or the Government has a legal right to terminate for default, even though

the Government’s requirements for performance have

changed, or no longer exist. This prohibition shall not preclude

a no-cost termination settlement agreement as provided in

XIV–1.3(d)(3). The “Termination for Convenience of the

Government” clause in GPO Contract Terms, Publication

310.2, defines the rights of GPO and of the contractor in the
XIV–4 GPO PRINTING PROCUREMENT REGULATION 

event of termination and provides for the settlement of claims. 

As a contractor may have incurred very small costs on the 

terminated portion of a contract, it may be willing to waive its 

right to collect in order to avoid the administrative work and 

expense associated with processing a claim. Accordingly, emphasis should be placed on, and the Contracting Officer should 

explore with the contractor, the possibility of a no-cost settlement. 

3. Procedure.

(a) Notice of termination. (1) In accordance with chapter I,

section 10, subsection 4, Contract Review Board concurrence 

must be obtained prior to issuance of a termination notice 

when resolicitation of the same, unchanged product is required. After concurrence, the Contracting Officer shall notify 

the contractor by telephone, confirmed in writing (see exhibit 

XIV–5), stating: 

(i) That the contract is being terminated for the convenience of the Government pursuant to the termination clause; 

(ii) the effective date of termination;

(iii) the extent of termination and, if a partial termination, the portion of the contract to be continued; and 

(iv) any special instructions.

(2) A copy of the termination notice shall be sent to each

known assignee, guarantor, or surety of the contractor. A letter 

shall be sent by certified mail, return receipt requested, or by 

any other method that provides evidence of receipt. 

(b) Amending the termination notice. (1) A notice of termination may be amended to provide for: 

(i) The correction of mistakes in the notice of a nonsubstantive nature; 

(ii) addition of supplemental data or instructions; and

(iii) rescission of the notice when the contract has been

completed or shipment made prior to the contractor’s receipt of the notice. 

(2) The terminated portion of a contract may be reinstated

in whole or in part by an amendment to the notice of termination provided that it has been determined in writing that: 

(i) circumstances clearly indicate a requirement for the

terminated items; and 

(ii) reinstatement is advantageous to the Government

and written consent of the contractor is obtained to the reinstatement. 

(c) Duties of prime contractor after receipt of notice of

termination. After receipt of the notice of termination, the contractor must comply with the termination clause and the notice 

of termination, except as otherwise directed by the Contracting 

Officer. The clause and notice generally require that the contractor: 

(1) Stop work immediately on the terminated portion of the

contract and discontinue placing subcontracts thereunder; 

(2) terminate all subcontracts related to the terminated portion of the prime contract; 

(3) immediately advise the Contracting Officer of any special circumstances precluding the stoppage of work; 

(4) if the termination is partial, perform the continued portion of the contract and submit promptly any request for an 

equitable adjustment of price with respect to the continued 

portion of the contract, supported by evidence of any increase 

in cost; 

(5) take such action as may be necessary, or as the Contracting Officer may direct, to protect and preserve property in 

the possession of the contractor in which the Government has 

or may acquire an interest; and, to the extent directed by the 

Contracting Officer, deliver such property to the Government; 

(6) promptly notify the Contracting Officer in writing of

any legal proceedings against the contractor growing out of 

any subcontract or other commitment related to the terminated 

portion of the contract; 

(7) settle all outstanding liabilities and all claims arising out

of the termination of subcontracts, obtaining any approvals or 

ratifications required by the Contracting Officer; 

(8) promptly submit a settlement proposal if necessary,

supported by appropriate schedules; 

(9) dispose of any termination inventory, as directed or authorized by the Contracting Officer; and 

(10) if the contractor believes that a claim exists against the

Government then a claim shall be submitted to the Contracting 

Officer on GPO form 911, Settlement Proposal or similar 

documentation. 

(d) Duties of Contracting Officer after issuance of notice of

termination. (1) In accordance with the termination clause and 

with the notice of termination the Contracting Officer shall, 

among other things: 

(i) Direct the action required of the prime contractor including the execution of a no-cost settlement agreement if 

appropriate; 

(ii) examine the settlement proposal of the contractor

(and, when appropriate, the settlement proposals of subcontractors—see XIV–2.3(h)); 

(iii) promptly negotiate a settlement with the contractor

and enter into a settlement agreement; and 

(iv) to the extent that the Contracting Officer is unable

to negotiate settlement after due and diligent effort, 

promptly settle the contractor’s claim by determination; 

(v) furnish GPO form 911, Settlement Proposal to the

contractor with the Notice of Termination. 

(2) To expedite settlement, the Contracting Officer shall

seek assistance as necessary, i.e., legal, financial, etc., for: 

(i) Assistance in dealings with the contractor;

(ii) advice on legal and contractual matters;

(iii) conduct of accounting reviews and advice and assistance on accounting matters; and 

(iv) performance of the following functions with respect

to the termination inventory— 

(A) verifying its existence;

(B) undertaking necessary screening and redistribution; and 

(C) assisting the contractor in accomplishing other

disposition. 

(e) Methods of settlement. Settlement of contracts terminated for convenience may be effected by negotiated agreement, determination by the Contracting Officer, or a 

combination of these methods. Every effort shall be made to 

reach a fair and prompt settlement with the contractor. A negotiated agreement is the most expeditious and most satisfactory method of settling termination claims and shall be used 

whenever feasible. Settlement by determination shall be used 

only when a claim cannot be settled by agreement. 
 CONTRACT TERMINATIONS XIV–5 

(f) Certification. GPO Form 911 shall be furnished to contractors for all claims upon termination for convenience unless 

for no cost. Settlement proposals submitted on other than form 

911 will not be accepted unless the certification at XV–1.3 is 

included: 

(g) Fraud or other criminal conduct. Whenever the Contracting Officer has reason to suspect fraud or other criminal 

conduct in connection with the settlement of a terminated contract, all negotiations shall be discontinued with the contractor 

and a report of the facts shall be made to the appropriate APS 

Director, as applicable. The APS Director will immediately 

send the report to both the Office of the General Counsel and 

Office of Inspector General. 

(h) Audit of prime contract settlement proposals and of 

subcontract settlements. (1) Each settlement proposal submitted by a prime contractor may be referred by the Contracting 

Officer to a contract auditor for appropriate examination and 

recommendation, when the Contracting Officer deems it necessary. The referral shall be in writing, shall indicate any specific information or data which the Contracting Officer desires 

to have developed, and shall include any facts or circumstances within the knowledge of the Contracting Officer which 

will assist the auditor in the performance of their function. The 

auditor will develop such information and make such further 

accounting review as is deemed appropriate. The auditor will 

submit written comments and recommendations to the Contracting Officer. 

(2) The responsibility of the prime contractor and of each 

subcontractor for settlement of immediate subcontractor’s settlement proposals includes responsibility for performing accounting reviews and any necessary field audits. The auditor 

generally should be requested to perform the accounting review of a subcontractor’s settlement proposal where: 

(i) A subcontractor objects to an accounting review of its 

records by an upper tier contractor for competitive reason; 

(ii) the auditor currently is performing audit work at the 

subcontractor’s plant, or where it can be performed more 

economically or efficiently; or 

(iii) the contractor has a substantial or controlling interest in the subcontractor. Duplication by the auditor of accounting reviews performed by the upper tier contractor or 

subcontractor settlement proposals should be avoided to the 

extent possible. However, when appropriate, GPO shall 

make additional reviews. 

(3) The audit report is an advisory document provided to 

the Contracting Officer for their use in negotiating a settlement or issuing a unilateral determination. Appropriate measures shall be taken to ensure confidentiality is maintained in 

handling the audit reports of a contractor’s or subcontractor’s 

settlement proposals to ensure that privileged information or 

information that will jeopardize the negotiation position of the 

Government, prime contractor, or a higher tier subcontractor is 

not revealed. 

(i) Settlement of subcontractor claims. (1) Subcontractor’s 

rights. Unless otherwise specifically provided, a subcontractor 

has no contractual rights against the Government upon the 

termination of a prime contract. The rights of a subcontractor 

are against the prime contractor or intermediate subcontractor 

with whom it has contracted. Upon termination of a prime 

contract, the prime contractor and each subcontractor are responsible for the prompt settlement of the termination claims 

of immediate subcontractors. 

(2) Prime contractor’s rights and obligations. The “Termination for Convenience of the Government” clause provides, 

that after receipt of a notice of termination, the prime contractor shall (except as otherwise directed by the Contracting Officer) terminate all subcontracts to the extent that they relate to 

the performance of any work terminated by a notice of termination. Prime contractors should, for their own protection, include a termination clause in their subcontracts. The failure of 

a prime contractor to include an appropriate termination clause 

in any subcontract, or to exercise their rights thereunder, shall 

not (i) affect the right of GPO to require the termination of the 

subcontract, or (ii) increase the obligation of GPO beyond that 

which would have arisen if the subcontract had contained an 

appropriate termination clause. 

(3) Settlement procedure. Settlements with subcontractors 

shall be made in general conformity with the policies and 

principles relating to settlement of prime contracts as set forth 

in XIV–2.3(p), as applicable. However, the basis and form of 

the subcontractor’s settlement proposal must be acceptable to 

the prime contractor or the next higher tier subcontractor. 

Each such settlement shall be supported by accounting and 

other data sufficient for adequate review by GPO. In no event 

shall GPO pay to the prime contractor any amount for loss of 

anticipatory profits or consequential damages resulting from 

the termination of any subcontract. 

(4) Delay in settlement of subcontractor claim. Where a 

prime contractor is unable to settle with a subcontractor and 

such inability is delaying the settlement of the prime contract, 

the Contracting Officer may settle with the prime contractor. 

The Contracting Officer shall withhold from the settlement 

with the prime contractor all or any part of the claim made by 

the subcontractor, and shall reserve the rights of the Government and of the prime contractor with respect to the subcontractor’s claim. 

(5) Government assistance in settlement of subcontracts. In 

unusual cases the Contracting Officer may determine that it is 

in the best interest of the Government to offer assistance to the 

prime contractor in the settlement of a particular subcontract. 

Such a situation may exist when the prime contractor has 

made all reasonable efforts to negotiate the settlement without 

success and the Contracting Officer believes that with the assistance of GPO a settlement can be reached. Such assistance 

shall be furnished only with the consent of the prime contractor. In such cases, an agreement may be entered into by GPO, 

the prime contractor, and a subcontractor, covering the settlement of one or more subcontracts. In any such case, payment 

to the subcontractor shall be made through the prime contractor as part of the overall settlement with the prime contractor. 

(6) Assignment of rights under subcontracts. The “Termination for Convenience of the Government” clause obligates 

the prime contractor to assign to GPO, as directed by the Contracting Officer, all its rights, title, and interest under any subcontracts terminated as a result of the termination of the prime 

contract. The Contracting Officer shall not require such assignment unless they determine that it is in the best interest of 

the Government. The “Termination for Convenience of the 

Government” clause also provides that GPO shall have the 

right, in its discretion, to settle and pay any or all claims aris-
XIV–6 GPO PRINTING PROCUREMENT REGULATION 

ing out of the termination of such subcontracts. This right does 

not obligate GPO to settle and pay termination claims of subcontractors. As a general rule, the prime contractor is obligated to settle and pay such claims. When, however, the 

Contracting Officer determines that it is in the best interest of 

the Government, they shall, after notifying the contractor, proceed to settle the subcontractor’s termination claim in accordance with termination procedures applicable to the settlement 

of prime contractors. For example, if a subcontractor is the 

sole source for a product and it appears that a delay by the 

prime contractor in settlement or payment of the subcontractor’s claim will jeopardize the financial position of the subcontractor, it is in the best interest of the Government to settle 

directly with the subcontractor. 

(j) Supplemental agreements. (1) General. When a settlement has been negotiated with respect to the terminated portion of a contract and all required reviews have been obtained, 

the contractor and the Contracting Officer shall enter into a 

supplemental agreement of settlement. The appropriate formats for the supplemental agreements for use in settling contracts after complete and partial terminations are provided at 

exhibits XIV–6(a) and 6(b). The settlement shall cover: 

(i) Any set-offs and counterclaims which GPO may have 

against the contractor and which may be applied against the 

terminated contract, and 

(ii) all claims of subcontractor, except claims which are 

specifically excluded from the agreement and reserved for 

separate settlement. 

The Contracting Officer shall sign the supplemental agreement and forward it to the contractor. The contractor shall be 

instructed to sign and return it to the Contracting Officer. 

Upon receipt of the executed supplemental agreement, the 

Contracting Officer shall place the original in the official contract file folder and forward a copy to the Office of Finance 

and Administration. 

(2) Excluded items. Where any rights or claims of GPO or 

of the contractor are to be excluded from the settlement, the 

settlement agreement shall specify the nature and extent of the 

excluded items. However, care shall be taken so that the wording of the exclusion does not create any new rights in the parties beyond those in existence prior to the execution of the 

settlement agreement. 

(3) Government property. Before any settlement agreement 

is executed, the Contracting Officer shall determine the accuracy of the Government property account, if any, for the terminated contract. If the audit discloses property for which the 

contractor cannot account, the settlement agreement shall reserve the rights of the Government with respect to such property or make an appropriate deduction from the amount 

otherwise due the contractor. 

(4) No-cost settlement. If no costs have been incurred by 

the contractor with respect to the terminated portion of the 

contract or if the contractor is willing to waive the costs incurred by it and if no amounts are due to the Government under the contract, a no-cost settlement agreement shall be 

executed. The formats for no-cost settlements of complete and 

partial terminations are provided at exhibits XIV–7(a) and 

7(b). 

(5) Partial settlements. Every effort should be made by the 

Contracting Officer to settle in one agreement all rights and liabilities of the parties under the contract except those arising 

from any continued portion of the contract. Generally, Contracting Officers shall not attempt to make partial settlements 

covering particular items of the prime contractor’s settlement 

proposal. However, when a Contracting Officer cannot 

promptly effect a complete settlement, a partial settlement 

may be entered into, provided: 

(i) The issues on which agreement has been reached are 

clearly severable from other issues, and 

(ii) the partial settlement will not prejudice the interest 

of GPO or the contractor in disposing of the unsettled part 

of the claim. 

(6) Joint settlement of two or more claims. If a contractor 

has termination claims under two or more contracts, even 

though the contracts being terminated are with different offices within APS, a single agreement may be negotiated to 

cover the termination claims of all contracts involved, if the 

contractor consents. The joint settlement shall be in accordance with arrangements made between the Contracting Officers. Each such joint settlement agreement shall: 

(i) Clearly identify the contracts involved; 

(ii) apportion the total amount of the settlement among 

the several contracts on some reasonable basis; 

(iii) have attached or incorporated therein a schedule 

showing the apportionment; and 

(iv) be distributed and attached to each contract involved 

in the same manner as other contract modifications. 

(7) Settlement by determination. (i) General. If the contractor and Contracting Officer are unable to agree upon the settlement of a terminated contract or if a termination claim is not 

submitted within the period required by the “Termination for 

Convenience of the Government” clause in the contract, the 

Contracting Officer shall issue a determination. The amount of 

the determination shall be in accordance with the termination 

clause. 

(ii) Notice to Contractor. Before issuing a determination of 

the amount due to the contractor, the Contracting Officer shall 

notify the contractor by certified mail, return receipt requested, or by any other method that provides evidence of receipt, to submit on or before a stated date (allowing at least 15 

days), the amount claimed with substantiating evidence for 

that claim. 

(iii) Submission of evidence. (A) The contractor must provide proof, sufficient to satisfy the Contracting Officer, of the 

amount claimed. 

(B) The contractor may submit vouchers, verified transcripts of books of account, affidavits, audit reports, and other 

documents. The Contracting Officer may request additional 

documents and data, and may have additional accounting, investigations, and audits made, as appropriate. 

(C) The Contracting Officer may accept photostatic or 

other copies of documents and records, unless there is a question of authenticity. 

(iv) Determinations. After reviewing all information available, the Contracting Officer shall determine the amount due 

and shall transmit a copy of the determination to the contractor 

by certified mail, return receipt requested, or by any other 

method that provides evidence of receipt. The letter of transmittal shall advise the contractor that the determination is a final decision which may be appealed under the “Disputes” 
 CONTRACT TERMINATIONS XIV–7 

clause. The determination shall state the amount due the contractor and shall be supported by detailed schedules, additional 

information, and analysis, as appropriate. An explanation shall 

be given for each major item disallowed. The Contracting Officer need not reconsider previously ratified or approved actions, such as: 

(A) Any settlement with a subcontractor, 

(B) any disposition of property, or 

(C) any other action relating to the terminated portion of 

the contract or previously ratified or approved actions. 

(v) Preservation of evidence. All written evidence and 

other data which the Contracting Officer relied upon in making their determination shall be retained in the contract file. 

Copies of original books of account need not be made. Books 

of account with other original papers and documents, shall be 

returned to the contractor within a reasonable time. 

(vi) Appeals. The contractor has the right to appeal, under 

the “Disputes” clause, any settlement by determination. However the contractor has no such right of appeal where it has 

failed to submit its settlement proposal within the time provided in the contract and has failed to request extension of 

such time. Although an appeal is pending, this does not affect 

the authority of the Contracting Officer to settle the termination claim or any part thereof by a negotiated agreement with 

the contractor at any time before the appeal is decided. 

(k) Contracting Officer’s negotiation memorandum. (1) 

The Contracting Officer shall, at the conclusion of the settlement negotiations, prepare a statement, in the form of a CRB 

memorandum, summarizing the principal elements of the settlement. At a minimum, the memorandum shall include the 

following: 

(i) Synopsis of events which caused termination of the 

contract and reference the documents in the file that contain 

the information (e.g. letter or memorandum from the customer agency). 

(ii) Identify and explain any conditions that were negotiated which differ from those in the settlement proposal 

submitted by the contractor. 

(iii) A brief statement as to why the agreed-to price is 

fair and reasonable. 

(iv) A statement on the disposition of Governmentfurnished property and Government acquired property. 

(v) Provide details if the procurement involved an outside interest (i.e., protests by unsuccessful offerors, GAO or 

congressional inquiries), or any other special circumstances. 

(vi) Complete the summary with a positive recommendation or conclusion for making the proposed settlement. 

(vii) Refer to documents in the file which support the 

determination made by the Contracting Officer (i.e., memorandum from the Office of the General Counsel, Office of 

Finance and Administration, etc.). 

(2) The amount of the recommended settlement shall be 

supported in reasonable detail and the Contracting Officer 

shall specify the factors considered in negotiating the settlement. 

(3) The memorandum shall include any other matters which 

will assist reviewing authorities in understanding the basis for 

the settlement. 

(l) Contract Review Board action. (1) CRB concurrence 

shall be obtained prior to— 

(i) issuance of a notice of termination when resolicitation of the same, unchanged product is required, and 

(ii) executing a settlement agreement (except for termination for convenience under $25,000), issuing a determination, or approving or ratifying a subcontract settlement, 

except for a no-cost settlement. 

(2) Submission of information. (i) For a notice of termination, the Contracting Officer shall submit a justification for the 

proposed termination action with supporting information. 

(ii) For settlements, other than for no-cost or for convenience under $25,000, the Contracting Officer shall submit the 

memorandum required in XIV-2.k(1) including copies of— 

(A) the contractor’s or subcontractor’s settlement proposal; 

(B) the audit report, if an audit was performed; and 

(C) the property disposal report with required approvals 

if any; 

(iii) Additional information may be requested by the CRB. 

(m) Payment. (1) Partial payments upon termination. (i) 

General. If the contract authorizes partial payments on termination claims prior to settlement, a contractor may request 

such partial payments at any time after submission of interim 

or final settlement proposals. Application for partial payments 

shall be processed promptly. A subcontractor’s partial payment application shall be submitted through the prime contractor and the prime contractor shall attach its own invoice and 

recommendations to the subcontractor’s application. Partial 

payments to a subcontractor shall be made only through the 

prime contractor. 

(ii) Processing partial payments. Prior to approving partial 

payments, the Contracting Officer shall have performed all accounting and other reviews of the data submitted in support of 

the contractor’s settlement proposal. If the Contracting Officer’s examination of the data indicates that the requested partial payment is proper, the Contracting Officer may authorize 

payment in— 

(A) an amount up to 100% of the contract price, adjusted 

for undelivered but accepted completed end items; 

(B) an amount up to 100% of the amount of an approved 

subcontract settlement or of partial payments made to subcontractors; 

(C) an amount up to 90% of the direct cost of termination inventory; and 

(D) a reasonable amount, not to exceed 90%, of other allowable costs. 

(iii) Recognition of assignments. The assignee under an assignment of claims shall receive partial payments. 

(iv) Limitation on payments. The total amount of the partial 

payment shall not exceed the amount the Contracting Officer 

estimates will be due the contractor from the termination. If 

the total of partial payments exceeds the amount finally determined to be due the contractor on the termination claim, the 

overpayment shall be repaid to GPO on demand, with interest 

computed at the rate established by the Secretary of the Treasury. The interest is calculated from the date such overpayment 

was received by the contractor to the date of repayment. 
XIV–8 GPO PRINTING PROCUREMENT REGULATION 

(v) Submission of voucher. The contractor’s voucher shall 

contain a certification as follows: 

The payment covered by this voucher is a partial payment on 

account of the contractor’s termination claim under contract 

No. 

(2) Final payment upon termination. (i) Negotiated settlement. Upon execution of a negotiated settlement, final payment is made to the prime contractor only by submitting to the 

Office of Finance and Administration a voucher showing the 

amount agreed upon, less any portion previously paid, with a 

copy of the settlement agreement. 

(ii) Settlement by determination. In the event of a settlement by determination: 

(A) If the contractor has not appealed the determination 

within the time allowed for appeal, a voucher showing the 

amount so determined to be due, less any portion previously paid, shall be submitted to the Office of Finance and 

Administration for payment; or 

(B) if the contractor has appealed the determination, a 

voucher showing the amount decided by the appeal less any 

portion previously paid, shall be submitted to the Office of 

Finance and Administration for payment. If an appeal is 

pending, payment may be made without prejudice to the 

rights of either party on the appeal. 

(iii) Interest. No interest shall be paid by GPO on the 

amount due under a settlement agreement or a settlement by 

determination. 

(n) Allowance for profit. Profit shall be allowed by the 

Contracting Officer on preparations made and work done by 

the contractor for the terminated portion of the contract. Although the contractor’s settlement efforts will be considered, 

profit will not be based on the dollar amount of the contractor’s settlement expenses. Anticipatory profits and consequential damages shall not be allowed. Any reasonable method 

may be used to arrive at a fair profit, separately or as a part of 

the whole settlement. 

(o) Adjustment for loss. In the negotiation or determination 

of any settlement, no profit shall be allowed if it appears that 

the contractor would have incurred a loss had the entire contract been completed. The amount of loss shall be negotiated 

or determined and an adjustment in the amount of settlement 

shall be made. In estimating the cost to complete, consideration shall be given to expected production efficiencies and to 

other factors affecting the cost to complete. 

(p) Settlement proposals. (1) Subject to the provisions of 

the “Termination for Convenience of the Government” clause, 

settlement proposals shall be submitted to the Contracting Officer within 60 days from the effective date of the termination, 

unless otherwise extended. 

(2) The proposal shall cover all elements of the contractor’s 

claim, including settlements with subcontractors. Interim proposals may be filed in successive steps covering separate portions of a claim. 

(3) Settlement proposals shall be submitted on GPO Form 

911, Settlement Proposal. The proposals should contain reasonable detail supported by adequate accounting data. Actual, 

standard (appropriately adjusted), or average costs, may be 

used in preparing settlement proposals; provided, that such 

costs are determined in accordance with generally recognized 

accounting principles consistently followed by the contractor. 

When actual, standard, or average costs are not reasonably 

available, estimated costs may be used if the method of arriving at the estimates is approved by the Contracting Officer. 

(q) Disposition of termination inventory. (1) Methods of 

disposition. Termination inventory shall be disposed of in 

compliance with PRA 315–1, Reporting, Redistribution, and 

Disposal of Contractor Inventory. Methods of disposal include 

purchase or retention by the prime contractor or subcontractor 

at cost; return to suppliers; utilization, donation, or sale; and 

destruction or abandonment. 

(2) General restrictions on contractor’s authority. (i) The 

authority of a contractor to purchase, retain or dispose of termination inventory or to authorize or approve a purchase, retention, or disposition by a subcontractor is subject to (A) any 

applicable Government restrictions on the disposition of property which is either classified for security reasons or is dangerous to public health, safety, or welfare; and (B) any 

contract provision or clause regarding the disposition of material subject to lien. 

(ii) Contractors shall not sell termination inventory to persons known by them to be officers or employees of the Government, unless exception is made by the Managing Director, 

Customer Services, as being in the best interest of the Government. Appropriate safeguards shall be taken to preclude 

collusion and fraud. 

(3) Contractor-acquired property. Contractors shall be encouraged to purchase or retain contractor-acquired property at 

no cost to the Government. The cost of such property so purchased or retained shall not be included in settlement proposals. 

(4) Return of property to suppliers. Contractors are authorized and shall be encouraged to return allowable quantities of 

contractor-acquired property to suppliers for full credit less the 

supplier’s normal restocking charge. Contractors shall not include in their settlement proposals the cost of such property 

returned to suppliers, but may include as “other costs” the 

transportation, handling, and restocking charge with respect to 

the property so returned. 
 CONTRACT TERMINATIONS XIV–9 

EXHIBIT XIV–1 

FORM LETTER #1 

(USE CURRENT GPO SEAL AND LETTERHEAD) 

Date 

Name 

Company 

Street Address 

City, ST Zip Code 

Dear : 

SHOW CAUSE 

Since you have failed to [insert perform Jacket ? (Purchase Order ?), or Program ? (Print Order ?) within the time 

required by its terms, or cure the conditions endangering performance under Jacket ? or Program ? as described to you 

in the Government's letter of ], the Government Printing Office is considering terminating the contract under the 

provisions for default of this contract. 

Pending a final decision in this matter, it will be necessary to determine whether your failure to perform arose from 

causes beyond your control and without fault or negligence on your part. Accordingly, you are given the opportunity 

to present, in writing, any facts bearing on the question to the Contracting Officer within 10 days after receipt of this 

notice. Your failure to present any excuses within this time may be considered as an admission that none exist. Your 

attention is invited to the respective rights of the contractor and the Government under the "Default" article and the liabilities that may be invoked if a decision is made to terminate for default. 

Any assistance given to you on this contract or any acceptance by the Government of delinquent goods or services 

will be solely for the purpose of mitigating damages, and it is not the intention of the Government to condone any delinquency or to waive any rights the Government has under the contract. 

Sincerely, 

Name 

Contracting Officer 
XIV–10 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT XIV–2 

FORM LETTER #2 

(USE CURRENT GPO SEAL AND LETTERHEAD) 

Date 

Name 

Company 

Street Address 

City, ST Zip Code 

Dear : 

CURE NOTICE 

You are notified that the Government Printing Office considers your ? on [insert Jacket ? (Purchase Order ?) or

Program ? (Purchase Order ?, Print Order ?)], a condition that is endangering performance of the contract in accordance with its terms. Therefore, you are given the opportunity to present, in writing, within 10 days from receipt 

hereof, the measures adopted which have cured such condition. Unless such condition has been cured, the Government may terminate the contract for default under the terms and conditions of the Default article in GPO Contract 

Terms (Publication 310.2). 

Sincerely, 

Name 

Contracting Officer 
 CONTRACT TERMINATIONS XIV–11 

EXHIBIT XIV–3 

FORM LETTER #3 

(USE CURRENT GPO SEAL AND LETTERHEAD) 

Date 

Name 

Company 

Street Address 

City, ST Zip Code 

Dear : 

NOTICE OF TERMINATION - COMPLETE 

You are notified that your contract identified as [insert Jacket ? (Purchase Order ?) or Program ? (Purchase Order ?, 

Print Order ?)] is hereby terminated for default because ?. 

Effective ?, your right to proceed with performance under the subject contract is terminated pursuant to the article 

entitled "Default" in GPO Contract Terms, (Publication 310.2). 

You are also advised that the same or similar items terminated may be reprocured against your firm's account, on 

such terms and in such manner as the Contracting Officer deems appropriate. In that event, your firm shall be held liable to the Government for any excess costs. The Government reserves all rights and remedies provided by law and 

under the contract, in addition to charging excess costs. 

This is the final decision of the Contracting Officer. Pursuant to the Contract Disputes Act of 1978, as amended (41 

U.S.C. 601-613, and as modified by Section 1501 of Title I of Division H of the Consolidated Appropriations Act, 

2008, Public Law No. 110-161), you may appeal this decision only to the U.S. Government Accountability Office 

Contract Appeals Board (GAO CAB). If you decide to appeal, you must—within ninety (90) days from the date you 

receive this decision—mail or otherwise furnish (via facsimile at 202-512-9749 or via e-mail to CAB@gao.gov) written notice to the Office of the General Counsel, U.S. Government Accountability Office, 441 G Street, NW, Room 

7182, Washington, DC 20548, and provide a copy to the Contracting Officer from whom this decision this appeal is 

taken. The notice of appeal shall indicate that an appeal is intended, reference this decision, and identify the contract 

by number. 

Sincerely, 

Name 

Contracting Officer 
XIV–12 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT XIV–4 

FORM LETTER #4 

(USE CURRENT GPO SEAL AND LETTERHEAD) 

Date 

Name 

Company 

Street Address 

City, ST Zip Code 

Dear : 

NOTICE OF TERMINATION - PARTIAL 

You are notified that your contract identified as [insert Jacket ? (Purchase Order ?) or Program ? (Purchase Order?, 

Print Order ?)] is hereby partially terminated for default because ?. 

Effective ?, your right to proceed with performance under the subject contract is terminated pursuant to the article 

entitled "Default" in GPO Contract Terms, (Publication 310.2). 

You are also advised that the same or similar items terminated may be reprocured against your firm's account, on 

such terms and in such manner as the Contracting Officer deems appropriate. In that event, your firm shall be held liable to the Government for any excess costs. The Government reserves all rights and remedies provided by law and 

under the contract, in addition to charging excess costs. 

This is the final decision of the Contracting Officer. Pursuant to the Contract Disputes Act of 1978, as amended (41 

U.S.C. 601-613, and as modified by Section 1501 of Title I of Division H of the Consolidated Appropriations Act, 

2008, Public Law No. 110-161), you may appeal this decision only to the U.S. Government Accountability Office 

Contract Appeals Board (GAO CAB). If you decide to appeal, you must—within ninety (90) days from the date you 

receive this decision—mail or otherwise furnish (via facsimile at 202-512-9749 or via e-mail to CAB@gao.gov) written notice to the Office of the General Counsel, U.S. Government Accountability Office, 441 G Street, NW, Room 

7182, Washington, DC 20548, and provide a copy to the Contracting Officer from whom this decision this appeal is 

taken. The notice of appeal shall indicate that an appeal is intended, reference this decision, and identify the contract 

by number. 

Sincerely, 

Name 

Contracting Officer 
 CONTRACT TERMINATIONS XIV–13 

EXHIBIT XIV–5 

FORM LETTER #5 

(USE CURRENT GPO SEAL AND LETTERHEAD) 

Date 

Name 

Company 

Street Address 

City, ST Zip Code 

Dear Name: 

NOTICE OF TERMINATION - CONVENIENCE OF THE GOVERNMENT 

1. Effective Date of Termination. You are notified that your Purchase Order ? (Program ?, Print Order?), Jacket ? (referred 

to as "the contract" in this notice) is hereby terminated ? for the convenience of the Government, in accordance with the article entitled "Termination for Convenience of the Government" in GPO Contract Terms (Publication 310.2). This termination is effective ?. 

2. Cessation of Work and Notification to Immediate Subcontractors. 

(a) You must stop all work, make no further shipment, and place no further orders in connection with the contract, 

except to the extent necessary to perform any portion thereof not terminated by this notice. You must keep adequate records of your compliance with this paragraph 2(a) showing (i) the date you received this Notice of Termination, (ii) the effective date of the termination, and (iii) the extent of completion of performance on the effective 

date. 

(b) You shall give notice of termination to your immediate subcontractors (including suppliers), who will be affected 

by the termination of your contract and direct them to submit any settlement proposals promptly, in order to expedite settlement. 

(c) You shall notify the Contracting Officer of any pending legal proceedings, which relate to any subcontractors or 

purchase orders under the terminated contract. You remain liable to your subcontractors and suppliers for claims 

arising by reason of the termination of their subcontracts or orders. You are requested to settle such termination 

claims as promptly as possible. 

(d) You shall notify the Contracting Officer of the number of articles completed under the contract and still on hand, 

and arrange with the Contracting Officer for their delivery or other disposal. 

(e) In connection with any settlement of your claim, it will be necessary for you to properly account for your termination inventory and the inventory of your subcontractors. 

(f) Should a settlement proposal be necessary, you must submit it on the enclosed GPO Form 911 and take such 

other action as may be required by the Contracting Officer or under the termination clause contained in your contract. 

3. Acknowledgement of Receipt of Notice. You are required to acknowledge receipt of this notice to the below named Contracting Officer, who is responsible for settlement of claims in this termination. 

Sincerely, 

Name 

Contracting Officer
XIV–14 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT XIV–6(a) 

SUPPLEMENTAL AGREEMENT OF SETTLEMENT

(Supplemental Agreement for use in settling contracts after complete termination)

This Supplemental Agreement of Settlement is entered into this day of , 20 , between the Government Printing Office (GPO) represented by the Contracting Officer executing this contract, and (Company Name) 

(hereafter referred to as “the Contractor”). 

Since the Contractor and the GPO have entered into Purchase Order No. Jacket No. dated , 20 , 

which together with any and all changes, is hereafter referred to as “the contract”; and 

since, the contract provides that the performance of work thereunder may at the convenience or option of the 

Government be terminated by the Government in whole, or from time to time in part, whenever any such termination 

is determined to be for the best interest of the Government, and that the Contractor and Contracting Officer may agree 

upon the whole or any part of the amount or amounts to be paid to the Contractor by reason of such termination; and 

since, by notice of termination dated , the GPO advised the contractor of the complete termination 

of the contract for the convenience of the Government; 

the parties do mutually agree as follows: 

The Contractor has received the sum of $ on account of work and services performed, or articles delivered, under the completed portion of the contract. The GPO as part of this negotiated settlement hereby confirms 

and acknowledges the right of the Contractor (subject to any rights or liabilities reserved below) to retain such sum already paid and agrees that such sum constitutes a portion of the total amount to which the Contractor is entitled in settlement of the contract. In addition, upon execution of this agreement the Government agrees to pay to the Contractor 

or its assignee, upon presentation of proper invoices or vouchers, the sum of $ (insert net amount of settlement), arrived at by deducting from the sum of $ (insert gross amount of settlement), (1) the amount of 

$ , representing all unliquidated partial or progress payments previously made on account to the Contractor (2) 

the amount of $ , representing all applicable property disposal credits and (3) the amount of $ , 

representing all other amounts due the GPO under this contract. The sum of 

$ (insert net amount of settlement), together with all other sums previously paid, constitutes payment in full 

and complete settlement of the amount due the Contractor by reason of the complete termination of work under the 

contract and of all other claims and liabilities of the Contractor and the GPO under the contract (except as reserved 

below). 

(The following paragraph shall be included when appropriate.) 

Notwithstanding any other provision of this agreement, the following rights and liabilities of the parties under the 

contract are hereby reserved: (List any reserved or excepted rights or liabilities.) 

This Supplemental Agreement shall be effective when signed by both parties to the Agreement. 

 

 (Contracting Officer) Date 

 

(Contractor) Date 
 CONTRACT TERMINATIONS XIV–15 

EXHIBIT XIV–6(b) 

SUPPLEMENTAL AGREEMENT OF SETTLEMENT

(Supplemental Agreement for use in settling contracts after partial termination)

This Supplemental Agreement of Settlement is entered into this day of , 20 , between the Government Printing Office (GPO) represented by the Contracting Officer executing this contract, and (Company Name) 

(hereafter referred to as “the Contractor”). 

Since the Contractor and the GPO have entered into Purchase Order No. Jacket No. dated 

, 20 , which together with any and all changes, is hereafter referred to as “the contract”; and 

since, the contract provides that the performance of work thereunder may at the convenience or option of the 

Government be terminated by the Government in whole, or from time to time in part, whenever any such termination 

is determined to be for the best interest of the Government, and that the Contractor and Contracting Officer may agree 

upon the whole or any part of the amount or amounts to be paid to the Contractor by reason of such termination and 

since, by notice of termination dated , 20 , the Government advised the Contractor of the partial termination of the contract for the convenience of the Government as of the date and to the extent provided in such notice, 

to which reference is hereby made as to the part terminated, and said part is hereinafter referred to as “the terminated 

portion of the contract”; 

the parties do mutually agree as follows: 

The terminated portion of the contract shall be as set forth in the aforementioned notice of termination (or as otherwise defined to avoid uncertainty or misunderstanding). 

Upon execution of this agreement, the Government, agrees to pay to the Contractor or its assignee, upon presentation of proper invoices or vouchers, the sum of $ (insert net amount of settlement), arrived at by deducting 

from the sum of $ (insert gross amount of settlement), (a) the amount of $ , representing all 

unliquidated, partial or progress payments previously made on account to the Contractor or its assignee and all unliquidated advance payments (with interest, if any, thereon) applicable to the terminated portion of the contract and (b) 

the amount of $ , representing all applicable property disposal credits. Said sum of $ (insert net 

amount of settlement), together with all other sums heretofore paid, constitutes payment in full and complete settlement of the amount due the Contractor with respect to the terminated portion of the contract, except as hereinafter 

provided in the following paragraph. 

Upon payment of said sum of $ (insert net amount of settlement), all obligations of the Contractor to 

perform further work or services or to make further deliveries under the terminated portion of the contract and all obligations of the Government to make further payments or to carry out other undertakings in connection therewith shall 

cease, provided, however, that nothing herein contained shall impair or affect in any way any covenants, terms, or 

conditions of the contract relating to the completed or continued portion thereof: (The following is to be added if appropriate) and provided further, that, with respect to the terminated portion of the contract, the following rights and 

liabilities of the parties are reserved: (List any reserved or excepted rights or liabilities.) 

This Supplemental Agreement shall be effective when signed by both parties to the Agreement. 

 

 (Contracting Officer) Date 

 

(Contractor) Date 
XIV–16 GPO PRINTING PROCUREMENT REGULATION 

EXHIBIT XIV–7(a) 

SUPPLEMENTAL AGREEMENT OF SETTLEMENT

(No-cost settlement agreement—complete termination)

This Supplemental Agreement of Settlement is entered into this day of , 

20 , between the Government Printing Office (GPO) represented by the Contracting Officer executing this contract, and (Company Name) (hereafter referred to as the “the Contractor”). 

Since the Contractor and the GPO have entered into Purchase Order No. Jacket No. dated 

, 20 , which together with any and all changes, is hereafter referred to as the “the contract”; and 

since, the contract provides that the performance of work thereunder may at the convenience or option of the 

Government be terminated by the Government in whole, or from time to time in part, whenever any such termination 

is determined to be for the best interest of the Government, and that the Contractor and Contracting Officer may agree 

upon the whole or any part of the amount or amounts to be paid to the Contractor by reason of such termination; and 

since, by notice of termination dated , the GPO advised the Contractor of the complete termination of the contract for the convenience of the Government; and 

since the Contractor is willing to waive unconditionally any claim against the Government by reason of such termination; 

the parties do mutually agree as follows: 

The Contractor hereby unconditionally waives any claim against the Government by reason of the termination of 

the contract and, except as set forth below, releases it from any and all obligations arising under the contract or by 

reason of its termination; and the Government agrees that all obligations arising under the contract or by reason of 

termination, shall be deemed to be concluded; except as follows: (List any reserved or excepted rights.) 

This Supplemental Agreement shall be effective when signed by both parties to the Agreement. 

 

 (Contracting Officer) Date 

 

(Contractor) Date 
 CONTRACT TERMINATIONS XIV–17 

EXHIBIT XIV–7(b) 

SUPPLEMENTAL AGREEMENT OF SETTLEMENT

(No-cost settlement agreement—partial termination)

This Supplemental Agreement of Settlement is entered into this day of , 20 , between the Government Printing Office (GPO) represented by the Contracting Officer executing this contract, and (Company Name) 

(hereafter referred to as “the Contractor”). 

Since the Contractor and the GPO have entered into Purchase Order No. Jacket No. 

 date , 20 , which together with any and all changes, is hereafter referred to as “the contract”; 

and 

since, the contract provides that the performance of work thereunder may at the convenience or option of the 

Government be terminated by the Government in whole, or from time to time in part, whenever any such termination 

is determined to be for the best interest of the Government, and that the Contractor and Contracting Officer may agree 

upon the whole or any part of the amount or amounts to be paid to the Contractor by reason of such termination; and 

since, by notice of termination dated , 20 , the GPO advised the Contractor of the partial termination 

of the contract for the convenience or at the option of the Government as of the date and to the extent provided in such 

notice, to which reference is hereby made as to the part terminated, and said part is hereinafter referred to as “the terminated portion of the contract”; and 

since, the Contractor is willing to waive unconditionally any claim against the Government by reason of such 

termination; 

the parties do mutually agree as follows: 

The terminated portion of the contract shall be as set forth in the aforementioned notice of termination (or as otherwise defined to avoid uncertainty or misunderstanding). 

The Contractor hereby unconditionally waives any claim against the Government arising under the terminated 

portion of the contract or by reason of its termination including, without limitation, all obligations of the Government 

to make further payments or to carry out other undertakings in connection with said terminated portion, and the Government acknowledges that the Contractor has no obligation to perform further work or services or to make further deliveries of articles or materials under the terminated portion of the contract, provided, however, that nothing herein 

contained shall impair or affect in any way any other covenants, terms or conditions of the contract, and provided further, that, with respect to the terminated portion of the contract, the following rights and liabilities of the parties are 

reserved: (List any reserved or excepted rights.) 

This Supplemental Agreement shall be effective when signed by both parties to the Agreement. 

 

 (Contracting Officer) Date 

 

(Contractor) Date 

XV–1 

CHAPTER XV. DISPUTES, CLAIMS, APPEALS, AND PROTESTS 

SECTION 1. DISPUTES, CLAIMS, AND APPEALS 

1. Basic Policy.

(a) Effective October 1, 2007, the GPO’s contractual actions became subject to the Contract Disputes Act of 1978, as 

amended (41 U.S.C. 601-613, and as modified by Section 

1501 of Title I of Division H of the Consolidated Appropriations Act, 2008, Public Law No. 110-161). 

(b) It is the Government’s policy to try to resolve all contractual issues by mutual agreement at the Contracting Officer’s level, without litigation. In appropriate circumstances, 

the Contracting Officer, before issuing a decision on a claim, 

should consider the use of informal discussions between the 

parties by individuals who have not participated substantially 

in the matter in dispute, to aid in resolving the differences. 

2. Initiation of a Claim.

(a) Contractor claims shall be submitted in writing to the

Contracting Officer for a decision. The Contracting Officer 

shall document the contract file with evidence of the date of 

receipt of any submission from the contractor deemed to be a 

claim by the Contracting Officer. 

(b) The Contracting Officer shall issue a written decision

on any Government claim initiated against a contractor. 

3. Contractor Certification.

(a) Contractors shall provide a certification when submitting any claim exceeding $50,000. 

(b) The certification requirement does not apply to issues in

controversy that have not been submitted as all or part of a 

claim. 

(c) The certification shall state as follows:

I certify that the claim is made in good faith; that the supporting data are accurate and complete to the best of my knowledge 

and belief; that the amount requested accurately reflects the contract adjustment for which the Contractor believes the Government is liable; and that I am duly authorized to certify the claim 

on behalf of the Contractor. 

(d) The aggregate amount of both the increased and decreased costs shall be used in determining when the dollar 

thresholds requiring certification are met. 

(e) The certification may be executed by any person duly

authorized to bind the contractor with respect to the claim. 

(f) A defective certification shall not deprive the U.S. Government Accountability Office Contract Appeals Board (GAO 

CAB) of jurisdiction over that claim. Prior to a decision by the 

GAO CAB, however, the GAO CAB shall require a defective 

certification to be corrected. 

(g) A claimant who has received a Contracting Officer’s final decision on a contract claim may only appeal this final decision to the GAO CAB. The GAO CAB’s subsequent 

decision is subject to appeal to the Court of Appeals for the 

Federal Circuit. An appellant may not directly file suit challenging the Contracting Officer’s final decision in the Court of 

Federal Claims. 

(h) A defective certification shall not deprive a court of jurisdiction over that claim. Prior to the entry of a final judgment by a court, the court shall require a defective certification 

to be corrected. 

4. Contracting Officer’s Decision.

(a) When a claim by or against a contractor cannot be satisfied or settled by mutual agreement and a decision on the 

claim is necessary, the Contracting Officer shall— 

(1) Review the facts pertinent to the claim;

(2) Secure assistance from legal advisors; and,

(3) Prepare a written decision that shall include a—

(i) Description of the claim or dispute;

(ii) Reference to the pertinent contract terms;

(iii) Statement of the factual areas of agreement and

disagreement; 

(iv) Statement of the Contracting Officer’s decision,

with supporting rationale; 

(v) Paragraph substantially as follows:

This is the final decision of the Contracting Officer. Pursuant 

to the Contract Disputes Act of 1978, as amended (41 U.S.C. 601-

613, and as modified by Section 1501 of Title I of Division H of 

the Consolidated Appropriations Act, 2008, Public Law No. 110-

161), you may appeal this decision only to the U.S. Government 

Accountability Office Contract Appeals Board (GAO CAB). If 

you decide to appeal, you must—within ninety (90) days from the 

date you receive this decision—mail or otherwise furnish (via facsimile at 202-512-9749 or via e-mail to CAB@gao.gov) written 

notice to the Contract Appeals Board, U.S. Government Accountability Office, 441 G Street, NW, Room 7182, Washington, DC 

20548, and provide a copy to the Contracting Officer from whom 

this decision this appeal is taken. The notice shall indicate that an 

appeal is intended, reference this decision, and identify the contract by number. 

(vi) Demand for payment in all cases where the decision results in a finding that the contractor is indebted to 

the Government. 
XV–2 GPO PRINTING PROCUREMENT REGULATION 

(b) The Contracting Officer shall furnish a copy of the decision to the contractor by certified mail, return receipt requested, or by any other method that provides evidence of 

receipt. This requirement shall apply to decisions on claims 

initiated by or against the contractor. 

(c) The Contracting Officer shall issue the decision within

the following time limitations: 

(1) For claims of $50,000 or less, 60 days after receiving

a written request from the contractor that a decision be rendered within that period, or within a reasonable time after 

receipt of the claim if the contractor does not make such a 

request. 

(2) For claims over $50,000, 60 days after receiving a

certified claim; provided, however, that if a decision will 

not be issued within 60 days, the Contracting Officer shall 

notify the contractor, within that period, of the time within 

which the decision will be issued. 

(d) The Contracting Officer shall issue a decision within a

reasonable time, taking into account— 

(1) The size and complexity of the claim;

(2) The adequacy of the contractor’s supporting data; and

(3) Any other relevant factors.

(e) The Contracting Officer shall have no obligation to render a final decision on any claim exceeding $50,000 which 

contains a defective certification, if within 60 days after receipt of the claim, the Contracting Officer notifies the contractor, in writing, of the reasons why any attempted certification 

was found to be defective. 

(f) In the event of undue delay by the Contracting Officer

in rendering a decision on the claim, the contractor may request the GAO CAB to direct the Contracting Officer to issue 

a decision in a specified time period determined by the GAO 

CAB. 

(g) Any failure of the Contracting Officer to issue a decision within the required time periods will be deemed a decision by the Contracting Officer denying the claim and will 

authorize the contractor to file an appeal on the claim. 

(h) The amount determined payable under the decision, less

any portion already paid, should be paid, if otherwise proper, 

without awaiting contractor action concerning appeal. Such 

payment shall be without prejudice to the rights of either 

party. 

5. Appeals and Procedures.

(a) A written appeal from a Contracting Officer’s final decision which is mailed or otherwise filed within 90 days of receipt of that decision shall be addressed to the Contract 

Appeals Board, U.S. Government Accountability Office, 441 

G Street, NW, Room 7182, Washington, DC 20548. The GAO 

CAB will notify the contractor that the appeal has been received. 

(b) All appeals will be handled in accordance with the

GAO CAB’s policies, procedures, and rules, which are located 

at http://www.gao.gov/cabrulesjun2008.pdf. 

SECTION 2. PROTESTS 

1. Scope.

This section prescribes policies and procedures governing

the administration of protests against award. 

2. Definitions.

“Associate General Counsel,” as used in this section, means

the Associate General Counsel, located in the GPO’s Office of 

the General Counsel. 

“Day,” as used in this section, means a calendar day, unless 

otherwise specified. In the computation of any period— 

(a) The day of the act, event, or default from which the designated period of time begins to run is not included; and 

(b) The last day after the act, event, or default is included

unless— 

(1) The last day is a Saturday, Sunday, or Federal holiday; or 

(2) In the case of a filing of a paper at any appropriate

administrative forum, the last day is a day on which 

weather or other conditions cause the closing of the forum 

for all or part of the day, in which event the next day on 

which the appropriate administrative forum is open is included. 

(3) In the case of the 5-day period after a debriefing date

and the 10-day period after contract award for filing a protest resulting in a suspension (as described at 2.5(c)), Saturdays, Sundays, and Federal holidays shall be counted. 

“Filed,” as used in this section, means the complete receipt 

of any document by the Government Printing Office (hereinafter GPO or agency) before its close of business. Documents 

received after close of business are considered filed as of the 

next day. Unless otherwise stated, the close of business is presumed to be 4:00 p.m., local time. 

“Interested party for the purpose of filing a protest,” as 

used in this section, means an actual or prospective offeror 

whose direct economic interest would be affected by the 

award of a contract or by the failure to award a contract. 

“Protest,” as used in this section, means a written objection 

by an interested party to any of the following: 

(a) A solicitation or other request by GPO for offers for a

contract for the procurement of supplies, property, or services. 

(b) The cancellation of the solicitation or other request.

(c) A termination or cancellation of an award of the contract, if the written objection contains an allegation that the 

termination or cancellation is based in whole or in part on improprieties concerning the award of the contract. 

3. General.

(a) The Associate General Counsel is authorized to sign all

reports in reference to bid protests filed with the U.S. Government Accountability Office (GAO). The Associate General 

Counsel shall maintain an appropriate file of all protests received, the actions taken thereon and the ultimate disposition 

thereof, and shall furnish the appropriate procurement activity 

with copies of all relevant documents and the ruling of the 

Comptroller General, which documents shall be maintained as 

part of the contract file. 

(b) Contracting Officers shall consider all protests and seek

legal advice, when appropriate, whether protests are submitted 

before or after award and whether filed directly with GPO or 

GAO. 

(c) If, in connection with a protest, the Public Printer, or

designee, determines that a solicitation, proposed award, or 

award does not comply with the requirements of law or regulation, the Public Printer, or designee, may— 
DISPUTES, CLAIMS, APPEALS, AND PROTESTS XV–3 

(1) Take any action that could have been recommended

by the Comptroller General had the protest been filed with 

the U.S. Government Accountability Office (GAO); and 

(2) Pay appropriate costs as stated in 2.5(h).

(3) Require the awardee to reimburse the Government’s

costs, as provided in this paragraph, where a postaward 

protest is sustained as the result of an awardee’s intentional 

or negligent misstatement, misrepresentation, or miscertification. In addition to any other remedy available, the Government may collect this debt by offsetting the amount 

against any payment due the awardee under any contract 

between the awardee and the Government. 

(i) When a protest is sustained by GAO under circumstances that may allow the Government to seek reimbursement for protest costs, the Contracting Officer 

will determine whether the protest was sustained based 

on the awardee’s negligent or intentional misrepresentation. If the protest was sustained on several issues, protest costs shall be apportioned according to the costs 

attributable to the awardee’s actions. 

(ii) The Contracting Officer shall review the amount

of the debt, degree of the awardee’s fault, and costs of 

collection, to determine whether a demand for reimbursement ought to be made. If it is in the best interests 

of the Government to seek reimbursement, the Contracting Officer shall notify the contractor in writing of the 

nature and amount of the debt, and the intention to collect by offset if necessary. Prior to issuing a final decision, the Contracting Officer shall afford the contractor 

an opportunity to inspect and copy records pertaining to 

the debt to the extent permitted by statute and regulation, and to request review of the matter by the Managing Director, Customer Services. 

(iii) When appropriate, the Contracting Officer shall

also refer the matter to the agency debarment official for 

consideration. 

(d) Protest likely after award. The Contracting Officer may

stay performance of a contract within the time period contained in 2.5(c)(1) if the Contracting Officer makes a written 

determination that— 

(1) A protest is likely to be filed; and

(2) Delay of performance is, under the circumstances, in

the best interests of the United States. 

(e) An interested party wishing to protest is encouraged to

seek resolution within GPO (see 2.4) before filing a protest 

with the GAO, but may protest to the GAO in accordance with 

GAO regulations (4 CFR Part 21). 

(f) No person may file a protest at GAO for a procurement

integrity violation unless that person reported to the Contracting Officer the information constituting evidence of the violation within 14 days after the person first discovered the 

possible violation (41 U.S.C. 423(g)). 

4. Protests to GPO.

(a) Timeliness of protest. (1) Protests based upon alleged

improprieties in a solicitation which are apparent prior to bid 

opening or the closing date for receipt of initial proposals shall 

be filed in writing with the Contracting Officer prior to bid 

opening or the closing date for the receipt of initial proposals. 

In negotiated procurements where proposals are requested, alleged improprieties which do not exist in the initial solicitation, but which are subsequently incorporated into the 

solicitation must be protested not later than the next closing 

date for receipt of proposals following the incorporation. 

(2) In cases other than those covered in paragraph (a)(1) of

this subsection, protests shall be filed with the Contracting Officer no later than 10 days after the basis for the protest is 

known or should have been known, whichever is earlier. 

(b) Prior to submission of an agency protest, all parties

shall use their best efforts to resolve concerns raised by an interested party at the Contracting Officer level through open 

and frank discussions. 

(c) Provision should be made for inexpensive, informal,

procedurally simple, and expeditious resolution of protests. 

Where appropriate, the use of alternate dispute resolution 

techniques, third party neutrals, and other agency personnel 

are acceptable protest resolution methods. 

(d) The following procedures are established to resolve

agency protests effectively, to build confidence in the Government’s acquisition system, and to reduce protests outside of 

the agency: 

(1) Protests shall be concise and logically presented to

facilitate review by the agency. Failure to substantially 

comply with any of the requirements of paragraph (d)(2) of 

this subsection may be grounds for dismissal of the protest. 

(2) Protests shall include the following information:

(i) Name, address, email address, and fax and telephone numbers 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. 

(3) All protests filed directly with the agency will be addressed to the Contracting Officer. 

(4) Interested parties may request an independent review

of their protest by the Managing Director, Customer Services. The independent review shall be available as an appeal of a Contracting Officer decision on a protest. 

Appellate review of the Contracting Officer’s decision will 

not extend GAO’s timeliness requirements. Therefore, any 

subsequent protest to the GAO must be filed within 10 days 

of knowledge of initial adverse agency action (4 CFR 

21.2(a)(3)). 

(e) The agency, for good cause shown, or where it determines that a protest raises issues significant to the agency’s 

acquisition system, may consider the merits of any protest 

which is not timely filed in accordance with paragraph (a)(2) 

of this subsection. 

(f) Action upon receipt of protest. (1) Upon receipt of a protest before award, a contract may not be awarded, pending 

agency resolution of the protest, unless contract award is justified, in writing, for urgent and compelling reasons or is determined, in writing, to be in the best interest of the Government. 
XV–4 GPO PRINTING PROCUREMENT REGULATION 

Such justification or determination shall be approved by the 

Managing Director, Customer Services, who may, on a nondelegable basis, authorize award. 

(2) If award is withheld pending agency resolution of the

protest, the Contracting Officer will inform the offerors whose 

offers might become eligible for award of the contract. If appropriate, the offerors should be requested, before expiration 

of the time for acceptance of their offers, to extend the time 

for acceptance to avoid the need for resolicitation. In the event 

of failure to obtain such extension of offers, consideration 

should be given to proceeding with award pursuant to paragraph (f)(1) of this subsection. 

(3) Upon receipt of a protest within 10 days after contract

award or within 5 days after a debriefing date offered to the 

protester under a timely debriefing request in accordance with 

PPR VII–8.17(c), whichever is later, the Contracting Officer 

shall immediately suspend performance, pending resolution of 

the protest within the agency, including any review by the 

Managing Director, Customer Services, unless continued performance is justified, in writing, for urgent and compelling 

reasons or is determined, in writing, to be in the best interest 

of the Government. Such justification or determination shall 

be approved by the Managing Director, Customer Services, 

who may, on a nondelegable basis, authorize continued performance. 

(4) Contracting Officers shall notify the Office of the General Counsel, providing a copy of the protest and: 

(i) Prepare a report as prescribed in 2.5(a)(3), except

that, if the contract action or contract performance continues after receipt of the protest, the report shall include any 

determination prescribed in 2.5(c)(2) and (3); and 

(ii) Obtain review of the protest by the Associate General Counsel. 

(5) If the Contracting Officer and the protester agree on

corrective action, a report is not required; however, in addition 

to amending the solicitation or taking other corrective action, 

the Contracting Officer shall inform the protester in writing of 

the proposed corrective action and shall obtain from the protester a written notice withdrawing the protest. A copy of this 

notice and any amendment shall be provided to the Associate 

General Counsel. 

(6) Pursuing an agency protest does not extend the time for

obtaining a stay at GAO. GPO may include, as part of the 

agency protest process, a voluntary suspension period when 

agency protests are denied and the protester subsequently files 

at GAO. 

(g) Contracting Officers shall make their best efforts to resolve an agency protest within 10 days after the protest is 

filed. To the extent permitted by law and regulation, the parties may exchange relevant information. 

(h) Agency protest decisions shall be well-reasoned, and

explain the agency position. The protest decision shall be provided to the protester using a method that provides evidence of 

receipt. 

(i) The written decision shall include a paragraph substantially as follows: 

Should you disagree with this decision, you may file an appeal 

with the Managing Director, Customer Services. Any such appeal 

must be received within ten (10) days after receipt of this letter. 

You may be able to file a protest with the U.S. Government Accountability Office (GAO) at the following address: General 

Counsel, U.S. Government Accountability Office, 441 G Street 

NW., Washington DC 20548, ATTN: Procurement Law Control 

Group. Protests may be filed by hand delivery, mail, commercial 

carrier, fax (202-512-9749), or email (protests@gao.gov). Any 

GAO protest must be filed within 10 days of actual or constructive knowledge of the basis of the protest. If you file an appeal 

with the Managing Director, Customer Services, you may waive 

your right of protest to the Comptroller General at a later date. 

5. Protests to GAO.

Procedures for protests to GAO are found at 4 CFR Part 21

(GAO Bid Protest Regulations). In the event guidance concerning GAO procedure in this subsection conflicts with 4 

CFR Part 21, 4 CFR Part 21 governs. 

(a) General procedures. (1) A protester is required to furnish a copy of its complete protest to the location designated 

in the solicitation or, in the absence of such a designation, to 

the Contracting Officer, so it is received no later than 1 day after the protest is filed with the GAO. The GAO may dismiss 

the protest if the protester fails to furnish a complete copy of 

the protest within 1 day. 

(2) Immediately after receipt of the GAO’s written notice

that a protest has been filed, the GPO shall give notice of the 

protest to the contractor if the award has been made, or, if no 

award has been made, to all parties who appear to have a reasonable prospect of receiving award if the protest is denied. 

The GPO shall furnish copies of the protest submissions to 

such parties with instructions to (i) communicate directly with 

the GAO, and (ii) provide copies of any such communication 

to the GPO and to other participating parties when they become known. However, if the protester has identified sensitive 

information and requests a protective order, then the Contracting Officer shall obtain a redacted version from the protester 

to furnish to other interested parties, if one has not already 

been provided. 

(3)(i) Upon notice that a protest has been filed with the 

GAO, the Contracting Officer shall immediately begin compiling the information necessary for a report to the GAO. The 

Associate General Counsel will submit a complete report to 

the GAO within 30 days after the GAO notifies the Associate 

General Counsel by telephone that a protest has been filed, or 

within 20 days after receipt from the GAO of a determination 

to use the express option, unless the GAO— 

(A) Advises the GPO that the protest has been dismissed; or 

(B) Authorizes a longer period in response to an agency

request for an extension. Any new date is documented in 

the agency file. 

(ii) When a protest is filed with the GAO, and an actual or

prospective offeror so requests, the Contracting Officer shall, 

in accordance with any applicable protective orders, provide 

actual or prospective offerors reasonable access to the protest 

file. However, if the GAO dismisses the protest before the 

documents are submitted to the GAO, then no protest file need 

be made available. Information exempt from disclosure may 

be redacted from the protest file. The protest file shall be made 

available to non-intervening actual or prospective offerors 

within a reasonable time after submittal of the agency report to 
DISPUTES, CLAIMS, APPEALS, AND PROTESTS XV–5 

the GAO. The protest file shall include an index and as appropriate— 

(A) The protest; 

(B) The offer submitted by the protester; 

(C) The offer being considered for award or being protested; 

(D) All relevant evaluation documents; 

(E) The solicitation, including the specifications or portions relevant to the protest; 

(F) The abstract of offers or relevant portions; and 

(G) Any other documents that the GPO determines are 

relevant to the protest, including documents specifically requested by the protester. 

(iii) At least 5 days prior to the filing of the report, in cases 

in which the protester has filed a request for specific documents, the GPO shall provide to all parties and the GAO a list 

of those documents, or portions of documents, that have been 

released to the protester or intends to produce in its report, and 

those documents that the GPO intends to withhold from the 

protester and the reasons for the proposed withholding. Any 

objection to the scope of the GPO’s proposed disclosure or 

nondisclosure of the documents must be filed with the GAO 

and the other parties within 2 days after receipt of the list. 

(iv) The agency report to the GAO shall include— 

(A) A copy of the documents described in 2.5(a)(3)(ii); 

(B) The Contracting Officer’s signed statement of relevant facts, including a best estimate of the contract value, 

and a memorandum of law. The Contracting Officer’s 

statement shall set forth findings, actions, and recommendations, and any additional evidence or information not 

provided in the protest file that may be necessary to determine the merits of the protest; and 

(C) A list of parties being provided the documents. 

(4)(i) At the same time the GPO submits its report to the 

GAO, copies of the report shall be furnished to the protester 

and any intervenors. A party shall receive all relevant documents, except— 

(A) Those that the GPO has decided to withhold from 

that party for any reason, including those covered by a protective order issued by the GAO. Documents covered by a 

protective order shall be released only in accordance with 

the terms of the order. Examples of documents the GPO 

may decide to exclude from a copy of the report include 

documents previously furnished to or prepared by a party; 

classified information; and information that would give the 

party a competitive advantage; and 

(B) Protester’s documents which the GPO determines, 

pursuant to law or regulation, to withhold from any interested party. 

(ii)(A) If the protester requests additional documents within 

2 days after the protester knew the existence or relevance of 

additional documents, or should have known, the GPO shall 

provide the requested documents to the GAO within 2 days of 

receipt of the request. 

(B) The additional documents shall also be provided to the 

protester and other interested parties within this 2-day period 

unless the GPO has decided to withhold them for any reason 

(see paragraph (a)(4)(i) of this subsection). This includes any 

documents covered by a protective order issued by the GAO. 

Documents covered by a protective order shall be provided 

only in accordance with the terms of the order. 

(C) The Associate General Counsel shall notify the GAO of 

any documents withheld from the protester and other interested parties and shall state the reasons for withholding them. 

(5) The GAO may issue protective orders which establish 

terms, conditions, and restrictions for the provision of any 

document to an interested party. Protective orders prohibit or 

restrict the disclosure by the party of procurement sensitive information, trade secrets or other proprietary or confidential research, development or commercial information that is 

contained in such document. Protective orders do not authorize withholding any documents or information from the 

United States Congress or an executive agency. 

(i) Requests for protective orders. Any party seeking issuance of a protective order shall file its request with the 

GAO as soon as practicable after the protest is filed, with 

copies furnished simultaneously to all parties. 

(ii) Exclusions and rebuttals. Within 2 days after receipt 

of a copy of the protective order request, any party may file 

with the GAO a request that particular documents be excluded from the coverage of the protective order, or that 

particular parties or individuals be included in or excluded 

from the protective order. Copies of the request shall be 

furnished simultaneously to all parties. 

(iii) Additional documents. If the existence or relevance 

of additional documents first becomes evident after a protective order has been issued, any party may request that 

these additional documents be covered by the protective 

order. Any party to the protective order also may request 

that individuals not already covered by the protective order 

be included in the order. Requests shall be filed with the 

GAO, with copies furnished simultaneously to all parties. 

(iv) Sanctions and remedies. The GAO may impose appropriate sanctions for any violation of the terms of the protective order. Improper disclosure of protected information 

will entitle the aggrieved party to all appropriate remedies 

under law or equity. The GAO may also take appropriate 

action against the agency for failing to provide documents 

designated in a protective order. 

(6) The protester and other interested parties are required to 

furnish a copy of any comments on the agency report directly 

to the GAO within 10 days, or 5 days if express option is used, 

after receipt of the report, with copies provided to the Contracting Officer and to other participating interested parties. If 

a hearing is held, these comments are due within 5 days after 

the hearing. 

(7) The Associate General Counsel shall furnish the GAO 

with the name, title, and telephone number of the official 

whom the GAO may contact who is knowledgeable about the 

subject matter of the protest. The Associate General Counsel 

shall be responsible for promptly advising the GAO of any 

change in the designated official. 

(b) Protests before award. (1) When the GPO has received 

notice from the GAO of a protest filed directly with the GAO, 

a contract may not be awarded unless authorized by the Managing Director, Customer Services, on a nondelegable basis, 

upon a written finding that— 
XV–6 GPO PRINTING PROCUREMENT REGULATION 

(i) Urgent and compelling circumstances which significantly affect the interest of the United States will not permit 

awaiting the decision of the GAO; and 

(ii) Award is likely to occur within 30 days of the written finding. 

(2) A contract award shall not be authorized until the Associate General Counsel has notified the GAO of the finding in 

paragraph (b)(1) of this subsection. 

(3) When a protest against the making of an award is received and award will be withheld pending disposition of the 

protest, the Contracting Officer should inform the offerors 

whose offers might become eligible for award of the protest. If 

appropriate, those offerors should be requested, before expiration of the time for acceptance of their offer, to extend the 

time for acceptance to avoid the need for resolicitation. In the 

event of failure to obtain such extensions of offers, consideration should be given to proceeding under paragraph (b)(1) of 

this subsection. 

(c) Protests after award. (1) When the Associate General 

Counsel receives notice of a protest from the GAO within 10 

days after contract award or within 5 days after a debriefing 

date offered to the protester for any debriefing that is required 

by PPR VII-8.17(c), whichever is later, the Contracting Officer shall immediately suspend performance or terminate the 

awarded contract, except as provided in paragraphs (c)(2) and 

(3) of this subsection. 

(2) The Managing Director, Customer Services, may, on a 

nondelegable basis, authorize contract performance, notwithstanding the protest, upon a written finding that— 

(i) Contract performance will be in the best interest of 

the United States; or 

(ii) Urgent and compelling circumstances that significantly affect the interests of the United States will not permit waiting for the GAO’s decision. 

(3) Contract performance shall not be authorized until the 

Associate General Counsel has notified the GAO of the finding in paragraph (c)(2) of this subsection. 

(4) When it is decided to suspend performance or terminate 

the awarded contract, the Contracting Officer should attempt 

to negotiate a mutual agreement on a no-cost basis. 

(5) When the GPO receives notice of a protest filed with 

the GAO after the dates contained in paragraph (c)(1), the 

Contracting Officer need not suspend contract performance or 

terminate the awarded contract unless the Contracting Officer 

believes that an award may be invalidated and a delay in receiving the supplies or services is not prejudicial to the Government’s interest. 

(d) Findings and notice. If the decision is to proceed with 

contract award, or continue contract performance under paragraphs (b) or (c) of this subsection, the Contracting Officer 

shall include the written findings or other required documentation in the file. The Contracting Officer also shall give written 

notice of the decision to the protester and other interested parties. 

(e) Hearings. The GAO may hold a hearing at the request 

of the agency, a protester, or other interested party who has responded to the notice in paragraph (a)(2) of this subsection. A 

recording or transcription of the hearing will normally be 

made, and copies may be obtained from the GAO. All parties 

may file comments on the hearing and report within 7 days of 

the hearing. 

(f) GAO decision time. GAO issues its recommendation on 

a protest within 100 days from the date of filing of the protest 

with the GAO, or within 65 days under the express option. 

The GAO attempts to issue its recommendation on an 

amended protest that adds a new ground of protest within the 

time limit of the initial protest. If an amended protest cannot 

be resolved within the initial time limit, the GAO may resolve 

the amended protest through an express option. 

(g) Notice to GAO. If the GAO recommendations, with respect to a solicitation for a contract or an award or a proposed 

award of a contract, have not been fully implemented within 

60 days of receiving the GAO recommendations, the Managing Director, Customer Services, shall report the failure to the 

GAO, through the Associate General Counsel, not later than 5 

days after the expiration of the 60-day period. The report shall 

explain the reasons why the GAO’s recommendation, exclusive of costs, has not been followed. 

(h) Award of costs. (1) If the GAO determines that a solicitation for a contract, a proposed award, or an award of a contract does not comply with a statute or regulation, the GAO 

may recommend that the agency pay to an appropriate protester the cost, exclusive of profit, of filing and pursuing the 

protest, including reasonable attorney, consultant, and expert 

witness fees, and bid and proposal preparation costs. The 

agency shall use funds available to pay the costs awarded. 

(2) The protester shall file its claim for costs with GPO 

within 60 days after receipt of the GAO’s recommendation 

that GPO pay the protester its costs. Failure to file the claim 

within that time may result in forfeiture of the protester’s right 

to recover its costs. 

(3) The GPO shall attempt to reach an agreement on the 

amount of costs to be paid. If the GPO and the protester are 

unable to agree on the amount to be paid, the GAO may, upon 

request of the protester, recommend to the GPO the amount of 

costs that the GPO should pay. 

(4) Within 60 days after the GAO recommends the amount 

of costs the GPO should pay the protester, the GPO shall notify the GAO of the action taken in response to the recommendation. 

(5) The GPO shall not pay a party costs under paragraph 

(h)(2) of this subsection— 

(i) For consultant and expert witness fees that exceed the 

highest rate of compensation for expert witnesses paid by 

the Government pursuant to 5 U.S.C. 3109 and 5 CFR 

304.105; or 

(ii) For attorney’s fees that exceed the prevailing market 

rate per hour, unless the agency determines, based on the 

recommendation of the Comptroller General on a case-bycase basis, that an increase in the cost of living or a special 

factor, such as the limited availability of qualified attorneys 

for the proceedings involved, justifies a higher fee. The cap 

placed on attorneys’ fees for businesses constitutes a 

benchmark as to a “reasonable” level for attorney’s fees. 

(6) Before paying a recommended award of costs, GPO 

personnel will consult with Associate General Counsel. Paragraph (h) of this subsection applies to all recommended 

awards of costs that have not yet been paid. 
DISPUTES, CLAIMS, APPEALS, AND PROTESTS XV–7 

(7) Any costs the contractor receives under this subsection

shall not be the subject of subsequent proposals, billings, or 

claims against the Government, and those exclusions should 

be reflected in the cost agreement. 

(8) If the Government pays costs, as provided in paragraph

(h)(1) of this subsection, where a postaward protest is sustained as the result of an awardee’s intentional or negligent 

misstatement, misrepresentation, or miscertification, the Government may require the awardee to reimburse the Government the amount of such costs. In addition to any other 

remedy available, the Government may collect this debt by 

offsetting the amount against any payment due the awardee 

under any contract between the awardee and the Government. 

6. Solicitation provision and contract clause.

(a) The Contracting Officer shall insert: (1) the provision,

“Service of Protest,” in solicitations for contracts expected to 

exceed the small purchase threshold; and (2) the clause, Protest After Award, in all solicitations and contracts. 

(b) As prescribed, insert the following provision:

SERVICE OF PROTEST 

(a) Protests (as defined in section 3 of GPO Instruction 305.7,

Protests Against Award) that are filed directly with the Government 

Printing Office (GPO), and copies of any protests that are filed with 

the U.S. Government Accountability Office (GAO), shall be served 

on the Contracting Officer at the procurement office from which the 

solicitation was issued by obtaining written and dated acknowledgment of receipt from———————————. [Contracting Officer 

designate the official or location where a protest may be served on 

the Contracting Officer.] 

(b) The copy of any protest shall be received by the official or in the

office designated above within one day of filing a protest with the GAO. 

(c) As prescribed, insert the following clause:

PROTEST AFTER AWARD 

(a) Upon receipt of a notice of protest (as defined in section 3 of

GPO Instruction 305.7, Protests Against Award) or a determination 

that a protest is likely (see section 4(d) of GPO Instruction 305.7), the 

Contracting Officer may, by written order to the contractor, direct the 

contractor to stop performance of the work called for by this contract. 

The order shall be specifically identified as a stop-work order issued 

under this clause. Upon receipt of the order, the contractor shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the 

order during the period of work stoppage. Upon receipt of the final 

decision in the protest, the Contracting Officer shall either— 

(1) Cancel the stop-work order; or

(2) Terminate the work covered by the order as provided in the

Default, or the Termination for Convenience of the Government, 

clause of this contract. 

(b) If a stop-work order issued under this clause is canceled either

before or after a final decision in the protest, the contractor shall resume work. The Contracting Officer shall make an equitable adjustment in the delivery schedule or contract price, or both, and the 

contract shall be modified, in writing, accordingly, if— 

(1) The stop-work order results in an increase in the time required for, or in the contractor’s cost properly allocable to, the 

performance of any part of this contract; and 

(2) The contractor asserts its right to an adjustment within 30

days after the end of the period of work stoppage; provided, that if 

the Contracting Officer decides the facts justify the action, the 

Contracting Officer may receive and act upon a proposal at any 

time before final payment under this contract. 

(c) If a stop-work order is not canceled and the work covered by

the order is terminated for the convenience of the Government, the 

Contracting Officer shall allow reasonable costs resulting from the 

stop-work order in arriving at the termination settlement. 

(d) If a stop-work order is not canceled and the work covered by

the order is terminated for default, the Contracting Officer shall allow, by equitable adjustment or otherwise, reasonable costs resulting 

from the stop-work order. 

(e) The Government’s rights to terminate this contract at any time

are not affected by action taken under this clause. 

(f) If, as a result of the contractor’s intentional misstatement, misrepresentation, or miscertification, a protest related to this contract is 

sustained and the Government pays costs, as provided in 4(c)(2) or 

6(h)(1) of GPO Instruction 305.7, the Government may require the 

contractor to reimburse the Government the amount of such costs. In 

addition to any other remedy available, the Government may collect 

this debt by offsetting the amount against any payment due the contractor under any contract between the contractor and the Government. 

XVI–1 

CHAPTER XVI. CONTRACT CLAUSES 

SECTION 1. GENERAL 

1. Scope. This chapter sets forth contract clauses for use in the

procurement of printing, binding, and related supplies and services.

2. Applicability. Each of the following sections contain

clauses to be used in accordance with conditions prescribed

elsewhere in the PPR.

SECTION 2. GPO CONTRACT CLAUSES 

1. Scope. The solicitation provisions, representations and certifications, supplemental specifications, and contract clauses

contained in GPO Contract Terms, Publication 310.2, are incorporated in this regulation by reference and listed by title.

2. Solicitation Provisions. Prescribes the conditions under

which bids are solicited.

1. Preparation of Bids

2. Information Furnished to Bidders

3. Amendments to Solicitations

4. Submission of Bids

5. Telegraphic Bids

6. Facsimile Bids

7. Late Submissions, Modifications, and Withdrawals of Bids

8. Late Submissions, Modifications, and Withdrawals of Proposals

9. Failure to Submit Bid

10. False Statements in Bids

11. Postponement of Bid Opening

12. Discounts

13. Contract Award—Sealed Bid

14. Contract Award—Competitive Negotiation

15. Certification of Independent Price Determination

16. Government Furnished Property

17. Utilization of Small, Small Disadvantaged and Women-Owned

Small Business Concerns

18. Service of Protest

19. Recovered Materials Program

3. Representations, Certifications, Bid Acceptance Period.

R-1. Small Business

R-2. Small Disadvantaged Business Concern

R-3. Women-Owned Small Business Concern

C-1. Covenant Against Contingent Fees

C-2. Buy American Certification

C-3. Clean Air and Water

C-4. Certificate of Independent Price Determination

C-5. Certification Regarding Debarment, Suspension, Proposed Debarment, and Other Responsibility Matters

C-6. Certification of Nonsegregated Facilities

Bid Acceptance Period 

Referenced Documents 

4. Supplemental Specifications. Prescribes specific conditions for contractor performance and furnished supplies.

General 

1. Ink

2. Quality

3. Packing

4. Labeling and Marking

5. Deliveries

6. Shipping Instructions

7. Drayage and Special Charges

8. Palletizing

9. Imprints

10. Reproduction Media

11. Certificate of Conformance

12. Changes on Multipart Sets

13. Timework

14. Departmental Random Copies (Blue Label)

Proofs

15. General Requirements

16. Author’s Alterations

17. Proofing Procedures

18. Proofs

Labeling and Marking Specifications with Facsimile Label

Stringer and Deckboard Design for Type III, Four-Way (Partial)

Flush Pallet 

5. Contract Clauses. Prescribes conditions under which the

Contracting Officer will administer the contract.

1. Contractual Responsibility

2. Order of Precedence

3. Workday

4. Changes

5. Disputes

6. Subcontracts

7. Government Furnished Property (GFP)

8. Use of Government Furnished Property

9. Risk of Loss

10. Return of Government Property

11. Quantity Variations

12. Notice of Compliance With Schedules

13. Failure to Ship/Deliver Full Quantities

14. Inspection and Tests

15. Warranty

16. Notice and Assistance Regarding Patent and Copyright Infringement

17. Patent Indemnity
XVI–2 GPO PRINTING PROCUREMENT REGULATION 

18. Reproduction of Printing Prohibited

19. Termination for the Convenience of the Government

20. Default

21. Actual Damages

22. Liquidated Damages

23. Delay in Deliveries

24. Payments on Purchase Order

25. Partial Payment

26. Payment for Accelerated Delivery

27. Federal, State and Local Taxes

28. Mandatory Information for Electronic Funds Transfer Payment

29. Assignment of Claims

30. Convict Labor

31. Contract Work Hours and Safety Standard Act—Overtime Compensation 

32. Walsh-Healey Public Contracts Act

33. Equal Opportunity

34. Nondiscrimination Because of Age

35. Affirmative Action for Workers with Disabilities

36. Affirmative Action for Special Disabled and Veterans of the

Vietnam Era Veterans

37. Buy American Act

38. Advertising of Award Prohibited

39. Maintenance of Records on Recovered Materials in Paper Products

40. Examination of Records

41. Audit and Records—Sealed Bidding

42. Price Reduction for Defective Cost or Pricing Data—

Modifications—Sealed Bidding

43. Audit—Negotiation

44. Gratuities

45. Covenant Against Contingent Fees

46. Contract Cost Principles and Procedures

47. Joint Ventures

48. Protest After Award

49. Anti-Kickback Procedures

50. Bankruptcy

51. Cancellation, Rescission, and Recovery of Funds for Illegal or

Improper Activity

52. Price or Fee Adjustment for Illegal or Improper Activity

53. Restrictions on Subcontractor Sales to the Government

SECTION 3. MULTIYEAR PROCUREMENT 

1. Applicability. The clauses in this section shall be used in

multiyear contracts where an adjustment clause is determined

appropriate.

2. Paper Price Adjustment. Contracting Officers shall include the clause Paper Price Adjustment, substantially as follows, in multiyear and option contracts where the value of

paper alone is expected to exceed $100,000.00.

PAPER PRICE ADJUSTMENT: Paper prices charged under this contract will be adjusted in accordance with “Table 6 - 

Producer Price Indexes and Percent Changes for Commodity 

Groupings and Individual Items” in Producer Price Indexes 

report, published by the Bureau of Labor Statistics (BLS), as 

follows: 

1. BLS code (insert applicable code; for example, 0913-01)

for (insert corresponding paper type; for example, offset and 

text) will apply to all paper required under this contract. 

2. The applicable index figures for the month of (insert

month and year), will establish the base index. 

3. There shall be no price adjustment for the first three production months of the contract. 

4. Price adjustments may be monthly thereafter, but only if

the index varies by an amount (plus or minus) exceeding 5% 

by comparing the base index to the index for that month which 

is two months prior to the month being considered for adjustment. 

5. Beginning with order placement in the fourth month, index variances will be calculated in accordance with the following formula: 

 X – base index x 100 = ___ % 

 base index 

where X = the index for that month which is two months prior 

to the month being considered for adjustment. 

6. The contract adjustment amount, if any, will be the percentage calculated in 5 above less 5%. 

7. Adjustments under this clause will be applied to the contractor’s bid price(s) for line items V.1. through 8. in the 

“SCHEDULE OF PRICES” and will be effective on the first 

day of any month for which prices are to be adjusted. 

The Contracting Officer will give written notice to the contractor of any adjustments to be applied to invoices for orders 

placed during months affected by this clause. 

In no event, however, will any price adjustment be made 

which would exceed the maximum permissible under any law 

in effect at the time of the adjustment. The adjustment, if any, 

shall not be based upon the actual change in cost to the contractor, but shall be computed as provided above. 

The contractor warrants that the paper prices set forth in 

this contract do not include any allowance for any contingency 

to cover anticipated increased costs of paper to the extent such 

increases are covered by this price adjustment clause. 

3. Economic Price Adjustment.

(a) Contracting Officers shall include the clause, “Economic Price Adjustment,” substantially as follows, in multiyear and option contracts. 

ECONOMIC PRICE ADJUSTMENT 

(a) General. The prices set forth in this contract shall be adjusted

in accordance with the provisions of this clause, provided that, in no 

event will prices be revised to exceed the maximum permissible under any law existing as of the date of the contract or as may be hereafter promulgated. 

(b) Price adjustment period. For the purpose of this clause, the

program years shall comply with the Contract Term clause. There 

shall be no price adjustment for orders placed during the first program year of this contract. 

(c) Price adjustment. The prices shall be adjusted on the basis of

the “Consumer Price Index For All Urban Consumers—Commodities 

Less Food, Seasonally Adjusted,” published monthly in the CPI Detailed Report by the Department of Labor, Bureau of Labor Statistics, 

in the following manner: 

(1) The contract price of orders placed during the adjusted period (excluding reimbursable postage or transportation costs) shall 

be adjusted by the percentage increase or decrease in the average, 

seasonally adjusted Consumer Price Index For All Urban Consumers—Commodities Less Food (seasonally adjusted) as follows: An index shall be calculated by averaging the 12 seasonally 

adjusted months ending 3 months prior to the expiration of the 

first period of the contract. This average is then compared with the 
CONTRACT CLAUSES XVI–3

average index for the 12-month period ending 3 months prior to 

the beginning of the contract, called the base index. The percentage increase or decrease by comparing these two indexes shall be 

applied to the contractor’s invoices for orders placed during the 

price adjustment period. 

(2) The Government will notify the contractor in writing of the

percentage increase or decrease to be applied to any invoices to be 

submitted for orders subject to price adjustment in accordance 

with this clause. Such percentage will be determined from the 

published index as set forth above. The contractor shall apply the 

percentage increase or decrease against the total price of the invoice less reimbursable postage or transportation costs. Any applicable discounts will be calculated on the basis of the invoice 

price as adjusted. 

Alternate. Add the following paragraph (d) to the basic 

clause for option contracts as necessary. 

(d) If the Government exercises this option, the extended contract

shall be considered to include this option clause. 

4. Limitation of Performance and Contractor Obligations.

The following clause shall be used for multiyear contracts

which are effective at the beginning of a fiscal year. The

clause must be appropriately modified for multiyear contracts

that are not concurrent with the beginning of a fiscal year.

LIMITATION OF PERFORMANCE AND CONTRACTOR 

OBLIGATIONS 

(a) Funds are available for performance of this contract for the

first program period only. The amount of funds at award is not considered sufficient for performance required for any program year 

other than the first program year. When additional funds are available 

for the full requirements for the next succeeding program year, the 

Contracting Officer shall, not later than 30 calendar days before the 

expiration of the program year for which performance has been 

funded (unless a later day is agreed to), so notify the contractor in 

writing. Notification that funds are not available shall effect cancellation of the contract. 

(b) The Government is not obligated to the contractor for any

amount over requirements for which funds have been made available 

and as obligated by each print order. 

(c) The contractor is not obligated to incur costs for the performance required for any program year after the first unless and until 

written notification is received from the Contracting Officer of an increase in availability of funds. If so notified, the contractor’s obligation shall increase only to the extent contract performance is required 

for the additional program year for which funds have been made 

available. 

(d) If this contract is terminated under the “Termination for Convenience of the Government” clause, “total contract price” in that 

clause means the amount available for performance of this contract, 

as provided for in this clause. The term “Work in Process” in that 

clause means the work under the program year requirements for 

which funds have been made available. If the contract is terminated 

for default, the Government’s rights under this contract shall apply to 

the entire multiyear requirements. 

(e) Notification to the contractor of an increase or decrease in the

funds available for performance of the contract under another clause 

(e.g. the “Option” or “Changes” clause) shall not constitute the notification required by paragraph (a). 

(f) This procedure shall apply for each successive program year.

5. Notification. The following clause shall be appropriately

modified for multiyear contracts in which the two periods are

not concurrent with the fiscal years.

NOTIFICATION 

The contractor will be notified on or before [insert date] of availability or nonavailability of funds for subsequent periods. Cancellation is effected if (i) the Contracting Officer notifies the contractor 

that funds are not available for the next year, or (ii) the Contracting 

Officer fails to notify the contractor that funds are available for the 

next year. 

SECTION 4. CLAUSES TO BE USED WHEN 

APPLICABLE 

1. Service Contract Act of 1965

SERVICE CONTRACT ACT OF 1965, AS AMENDED 

(a) Definitions. “Act,” as used in this clause, means the Service

Contract Act of 1965, as amended (41 U.S.C. 351, et seq.). 

“Contractor,” as used in this clause or in any subcontract, shall be 

deemed to refer to the subcontractor, except in the term “Government 

Prime Contractor.” 

“Service employee” means any person engaged in the performance of this contract other than any person employed in a bona fide 

executive, administrative, or professional capacity, as these terms are 

defined in Part 541 of Title 29, Code of Federal Regulations, as revised. It includes all such persons regardless of any contractual relationship that may be alleged to exist between a Contractor or 

subcontractor and such persons. 

(b) Applicability. This contract is subject to the following provisions and to all other applicable provisions of the Act and regulations 

of the Secretary of Labor (29 CFR Part 4). This clause does not apply 

to contracts or subcontracts administratively exempted by the Secretary of Labor or exempted by 41 U.S.C. 356, interpreted in subpart C 

of 29 CFR part 4. 

(c) Compensation. (1) Each service employee employed in the

performance of this contract by the Contractor or any subcontractor 

shall be paid not less than the minimum monetary wages and shall be 

furnished fringe benefits in accordance with the wages and fringe 

benefits determined by the Secretary of Labor, or authorized representative, as specified in any wage determination attached to this contract. 

(2)(i) If a wage determination is attached to this contract, the Contractor shall classify any class of service employee which is not listed 

therein and which is to be employed under the contract (i.e., the work 

to be performed is not performed by any classification listed in the 

wage determination) so as to provide a reasonable relationship (i.e., 

appropriate level of skill comparison) between such unlisted classifications and the classifications listed in the wage determination. Such 

conformed class of employees shall be paid the monetary wages and 

furnished the fringe benefits as are determined pursuant to the procedures in this paragraph (c). 

(ii) This conforming procedure shall be initiated by the Contractor

prior to the performance of contract work by the unlisted class of employee. The Contractor shall submit Standard Form (SF) 1444, Request For Authorization of Additional Classification and Rate, to the 

Contracting Officer no later than 30 days after the unlisted class of 

employee performs any contract work. The Contracting Officer shall 

review the proposed classification and rate and promptly submit the 

completed SF 1444 (which must include information regarding the 

agreement or disagreement of the employees’ authorized representatives or the employees themselves together with the agency recommendation), and all pertinent information to the Wage and Hour 

Division, Employment Standards Administration, U.S. Department of 

Labor. The Wage and Hour Division will approve, modify, or disapprove the action or render a final determination in the event of disagreement within 30 days of receipt or will notify the Contracting 

Officer within 30 days of receipt that additional time is necessary. 
XVI–4 GPO PRINTING PROCUREMENT REGULATION 

(iii) The final determination of the conformance action by the

Wage and Hour Division shall be transmitted to the Contracting Officer who shall promptly notify the Contractor of the action taken. 

Each affected employee shall be furnished by the Contractor with a 

written copy of such determination or it shall be posted as a part of 

the wage determination. 

(iv)(A) The process of establishing wage and fringe benefit rates 

that bear a reasonable relationship to those listed in a wage determination cannot be reduced to any single formula. The approach used 

may vary from wage determination to wage determination depending 

on the circumstances. Standard wage and salary administration practices which rank various job classifications by pay grade pursuant to 

point schemes or other job factors may, for example, be relied upon. 

Guidance may also be obtained from the way different jobs are rated 

under Federal pay systems (Federal Wage Board Pay System and the 

General Schedule) or from other wage determinations issued in the 

same locality. Basic to the establishment of any conformable wage 

rate(s) is the concept that a pay relationship should be maintained between job classifications based on the skill required and the duties 

performed. 

(B) In the case of a contract modification, an exercise of an option, or extension of an existing contract, or in any other case where a 

Contractor succeeds a contract under which the classification in question was previously conformed pursuant to paragraph (c) of this 

clause, a new conformed wage rate and fringe benefits may be assigned to the conformed classification by indexing (i.e., adjusting) the 

previous conformed rate and fringe benefits by an amount equal to 

the average (mean) percentage increase (or decrease, where appropriate) between the wages and fringe benefits specified for all classifications to be used on the contract which are listed in the current wage 

determination, and those specified for the corresponding classifications in the previously applicable wage determination. Where conforming actions are accomplished in accordance with this paragraph 

prior to the performance of contract work by the unlisted class of employees, the Contractor shall advise the Contracting Officer of the action taken but the other procedures in subdivision (c)(2)(ii) of this 

clause need not be followed. 

(C) No employee engaged in performing work on this contract

shall in any event be paid less than the currently applicable minimum 

wage specified under section 6(a)(1) of the Fair Labor Standards Act 

of 1938, as amended. 

(v) The wage rate and fringe benefits finally determined under this

subparagraph (c)(2) of this clause shall be paid to all employees performing in the classification from the first day on which contract 

work is performed by them in the classification. Failure to pay the 

unlisted employees the compensation agreed upon by the interested 

parties and/or finally determined by the Wage and Hour Division retroactive to the date such class of employees commenced contract 

work shall be a violation of the Act and this contract. 

(vi) Upon discovery of failure to comply with subparagraph (c)(2)

of this clause, the Wage and Hour Division shall make a final determination of conformed classification, wage rate, and/or fringe benefits which shall be retroactive to the date such class or classes of 

employees commenced contract work. 

(3) Adjustment of Compensation. If the term of this contract is

more than 1 year, the minimum monetary wages and fringe benefits 

required to be paid or furnished thereunder to service employees under this contract shall be subject to adjustment after 1 year and not 

less than once every 2 years, under wage determinations issued by the 

Wage and Hour Division. 

(d) Obligation to Furnish Fringe Benefits. The Contractor or subcontractor may discharge the obligation to furnish fringe benefits 

specified in the attachment or determined under subparagraph (c)(2) 

by furnishing equivalent combinations of bona fide fringe benefits, or 

by making equivalent or differential cash payments, only in accordance with subpart D of 29 CFR Part 4. 

(e) Minimum Wage. In the absence of a minimum wage attachment for this contract, neither the Contractor nor any subcontractor 

under this contract shall pay any person performing work under this 

contract (regardless of whether the person is a service employee) less 

than the minimum wage specified by section 6(a)(1) of the Fair Labor 

Standards Act of 1938. Nothing in this clause shall relieve the Contractor or any subcontractor of any other obligation under law or contract for payment of a higher wage to any employee. 

(f) Successor Contracts. If this contract succeeds a contract subject to the Act, under which substantially the same services were furnished in the same locality and service employees were paid wages 

and fringe benefits provided for in a collective bargaining agreement, 

in the absence of the minimum wage attachment for this contract setting forth such collectively bargained wage rates and fringe benefits, 

neither the Contractor nor any subcontractor under this contract shall 

pay any service employee performing any of the contract work (regardless of whether or not such employee was employed under the 

predecessor contract), less than the wages and fringe benefits provided for in such collective bargaining agreement, to which such employee would be entitled if employed under the predecessor contract, 

including accrued wages and fringe benefits and any prospective increases in wages and fringe benefits provided for under such agreement. No Contractor or subcontractor under this contract may be 

relieved of the foregoing obligation unless the limitations of 29 CFR 

4.1b(b) apply or unless the Secretary of Labor or the Secretary’s authorized representative finds, after a hearing as provided in 29 CFR 

4.10 that the wages and/or fringe benefits provided for in such 

agreement are substantially at variance with those which prevail for 

services of a character similar in the locality, or determines, as provided in 29 CFR 4.11, that the collective bargaining agreement applicable to service employees employed under the predecessor contract 

was not entered into as a result of arm’s-length negotiations. Where it 

is found in accordance with the review procedures provided in 29 

CFR 4.10 and/or 4.11 and parts 6 and 8 that some or all of the wages 

and/or fringe benefits contained in a predecessor Contractor’s collective bargaining agreement are substantially at variance with those 

which prevail for services of a character similar in the locality, and/or 

that the collective bargaining agreement applicable to service employees employed under the predecessor contract was not entered 

into as a result of arm’s length negotiations, the Department will issue a new or revised determination setting forth the applicable wage 

rates and fringe benefits. Such determination shall be made a part of 

the contract or subcontract, in accordance with the decision of the 

Administrator, the Administrative Law Judge, or the Board of Service Contract Appeals, as the case may be, irrespective of whether 

such issuance occurs prior to or after the award of a contract or subcontract (53 Comp. Gen. 401 (1973)). In the case of a wage determination issued solely as a result of a finding of substantial variance, 

such determination shall be effective as of the date of the final administrative decision. 

(g) Notification to employees. The Contractor and any subcontractor under this contract shall notify each service employee commencing work on this contract of the minimum monetary wage and any 

fringe benefits required to be paid pursuant to this contract, or shall 

post the wage determinations attached to this contract. The poster 

provided by the Department of Labor (Publication WH 1313) shall be 

posted in a prominent and accessible place at the worksite. Failure to 

comply with this requirement is a violation of section 2(a)(4) of the 

Act and of this contract. 

(h) Safe and Sanitary Working Conditions. The Contractor or subcontractor shall not permit any part of the services called for by this 

contract to be performed in buildings or surroundings or under working conditions provided by or under the control or supervision of the 

Contractor or subcontractor which are unsanitary or hazardous, or 

dangerous to the health or safety of the service employees. The Con-
 CONTRACT CLAUSES XVI–5 

tractor or subcontractor shall comply with the safety and health standards applied under 29 CFR Part 1925. 

(i) Records. (1) The Contractor and each subcontractor performing work subject to the Act shall make and maintain for 3 years from 

the completion of the work and make them available for inspection 

and transcription by authorized representatives of the Wage and Hour 

Division, Employment Standards Administration a record of the following: 

(i) For each employee subject to the Act— 

(A) Name and address and social security number; 

(B) Correct work classification or classifications, rate or 

rates of monetary wages paid and fringe benefits provided, rate 

or rates of payments in lieu of fringe benefits, and total daily 

and weekly compensation; 

(C) Daily and weekly hours worked by each employee; and 

(D) Any deductions, rebates, or refunds from the total daily 

or weekly compensation of each employee. 

(ii) For those classes of service employees not included in any 

wage determination attached to this contract, wage rates or fringe 

benefits determined by the interested parties or by the Administrator or authorized representative under the terms of paragraph (c) 

of this clause. A copy of the report required by subdivision 

(c)(2)(ii) of this clause will fulfill this requirement. 

(iii) Any list of the predecessor Contractor’s employees which 

had been furnished to the Contractor as prescribed by paragraph 

(n) of this clause. 

(2) The Contractor shall also make available a copy of this contract for inspection or transcription by authorized representatives of 

the Wage and Hour Division. 

(3) Failure to make and maintain or to make available these records for inspection and transcription shall be a violation of the regulations and this contract, and in the case of failure to produce these 

records, the Contracting Officer, upon direction of the Department of 

Labor and notification to the Contractor, shall take action to cause 

suspension of any further payment or advance of funds until the violation ceases. 

(4) The Contractor shall permit authorized representatives of the 

Wage and Hour Division to conduct interviews with employees at the 

worksite during normal working hours. 

(j) Pay Periods. The Contractor shall unconditionally pay to each 

employee subject to the Act all wages due free and clear and without 

subsequent deduction (except as otherwise provided by law or regulations, 29 CFR part 4), rebate, or kickback on any account. These 

payments shall be made no later than one pay period following the 

end of the regular pay period in which the wages were earned or accrued. A pay period under this Act may not be of any duration longer 

than semi-monthly. 

(k) Withholding of Payment and Termination of Contract. The 

Contracting Officer shall withhold or cause to be withheld from the 

Government Prime Contractor under this or any other Government 

contract with the Prime Contractor such sums as an appropriate official of the Department of Labor, requests or such sums as the Contracting Officer decides may be necessary to pay underpaid 

employees employed by the Contractor or subcontractor. In the event 

of failure to pay any employees subject to the Act all or part of the 

wages or fringe benefits due under the Act, the Contracting Officer 

may, after authorization or by direction of the Department of Labor 

and written notification to the Contractor, take action to cause suspension of any further payment or advance of funds until such violations have ceased. Additionally, any failure to comply with the 

requirements of this clause may be grounds for termination of the 

right to proceed with the contract work. In such event, the Government may enter into other contracts or arrangements for completion 

of the work, charging the Contractor in default with any additional 

cost. 

(l) Subcontracts. The Contractor agrees to insert this clause in all 

subcontracts subject to the Act. 

(m) Collective Bargaining Agreements Applicable to Service Employees. If wages to be paid or fringe benefits to be furnished any 

service employees employed by the Government Prime Contractor or 

any subcontractor under the contract are provided for in a collective 

bargaining agreement which is or will be effective during any period 

in which the contract is being performed, the Government Prime 

Contractor shall report such fact to the Contracting Officer, together 

with full information as to the application and accrual of such wages 

and fringe benefits, including any prospective increases, to service 

employees engaged in work on the contract, and a copy of the collective bargaining agreement. Such report shall be made upon commencing performance of the contract, in the case of collective 

bargaining agreements effective at such time, and in the case of such 

agreements or provisions or amendments thereof effective at a later 

time during the period of contract performance, such agreements 

shall be reported promptly after negotiations thereof. 

(n) Seniority List. Not less than 10 days prior to completion of any 

contract being performed at a Federal facility where service employees may be retained in the performance of the succeeding contract 

and subject to a wage determination which contains vacation or other 

benefit provisions based upon length of service with a Contractor 

(predecessor) or successor (29 CFR 4.173), the incumbent Prime 

Contractor shall furnish the Contracting Officer a certified list of 

names of all service employees on the Contractor’s or subcontractor’s 

payroll during the last month of contract performance. Such list shall 

also contain anniversary dates of employment on the contract either 

with the current or predecessor Contractors of each such service employee. The Contracting Officer shall turn over such list to the successor Contractor at the commencement of the succeeding contract. 

(o) Rulings and Interpretations. Rulings and interpretations of the 

Act are contained in Regulations, 29 CFR part 4. 

(p) Contractor’s Certification. (1) By entering into this contract, 

the Contractor (and officials thereof) certifies that neither it (nor he or 

she) nor any person or firm who has a substantial interest in the Contractor’s firm is a person or firm ineligible to be awarded Government contracts by virtue of the sanctions imposed under section 5 of 

the Act. 

(2) No part of this contract shall be subcontracted to any person or 

firm ineligible for award of a Government contract under section 5 of 

the Act. 

(3) The penalty for making false statements is prescribed in the 

U.S. Criminal Code, 18 U.S.C. 1001. 

(q) Variations, Tolerances, and Exemptions Involving Employment. Notwithstanding any of the provisions in paragraphs (b) 

through (o) of this clause, the following employees may be employed 

in accordance with the following variations, tolerances, and exemptions, which the Secretary of Labor, pursuant to section 4(b) of the 

Act prior to its amendment by Pub. L. 92–473, found to be necessary 

and proper in the public interest or to avoid serious impairment of the 

conduct of Government business: 

(1) Apprentices, student-learners, and workers whose earning 

capacity is impaired by age, physical or mental deficiency or injury may be employed at wages lower than the minimum wages 

otherwise required by section 2(a)(1) or 2(b)(1) of the Act, without diminishing any fringe benefits or cash payments in lieu 

thereof required under section 2(a)(2) of the Act, in accordance 

with the conditions and procedures prescribed for the employment 

of apprentices, student-learners, handicapped persons, and handicapped clients of sheltered workshops under section 14 of the Fair 

Labor Standards Act of 1938, in the regulations issued by the 

Administrator (29 CFR Parts 520, 521, 524, and 525). 

(2) The Administrator will issue certificates under the Act for 

the employment of apprentices, student-learners, handicapped 

persons, or handicapped clients of sheltered workshops not sub-
XVI–6 GPO PRINTING PROCUREMENT REGULATION 

ject to the Fair Labor Standards Act of 1938, or subject to different minimum rates of pay under the two Acts, authorizing appropriate rates of minimum wages (but without changing 

requirements concerning fringe benefits or supplementary cash 

payments in lieu thereof), applying procedures prescribed by the 

applicable regulations issued under the Fair Labor Standards Act 

of 1938 (29 CFR Parts 520, 521, 524, 525); 

(3) The Administrator will also withdraw, annul, or cancel

such certificates in accordance with the regulations in 29 CFR 

parts 525 and 528. 

(r) Apprentices. Apprentices will be permitted to work at less than

the predetermined rate for the work they perform when they are employed and individually registered in a bona fide apprenticeship program registered with a State apprenticeship agency which is 

recognized by the U.S. Department of Labor, or if no such recognized 

agency exists in a State, under a program registered with the Bureau 

of Apprenticeship and Training, Employment and Training Administration, U.S Department of Labor. Any employee who is not registered as an apprentice in an approved program shall be paid the wage 

rate and fringe benefits contained in the applicable wage determination for the journeyman classification of work actually performed. 

The wage rates paid apprentices shall not be less than the wage rate 

for their level of progress set forth in the registered program, expressed as the appropriate percentage of the journeyman’s rate contained in the applicable wage determination. The allowable ratio of 

apprentices to journeymen employed on the contract work in any 

craft classification shall not be greater than the ratio permitted to the 

contractor as to his entire work force under the registered program. 

(s) Tips. An employee engaged in an occupation in which the employee customarily and regularly receives more than $30 a month in 

tips may have the amount of these tips credited by the employer 

against the minimum wage required by section 2(a)(1) or section 

2(b)(1) of the Act, in accordance with Regulations, 29 CFR Part 531. 

However, the amount of credit shall not exceed $1.34 per hour beginning January 1, 1981. To use this provision— 

(1) The employer must inform tipped employees about this tip

credit allowance before the credit is utilized; 

(2) The employees must be allowed to retain all tips (individually or through a pooling arrangement and regardless of whether 

the employer elects to take a credit for tips received); 

(3) The employer must be able to show by records that the employee receives at least the applicable Service Contract Act minimum wage through the combination of direct wages and tip credit; 

and 

(4) The use of such tip credit must have been permitted under

any predecessor collective bargaining agreement applicable by 

virtue of section 4(c) of the Act. 

(t) Disputes Concerning Labor Standards. The U.S. Department

of Labor has set forth in 29 CFR parts 4, 6, and 8 procedures for resolving disputes concerning labor standards requirements. Such disputes shall be resolved in accordance with those procedures and not 

the Disputes clause of this contract. Disputes within the meaning of 

this clause include disputes between the Contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the employees or their representatives. 

2. Exception. This clause shall be included in the specifications for all multiple-award contracts.

EXCEPTION 

Noncompliance with the shipping and/or delivery schedule, or any 

other term, condition or specification of this contract, will be cause, 

and the Government Printing Office reserves the right, to withhold 

further offers from the contractor until the contractor is judged by the 

Government to have established adequate procedures to fulfill the requirements. 
CHAPTER XVII. PROCUREMENT FORMS 

 

This chapter contains illustrations of forms used in the procurement process and provides a brief description of each form’s 

purpose and use. Unless otherwise noted, only page 1 of pamphlets, part 1 of multiforms, and the face of 2-sided forms 

is represented. 

GPO Form 192a, “Transmittal of Accountable and Negotiable Documents.” 

Purpose: Cover document for transmittal of GBL’s. 

Use: Furnished to and completed by the contractor for proper handling of accountable and negotiable documents. 

XVII–1 
XVII–2 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 276, “Instructions for Government Bills of Lading.” 

Purpose: Provide instructions to contractors for Contract Terms compliance. 

Use: Furnished to contractors for adherence to GBL distribution requirements. 
 PROCUREMENT FORMS XVII–3 

GPO Form 583, “Request for Bills of Lading.” 

Purpose: Requests bill of lading be issued. 

Use: This form shall be completed when Government bills of lading are required. Two copies of the specifications and the 

distribution list plus mailing labels shall be attached and sent to Transportation and Logistics Branch, QC&IMD. 
XVII–4 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 707, “Pre-Award Survey of Prospective Contractor.” 

Purpose: Provides a review of the contractor’s capabilities and performance prior to award. 

Use: GPO Form 707 is an eight-page form and is used for full preaward survey. Page one is used only when existing data is 

already on file. See Chapter XI, for guidance on its use. 
 PROCUREMENT FORMS XVII–5 

GPO Form 711, “Receipt—U.S. Government Printing Office.” 

Purpose: Acknowledges receipt of Government furnished material. 

Use: When Government-furnished materials are picked up at Central or Regional Offices by contractors or agencies this form 

shall be signed and dated to acknowledge receipt. 
XVII–6 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 712, “Certificate of Conformance.” 

Purpose: Certifies contractor mailing and provides billing information. 

Use: The contractor shall use this form to certify mailing action. Copies shall be forwarded as specified on the face of the form. 
 PROCUREMENT FORMS XVII–7 

GPO Form 714, “Record of Visit/Conference/Telephone Call.” (GPO Form 914, not represented here, is used for the same purpose.) 

Purpose: Maintains a record of significant oral conversations. 

Use: This form shall be completed to record any significant discussion on contractual matters for possible future reference. If 

such discussions are made with Members of Congress or their staff, a copy of the form shall be provided to the Managing Director, 

Customer Services. This form may be hand scribed and should provide a thorough record of the discussion with emphasis on 

decisions/conclusions reached. Completed forms shall be maintained in appropriate files. 
XVII–8 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 892, “Proof Label—Contract Compliance Section.” 

Purpose: Identifies a package containing proofs. 

Use: This label is furnished to contractors to be affixed to packages containing proofs. 
 PROCUREMENT FORMS XVII–9 

GPO Form 892C, “Proof Label.” (Blank) 

Purpose: Identifies a package containing proofs. 

Use: This label is furnished to contractors to be affixed to packages containing proofs, which are sent to the agencies. 
XVII–10 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 905, “Labeling and Marking Specifications.” 

Purpose: Provides labeling and marking specifications. 

Use: These specifications are provided to contractors for proper identification of deliverables. 
 PROCUREMENT FORMS XVII–11 

GPO Form 907, “Non-Compliance/Change Report.” 

Purpose: Reports contract deviations or changes on contracts. 

Use: The report is submitted by Government agencies to procurement offices on an exception basis only. 
XVII–12 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 910, “Bid,” and “Bid Envelopes,” GPO Forms 146 and 184. 

Purpose: Provides format for submission of bids on all GPO contracts except small purchases. 

Use: This form is furnished to all interested firms with the solicitation. GPO Form 910 is a multipart form. 

Used in conjunction with GPO Form 910 are: GPO Form 146, which is an envelope used to mail the solicitation to prospective 

bidders; and GPO Form 184, which is an envelope used by bidders to return their bids to the designated procurement office. The 

envelopes are not represented. The bid opening time and date shall be prominently indicated on part 3 of GPO Form 910, and on 

GPO Form 184. 
 PROCUREMENT FORMS XVII–13 

GPO Form 911, “Settlement Proposal.” 

Purpose: Provides a format for submission of settlement proposals on contracts terminated for convenience. 

Use: This form is completed by the contractor. Blank forms are provided with the Notice of Termination sent to the contractor. 
XVII–14 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 913, “Contract Modification.” 

Purpose: Official document changing contract requirements. 

Use: The Contracting Officer uses this form to make a written modification to the contract. See Chapter XIII for details. Form is 

computer generated. 
 PROCUREMENT FORMS XVII–15 

GPO Form 915, “Quality Assurance Random Copies.” 

Purpose: Identifies a package containing quality assurance random copies (QARCs). 

Use: This label is furnished to contractors to be affixed to packages containing QARCs. 
XVII–16 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 917, “Certificate of Selection of Random Copies.” 

Purpose: Instructs contractors to follow sample selection plan. 

Use: Accompanies agency quality sample copies (also called “blue label copies”). 
 PROCUREMENT FORMS XVII–17 

GPO Form 952, “Desktop Publishing—Disk Information.” 

Purpose: Identifies software for project design. 

Use: Accompanies Government-furnished material from agencies. 
XVII–18 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 1815, “Notice of Quality Defects.” 

Purpose: Documents quality defects discovered at destination. 

Use: Agency notification to Contracting Officer of product defects. 
 PROCUREMENT FORMS XVII–19 

GPO Form 2153, “Instruction to Printing Contractors as to the Use of Bills of Lading.” 

Purpose: These instructions are for the completion of Government Bills of Lading. 

Use: Furnished to contractor for fulfilling customer agency consignments of bulk shipments. 
XVII–20 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 2459, “Control and Informational Jacket.” (Also known as “Red Jacket.”) 

Purpose: Documents the information from the requisition. Identifies work to be accomplished against that job. 

Use: Used in Central Office only. A jacket number shall be assigned and placed on the form with other pertinent information 

such as: Title, name of department, requisition number, quantity and list of riders, instructions for preliminary work in GPO, and 

schedule for preliminary work in GPO. 
 PROCUREMENT FORMS XVII–21 

GPO Form 2511, “Print Order.” 

Purpose: Authorizes work to be performed on term contract. 

Use: This form is completed by the requesting agency, or by GPO procurement office when jobs are converted from a 

requisition to a print order to be placed on a term contract. See Chapter XIII. 
XVII–22 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 2524, “Solicitation Mailing List Application.” 

Purpose: Enables the procurement office to establish and maintain a current bidders list. 

Use: This form is provided online and is completed by interested firms. Pertinent information shall be entered into ABLS 

including the following information: contractor’s code number (assigned by GPO), contractor’s name and address, equipment 

available, appropriate category (offset, color, multiforms, etc.). 
 PROCUREMENT FORMS XVII–23 

GPO Form 2669, “Purchase Order.” 

Purpose: Serves as the formal award document. 

Use: After certification, the appropriate documents are compiled by the certifier for preparation of the purchase order. The 

purchase order is signed by the Contracting Officer and appropriate distribution is made. See Chapter XII for details. 
XVII–24 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 2672, “Certificate of Appointment.” 

Purpose: Officially documents the appointment of an individual as a Contracting Officer. 

Use: When a nomination is approved, the Managing Director, Customer Services, signs this form appointing an individual as a 

Contracting Officer. 
 PROCUREMENT FORMS XVII–25 

GPO Form 2673, “Appointment of Contracting Officer.” 

Purpose: Provides a format for nominating an individual for appointment as a Contracting Officer. 

Use: This face and back form is prepared by the appropriate official and signed by the Managing Director, Customer Services. 
XVII–26 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 2678, “Departmental Random Copies (Blue Label).” 

Purpose: Identifies the carton containing the random inspection samples of a finished product. 

Use: This label is furnished to contractors to be affixed to the carton containing random inspection samples. The carton 

containing the samples is the last to be used by the customer agency. 
 PROCUREMENT FORMS XVII–27 

GPO Form 2686, “Quality Assurance Random Copies—Sampling/Shipping Instructions.” 

Purpose: Provides contractor with a sampling plan and shipping instructions for the randomly sampled copies. 

Use: These instructions are provided to contractors at the time of award. 
XVII–28 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 2692, “Contract Compliance Section Letter.” 

Purpose: Provides contractor with its performance history on record at the GPO in the event of disputed contractor 

nonperformance. 

Use: This letter is sent to a contractor after all facts have been considered. 
 PROCUREMENT FORMS XVII–29 

GPO Form 2761, “Operations Checklist.” 

Purpose: Provides a list of performance required. 

Use: This form is maintained in the contract folder. 
XVII–30 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 3001, “GPO Express Participation Request.” 

Purpose: Provides GPO customers with a uniform application to start or renew an account in GPO Express. 

Use: This form is provided to any GPO customer seeking new or extended participation in GPO Express. 
 PROCUREMENT FORMS XVII–31 

GPO Form 3868, “Notification of Intent to Publish.” 

Purpose: Alerts Superintendent of Documents to publications to be printed. 

Use: Assists Superintendent of Documents in consideration of depository library and sales copies. 
XVII–32 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 4044, “Simplified Purchase Agreement Work Order.” 

Purpose: Authorizes a contractor to manufacture and ship products to a GPO customer. 

Use: This form allows a GPO customer to order products directly from a contractor. 
 PROCUREMENT FORMS XVII–33 

GPO Form 4045, “Deposit Account (Printing and Binding).” 

Purpose: Provides GPO customers with a uniform format for deposit account transactions. 

Use: This form provides GPO customers a means to utilize and track their funding. 
XVII–34 GPO PRINTING PROCUREMENT REGULATION 

GPO Form 4046, “Billing Address Code (BAC) Request.” 

Purpose: Provides GPO customers with a uniform format to advise billing information. 

Use: This form provides GPO the accounting information needed to bill agency customers. 
 PROCUREMENT FORMS XVII–35 

GPO Pub. 300.3, “Billing Instructions.” 

Purpose: Provides contractor instructions to assist in processing vouchers and expediting payments. 

Use: This form is provided online and upon request to the Bid Section and shall be referenced in the specifications, as applicable.
XVII–36 GPO PRINTING PROCUREMENT REGULATION 

Standard Form 1, “Printing and Binding Requisition.” 

Purpose: The only authorized format for submission of printing and binding requirements from Government agencies. 

Use: The form shall be reviewed to ensure compliance with Office of Management and Budget regulations governing printing 

for agencies in the Executive Branch. Requisitions are serially numbered by the agency. The numbers may be prefixed by the 

standard abbreviation of each procurement office. 
 PROCUREMENT FORMS XVII–37 

Standard Form 25, “Performance Bond.” 

Purpose: Provides a format for an executed performance bond. 

Use: This face and back form is completed and executed by the successful offeror, when a performance bond is required by the 

solicitation. Four copies of the form are provided to the successful offeror for completion within a specified time. 
XVII–38 GPO PRINTING PROCUREMENT REGULATION 

Standard Form 28, “Affidavit of Individual Surety.” 

Purpose: Provides a means for determining the acceptability of individuals proposed as sureties on bonds. 

Use: This form is executed by each individual surety. Copies are provided upon request. 
 PROCUREMENT FORMS XVII–39 

Standard Form 98, “Notice of Intention to Make a Service Contract and Response to Notice.” 

Purpose: Notifies Department of Labor of the intention to make a service contract. 

Use: This form is prepared by the Contracting Officer to provide advance notice of a service contract and obtain a wage and 

benefit determination from the Department of Labor. 
XVII–40 GPO PRINTING PROCUREMENT REGULATION 

 

Standard Form 1034, “Public Voucher for Purchases and Services Other Than Personal.” 

Purpose: Accounts for expenses made in performance of contract. 

Use: This form is completed by the contractor. A blank form is provided with other materials upon notification of award. 

Instructions for completion of the form are contained in the Billing Instructions, GPO Publication 300.3. 
 PROCUREMENT FORMS XVII–41 

Standard Form 1103, “U.S. Government Bill of Lading.” 

Purpose: U.S. Government contract for carriage. 

Use: Furnished to the contractor for fulfilling the customer agency consignments of bulk shipments. 
XVII–42 GPO PRINTING PROCUREMENT REGULATION 

Wage Hour Publication 1313, “Employee Rights on Government Contracts.” 

Purpose: Explains the applicability of the Walsh-Healey Public Contracts Act and the Service Contract Act of 1965 and 

provides instructions for display of the poster. It advises employees of their benefits under the two Acts. 

Use: This face and back form is provided to the contractor and shall be referenced in the specifications, if applicable.