Last revised (Transmittal 14-021) December 1, 2023

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 1: Overview 

§ 110 Overview

§ 110.10 Purpose

§ 110.20 Scope

§ 110.30 Authority

§ 110.40 Applicability

§ 110.50 Definitions

§ 110.55 Application of Dollar Thresholds

§ 110.60 Uniform Contract Format

§ 110.70 Solicitation Provisions and Contract Clauses

§ 110.80 Previous Guidance

§ 120 Delegation of Procurement Authority

§ 120.10 Overview

§ 120.20 Authorized Delegations

§ 120.30 Types of Delegation

§ 120.40 Special Program Delegation

§ 130 Procurement

§ 130.10 Overview

§ 130.20 Procurement Statutes

§ 130.30 Procurement Oversight

§ 130.40 Procurement Liaison Officers

§ 130.50 Contracting Officers

§ 140 Contracting Officers Certification Program

§ 140.10 Overview

§ 140.15 Certification Level Overview

§ 140.20 Level 1 Certification: Purchase Card Program

§ 140.25 Level 2 Certification: Special Program Delegation

§ 140.30 Level 3 Certification: General Delegation

§ 140.40 Level 5 Certification: General Delegation

§ 140.45 Level 6 Certification: General Delegation

§ 140.50 Level 7 Certification: General Delegation

§ 140.55 Training

§ 140.60 Continuing Education

§ 150 Procurement Integrity and Ethics

§ 150.10 Overview

§ 150.20 Procurement Integrity Act

§ 150.30 Conflicts of Interest
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 2 

§ 150.40 Standards of Conduct

§ 150.50 Gratuities or Gifts

§ 160 Ratification

§ 160.05 Definitions

§ 160.10 Overview

§ 160.15 Authority to Ratify

§ 160.20 Procedures to Request Ratification

§ 160.25 Criteria for Approving Ratification Requests

§ 160.30 Who May Authorize Ratification

§ 160.35 Ratification Actions by CO

§ 160.40 Non-Ratifiable Unauthorized Commitments

§ 160.45 Reporting Requirement

§ 160.50 Employee Consequences

§ 170 Release of Information

§ 170.10 Judiciary Policy

§ 170.20 Awarded Contracts

§ 170.30 Internal Documents

§ 170.40 Obtaining Guidance

§ 170.50 Unsuccessful Proposals

§ 170.60 Debriefing

§ 170.70 Clause

Appendices

Appx. 1A Uniform Contract Format

Appx. 1B Solicitation Provisions and Contract Clauses

Appx. 1C Matrix of Solicitation Provisions and Clauses (Including Key)

Appx. 1D Contracting Officers Certification Program (Level 1: Purchase Card Program)

Appx. 1E Contracting Officers Certification Program (Level 2: Special Program 

Delegation)

Appx. 1F Contracting Officers Certification Program (Level 3)

Appx. 1K Required Training by Certification Level (Contracting Officers Certification 

Program)

§ 110 Overview

§ 110.10 Purpose

This volume establishes the procurement program for the federal judiciary, except as 

specified below in § 110.20 (Scope).
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 3

§ 110.20 Scope

(a) Information contained in this volume covers only procurement policies and 

procedures.

(b) This volume does not apply to the following:

(1) Procurement of printing services. See: Guide, Vol. 23, Ch. 2 

(Printing).

(2) Leasing of vehicles, which generally must be accomplished through 

GSA’s Fleet Management Program.

(3) Placement and administration of Reimbursable Work Authorizations 

(RWAs) with GSA. See: Guide, Vol. 16 (Space and Facilities).

(4) Purchases made using non-appropriated funds (i.e., AttorneyAdmission Funds, sometimes called “library funds” or “bench-andbar” funds). See: Guide, Vol. 4, § 660 (Attorney Admissions).

(c) Questions related to programmatic policies and procedures not specifically 

provided in this volume should be directed to the respective AO program 

office. For example, questions about cost ceilings for furniture 

procurements should be directed to the AO’s Space and Facilities 

Division, which is responsible for Guide, Vol. 16 (Space and Facilities), 

where those policies are published.

(d) Questions related to budget and funding policies and procedures, such as 

whether appropriated funds may be used for a specific purchase, or the 

appropriate use of specific budget object codes, should be directed to the 

AO’s Budget Division.

Exception: Federal public defender organizations should direct such 

queries to AO’s Defender Program Operations Division.

§ 110.30 Authority

Under 28 U.S.C. § 604(a)(10), the AO Director (Director) is the administrative officer of 

the courts, and under the supervision and direction of the Judicial Conference of the 

United States, is authorized to:

• “purchase, exchange, transfer, distribute, and assign the custody of law 

books, equipment, supplies, and other personal property for the judicial 

branch of Government (except the Supreme Court. . .)[.];
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 4

• provide or make available readily to each court appropriate equipment for the 

interpretation of proceedings in accordance with [28 U.S.C. § 1828]; and

• enter into and perform contracts and other transactions upon such terms as 

the Director may deem appropriate as may be necessary to the conduct of

the work of the judicial branch of Government (except the Supreme 

Court. . .)[.]”

§ 110.40 Applicability

(a) This volume applies to the following judiciary organizations:

• all United States courts and their subordinate organizations except as 

noted in § 110.40(b);

• the Federal Judicial Center, except for research projects and other 

services, including the procurement of personal services;

• the Judicial Panel on Multidistrict Litigation (JPML);

• the Foreign Intelligence Surveillance Court;

• the Federal Public Defender Organizations (FPDOs);

• the Administrative Office of the United States Courts (AO); and

• all other judiciary organizations and programs within the scope of the 

authority of the Director of the AO, except as noted in § 110.40(b).

(b) This volume does not apply to the:

• United States Supreme Court,

• United States Sentencing Commission, or

• community defender organizations (unless specified by the terms of 

the individual grant agreement).

§ 110.50 Definitions

See: Glossary of Procurement Terms.

§ 110.55 Application of Dollar Thresholds

(a) Various dollar thresholds appear throughout Volume 14 and determine 

applicability of requirements such as which clauses and provisions must 
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 5

be included, whether competition is required, advertising requirements, 

and whether formal contracting procedures must be followed. These 

dollar thresholds always apply to the original contract award, but apply to 

modifications only to the extent that the modification is not within the 

scope of the original contract.

(b) For purposes of determining whether a specific procurement is or is not in 

excess of any specified dollar threshold, the dollar value used must 

represent the full amount of the procurement award, including shipping 

and installation costs, if applicable, as well as the estimated value of all 

contract options that might apply to that procurement. For additional 

information about contract options, see: Guide, Vol. 14, § 220.40 

(Options).

§ 110.60 Uniform Contract Format

The Uniform Contract Format is required for open market solicitations and awards in 

excess of $100,000. This format is optional for other types of solicitations and awards. 

See: Appx. 1A (Uniform Contract Format).

§ 110.70 Solicitation Provisions and Contract Clauses

For the contract provisions and clauses referenced in this volume, see: Appx. 1B 

(Solicitation Provisions and Contract Clauses).

For a quick reference matrix of contract provisions and clauses referenced in this 

volume, providing guidance as to when specific clauses/provisions are required, 

whether the specific clause/provision may be incorporated by reference or not, and 

which section of the Uniform Contract Format should include each clause/provision, 

see: Appx. 1C (Matrix of Solicitation Provisions and Clauses (Including Key)).

§ 110.80 Previous Guidance

All previous editions of the Guide are superseded by information in this volume.

§ 120 Delegation of Procurement Authority

§ 120.10 Overview

§ 120.10.10 Authority to Contract and Delegate

The Director of the AO has been granted procurement authority under 28 U.S.C. 

§ 604(a)(10)(c), with the power to delegate and to authorize successive redelegation as 

the Director may deem desirable. See: § 130.20.25 (Authorization for Contracting and 

Delegating).
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 6

§ 120.10.20 Conditions of Delegations

All delegations and authorities related to judiciary procurement are given by the Director 

conditional on adherence to the limitations and guidelines provided in the Guide.

§ 120.20 Authorized Delegations

§ 120.20.10 Director Delegations

(a) Delegation to the Procurement Executive

The Director has delegated unlimited judiciary procurement authority, 

within the applicable statutory requirements, to the Chief of the 

Procurement Management Division (PMD), as the judiciary’s Procurement 

Executive (PE). The AO’s PMD is a part of the Finance and Procurement 

Office (FPO). This delegation includes the responsibility for publishing 

and maintaining judiciary-wide procurement policies, manuals, 

procedures, etc., and conducting judiciary procurement program reviews.

(b) Delegation to Chief Judges and Certain Judiciary Officials

(1) The Director has delegated procurement authority within the limits 

described in Levels 1, 2 and 3 of the Contracting Officers 

Certification Program (COCP) to the following judiciary officials:

• chief judges,

• federal public defenders (FPDs),

• the Chair of the JPML, and

• the Director of the FJC.

Such authority may be exercised to procure products and services 

within the provisions of the Guide, Procurement Manuals, and 

Procurement Bulletins. This authority may be redelegated 

consistent with this chapter of the Guide. See also: § 140 

(Contracting Officers Certification Program).

(2) This general delegation does not include any of the following 

actions, which must be forwarded to PMD for coordination and 

response:

• responses to protests at any level;

• decisions on disputes arising out of, or pertaining to, 

procurement actions; or
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 7

• ratifications of unauthorized procurement actions above 

delegated limits. See also: § 160 (Ratification).

(c) See also:

• Authority to Contract and Delegate (§ 120.10.10)

• Chief Judges and Other Judiciary Officials (§ 120.20.40)

• Procurement Executive (§ 120.20.30)

• Procurement Oversight (§ 130.30)

• Procurement Liaison Officers (§ 130.40)

• Contracting Officers (§ 130.50)

• Contracting Officers Certification Program (§ 140)

§ 120.20.30 Procurement Executive

(a) The PE is authorized to redelegate any level of COCP procurement 

authority to AO personnel who possess the applicable qualifications.

(b) The PE, or the PE delegate within PMD, may also provide one-time 

delegations of procurement authority to judiciary organization contracting 

officers when required for a specific situation not otherwise in their 

authority, and may take other actions as provided in this chapter of the 

Guide, Procurement Manuals, and Procurement Bulletins. See also: 

§ 140 (Contracting Officers Certification Program).

§ 120.20.40 Chief Judges and Other Judiciary Officials

Chief judges and other certain judiciary officials identified at § 120.20.10(b) (Delegation 

to Chief Judges and Certain Judiciary Officials) are authorized to redelegate oversight 

and procurement authority to a Procurement Liaison Officer (PLO), in compliance with 

the limitations specified in the COCP, with the PLO having authority to redelegate 

procurement authority to contracting officers (COs).

§ 120.20.45 Contracting Officers

Contracts may be entered into and signed on behalf of the judiciary only by contracting 

officers, appointed according to the requirements of the Contracting Officers 

Certification Program (COCP) as described in this chapter of the Guide. In addition, 

contracting officers may bind the judiciary only to the extent of the authority delegated to 

them. Contracting officers must ensure that all requirements of law, judiciary policy and 

regulations, including required approvals, are met when entering into contracts. 

Information on the limits of an individual contracting officer’s authority must be provided 

upon request.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 8

§ 120.20.50 Procurement Authority under Exceptional Circumstances

A judiciary organization may encounter a procurement that is outside any aspect of its 

delegated authority and certification level (described in § 140 (Contracting Officers 

Certification Program)). Also, a judiciary organization may be in a situation where the 

only CO is no longer available due to prolonged absence, resignation, etc., and a new 

CO has not yet been assigned or certified as eligible for appointment. The following 

possible solutions are available:

(a) If the procurement is outside the delegated authority a one-time delegation 

of authority may be requested from PMD to conduct and complete the 

procurement. A one-time delegation may contain conditions relating to the 

review of the procurement, or other aspects of the procurement.

(b) The judiciary organization may request that another CO with the proper 

certification conduct the procurement.

(c) The PLO may conditionally appoint a contracting officer for a restricted 

term (not to exceed one year) until all certification training requirements for 

appointment as a CO can be completed.

(d) The PLO may request assistance from PMD for the procurement.

See also: § 140.15 (Certification Level Overview).

§ 120.20.60 Cancellations, Suspensions, and Limitations on Procurement Authority

(a) General

The Director reserves the right to cancel, suspend, or limit delegations of 

procurement authority.

(b) Authority to Cancel, Suspend, or Limit Procurement Authority

Delegations of procurement authority may be canceled, suspended, or 

further limited by the person making the delegation. No cancellation or 

suspension of procurement authority may operate retroactively so as to 

invalidate contracts that were otherwise valid at the time of award.

(c) When Delegations Must be Re-Issued

(1) The general delegation of authority from the Director to chief judges 

and other judiciary officials identified at § 120.20.10(b) (Delegation 

to Chief Judges and Certain Judiciary Officials) is delegated to the 

position and is not required to be re-issued by the Director upon 

appointment of a new person to any of the named positions.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 9

(2) A delegation of PLO authority is not required to be re-issued upon 

appointment of a new chief judge, FPD, JPML Chair, or FJC 

Director, unless a different person is being appointed as PLO.

(3) The appointment of a new PE or PLO automatically voids the CO 

delegation(s) made by the prior PE or PLO. The new PE or PLO 

must issue new CO delegation(s). Where a PLO has also been 

appointed as a COCP contracting officer at any level, although the 

PLO delegation is not required to be re-issued, the contracting 

officer delegation is automatically voided by appointment of a new 

chief judge, FPD, JPML Chair or FJC Director, and must be reissued for the individual to continue to act as a contracting officer.

§ 120.30 Types of Delegation

§ 120.30.10 General Delegation

The Director has made a broad general delegation of procurement authority to chief 

judges and other judiciary officials. See: § 120.20.10(b) (Delegation to Chief Judges 

and Certain Judiciary Officials).

§ 120.30.20 Specific Delegation

The Director has made specific delegations for certain special programs, which include 

conditions and limitations for each of the programs. Specific delegations may exceed 

the dollar limitations of the general delegation and have specific procedures that must 

be followed. See also: § 120.40 (Special Program Delegation).

§ 120.30.30 One-Time Delegation

Occasionally, there may be a need to exceed the general or special delegations, or to 

waive a specific limitation and/or condition. The PLO must forward any such requests in 

writing to PMD. Requests will be considered based on the situation and the best 

interest of the judiciary on a case-by-case basis.

§ 120.30.40 Documentation of Authorized Delegations and Redelegations

All delegations and redelegations of procurement authority must be documented in the 

central administrative file that would contain copies of all procurement delegations for 

the PLO and COCP Level 1, Level 2, and Level 3 delegations, and must:

(a) Be current (using Form AO 374 (Delegation of Procurement Liaison 

Officer) or Form AO 375 (Procurement Liaison Officer's Appointment of 

Contracting Officer));
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 10

(b) Specify any restrictions to the types of products or services the individual 

may purchase that are in addition to the limits of the COCP level for which 

the individual is appointed;

(c) Specify the dollar limitation of those purchases, if less than the applicable 

COCP level to which the individual is appointed;

(d) Be entered into the Procurement Delegation System established in 

InfoWeb; and

(e) Be provided to the delegate.

§ 120.40 Special Program Delegation

§ 120.40.10 Purpose

This section identifies the applicable specific statutory authority, if any, and establishes 

the policies and procedures required under each of the special programs. See also: 

§ 140.25 (Level 2 Certification: Special Program Delegation).

§ 120.40.15 AO Office with Primary Program Responsibility

The table below defines the special program delegations and the AO office with primary 

programmatic responsibility for each one.

§ 120.40.15 AO Office with Primary Program Responsibility

Program Responsibility

Copy Center Services Chief, Court Services Office, Department of Program Services 

Court Interpreter Services Chief, Court Services Office, Department of Program Services 

Court Reporting Services Chief, Court Services Office, Department of Program Services 

Law Books Chief, Court Services Office, Department of Program Services

Residential Halfway House 

Services

Chief, Probation & Pretrial Services Office, Department of 

Program Services

Second Chance Act 

Products and Services

Chief, Probation & Pretrial Services Office, Department of 

Program Services

Treatment Services Chief, Probation & Pretrial Services Office, Department of 

Program Services

GSA Building Delegations Chief, Facilities and Security Office, Department of 

Administrative Services
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 11

§ 120.40.15 AO Office with Primary Program Responsibility

Program Responsibility

FPDO Case-Related Expert 

or Consultant Services

Chief, Defender Services Office

§ 120.40.20 Level 2 Certification Requirement and Duties

After completion of COCP Level 2 training, the PLO will issue a written COCP Level 2 

certification to individuals with procurement responsibilities for any of the programs 

listed at § 120.40.15 (AO Office with Primary Program Responsibility). The certification 

will identify which specific program(s) have been delegated to the individual. See also: 

§ 140.25 (Level 2 Certification: Special Program Delegation).

§ 120.40.25 Copy Center Services

(a) Delegation of Authority

The Director has delegated unlimited procurement authority to chief 

judges for redelegation to PLOs, with authority to redelegate to COs, to 

execute copy center licensing agreements, subject to the requirements for 

this procurement program.

(b) Limitations of Delegation

License Agreements for copy center services may be awarded only 

according to the procurement manual, Copy Center License Agreements.

(c) Training Requirements

This COCP Level 2 authority may be exercised only after completing 

Small Purchase Procedures, Standard Competitive Contracting 

Procedures, Special Categories of Procurements, and Appropriations Law 

for the U.S. Courts (all are available online), and any specialized training 

programs offered by the responsible AO program office.

See also: § 140.25 (Level 2 Certification: Special Program Delegation).

§ 120.40.30 Court Interpreter Services

(a) Authority

Under 28 U.S.C. § 1827, the Court Interpreters Act requires the Director of 

the AO to “establish a program to facilitate the use of certified and 

otherwise qualified interpreters in judicial proceedings instituted by the 

United States.”
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 12

(b) Delegation of Authority

The Director has delegated unlimited procurement authority to chief 

judges for redelegation to PLOs, who may redelegate to COs, subject to 

the requirements for this procurement program.

(c) Limitations of Delegation

Agreements for court interpreter services may be awarded only according 

to the procurement manual, Instructions and Procedures for Locating and 

Procuring Contract Court Interpreter Services.

(d) Training Requirements

This COCP Level 2 authority may be exercised only after completing 

Small Purchase Procedures, Standard Competitive Contracting 

Procedures, Special Categories of Procurements, and Appropriations Law 

for the U.S. Courts (all are available online), and any specialized training 

programs offered by the responsible AO program office.

See also: § 140.25 (Level 2 Certification: Special Program Delegation).

§ 120.40.35 Court Reporting Services

(a) Authority

Under 28 U.S.C. § 753(g), if the circuit judicial council determines that the 

number of court reporters provided to a court is insufficient to meet 

temporary demands, additional court reporters may be provided on a 

contract basis. “[T]he Director of the Administrative Office is authorized to 

and shall contract, without regard to § 3709 of the Revised Statutes of the 

United States, as amended (41 U.S.C. § 6101), with any suitable person, 

firm, association, or corporation for the providing of court reporters to 

serve such district court under such terms and conditions as the Director 

of the Administrative Office finds. . .after consultation with the chief judge 

of the district court. . .will best serve the needs of such district court.”

(Note: For these purposes, bankruptcy courts are part of the district courts.)

(b) Delegation of Authority

The Director has delegated unlimited procurement authority to chief 

judges for redelegation to PLOs, for redelegation to COs, to execute 

agreements for court reporting services, subject to the requirements for 

this procurement program.

(c) Limitations of Delegation
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 13

Agreements for court reporting services may be awarded only according 

to the procurement manual, Instructions and Procedures for Locating and 

Procuring Contract Court Reporting Services.

(d) Training Requirements

This COCP Level 2 authority may be exercised only after completing 

Small Purchase Procedures, Standard Competitive Contracting 

Procedures, Special Categories of Procurements, and Appropriations Law 

for the U.S. Courts (all are available online), and any specialized training 

programs offered by the responsible AO program office.

See also: § 140.25 (Level 2 Certification: Special Program Delegation).

§ 120.40.40 Law Books

(a) Authority

Under 28 U.S.C. § 604(a)(10), the Director is the administrative officer of 

the courts, and under the supervision and direction of the Judicial 

Conference of the United States, is authorized to “purchase, exchange, 

transfer, distribute, and assign the custody of law books. . .for the judicial 

branch of Government (except the Supreme Court. . .)[.]”

(b) Delegation of Authority

The Director has delegated procurement authority for legal research 

materials to chief judges of the United States courts of appeals for 

redelegation to circuit librarians as follows:

• up to $100,000 per transaction for the open market and sole source 

purchase of legal research materials;

• unlimited authority when purchasing against established contracts.

Note: A one-time delegation of procurement authority is required for any 

open market or sole source purchase exceeding $100,000. See: 

§ 120.30.30 (One-Time Delegation).

(c) Required Programmatic Approvals

Approval by the Chief of the Court Programs Division, Court Services 

Office, AO’s Department of Program Services, is required for:

• the purchase of online resources in excess of $25,000, and 

• the purchase of printed materials in excess of $100,000.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 14

See also: Guide, Vol. 21 (Legal Research Resources).

(d) Training Requirements

This COCP Level 2 authority may be exercised only after completing 

Small Purchase Procedures, Standard Competitive Contracting 

Procedures, Special Categories of Procurements, and Appropriations Law 

for the U.S. Courts (all are available online), and any specialized training 

programs offered by the responsible AO program office.

See also: § 140.25 (Level 2 Certification: Special Program Delegation).

§ 120.40.45 Residential Halfway House Services

(a) Authority

Under 18 U.S.C. § 3152(a), the Director must provide, by contract or 

otherwise, for the establishment of pretrial services in each judicial district, 

including the “operation of appropriate facilities for the custody or care of 

persons released under this chapter including residential halfway houses, 

addict and alcoholic treatment centers, and counseling services[.]” 

18 U.S.C. § 3154(4).

(b) Delegation of Authority

The Director has delegated unlimited procurement authority to chief 

judges of the United States district courts, for redelegation to PLOs, who 

may redelegate to COs, subject to the requirements for this procurement 

program.

(c) Limitations of Delegation

Agreements for residential halfway house services may be awarded only 

according to the procurement manual, Halfway House Services.

(d) Training Requirements

This COCP Level 2 authority may be exercised only after completing 

Small Purchase Procedures, Standard Competitive Contracting 

Procedures, Special Categories of Procurements, and Appropriations Law 

for the U.S. Courts (all are available online), and any specialized training 

programs offered by the responsible AO program office.

See also: § 140.25 (Level 2 Certification: Special Program Delegation).
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 15

§ 120.40.50 Treatment Services

(a) Authority

Under 18 U.S.C. § 3672, the Director has “the authority to contract with 

any appropriate public or private agency or person for the detection of and 

care in the community of an offender who is an alcohol-dependent person, 

an addict or a drug-dependent person, or a person suffering from a 

psychiatric disorder within the meaning of § 2 of the Public Health Service 

Act. This authority shall include the authority to provide equipment and 

supplies; testing; medical, educational, social, psychological and 

vocational services; corrective and preventative guidance and training; 

and other rehabilitative services designed to protect the public and benefit 

the alcohol-dependent person, addict or drug-dependent person, or a 

person suffering from a psychiatric disorder by eliminating his dependence 

on alcohol or addicting drugs, by controlling his dependence and his 

susceptibility to addiction, or by treating his psychiatric disorder. He may 

negotiate and award [such] contracts. . .without regard to § 3709 of the 

Revised Statutes of the United States.” See: 41 U.S.C. § 6101.

(b) Delegation of Authority

The Director has delegated unlimited procurement authority to chief 

judges of the United States district courts, with authority to redelegate to 

PLOs, who may redelegate to COs, subject to the requirements for this 

procurement program.

(c) Limitations of Delegation

Agreements for treatment services may be awarded only according to the 

procurement manual, Treatment Services.

(d) Training Requirements

This COCP Level 2 authority may be exercised only after completing 

Small Purchase Procedures, Standard Competitive Contracting 

Procedures, Special Categories of Procurements, and Appropriations Law 

for the U.S. Courts (all are available online), and any specialized training 

programs offered by the responsible AO program office.

See also: § 140.25 (Level 2 Certification: Special Program Delegation).

§ 120.40.55 GSA Building Delegations

(a) Delegation of Authority
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 16

Under 40 U.S.C. § 121(d), the Administrator of General Services may 

delegate authority to another “department or agency” to operate, maintain 

or repair a building or facility owned by the General Services 

Administration (GSA). Such building delegations are to the Director for a 

specific court and a specific courthouse. Upon receipt of such a building 

delegation from GSA, the Director issues a delegation of procurement 

authority to the chief judge consistent with the GSA Administrator’s stated 

limitations, with authority for the chief judge to redelegate to PLOs, who 

may redelegate to COs.

(b) Limitations of Delegation

(1) The CO must follow GSA’s guidance, the Federal Acquisition 

Regulation (FAR), and the GSA Regulations (GSAR).

(2) Contracts may be awarded only after obtaining the building 

delegation from GSA. Procurement authority is limited to the types 

of work and dollar levels identified in the GSA building delegation 

agreement.

(c) Training Requirements

This COCP Level 2 authority may be exercised only after completing 

Small Purchase Procedures, Standard Competitive Contracting 

Procedures, Special Categories of Procurements, and Appropriations Law 

for the U.S. Courts (all are available online), and any specialized training 

programs offered by the responsible AO program office.

See also: § 140.25 (Level 2 Certification: Special Program Delegation).

§ 120.40.60 FPDO Case-Related Expert or Consultant Services

(a) Delegation of Authority

The Director has delegated to FPDs procurement authority to obtain caserelated expert or consultant services under 5 U.S.C. § 3109 up to 

$100,000 with authority to redelegate to COs subject to the requirements 

for this procurement program.

(b) Limitations of Delegation

COs must follow the Instructions and Procedures for Procuring CaseRelated Expert or Consultant Services under 5 U.S.C. § 3109 when 

awarding contracts for case-related expert or consultant services under 

5 U.S.C. § 3109. Contracts in excess of $100,000 must be submitted to 

PMD, with AO’s Defender Services Office coordination, for approval.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 17

(c) Training Requirements

This COCP Level 2 authority may be exercised only after completing 

Small Purchase Procedures, Standard Competitive Contracting 

Procedures, Special Categories of Procurements, and Appropriations Law 

for the U.S. Courts (all are available online), and any specialized training 

programs offered by the responsible AO program office.

See also: § 140.30.50 (Training Requirements) and § 140.30 (Level 3 

Certification: General Delegation).

§ 120.40.65 Second Chance Act Products and Services

(a) Authority

(1) Under 18 U.S.C. §§ 3672 and 3154, the Director has authority to 

contract for “treatment, equipment and emergency housing, 

corrective and preventative guidance and training, and other 

rehabilitative services designed to protect the public and promote 

the successful reentry of the offender into the community” as well 

as for the defendant.

(2) The statutes authorize “providing necessary services to 

offenders. . .in a manner that does not confer luxuries or privileges 

upon such offenders” (42 U.S.C. § 17501(a)(4)). Additionally, the 

statutes may not “be construed as creating a right or entitlement to 

assistance or services for any individual, program, or grant 

recipient” (42 U.S.C. § 17504).

(3) Congress intended the authority to be exercised judiciously. Courts

must be careful stewards of resources used under this authority. 

The Judicial Administration and Technical Amendments Act of 

2008, Pub. L. No. 110-406 (October 13, 2008) (JATAA), 

significantly enhanced courts’ ability to provide interventions for 

defendants under 18 U.S.C. § 3154(4). The Act amended 

18 U.S.C. § 3154(4) to include among pretrial services functions 

contracting or expending funds for services “necessary to protect 

the public and ensure that such persons appear in court as 

required.”

(b) Delegation of Authority 

The Director has delegated the following authority to chief judges of the

United States district courts, for redelegation to PLOs, who may 

redelegate to COs, subject to the requirements for this procurement 

program.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 18

(1) Procurement of products and services noncompetitively up to 

$25,000. See: 41 U.S.C. § 6101.

(2) Authority to procure products and services between $25,000 and

$100,000 using open market procedures, in the same manner as 

would be conducted under COCP Level 3. See: Guide, Vol. 14, 

§ 325.20 (Competitive Small Purchase Procedures).

(3) Commercial advance payment authority for emergency and 

transitional housing, child care, and job training related to Second 

Chance Act up to 15% of the total contract. See: 28 U.S.C.

§ 604(g)(4)(C).

(4) Authority to award a contract, purchase order, or blanket purchase 

agreement (BPA) order with administrative fees as a contract line 

item, only for the applicable project codes as specified in the 

Second Chance Act Procurement Manual.

(5) Authority to procure products and services over $100,000, only with 

use of the Second Chance Act Template for Products and Services 

above $100,000; proper procedures must be followed consistent 

with Guide, Vol. 14 (Procurement) and the Second Chance Act 

Procurement Manual.

(c) Limitations of Delegations

COs must follow the Second Chance Act Procurement Manual when 

awarding contracts, BPAs, and purchase card orders for Second Chance 

Act products and services. Contracts in excess of $100,000 must be 

awarded using PMD contract templates.

(d) Training Requirements

This COCP Level 2 authority may be exercised only after completing 

Small Purchase Procedures, Standard Competitive Contracting 

Procedures, Special Categories of Procurements, and Appropriations Law 

for the U.S. Courts (all are available online), and any specialized training 

programs offered by the responsible AO program office.

See also: § 140.25 (Level 2 Certification: Special Program Delegation).
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 19

§ 130 Procurement

§ 130.10 Overview

§ 130.10.10 Policy and Procedure Documentation

All procurement policies, procedures, guidance, and statutes applicable to the judiciary 

are contained in this chapter of the Guide and the following:

(a) Procurement Manuals

Documents that contain “how-to” information on specific procurement 

related topics, and provide “shell” documents for contracts, purchase 

orders, delivery orders, and task orders that may be used by judiciary 

procurement personnel.

(b) Procurement Bulletins

Method for transmitting breaking procurement news. They are issued on 

an as-needed basis in response to procurement-related questions or 

issues that apply to a broad audience.

§ 130.20 Procurement Statutes

§ 130.20.10 General

Statutes related to the special program delegations are provided with each program’s 

description. See: § 120.40 (Special Program Delegation). This section describes 

additional statutes that are applicable to judiciary procurement. In addition to the 

statutes described below, PLOs and COs should be aware of applicable appropriations 

law principles. See also: Guide, Vol. 13, § 220 (Appropriations Law Principles).

§ 130.20.15 Advertising Requirements

Under 41 U.S.C. § 6101, unless otherwise provided in the appropriation concerned or 

other law, purchases and contracts for supplies or services for the government may be 

made or entered into only after advertising for a sufficient time previously for proposals, 

except when:

(a) the amount involved in any one case does not exceed $25,000;

(b) the public exigencies require the immediate delivery of the articles or 

performance of the service;

(c) only one source of supply is available as certified by the government 

purchasing or CO; or
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 20

(d) the services are required to be performed by the contractor in person and 

are:

• of a technical and professional nature, or

• under government supervision and paid for on a time basis.

See also: Guide, Vol. 14, § 315 (Publicizing Open Market Procurement Actions).

§ 130.20.20 Appropriations

(a) Adequate Appropriations Required

Under 41 U.S.C. § 6301, no contract or purchase on behalf of the United 

States may be made unless authorized by law or under an appropriation 

adequate to its fulfillment.

(b) Advance Payments

Under 31 U.S.C. § 3324, a payment under a contract to provide a service 

or deliver an article for the United States government may not be more 

than the value of the service already provided or the article already 

delivered, unless a specific appropriation or other law authorizes an 

advance payment. Limited exceptions exist for commercial contracts. 

See also: 28 U.S.C. § 604(g)(4)(C); Guide, Vol. 14, Ch. 2 (Procurement 

Planning and Preparations) and Ch. 7 (Contract Administration).

(c) Obligations Prior to Available Appropriations and Expenditures in Excess 

of Appropriations

Under 31 U.S.C. § 1341, unless authorized by law, the Anti-Deficiency Act 

prohibits officers or employees of the United States government from:

• involving the government in contracts or obligations for the payment of 

money before an appropriation is made, and

• making or authorizing expenditures or obligations exceeding an 

amount available in an appropriation or fund for the expenditures or 

obligations.

Violations may result in civil or criminal penalties.

§ 130.20.25 Authorization for Contracting and Delegating

(a) Authority to Contract
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 21

The Director of the AO is authorized to “enter into and perform contracts 

and other transactions upon such terms as the Director may deem 

appropriate, as may be necessary to the conduct of the work of the judicial 

branch of Government[.]” 28 U.S.C. § 604(a)(10).

(b) Authority to Delegate

The Director of the AO “may delegate any of the Director's functions, 

powers, duties, and authority (except the authority to promulgate rules and 

regulations) to such officers and employees of the judicial branch of 

Government as the Director may designate, and subject to such terms and 

conditions as the Director may consider appropriate; and may authorize 

the successive redelegation of such functions, powers, duties, and 

authority as the Director may deem desirable. All official acts performed 

by such officers and employees shall have the same force and effect as 

though performed by the Director in person.” 28 U.S.C. § 602(d).

§ 130.20.30 Economy Act Procurements

Under 31 U.S.C. § 1535, the Economy Act authorizes federal agencies to enter into 

mutual agreements to obtain products or services by inter-agency procurement. An 

agency head may approve placing an order with another federal agency for products or 

services if:

• amounts are available,

• the head of the ordering agency or unit decides the order is in the best 

interest of the United States government,

• the agency or unit to fill the order is able to provide or obtain by contract the 

ordered products or services, and

• the agency head decides ordered products or services cannot be provided by 

contract as conveniently or as cheaply by a commercial enterprise.

See also: Guide, Vol. 14, Ch. 5 (Special Categories of Procurements).

§ 130.20.35 Procurement Integrity Act

The Procurement Integrity Act, 41 U.S.C. § 2101, et seq., imposes certain restrictions 

and statutory penalties relative to obtaining/disclosing proposal data as well as 

restrictions on certain employees engaging in employment contracts with and/or 

accepting compensation from contractors after leaving judiciary employment.

See also: § 150 (Procurement Integrity and Ethics).
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 22

§ 130.20.40 Priorities in Obtaining Vending Services

The Randolph-Sheppard Act, 20 U.S.C. § 107, et. seq., requires that federal agencies 

give priority for the operation of vending facilities, including food, beverages or other 

articles or services, such as coin-operated copy machines, to people who are blind.

See also: Guide, Vol. 14, § 310.30 (Randolph-Sheppard Act).

§ 130.20.45 Purchases From Workshops That Employ Blind or Disabled People

The Javits-Wagner-O'Day Act, 41 U.S.C. §§ 8501-8506, requires that federal agencies 

purchase certain products and services from qualified workshops that employ people 

who are blind or severely disabled. The Committee for Purchase from People Who are 

Blind or Severely Disabled administers the Ability One program and determines what 

products and services are covered and their prices.

See also: Guide, Vol. 14, § 310.20 (Workshop for People Who are Blind or Severely 

Disabled).

§ 130.20.50 Procurement of Certain Professional Services

(a) Procurement of Architect-Engineer Services

The Brooks Act, 40 U.S.C. §§ 1101-1104, requires that the government 

publicly announce all requirements for architect-engineer services and 

negotiate contracts for these services based on the demonstrated 

competence and qualifications of prospective contractors to perform the 

services at fair and reasonable prices. See also: Guide, Vol. 14, Ch. 5 

(Special Categories of Procurements).

(b) Procurement of Experts and Consultants

Under 5 U.S.C. § 3109, when authorized by an appropriation or another 

statute, agency heads may procure by contract the temporary (not in 

excess of one year) or intermittent services of experts, consultants, or 

organizations. See also: Guide, Vol. 14, Ch. 5 (Special Categories of 

Procurements).

§ 130.20.55 Labor Statutes Governing Contractor Wages and Benefits

(a) Service Contract Employee Wages and Benefits

Under the Service Contract Labor Standards, 41 U.S.C. § 6701, et seq., 

federal contracts in excess of $2,500, which are principally for services 

furnished by service employees, must include a clause specifying 

minimum monetary wages and fringe benefits, as determined by the 
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 23

Secretary of Labor based on prevailing wages in the specific locality, 

required to be paid to service employees performing the contract.

See also: Guide, Vol. 14, § 332 (Purchase of Services).

(b) Construction Contract Employee Minimum Wages and Benefits

The Davis-Bacon Act, 40 U.S.C. § 3142, requires that federal contracts for 

construction, alteration or repair of public buildings in excess of $2,000 

include a clause specifying minimum wages, as determined by the 

Secretary of Labor based on prevailing wages in the specific locality on 

similar projects, required to be paid to various classes of laborers and 

mechanics.

(c) Supply Contract Employee Minimum Wages and Benefits

The Walsh-Healey Public Contracts Act, 41 U.S.C. § 6501, et seq., 

requires that all federal contracts in excess of $15,000 for the manufacture 

or furnishing of materials, supplies, articles and equipment, include or 

incorporate by reference the Act’s stipulations pertaining to such matters 

as minimum wages, maximum hours, child labor, convict labor, and safe 

and sanitary working conditions.

§ 130.20.60 Energy Efficiency

The Energy Policy Act of 2005, 42 U.S.C. § 8259b, imposes requirements on the 

purchase of energy consuming products to promote energy efficiency.

See also: Guide, Vol. 14, § 220.60 (Energy and Environmental Considerations).

§ 130.20.65 Funding Severable Services Across Fiscal Years

Under 28 U.S.C. § 604(g)(4)(A), the judiciary may obligate funds of the current fiscal 

year for a severable services contract where performance begins in the current fiscal 

year and extends through a period of not more than 12 months.

See also: Guide, Vol. 14, § 220.50.60 (Contracts Crossing Fiscal Years (Annual 

Appropriations)).

§ 130.20.70 Multi-Year Contracts

Under 28 U.S.C. § 604(g)(4)(B), the judiciary may obligate funds of the current fiscal 

year to fully fund a multi-year contract of more than one but not more than five years.

See also: Guide, Vol. 14, § 410.75 (Multi-Year Contracts).
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 24

§ 130.20.75 Judiciary Information Technology Fund

Under 28 U.S.C. § 612, a fund was established for the judiciary “without fiscal year 

limitation for the procurement (by lease, purchase, exchange, transfer, or otherwise) of 

information technology resources for program activities. . .[as well as] expenses, 

including personal services, support personnel in the courts and in the Administrative 

Office of the United States Courts, and other costs, for the effective management, 

coordination, operation, and use of information technology resources[.]”

See also: Guide, Vol. 14, § 510 (Personal Services Contracts).

§ 130.30 Procurement Oversight

§ 130.30.10 Policy

Oversight involves administering and managing the procurement program.

(a) The Director

The Director delegates procurement oversight responsibility to the chief 

judges and other judiciary officials identified at § 120.20.10(b) (Delegation 

to Chief Judges and Certain Judiciary Officials) through this chapter of the 

Guide.

(b) Chief Judges and Other Judiciary Officials

The chief judge or other judiciary official may redelegate oversight 

responsibility for procurements conducted under their authority to a PLO. 

Appointment of multiple PLOs for the same judiciary unit is not authorized.

(c) Procurement Liaison Officers

A PLO may not redelegate oversight responsibilities.

(d) Required Documentation

The redelegation of oversight responsibility to a PLO is effected using the 

Form AO 374 (Delegation of Procurement Liaison Officer).

§ 130.30.20 Procurement Liaison Officer Oversight Responsibilities

Individuals appointed as PLOs have oversight responsibility for administering and 

managing the procurement program throughout their specific judiciary unit. This 

includes complying with this chapter of the Guide, Procurement Manuals, and 

Procurement Bulletins, as well as establishing an internal control program in compliance 

with the Guide, Vol. 11, Ch. 3 (Procurement). Appointment as a PLO does not, in itself, 

constitute authority to act as a contracting officer. See also: § 120.20.45 (Contracting 
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 25

Officers); § 130.40 (Procurement Liaison Officers); § 140.15.30 (Appointment Process 

for PLOs and COs (Levels 1-3)).

§ 130.30.70 Documentation of Procurement Delegations

(a) Procurement delegations must be documented consistent with 

§ 120.30.40 (Documentation of Authorized Delegations and 

Redelegations). See also: § 140.15.30 (Appointment Process for PLOs 

and COs (Levels 1-3)).

(b) Maintenance of Delegation Records

Copies of procurement authority delegations must be maintained and 

current at all times and are subject to audit review. Procurement liaison 

officers should make any additions, deletions, and corrections, and insert 

delegated procurement level(s) for conditionally appointed procurement 

officers and COs. Copies of one-time delegations from PMD must be 

maintained within the relevant contract file. See: § 140.15 (Certification 

Level Overview) and Guide, Vol. 11, § 340.30 (Appropriate Records and 

Documentation).

§ 130.40 Procurement Liaison Officers

§ 130.40.10 Selection

Chief judges and other judiciary officials identified at § 120.20.10(b) (Delegation to Chief 

Judges and Certain Judiciary Officials) should adopt a process by which individuals are 

selected as PLOs. Generally, chief judges designate court unit executives as PLOs.

§ 130.40.20 Appointment Documentation

Every PLO designation must be in writing using Form AO 374 (Delegation of 

Procurement Liaison Officer). When it is desired for a PLO to also be a contracting 

officer, the Form AO 375 (Procurement Liaison Officer's Appointment of Contracting 

Officer) must be used, modifying the form appropriately for signature by the appointing 

chief judge or judiciary official. See also: § 130.40.40 (Training Requirements).

Note: Appointment of a PLO to any COCP level except Level 1 (purchase card) is not 

recommended, due to the separation of duties issues it generates.

§ 130.40.30 Responsibilities

PLO responsibilities include, but are not limited to:

(a) Redelegating procurement authority to contracting officers, subject to 

limitations provided in the Contracting Officers Certification Program 

(COCP), as described in this volume of the Guide.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 26

(b) Procurement planning.

(c) Ensuring separation of duties between personnel who:

• authorize and/or fund purchases;

• award contracts (i.e., purchase orders, delivery orders, task orders, or 

contracts), receive, inspect and accept deliverables, and authorize 

payments; and

• effect payment.

See also: Guide, Vol. 11 (Internal Control).

(d) Ensuring that contract files (i.e., purchase orders, delivery orders, task 

orders, or contracts) are established and maintained.

(e) Limiting access to contract files and related documents to authorized 

judiciary procurement personnel.

(f) Ensuring that procurement actions are signed by personnel with 

procurement authority at the appropriate COCP level.

(g) Ensuring that the contract (i.e., purchase order, delivery order, task order, 

or contract) is issued before receipt of the products or services and that 

receipt, inspection, and acceptance of deliverables are evident before 

payment. The mechanics of this are explained in Guide, Vol. 14, Ch. 7 

(Contract Administration).

(h) Ensuring that funds are available for the purchase and that financial and 

budget guidelines are followed.

(i) Ensuring that the continuing educational requirements of the COCP are 

met by procurement personnel.

(j) Ensuring that procurement personnel have access to the most current 

copy of the Guide, Procurement Manuals, and Procurement Bulletins, and 

that all procurement activities are conducted according to them.

(k) Ensuring that the Procurement Delegation System in InfoWeb is accurate 

and current.

(l) Overseeing procurements conducted under the delegated COCP levels 

for each procurement action. PLOs perform the duties described in this 

chapter. See also: § 130.30.20 (Procurement Liaison Officer Oversight 

Responsibilities).
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 27

§ 130.40.40 Training Requirements

(a) Procurement Liaison Officers Appointed as Contracting Officers

A PLO who also serves as a contracting officer must complete the 

required training for the applicable COCP certification level. See also: 

§ 120.20.45 (Contracting Officers); § 130.30.20 (Procurement Liaison 

Officer Oversight Responsibilities); § 140.55 (Training).

(b) Procurement Liaison Officers Not Appointed as Contracting Officers

Individuals designated as PLOs must complete the online Judiciary 

Executive Procurement Oversight Seminar. They are also encouraged to 

take other training referenced in the COCP.

§ 130.50 Contracting Officers

§ 130.50.10 Applicability

Any reference to COs in the Guide, Procurement Manuals, and Procurement Bulletins 

also applies to conditionally appointed procurement officers.

§ 130.50.20 Appointment

Procurement liaison officers may redelegate procurement authority to as many COs as 

necessary for effective operation. The number of delegated COs and their levels of 

delegated procurement authority should not exceed those levels necessary to meet the 

organization’s needs. All COs must be appointed using Form AO 375 (Procurement 

Liaison Officer’s Appointment of Contracting Officer).

See also: § 130.30.70 (Documentation of Procurement Delegations); § 140 

(Contracting Officers Certification Program).

§ 130.50.30 Assistants

COs may have other judiciary employees help them with actions that do not include 

signing of the contract (i.e., purchase orders, delivery orders, task orders, or contracts). 

Even if other employees are involved in the procurement process, the CO is responsible 

for the correct procurement procedures and for the procurement actions of the 

individuals assisting them. Only the CO has authority to sign the contract (i.e., purchase 

orders, delivery orders, task orders, contracts, or modifications) and bind the judiciary.

§ 130.50.40 Assistant Responsibilities

Assistant responsibilities can include, but are not limited to:

• preparing the requests for offers;
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 28

• conducting market surveys;

• requesting verbal quotes;

• evaluating quotes/offers;

• preparing the purchase orders, delivery orders, task orders, contracts, or 

modifications;

• checking on deliveries or acceptances; and

• checking on payment of vouchers, etc.

§ 140 Contracting Officers Certification Program

§ 140.10 Overview

§ 140.10.10 Purpose

The Contracting Officers Certification Program:

(a) provides judiciary procurement employees with autonomy and flexibility in 

their procurement activities.

(b) specifies seven levels of contracting officer authority that may be 

delegated within judiciary organizations as well as within the PMD staff, 

including authority for special programs. See: § 120.40 (Special Program 

Delegation).

(c) stipulates procurement authority and/or related programmatic 

responsibilities at specified dollar levels based on successful completion 

of training requirements.

(d) formalizes the process that establishes contracting officer authority.

(e) requires compliance with specific certification level requirements as a 

condition to maintain delegated procurement authority.

§ 140.10.20 Scope

The COCP pertains to all forms of procurement conducted within the judiciary ranging 

from purchase card transactions to major contracts.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 29

§ 140.15 Certification Level Overview

§ 140.15.10 Certification Levels

The COCP defines seven levels of contracting officer authority. Within each level, there 

are unique training requirements.

§ 140.15.15 Certification Levels

Certification Level Who may be appointed Who may delegate the authority 

1 Judiciary staff members PE, chief judges, federal public 

defenders (FPDs), JPML Chair, FJC 

Director, and PLOs

2 Judiciary staff members PE, chief judges, FPDs, JPML Chair, 

FJC Director, and PLOs

3 Judiciary staff members PE, chief judges, FPDs, JPML Chair, 

FJC Director, and PLOs

4 [Reserved] [Reserved]

5 Career 1102 procurement 

personnel (AO)

PE

6 Career 1102 procurement 

personnel (AO)

PE

7 Career 1102 procurement 

personnel (AO)

PE

§ 140.15.20 Certification Level Features

Each certification level is distinct with respect to the:

• dollar amount of procurement authority that may be delegated,

• types of procurement actions that may be awarded,

• procurement methods that may be used,

• products and services that may be acquired, and

• training requirements.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 30

§ 140.15.30 Appointment Process for PLOs and COs (Levels 1-3)

Stage Description

1 The chief judge or other judiciary official identified at § 120.20.10(b) (Delegation to 

Chief Judges and Certain Judiciary Officials) selects and appoints a PLO in each 

judiciary unit to administer and manage the procurement program. See: 

§ 130.40.20 (Appointment Documentation).

2 If the PLO is also appointed as a contracting officer, then:

(1) the PLO must complete all training requirements for the applicable COCP 

appointment level, and

(2) the chief judge or other judiciary official identified at § 120.20.10(b) (Delegation 

to Chief Judges and Certain Judiciary Officials) issues a separate delegation to 

the PLO using Form AO 375 (Procurement Liaison Officer's Appointment of 

Contracting Officer). A PLO cannot appoint him/herself as a CO.

The PLO enters this information into InfoWeb Procurement Delegation System.

3 The PLO selects and appoints one or more individuals as a CO at COCP levels 1, 2, 

or 3. The PLO can appoint a CO to more than one of the aforementioned levels, 

provided they complete the associated training for those levels. See also: 

§ 130.40.30 (Responsibilities).

4 The following describes how new or newly assigned employees are appointed to 

exercise procurement authority at COCP levels 1 through 3.

IF the new or newly 

assigned employee is 

assigned duties at...

THEN the...

COCP Level 1 (1) PLO completes and signs the top portion of the Form 

AO 375 (Procurement Liaison Officer’s Appointment 

of Contracting Officer).

(2) Proposed CO completes and signs the bottom portion 

of the Form AO 375 (Appointed Individual’s 

Acknowledgment) and Form AO 377 (Cardholder 

Certification), then submits both to the PLO.

(3) PLO provides the original Form AO 375 to the CO and 

places a copy in the oversight files. The PLO updates 

the InfoWeb Procurement Delegation System.

COCP Level 2 or 3 (1) PLO completes and signs the top portion of the Form 

AO 375 (Procurement Liaison Officer's Appointment 

of Contracting Officer).
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 31

§ 140.15.30 Appointment Process for PLOs and COs (Levels 1-3)

Stage Description

Note: For a conditionally appointed procurement officer 

who has not completed all required training, the PLO 

should cross out “I have completed the training required...” 

and write “pending training completion.” A conditionally 

appointed procurement officer must complete distance 

training within two months of being appointed and any 

required instructor-led training within one year.

(2) Proposed CO or procurement officer completes and 

signs the bottom portion of Form AO 375 (Appointed 

Individual’s Acknowledgment).

(3) PLO provides the original Form AO 375 to the CO and 

places a copy in the oversight files. The PLO updates 

the InfoWeb Procurement Delegation System.

5 As part of routine financial audits, the Office of Audit reviews procurement actions 

undertaken by the CO or conditionally appointed procurement officer. Unsatisfactory 

audit, assessment, or review findings can result in the withdrawal of an individual’s 

CO appointment or cancellation of the interim procurement officer authority. 

Remedies for this situation will be recommended on a case-by-case basis.

§ 140.20 Level 1 Certification: Purchase Card Program

§ 140.20.10 Scope

COCP Level 1 is specific to the judiciary purchase card program.

§ 140.20.20 Authority

A contracting officer with a higher level appointment does not automatically have Level 

1 procurement authority. Individuals must be specifically certified and appointed at 

Level 1 to use the judiciary purchase card. Additional guidance on the use of the

judiciary purchase card is provided in the Judiciary Purchase Card Program Manual.

§ 140.20.30 Level 1 Delegation

A delegation of Level 1 authority includes use of the judiciary purchase card for:

• open market procurements, with or without competition, up to $10,000 per 

purchase,

• orders placed under GSA federal supply schedules up to GSA’s defined 

competition threshold (see: Guide, Vol. 14, § 310.50.43 (Ordering 
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 32

Procedures for Supplies and Services Not Requiring a Statement of Work)), 

and

• orders placed under judiciary-wide contracts or blanket purchase agreements

(BPA) up to the specified maximum order threshold of the contract or BPA 

when the contract or BPA does not require competition, and explicitly 

authorizes orders to be placed using the purchase card.

Note: These limits apply only to use of the card as both purchase and payment method 

when no other written contract exists. They do not apply when the card is used solely 

for payment of a written contract signed by a higher level COCP contracting officer and 

awarded under conventional contracting procedures. Such contracts must include 

Clause 7-145, Government Purchase Card, specifically authorizing payment to be made 

using the card. See: Judiciary Purchase Card Program Manual, Section 1.6 General 

Guidelines for Use of the Card.

§ 140.20.40 Training Requirements

To be eligible for appointment as a Level 1 CO, individuals must complete the online 

Judiciary Purchase Card Program Training, and repeat the online course every two 

years.

See also: Appx. 1D (Contracting Officers Certification Program (Level 1: Judiciary

Purchase Card Program)); Judiciary Purchase Card Program Manual.

§ 140.25 Level 2 Certification: Special Program Delegation

§ 140.25.10 Scope

COCP Level 2 is specific to the judiciary's special programs.

§ 140.25.20 Authority

A contracting officer with a higher level certification does not automatically have Level 2 

certification. Individuals must be specifically certified at Level 2 for the specific special 

program to procure under this authority. The individual may hold several Level 2 

certifications corresponding to each specific special program for which the individual is 

appointed.

§ 140.25.30 Level 2 Delegation

A delegation of Level 2 authority is program-specific (court reporting, court interpreters, 

halfway houses, etc.). See also: § 120.40 (Special Program Delegation).

§ 140.25.40 Training Requirements

To be eligible for appointment as a Level 2 CO, individuals must complete:
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 33

• Small Purchase Procedures,

• Standard Competitive Contracting Procedures,

• Special Categories of Procurements,

• Appropriations Law for the U.S. Courts, and

• any specialized training program offered by the responsible program office 

(see: § 120.40.15 (AO Office with Primary Program Responsibility)).

See also: Appx. 1E Contracting Officers Certification Program (Level 2: Special 

Program Delegation).

§ 140.25.50 Required Contract Documents

Approved contracting document templates, as applicable to each program, must be 

used. Program policies, procedures, and document templates are available in the JNet 

Procurement area.

§ 140.30 Level 3 Certification: General Delegation

§ 140.30.10 Scope

COCP Level 3 is the broadest grant of authority available to judiciary employees who 

are not career procurement personnel in the 1102 job series.

§ 140.30.20 Authority

A delegation of Level 3 authority covers the award of purchase orders and contracts 

within the limits defined below and as summarized in Appx. 1F (Contracting Officers 

Certification Program (Level 3)). Level 3 authority is not inclusive of Level 1 purchase 

card authority or any Level 2 authority. However, the Form AO 375 (Procurement 

Liaison Officer’s Appointment of Contracting Officer) may be annotated to indicate 

inclusion of these levels of authority, provided the appointed individual has met the 

training requirements for Level 1 or Level 2, as well as the requirements for Level 3.

§ 140.30.30 Level 3 Delegation

A delegation of Level 3 authority includes:

(a) Open market procurements, with or without competition, up to $10,000 per 

purchase. As noted above, this delegation does not include COCP Level 

1 purchase card procurement authority, unless the individual has 

completed the training requirements for Level 1 and the AO-375 

specifically delegates both Level 1 and 3. See also: § 140.20 (Level 1 

Certification: Purchase Card Program).
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 34

(b) Competitive, lowest-price, technically acceptable open market 

procurements conducted according to the procedures required for small 

purchases up to $100,000.

(c) Competitive, lowest-price, technically acceptable orders placed under 

GSA federal supply schedules up to the specified maximum order 

threshold, if any, of the schedule contract.

(d) Orders placed under pre-competed contracts awarded by other federal 

agencies up to the specified maximum order threshold, if any, of the 

contract.

(e) Orders placed under judiciary-wide contracts up to the specified maximum 

order threshold, if any, of the contract.

Note: When issuing orders against GSA federal supply schedules, 

another federal agency's contract, or a judiciary-wide contract, the orders 

must comply with the competition threshold and ordering procedures 

applicable to that schedule or contract. See also: Guide, Vol. 14, 

§ 310.50 (GSA Federal Supply Schedules).

(f) Procurements for expert and consultant services up to $25,000. See 

also: 5 U.S.C. § 3109; Guide, Vol. 14, Ch. 5 (Special Categories of 

Procurements).

(g) Procurements using less than full and open competition over $10,000 and 

up to $25,000 with signed approval of the chief judge or other judiciary 

official identified at § 120.20.10(b) (Delegation to Chief Judges and 

Certain Judiciary Officials) (or PLO, if delegated).

(h) Interagency agreements (IAs) and memoranda of understanding (MOUs) 

for procurements up to $100,000 when the judiciary is the receiving 

agency. However, all such IAs and MOUs for procurements require 

review and approval by the chief judge or other judiciary official identified 

at § 120.20.10(b) (Delegation to Chief Judges and Certain Judiciary 

Officials) (or PLO, if delegated), before CO signature. If the proposed IA 

or MOU is above this delegation authority or if the judiciary is the providing 

agency, the IA/MOU must be referred to PMD. Applicability of a statutory 

authority other than the Economy Act must be validated by the PMD. See 

also: Guide, Vol. 14, Ch. 5 (Special Categories of Procurements).

(i) Procurement of training products and services up to $25,000 without 

competition.

(j) Commercial agreements, license agreements, and special use 

agreements as supplements and conditions to purchases conducted 
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 35

within the authorized delegation at this level. See also: Guide, Vol. 14, 

Ch. 5 (Special Categories of Procurements).

(k) Unlimited authority for the procurement of transit passes/vouchers using 

less than full and open competition with signed approval of the chief judge 

or other judiciary official identified at § 120.20.10(b) (Delegation to Chief 

Judges and Certain Judiciary Officials) (or PLO, if delegated).

(l) Unlimited authority for the sole source procurement of non-commercial 

products or services available only from state or local government entities, 

with signed approval of the chief judge or other judiciary official identified 

at § 120.20.10(b) (Delegation to Chief Judges and Certain Judiciary 

Officials) (or PLO, if delegated).

(m) Contract modifications up to $100,000 within scope of the contract. See 

also: Guide, Vol. 14, § 745.20.20 (Determination of “Within Scope”).

§ 140.30.40 Delegation Limitations

(a) In addition to the exclusions stated at § 120.20.10(b)(2) (Delegation to 

Chief Judges and Certain Judiciary Officials), a delegation of Level 3 

authority does not include authority for the following procurements:

• best value competitive procurements of any dollar amount;

• procurements over $10,000 ($25,000 for training products or services) 

awarded without competition, or without signed approval of the chief 

judge or other judiciary official identified at § 120.20.10(b) (Delegation 

to Chief Judges and Certain Judiciary Officials) (or PLO, if delegated).

(b) Judiciary staff who are conditionally appointed as procurement officers 

with a delegation of Level 3 authority pending completion of required 

training do not have authority to enter into commercial agreements, 

license agreements, and special use agreements.

See also: Guide, Vol. 14, Ch. 5 (Special Categories of Procurements).

§ 140.30.50 Training Requirements

To be eligible for appointment as a Level 3 CO, individuals must complete both online 

courses Small Purchase Procedures, Standard Competitive Contracting Procedures

and the Judiciary Procurement Workshop classroom training, as well as the online 

Appropriations Law for the U.S. Courts course. In addition, individuals appointed as 

Level 3 COs must complete 16 hours of continuing education training every two years. 

The two-year period begins on the date of appointment or upon completion of the 

Judiciary Procurement Workshop, required to be completed within one year of 
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 36

appointment, whichever is later. See also: § 140.15.30 (Appointment Process for 

PLOs and COs (Levels 1-3)) and Appx. 1F (Contracting Officers Certification Program 

(Level 3)).

§ 140.35 Level 4 Certification: [Reserved]

This is reserved for future delegations.

§ 140.40 Level 5 Certification: General Delegation

§ 140.40.10 Scope

This level is specific to career procurement personnel within PMD in the 1102 job 

series.

§ 140.40.20 Authority and Delegation

A delegation of Level 5 authority confers procurement authority up to $100,000 subject 

to the policies and procedures as provided in:

• Guide, Vol. 14 (Procurement);

• Judiciary Purchase Card Program Manual;

• applicable Procurement Bulletins;

• AO internal policies and procedures.

§ 140.40.40 Education and Training Requirements

(a) To be eligible for appointment as a Level 5 CO, an individual must:

(1) Hold a Federal Acquisition Certificate for Contracting (FAC-C 

Professional), or be in the process of obtaining a FAC-C 

Professional, by:

(A) completing the required courses,

(B) passing the FAC-C Professional certification exam, and

(C) gaining the necessary experience; and

(2) Complete the mandatory judiciary training, as indicated in Appx. 1K 

(Required Training by Certification Level (Contracting Officers 

Certification Program)).

(b) Individuals appointed as Level 5 COs also must complete FAC-C 

Professional continuing education training requirements every two years.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 37

§ 140.45 Level 6 Certification: General Delegation

§ 140.45.10 Scope

This level is specific to career procurement personnel within PMD in the 1102 job 

series.

§ 140.45.20 Authority and Delegation

A delegation of Level 6 authority confers procurement authority up to $1,000,000 

subject to the policies and procedures as provided in:

• Guide, Vol. 14 (Procurement);

• Judiciary Purchase Card Program Manual;

• applicable Procurement Bulletins;

• AO internal policies and procedures.

§ 140.45.40 Education and Training Requirements

(a) To be eligible for appointment as a Level 6 CO, individuals must:

(1) complete the training and have the experience for a FAC-C 

Professional (see: § 140.40.40 (Education and Training 

Requirements)), and

(2) complete the additional mandatory judiciary training, as shown in 

Appx. 1K (Required Training by Certification Level (Contracting 

Officers Certification Program)).

(b) Individuals appointed as Level 6 COs must complete the FAC-C 

Professional continuing education training requirements every two years.

§ 140.50 Level 7 Certification: General Delegation

§ 140.50.10 Scope

This level is specific to career procurement personnel within PMD in the 1102 job 

series.

§ 140.50.20 Authority and Delegation

A delegation of Level 7 authority confers unlimited procurement authority subject to the 

policies and procedures as provided in the following:

• Guide, Vol. 14 (Procurement);

• Judiciary Purchase Card Program Manual;

• applicable Procurement Bulletins;
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 38

• AO internal policies and procedures.

§ 140.50.40 Education and Training Requirements

(a) To be eligible for appointment as a Level 7 CO, individuals must:

(1) complete the training and fulfill the experience requirement for a 

FAC-C Professional (see: § 140.40.40 (Education and Training 

Requirements)), and

(2) complete the additional mandatory judiciary training, as shown in 

Appx. 1K (Required Training by Certification Level (Contracting 

Officers Certification Program)).

(b) Individuals appointed as Level 7 COs must complete the FAC-C 

Professional continuing education training requirements every two years.

§ 140.55 Training

§ 140.55.10 Importance of Training

In most judiciary organizations, procurement activities are one of several collateral 

duties by employees. These personnel have varying levels of procurement training and 

experience. Yet, the complexities involved in procurement are significant and increase 

regularly. Thus, procurement personnel should have as many opportunities as possible 

to receive targeted training in a broad variety of procurement subject areas. 

Appointment as a contracting officer and the subsequent delegation of procurement 

authority is contingent upon completion of certain mandatory training, but personnel 

should be encouraged to seek training opportunities beyond what is mandatory.

See: Appx. 1K (Required Training by Certification Level (Contracting Officers 

Certification Program)).

§ 140.55.20 Training Availability

(a) Levels 1 Through 3

Training for appointment up to Level 3 is available only through the 

judiciary, because the classes are specific to the judiciary's unique 

requirements. Training includes:

• Judiciary Purchase Card Program Training (online training),

• Small Purchase Procedures (online training),

• Standard Competitive Contracting Procedures (online training),
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 39

• Judiciary Procurement Workshop (classroom), and

• Appropriations Law for the U.S. Courts (online training).

See also: JNet’s Procurement Training page.

(b) Levels 5 Through 7

Training requirements for COCP Levels 5 through 7 are based upon the 

Federal Acquisition Certification in Contracting (FAC-C) program as 

implemented by the Federal Acquisition Institute (FAI). Courses are 

available from FAI and various commercial and educational organizations.

(c) Funding for Mandatory Training

The AO will not provide funding to judiciary organizations for any training 

required for contracting officer appointment.

(d) Advice Regarding Course Selections

If requested, PMD staff will provide guidance and advice as to the 

adequacy of specific course selections before the individual attends 

training.

§ 140.55.30 Training Alternatives

(a) Relevant Previous Experience

The PE has the discretion to grant exceptions to the required courses 

listed for the various certification levels on a case-by-case basis for 

relevant previous experience. Requests must include a written description 

of any relevant duties and/or experience that are proposed as equivalents 

or substitutes for formal training.

Example: The PLO may request that the PE confirm the appointment of 

an individual who is or has been a career CO, but has not taken all of the 

courses listed as requirements for the proposed level of appointment.

(b) Credit for the Same or Similar Classes

Credit for previously completing the same classes or similar ones is 

considered by the PE on a case-by-case basis, except for the following 

unique judiciary courses:

• Judiciary Purchase Card Program Training (online training),

• Judiciary Executive Procurement Oversight Seminar (online training),
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 40

• Small Purchase Procedures (online training),

• Standard Competitive Contracting Procedures (online training),

• Judiciary Procurement Workshop (classroom), and

• Appropriations Law for the U.S. Courts (online training).

§ 140.60 Continuing Education

§ 140.60.10 Required Continuing Education

As an ongoing condition of certification, COs appointed to Level 3 certification or higher 

must complete a specified number of hours of continuing education every two years. 

The following table shows the amount of continuing education required.

§ 140.60.10 Continuing Education Requirements

Certification Level Required Hours Every Two Years

3 16

5 80

6 80

7 80

§ 140.60.20 Failure to Meet Continuing Education Requirements

If a CO does not complete the biennial continuing education requirement, the PLO must 

cancel the CO’s appointment. See also: § 140.55.30 (Training Alternatives).

§ 140.60.30 Approval for Continuing Education

PLOs approve continuing education training for COs.

§ 140.60.40 Examples of Continuing Education

Some examples of continuing education are:

• refresher courses (e.g., modules of the blended training may be used as 

refreshers);

• advanced procurement courses (e.g., Advanced Contract Administration);

• courses designed to broaden knowledge (e.g., Source Selection Procedures, 

Contract Quality Assurance, Evaluating Contractor Performance);
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 41

• courses related to procurement ethics/standards of conduct;

• financial management training (e.g., national Judiciary Financial Forum);

• courses that expand COs’ knowledge of the products or services they are 

responsible for acquiring; or

• in-house training sessions, videos, etc., on relevant and current topics taught 

by experienced procurement officials.

§ 140.60.50 Continuing Education Certification Process

The following table describes the continuing education certification process.

§ 140.60.50 Continuing Education Certification Process

Stage Description

1 The CO completes all or part of the biennial continuing education training 

requirement.

2 The CO notifies the PLO that the continuing education requirement for a 

certification level is met or partially met. 

3 The PLO confirms the completion of the required training.

4 The PLO ensures that the training information including relevant dates is entered 

into the InfoWeb Procurement Delegation System.

§ 150 Procurement Integrity and Ethics

§ 150.10 Overview

This section describes the provisions of the Procurement Integrity Act (the “Act”), 

41 U.S.C. § 2101, et seq.; establishes policies with respect to identifying and 

addressing contractor conflicts of interest; and provides information relative to judiciary 

employee standards of conduct, and acceptance of gratuities or gifts.

§ 150.20 Procurement Integrity Act

§ 150.20.10 Purpose

This section describes the standards for judiciary employees and for contractors 

consistent with the Act.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 42

§ 150.20.15 Authority

See: The Procurement Integrity Act, 41 U.S.C. § 2101, et seq.

§ 150.20.20 Applicability

This policy applies to all judiciary employees and other personnel who participate in 

procurement activities.

§ 150.20.25 Provisions of the Act

(a) Prohibition on Disclosing Procurement Information

Under 41 U.S.C. § 2102, present or former officials of the judiciary, or 

persons who have acted or are acting for or on behalf of the judiciary with 

respect to a judiciary procurement, are prohibited from knowingly 

disclosing contractor bid or proposal information or source selection 

information before the award of a contract to which the information relates.

(b) Prohibition on Obtaining Procurement Information

Under 41 U.S.C. § 2102, all persons are prohibited from knowingly 

obtaining contractor bid or proposal information or source selection 

information before the award of a contract to which the information relates.

(c) Employees’ Required Actions When Contacted About Employment

Under 41 U.S.C. § 2103, any judiciary employee, personally and 

substantially participating in a judiciary procurement in excess of $250,000 

who contacts or is contacted by a bidder or offeror in that procurement 

regarding possible non-federal employment, must:

(1) report the contact in writing to the immediate supervisor, the PE, 

and the AO’s Office of the General Counsel (OGC); and

(Note: Each report required under (c)(1) must be retained by the 

submitting employee’s division for not less than two years following 

submission.)

(2) reject the possibility of non-federal employment; or

(3) disqualify him/herself from further personal and substantial 

participation in the procurement until such time as the employee 

has been authorized to resume participation on the grounds that 

the company and/or individual is no longer a bidder or offeror in the 

procurement, or all discussions between the employee and the 
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 43

bidder or offeror regarding possible employment have terminated 

without an agreement for employment.

(d) Prohibition on Former Employees Accepting Compensation from 

Contractors

Under 41 U.S.C. § 2104, former judiciary employees may not accept 

compensation from a contractor as an employee, officer, director, or 

consultant of the contractor within a period of one year after the former 

employee:

(1) served, at the time of selecting or awarding the contract to that 

contractor, as the procuring contracting officer, source selection 

authority, a member of the source selection evaluation board, or 

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;

(2) 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

(3) personally made a decision for the judiciary to:

(A) award a contract, subcontract, modification or a contract or 

subcontract, or a task order or delivery order in excess of 

$10,000,000 to that contractor;

(B) establish overhead or other rates applicable to a contract for 

that contractor that are valued in excess of $10,000,000;

(C) approve the issuance of a contract payment or payments in 

excess of $10,000,000 to that contractor; or

(D) pay or settle a claim in excess of $10,000,000 with that 

contractor.

(4) These provisions do not prohibit a former employee 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 

above in subparagraphs (1), (2), and (3) of this paragraph.

(5) Former employees who knowingly accept compensation in violation 

of this prohibition are subject to penalties. See also: § 150.20.30 

(Penalties).
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 44

§ 150.20.30 Penalties

(a) Criminal

Under 41 U.S.C. § 2105, a person who is convicted of engaging in 

conduct constituting a violation of subsection (a) or (b), the prohibitions 

against disclosing and obtaining information for the purpose of exchanging 

the information for anything of value, or against obtaining or giving anyone 

a competitive advantage in the award of a contract, must be imprisoned 

for not more than five years or fined as provided under Title 18, or both.

(b) Civil

Under 41 U.S.C. § 2105(b), the Attorney General may bring a civil action 

in the appropriate United States district court against any person engaging 

in conduct constituting a violation of 41 U.S.C. §§ 2102-2104. Upon proof 

of such conduct by a preponderance of the evidence, the person is subject 

to a civil penalty of not more than $50,000 for each violation plus twice the 

amount of compensation that the individual received or was offered for the 

prohibited conduct.

(c) Administrative Actions

Under 41 U.S.C. § 2105(c), if information is received that a contractor or 

an employee has engaged in conduct constituting a violation of the Act, 

the judiciary may consider cancelling the procurement, if a contract has 

not yet been awarded; rescinding the contract; initiating suspension or 

debarment proceedings; and or initiating adverse personnel actions.

(d) These penalties are not exclusive of penalties available under other laws. 

See also: 18 U.S.C. §§ 203, 1001, and 1905.

§ 150.20.40 Questions About Procurement Integrity Policies

The Director has designated the AO’s General Counsel as the ethics official for the Act. 

Anyone with questions concerning procurement integrity policy should be directed to 

PMD or the AO’s OGC. In instances not clearly defined or not covered by the policies in 

this section, judiciary employees are to seek guidance from the OGC. Judiciary 

employees or former employees may request a written advisory opinion from the OGC.

§ 150.30 Conflicts of Interest

§ 150.30.10 Organizational and Consultant Conflicts of Interest

(a) When procuring products and services, there is a potential for an 

organizational or consultant conflict of interest. Such a situation may 

occur when a contractor:
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 45

• is unable, or potentially unable, to provide unbiased impartial 

assistance or advice to the judiciary because of conflicting roles, or

• has an unfair competitive advantage for an award.

(b) Such potential conflicts of interest are not limited to any particular type of

procurement, but are more likely to occur when involving the following:

• management support services,

• consultant services,

• assistance with technical evaluations, or

• systems engineering and technical direction.

§ 150.30.20 Identification of Potential Conflicts of Interest

As part of procurement planning, COs must attempt to identify potential conflicts of 

interest so that they may be avoided or mitigated. The following examples illustrate 

situations in which questions concerning potential conflicts of interest may arise:

§ 150.30.20 Potential Conflicts of Interest

Type of conflict Definition 

(a) Unequal 

Access to

Information

Access to internal judiciary business information as part of the 

performance of a contract that could provide the contractor a 

competitive advantage in a later competition for another judiciary 

contract. Such an advantage could easily be perceived as unfair by a 

competing offeror who is not given similar access to the relevant 

information.

(b) Competitive

Advantage

The contractor, under a prior or existing contract, participates in 

defining or preparing the requirements or documents that are involved 

in a subsequent procurement where the contractor may be a 

competitor. This includes any participation by a contractor that would 

allow them to suggest technology, process or other bias into the 

solicitation’s requirements reflective of their familiarity or expertise and 

giving them a competitive advantage. Examples include defining the 

requirements, preparing an alternatives analysis, drafting the statement 

of work or specifications, or developing the evaluation criteria.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 46

§ 150.30.20 Potential Conflicts of Interest

Type of conflict Definition 

(c) Impaired

Objectivity

The contractor is required to assess or evaluate products or services 

produced or performed by the contractor or one of its business 

divisions, subsidiaries, or affiliates, or any entity with which it has a 

significant financial relationship. The contractor’s ability to render 

impartial advice could appear to be undermined by the contractor’s 

financial or other business relationship with the entity being evaluated.

Note: When a potential conflict is foreseen, the CO must request assistance from the 

PMD, who will consult OGC, to determine how to avoid or mitigate the conflict.

§ 150.30.30 Disqualified and Rejected Offer

Occasionally, a situation occurs where it does not become apparent until offers are 

received that participation by a particular offeror may lead to a conflict of interest and/or 

unfair competitive advantage. In that case, if the conflict cannot be avoided or 

mitigated, the offeror may be disqualified and its offer rejected. Any such determination 

must be reduced to a written analysis of the proposed course of action. Before taking 

any action, consultation is required with PMD, who will consult with OGC.

§ 150.30.40 Clauses

Include Clause 1-1, Employment by the Government and Clause 1-5, Conflict of Interest

in all solicitations and contracts for services.

§ 150.40 Standards of Conduct

§ 150.40.10 General

Judiciary employees are held to the highest standards of conduct in the performance of 

their duties and must conduct themselves so as to avoid even the appearance of any 

impropriety. All officials, including judges, chief probation officers, chief pretrial services 

officers, procurement liaison officers, the PE, COs, procurement officials, circuit 

librarians, and their subordinates must exercise due care in the oversight and execution 

of procurement actions within their purview. All employees must conduct all dealings 

with potential offerors and contractors in a manner so that no favoritism or competitive 

advantage is given to one business over another in dealing with the judiciary.

§ 150.40.20 Prohibitions on Purchasing from Relatives or Judiciary Employees

(a) A CO must not knowingly award a procurement to:

(1) a relative of a judiciary employee,

(2) another judiciary employee, or
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 47

(3) a business concern (or other organization) owned or substantially 

owned or controlled by a judiciary employee(s) or a relative(s) of 

judiciary employee(s).

(b) If a compelling reason exists for such an award, full information and 

justification must be provided to PMD, for consideration of an approved 

written exception, before award.

§ 150.40.30 Codes of Conduct

(a) For court personnel, information concerning standards of conduct may be 

found in Guide, Vol. 2A, Ch. 2 (Code of Conduct for United States Judges)

and Ch. 3 (Code of Conduct for Judicial Employees);

(b) AO personnel should also refer to the AO Code of Conduct.

§ 150.50 Gratuities or Gifts

See: Guide, Vol. 2C, Ch. 6 (Gifts). AO staff should also refer to the AO Code of 

Conduct.

§ 150.50.10 Procurement Official Prohibitions

The exception for gifts to a judicial officer or judiciary employee with an aggregate 

market value of $50 or less per occasion and $100 or less per calendar year stated in 

the Guide, Vol. 2C, § 620.35(b)(8) (Acceptance of Gifts by a Judicial Officer or 

Employee; Exceptions) does not apply to a judiciary employee who is “personally and 

substantially” involved in a judiciary procurement if the donor has sought or is seeking to 

do business with the court or other entity served by the judiciary employee.

§ 150.50.20 Violations

(a) If there is evidence that an unlawful gratuity or gift was offered or given by 

a contractor to a judge or judiciary employee, the CO must contact the PE 

for assistance in determining:

• what actions are appropriate under an affected procurement; and

• whether debarment proceedings against the contractor under the 

Guide, Vol. 14, § 320.30 (Debarment, Suspension, and Ineligibility) are 

appropriate.

(b) Disciplinary action may also be taken against the employee, as 

appropriate.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 48

§ 150.50.50 Clause

All solicitations and contracts exceeding the judiciary’s small purchase threshold must 

include Clause 1-10, Gratuities or Gifts. The clause provides for possible termination of 

the contract for default upon a finding by the PE or his designee, after providing the 

contractor the opportunity to appear with counsel and submit evidence, including 

witnesses, that a contractor (or the contractor's agent or representative) offered or gave 

a gratuity or gift to a judge or judiciary employee intended to obtain a contract or 

favorable treatment under a contract. Any termination decision must be approved in 

writing by the PE, who will coordinate with OGC. For additional information on contract 

termination, see: Guide, Vol. 14, § 755 (Contract Termination).

§ 160 Ratification

§ 160.05 Definitions

Ratification The act of approving an unauthorized commitment by an official who has 

the delegated procurement authority to do so. The approval of an 

unauthorized commitment or act results in the act being given effect as if 

originally authorized. It is not a desirable method of procurement, because 

it is not consistent with the judiciary’s policies and procedures, and may 

result in punitive action against the person(s) who committed the 

unauthorized act. The only judiciary employees who may bind the judiciary 

are contracting officers, including purchase cardholders, acting within the 

limits of their delegated authority.

Unauthorized 

Commitment

An agreement that is not binding, solely because the judiciary 

representative who made it lacked the procurement authority to enter into 

that agreement on behalf of the judiciary. Note: Employee 

reimbursements made under the authority of Guide, Vol. 13, § 430.10 

(Reimbursement for Authorized Emergency Purchases) are not considered 

unauthorized commitments and are not subject to the ratification 

procedures described below.

§ 160.10 Overview

(a) Contractors who act on unauthorized commitments do so at their own risk. 

They are not entitled to consideration (payment) unless and until the 

unauthorized commitment is ratified by an official with the appropriate 

delegated procurement authority. Payment can be substantially delayed 

or may not be forthcoming at all, since not all unauthorized commitments 

can be ratified (e.g., unauthorized commitments that violate appropriations 

law in some way cannot be ratified).

(b) Examples of unauthorized commitments include:
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 49

• Supplies or services are ordered by someone who is not either a 

COCP Contracting Officer (including purchase card holders) or 

identified by name as an authorized ordering official in a contract or 

blanket purchase agreement.

• Contractor starts work before the contractual document is issued or 

awarded by a CO.

• An invoice is received from a contractor, but no purchase order or 

contract exists for the items or work described in the invoice.

• Purchase cardholder exceeds single purchase limitation without proper 

authorization/delegation of authority.

§ 160.15 Authority to Ratify

An unauthorized commitment may be ratified by the CO only after the appropriate 

judiciary official (i.e., AO Director, PE, chief judge or other judiciary official identified at 

§ 120.20.10(b) (Delegation to Chief Judges and Certain Judiciary Officials), or PLO if 

delegated) has authorized the ratification. The PLO may not be the authorizing official 

for any ratification action where the PLO is also the CO on the action.

§ 160.20 Procedures to Request Ratification

Upon the identification of an unauthorized commitment, the following actions must be 

taken:

(a) The CO must instruct the contractor, orally and in writing, to stop all work 

immediately.

(b) The person who committed the unauthorized act or a point of contact from 

the requesting office (program office/user) and the CO must prepare a 

memorandum to the file containing the following information (see also: 

Form AO 371 (Justification and Approval for Ratification of an 

Unauthorized Commitment)):

(1) the amount of the unauthorized commitment and the name of the 

contractor;

(2) a statement of facts concerning the unauthorized commitment, 

including:

(A) what procurement procedures were followed and why 

normal procurement procedures were not followed;
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 50

(B) the identity of the person(s) who made the unauthorized 

commitment;

(C) how the contractor was selected;

(D) a list of other sources considered, if any;

(E) a detailed description of the products or services ordered;

(F) verification that the products or services satisfy a bona fide 

need of the judiciary;

(G) whether price was discussed and the estimated or agreedupon price, if one resulted from discussions;

(H) whether or not the products or services have been received 

and/or accepted or the current status of delivery or 

performance;

(I) whether funds were available for the unauthorized 

commitment at the time the purchase was made; and

(J) any invoices or requests for payment received from the 

contractor, and any other pertinent documents relating to the 

unauthorized commitment.

(c) A statement indicating corrective action taken to preclude a recurrence of 

similar unauthorized commitments in the future.

§ 160.25 Criteria for Approving Ratification Requests

An unauthorized commitment may be ratified if all of the following criteria are met:

(a) The judiciary has obtained or will obtain a benefit resulting from the 

performance of the unauthorized commitment, and/or the products or 

services have been provided to and accepted by the judiciary;

(b) The CO had the appropriate delegated procurement authority to enter into 

a contractual commitment at the time the unauthorized commitment was 

made and still has the authority to do so. Or, for unauthorized actions 

exceeding the CO’s delegated procurement authority, PMD could have 

granted authority to enter into such a contractual commitment. The PLO 

must contact PMD for assistance in making this determination;

(c) The resulting procurement would have been proper and would have met 

all legal requirements, if it had been made by a CO with the appropriate 

level of delegated procurement authority;
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 51

(d) An individual who possesses the requisite procurement authority 

determines the price is fair and reasonable; and

(e) Funds are available and were available at the time the unauthorized 

commitment was made. Funds used for payment must be from the year in 

which the unauthorized commitment occurred, irrespective of when the 

ratification is accomplished.

§ 160.30 Who May Authorize Ratification

If the procurement is found to have been appropriate according to § 160.25 (Criteria for 

Approving Ratification Requests), above, then the authorizing official, as identified in the 

table below, may authorize the ratification.

§ 160.30 Who May Authorize Ratification

IF the action... THEN... 

(a) is within the authority 

delegated at 

§ 120.20.10(b) 

(Delegation to Chief 

Judges and Certain 

Judiciary Officials)

the authorizing official is the chief judge or other judiciary official 

identified at § 120.20.10(b) (Delegation to Chief Judges and 

Certain Judiciary Officials), or the PLO (if delegated), who will 

provide a one-time delegation to the CO to ratify the unauthorized 

action or assign it to a CO with the appropriate authority.

(b) is not within the 

authority delegated 

at § 120.20.10(b) 

(Delegation to Chief 

Judges and Certain 

Judiciary Officials)

the authorizing official is the PE. The CO will submit to the PE the 

ratification documentation, including a signed approval of the 

request by the chief judge or other judiciary official identified at 

§ 120.20.10(b) (Delegation to Chief Judges and Certain Judiciary 

Officials), or the PLO (if delegated). The PE will review the 

documents and, if appropriate, provide a one-time delegation of 

authority for the CO to ratify the action.

After obtaining the one-time delegation of authority and the signed authorization, the CO 

may ratify the unauthorized action according to § 160.35 (Ratification Actions by CO), 

below.

§ 160.35 Ratification Actions by CO

If the ratification is ultimately approved in writing, the CO must:

(a) prepare and execute contract documents equivalent to those that should 

have been prepared had the requirement been properly executed initially;

(b) ensure the date of the action is the current date, but the effective date 

must be the date of the unauthorized commitment;
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 52

(c) include the following statement on each such contract document: “This 

contract action ratifies an unauthorized commitment made on [date].”; and

(d) place all ratification documents in the contracting file.

§ 160.40 Non-Ratifiable Unauthorized Commitments

(a) Not all actions can be ratified, such as those that are prohibited by law or 

otherwise improper. Examples include:

• leasing space without, or in excess of, an appropriate delegation of 

procurement authority from GSA;

• improper sole source actions that lack legal sufficiency;

• expenditures that are not proper under fiscal law; or

• awards that include improper terms and conditions.

(b) If this occurs, the CO must contact the PE first for assistance, then the PE 

will consult with OGC.

§ 160.45 Reporting Requirement

The chief judge and other judiciary officials identified at § 120.20.10(b) (Delegation to 

Chief Judges and Certain Judiciary Officials) must submit a report to the PE each month 

listing each request received for ratification of an unauthorized commitment with the 

final disposition of each request. Reporting is not required if there have been no 

ratification requests during a month. The report must include the following information:

(a) name of judiciary unit;

(b) unauthorized commitment value;

(c) name of contractor;

(d) description of products or services;

(e) date ordered;

(f) whether or not the unauthorized commitment was ratified; and

(g) rationale for ratification or non-ratification.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 53

§ 160.50 Employee Consequences

A decision to ratify a specific unauthorized commitment does not preclude disciplinary 

action against the employee responsible for it, especially if the violation is flagrant or if 

the employee has one or more prior unauthorized commitments. Employees may be 

disciplined for making unauthorized commitments, regardless of whether or not the 

unauthorized commitment is ratified. See: Guide, Vol. 12, Ch. 3 (Employee Relations).

§ 170 Release of Information

§ 170.10 Judiciary Policy

The Freedom of Information Act (FOIA) does not apply to the judiciary. However, as a 

matter of policy, and to the extent not inconsistent with other policies governing the 

judiciary, documents relating to the procurement process, including awarded contracts, 

that would be released under FOIA will be released by the judiciary, upon request.

§ 170.20 Awarded Contracts

Awarded contracts will generally be released, including the successful offer if it has 

been incorporated by reference into the contract. Unit pricing and fully burdened labor 

rates for a base period and exercised option periods will be released unless the 

contractor offers adequate legal reason for withholding this information. However, trade 

secret information and confidential commercial information will not be released.

§ 170.30 Internal Documents

Internal documents such as memos, correspondence, source selection plans, and offer 

evaluations, including individual score sheets, deliberations of technical and source 

selection officials, may be deemed privileged interagency or intra-agency documents 

that will not be disclosed. These documents may be released only after the CO 

consults with the appropriate judiciary personnel (e.g., PMD, OGC) and only if 

disclosure would not inhibit communication or otherwise compromise the procurement 

process with regard to the subject of the request, as well as other ongoing 

procurements.

§ 170.40 Obtaining Guidance

Since requests for documents, most particularly pricing information, often involve 

complex issues requiring knowledge of court rulings, statutes, and other issues, COs 

are cautioned to first seek the guidance of PMD, who will consult with OGC, before 

disclosing documents that could be considered confidential or trade secret information 

under FOIA or the Trade Secrets Act, or involve other questions about release of 

information.
Guide to Judiciary Policy, Vol. 14, Ch. 1 Page 54

§ 170.50 Unsuccessful Proposals

Under this policy, any information contained in an unsuccessful proposal must not be 

disclosed under any circumstances.

§ 170.60 Debriefing

For information concerning what information may be disclosed during a debriefing of 

unsuccessful offerors, see: Guide, Vol. 14, § 330.73 (Award Debriefing).

§ 170.70 Clause

All solicitations and contracts must include Clause 1-15, Disclosure of Contractor 

Information to the Public.
Guide to Judiciary Policy 

Vol. 14: Procurement 

Ch. 1: Overview 

Appx. 1A: Uniform Contract Format 

§ 1A.100 Applicability 

§ 1A.200 UCF Parts and Sections 

§ 1A.300 Contents of the Solicitation/Contract 

§ 1A.100 Applicability 

The Uniform Contract Format (UCF) described in this appendix is required for open 

market solicitations and contract awards over $100,000. Use of the UCF format for 

other procurements is optional. 

§ 1A.200 UCF Parts and Sections 

Request for Proposals (RFP) solicitations issued using the UCF consist of the sections 

listed below. Once a contract has been awarded, sections A through K become the 

contract. Note: While sections L and M will not be part of the resulting contract, they 

must be retained in the pre award documentation. The contract clauses in Parts I, II, 

and III constitute a complete contract except the pricing information in Section B. The 

offeror must fill out Section B when the offer is submitted. The following table lists the 

required parts and sections of a UCF, and shows the order in which the information 

must be incorporated, if there is applicable information for the section. 

§ 1A.200 UCF Parts and Sections 

Part I – The Schedule 

Section A Solicitation/Contract Form 

Section B Products or Services and Prices/Costs 

Section C Description/Specifications/Statement of Work 

Section D Packaging and Marking 

Section E Inspection and Acceptance 

Last substantive revision (Transmittal GR-19) February 3, 2010 

Last revised (minor technical changes) November 15, 2010 
Guide to Judiciary Policy, Vol. 14, Appx. 1A Page 2 

Section F Deliveries or Performance 

Section G Contract Administration Data 

Section H Special Contract Requirements 

Part II – Contract Clauses 

Section I Contract Clauses 

Part III – List of Documents, Exhibits, and Other Attachments 

Section J List of Attachments 

Part IV – Representations and Instructions 

Section K Representations and Certifications, and Other Statements of Offerors 

Section L Instructions, Conditions, and Notice to Offerors 

Section M Evaluation Factors for Award 

§ 1A.300 Contents of the Solicitation/Contract 

The following table outlines the contents of each section of the Uniform Contract 

Format. 

§ 1A.300 Contents of the Solicitation/Contract 

Section Title Description 

A Solicitation/ 

Contract Form 

Section A is comprised of the SF 33, Solicitation, Offer and 

Award, used as the cover sheet for the RFP. A bilateral 

contract may be awarded without discussions simply by the 

additional signature of the Contracting Officer. If discussions 

are held and Best and Final Offers requested, the resulting 

bilateral contract must be prepared using the SF 26, 

Award/Contract for Section A. The contractor should always 

be requested to sign the SF26 prior to execution by the 

Contracting Officer. The most important information in the 

SF 33 for solicitation purposes is the time by which offers 

must be submitted and the requirement for signature by an 

authorized representative of the contractor. 
 

Guide to Judiciary Policy, Vol. 14, Appx. 1A Page 3 

§ 1A.300 Contents of the Solicitation/Contract 

Section Title Description 

B Products or 

Services and 

Prices/Costs 

Section B gives potential offerors a summary description of 

the contract requirements and provides a place for offerors to 

submit their proposed prices. Include a brief description of 

the products or services, e.g., item number, national stock 

number/part number, if applicable, and quantities. 

Alternatively, Section B of a solicitation may direct offerors to 

enter their pricing information in a spreadsheet provided for 

that purpose. 

C Description/ 

Specifications/ 

Statement of Work 

Section C contains a detailed description of the products to 

be delivered or the work to be performed under the contract. 

Include any details needed beyond the information provided 

in Section B for competing offerors to develop accurate 

pricing proposals. 

D Packaging and 

Marking 

Section D provides packaging, packing, preservation, and 

marking requirements, if any. 

E Inspection and 

Acceptance 

Section E includes inspection, acceptance, quality 

assurance, and reliability requirements. 

F Deliveries or 

Performance 

Section F specifies the time, place, and method of delivery or 

performance. Solicitations specifying shipment Free-onBoard (F.o.b.) origin must state that offers will be evaluated 

on the basis of the proposed price plus proposed 

transportation costs from point of origin to the designated 

destination. 

G Contract 

Administration Data 

Section G includes any required contract administration 

information, such as whether individual task orders will be 

issued against the contract, special invoicing instructions, or 

payment instructions if payment is to made to an address 

other than that shown on the SF-33. 

H Special Contract 

Requirements 

Section H contains any special contract requirements, e.g., 

security requirements, that are not in other sections, 

including clauses that are specially written for the specific 

solicitation or contract. This section will alert offerors to 

specially written clauses that must be given close attention. 

I Contract Clauses Section I contains most of the standard clauses for the 

proposed contract, including the clauses required by law or 

by the Guide and any additional clauses expected to apply to 

any resulting contract, if these clauses are not required to be 

included in any other section of the UCF. See: Appx. 1C 

(Matrix of Solicitation Provisions and Clauses (Including 

Key)). 
Guide to Judiciary Policy, Vol. 14, Appx. 1A Page 4 

§ 1A.300 Contents of the Solicitation/Contract 

Section Title Description 

J List of Attachments Section J contains a list of any applicable attachments and 

exhibits to the contract, including the title, date, and number 

of pages for each attachment listed. 

K Representations, 

Certifications, and 

Other Statements 

of Offerors 

Section K contains solicitation provisions that require 

representations, certifications, or the submission of other 

information by offerors. 

L Instructions, 

Conditions, Notices 

to Offerors 

Section L contains solicitation provisions and other 

information and instructions not required elsewhere to guide 

offerors in preparing offers, such as instructions to submit 

offers in a specific format or severable parts to facilitate 

evaluation. The instructions may specify further organization 

of offer parts, such as: 

(a) administrative; 

(b) management; 

(c) technical; 

(d) past performance; and 

(e) detailed cost information. 

M Evaluation Factors 

for Award 

Section M contains all evaluation factors, including price or 

cost, and any significant subfactors that will be considered in 

making award. Include the relative importance of the 

evaluation factors and subfactors, and their relation to price 

or cost. Numerical weights or scoring systems, which may 

be used to rank offers, need not be disclosed. Any minimum 

requirements which may apply to particular evaluation factors 

or subfactors must be described. Any judiciary costs or 

charges other than proposed prices to be considered in the 

evaluation of offers must be identified. 
Last revised (Transmittal 14-020) October 19, 2023

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 1: Overview

Appx. 1B: Solicitation Provisions and Contract Clauses

Note: For a cross-linked matrix of the solicitation provisions and clauses in this appendix, see: 

Guide, Vol. 14, Appx. 1C (Matrix of Solicitation Provisions and Clauses (Including Key)).

Provisions and Clauses (B and Chapter 1)

Provisions and Clauses (Chapter 2)

Provisions and Clauses (Chapter 3)

Provisions and Clauses (Chapter 4)

Provisions and Clauses (Chapter 5)

Provisions and Clauses (Chapter 6)

Provisions and Clauses (Chapter 7)

Provisions and Clauses (B and Chapter 1)

B.1.1 Definitions

Provision

A term or condition used only in solicitations and applying only before 

award, e.g., provisions which provide information about how offers will be 

evaluated. These are generally incorporated at the end of solicitation 

documents in order to easily omit them from the award document.

Clause

A term or condition used in solicitations and contracts and applying both 

before and after award.

B.1.2 Applicability

This Appendix sets forth standard provisions and clauses to be included in solicitations 

and contracts for products and services. Applicable provisions and clauses must be 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

included in the prescribed Uniform Contract Format (UCF) section when issuing a 

solicitation or contract which is required to follow the UCF. See: Appx. 1A (Uniform 

Contract Format) and Appx. 1C (Matrix of Solicitation Provisions and Clauses (Including 

Key)). When UCF does not apply, such as in small purchase procedures, incorporate 

appropriate clauses and provisions in the following order:

• clauses followed by provisions

• clauses/provisions incorporated by reference followed by those required to be 

incorporated in full text (see: Appx. 1C (Matrix of Solicitation Provisions and 

Clauses (Including Key))

• by clause/provision number

B.1.3 Numbering of Provisions and Clauses

Provisions and clauses are numbered with the chapter or appendix prescribing their use 

in Volume 14 of the Guide. For instance, Clause 1-1 is in Chapter 1, Provision 2-1 is in 

Chapter 2, and Provision B-1 is prescribed in this Appendix 1B.

Beneath each clause or provision title are instructions on where in this volume of the 

Guide the prescription for the usage of that clause or provision is located.

Appx. 1C (Matrix of Solicitation Provisions and Clauses) is a quick reference document 

to help COs find clauses, provisions, and their prescription(s). It also provides guidance 

as to:

• the required UCF section for each clause/provision, when UCF is applicable;

• whether specific clauses or provisions may be incorporated by reference or 

must be incorporated in full text; and

• whether the clause or provision is always required (R) for a specific type of 

procurement or only required when certain conditions apply (A).

B.2.1 Solicitation Provisions and Contract Clauses Prescribed in Appendix 

1B.

(a) Provision B-1, Solicitation Provisions Incorporated by Reference is included in all 

solicitations.

(b) Clause B-5, Clauses Incorporated by Reference is included in all solicitations and 

contracts.

(c) Clause B-20, Computer Generated Forms is included in all solicitations and 

contracts that require the contractor to submit data on standard or optional forms.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

Provision B-1, Solicitation Provisions Incorporated by Reference

Include the following provision as prescribed in Appx. 1B, § B.2.1(a) (Solicitation 

Provisions and Contract Clauses Prescribed in Appendix 1B).

Solicitation Provisions Incorporated by Reference (SEP 2010)

This solicitation incorporates one or more solicitation provisions by 

reference, with the same force and effect as if they were given in full text. 

Upon request, the contracting officer will make their full text available. The 

offeror is cautioned that the listed provisions may include blocks that must 

be completed by the offeror and submitted with its quotation or offer. In 

lieu of submitting the full text of those provisions, the offeror may identify 

the provision by paragraph identifier and provide the appropriate 

information with its quotation or offer. Also, the full text of a solicitation 

provision may be accessed electronically at this address:

http://www.uscourts.gov/procurement.aspx.

(end)

Clause B-5, Clauses Incorporated by Reference

Include the following clause as prescribed in Appx. 1B, § B.2.1(b) (Solicitation 

Provisions and Contract Clauses Prescribed in Appendix 1B).

Clauses Incorporated by Reference (SEP 2010)

This contract incorporates one or more clauses by reference, with the 

same force and effect as if they were given in full text. Upon request, the 

contracting officer will make their full text available. Also, the full text of a 

clause may be accessed electronically at this address:

http://www.uscourts.gov/procurement.aspx.

(end)

Provision B-10, RESERVED

Clause B-15, RESERVED

Clause B-20, Computer Generated Forms

Include the following clause as prescribed in Appx. 1B, § B.2.1(c) (Solicitation 

Provisions and Contract Clauses Prescribed in Appendix 1B).

Computer Generated Forms (JAN 2003)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

(a) Any data required to be submitted on a Standard or Optional form may be 

submitted on a computer-generated version of the form, provided there is no 

change to the name, content, or sequence of the data elements on the form, and 

provided the form carries the Standard or Optional form number and edition date.

(b) Unless prohibited by the contracting officer, any data required to be submitted on 

a judiciary unique form may be submitted on a computer-generated version of 

the form provided there is no change to the name, content, or sequence of the 

data elements on the form and provided the form carries the judiciary form 

number and edition date.

(c) If the contractor submits a computer-generated version of a form that is different 

than the required form, then the rights and obligations of the parties will be 

determined based on the content of the required form.

(end)

Clause 1-1, Employment by the Government

Include the following clause as prescribed in § 150.30.40 (Clauses).

Employment by the Government (JAN 2003)

(a) The contractor covenants that throughout the term of this contract no contractor 

employee who performs services under this contract will be an officer or 

employee of the government of the United States.

(b) If the contractor be an individual, the contractor covenants that throughout the 

term of this contract the individual will not be or become an officer or employee of 

the government of the United States. If during the term of contract the contractor 

intends to become an officer or employee of the government, the contractor shall 

advise the contracting officer in writing of such intentions so appropriate 

measures may be taken.

(c) If the contractor be other than an individual, the contractor covenants that 

throughout the term of this contract no partner, principal, officer, stockholder, or 

other person having a financial interest in the contractor or the ability to control 

the contractor, directly or indirectly, will be or become an officer or employee of 

the government of the United States. The status of a stockholder as an officer or 

employee of the government of the United States will not constitute a violation of 

this subsection if the stock of the contractor is traded publicly over the counter or 

on a regional or national stock exchange.

(d) For purposes of subsection (c), a business or partnership interest or stock owned 

by a spouse, child, or parent of an officer or employee of the government of the 

United States shall be deemed to be owned by such officer or employee.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

(e) The violation of any subsection of this section will constitute a material breach for 

which the judiciary may seek any and all remedies under the contract, including 

termination.

(end)

Clause 1-5, Conflict of Interest

Include the following clause as prescribed in § 150.30.40 (Clauses) and § 520.75(a) 

(Provisions and Clauses).

Conflict of Interest (AUG 2004)

(a) The contractor specifically agrees that there is no conflict of interest arising from 

the services to be provided under this agreement. The contractor further agrees 

that no employee, principal, or affiliate is in any such conflict.

(b) Work under this contract may create a future conflict of interest that could prohibit 

the contractor from competing for, or being awarded, future judiciary contracts. 

The following examples illustrate situations in which questions concerning 

potential conflicts of interest may arise:

(1) Unequal Access to Information

Access to internal judiciary business information as part of the 

performance of a contract that could provide the contractor a competitive 

advantage in a later competition for another judiciary contract. Such an 

advantage could easily be perceived as unfair by a competing vendor who 

is not given similar access to the relevant information.

(2) Competitive Advantage

The contractor, under a prior or existing contract, participates in defining 

or preparing the requirements or documents that are involved in a 

subsequent procurement where the contractor may be a competitor. This 

includes, but is not limited to, defining the requirements, preparing an 

alternatives analysis, drafting the statement of work or specifications, or 

developing the evaluation criteria.

(3) Impaired Objectivity

The contractor is required to assess or evaluate products or services 

produced or performed by the contractor or one of its business divisions, 

subsidiaries, or affiliates, or any entity with which it has a significant 

financial relationship. The contractor’s ability to render impartial advice 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

could be undermined by the contractor’s financial or other business 

relationship with the entity being evaluated.

The contractor agrees to immediately notify the contracting officer, in writing, if an actual 

or potential conflict of interest arises, including any of the above and if a non-judiciary 

client requests or receives any professional advice, representation, or assistance 

regarding the judiciary.

The judiciary reserves the right to preclude a contractor from participating in a 

procurement, refuse to permit the contractor to undertake any conflicting agreements 

with non-judiciary clients, or terminate this contract without cost to the judiciary in the 

event the contracting officer determines a conflict of interest exists and cannot be 

avoided or mitigated.

(end)

Clause 1-10, Gratuities or Gifts

Include the following clause as prescribed in § 150.50.50 (Clause).

Gratuities or Gifts (JAN 2010)

(a) The right of the contractor to proceed may be terminated by written notice if, after 

notice and hearing, the Procurement Executive or designee determines — at a 

level above the contracting officer — that the contractor, its agent or another 

representative:

(1) offered or gave a gratuity (e.g., an entertainment or gift) to an officer, 

official or employee of the judiciary; and

(2) intended, by the gratuity, to obtain a contract or favorable treatment under 

a contract.

(b) The facts supporting this determination may be reviewed by any court having 

lawful jurisdiction.

(c) If this contract is terminated under paragraph (a) of this clause, the judiciary is 

entitled to pursue the same remedies as in a breach of contract.

(d) The rights and remedies of the judiciary provided in this clause shall not be 

exclusive and are in addition to any other rights and remedies provided by law or 

under this contract.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

Clause 1-15, Disclosure of Contractor Information to the Public

Include the following clause as prescribed in § 170.70 (Clause).

Disclosure of Contractor Information to the Public (AUG 2004)

(a) The judiciary reserves the right to disclose information provided by the 

contractor, in response to a request by a member of the general public. Upon 

receipt of a written request, the judiciary will disclose information which would 

constitute public records in an agency covered by the Freedom of Information 

Act. In the event the requested information consists of or includes commercial or 

financial information, including unit prices, the contractor shall be notified of the 

request and provided with an opportunity to comment.

(b) The contractor will thereafter be notified as to whether the information requested 

will be released. The contractor understands and agrees that unit and/or 

aggregate prices contained in the contract may be subject to disclosure without 

consent.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-1

Provisions and Clauses (Chapter 2)

Provision 2-1, Request for Information or Solicitation for Planning 

Purposes

Include the following provision as prescribed in § 210.60.40 (Solicitation Provision).

Request for Information or Solicitation for Planning Purposes (JAN 

2003)

The judiciary does not intend to award a contract on the basis of this 

solicitation or to otherwise pay for the information solicited.

(1) Although "offer" and "offeror" are used in this Request for Information, 

your response will be treated as information only. It will not be used as an 

offer.

(2) This solicitation is issued for the purpose of: [state purpose]

(end)

Clause 2-5A, Inspection of Products

Include the following clause as prescribed in § 220.10.70(a) (Clauses).

Inspection of Products (APR 2013)

(a) The contractor shall use and maintain a written inspection or quality control 

system acceptable to the judiciary for the products under this contract. The 

contractor shall tender to the judiciary for acceptance only products which have 

been inspected in accordance with the acceptable inspection system and have 

been found by the contractor to be in conformity with contract requirements. As 

part of the system, the contractor shall prepare records evidencing all inspections 

made under the system and the outcome. These records shall be kept complete 

and made available to the judiciary during contract performance and for at least 

three years after acceptance. The judiciary has the right to evaluate the 

acceptability and effectiveness of the contractor's inspection system before 

award and during contract performance. This evaluation may be used to 

determine the extent of judiciary inspection and testing, but this does not waive 

its right to inspect and test all items. The right of review, whether exercised or 

not, does not relieve the contractor of the obligations under the contract.

(b) The judiciary has the right to inspect and test all products provided under this 

contract, to the extent practicable, at all times and places, including the period of 

manufacture, and in any event before acceptance. The judiciary will perform 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

inspections and tests in a manner that will not unduly delay the work. The 

judiciary assumes no contractual obligation to perform any inspection and test for 

the benefit of the contractor unless specifically set forth elsewhere in this 

contract.

(c) If requested by the judiciary, the contractor shall provide all reasonable facilities 

and assistance to the judiciary inspectors. If the judiciary performs inspections or 

tests on the premises of the contractor or a subcontractor, the contractor shall 

furnish, and shall require subcontractors to furnish, at no increase in contract 

price, all reasonable facilities and assistance for the safe and convenient 

performance of these duties. Except as otherwise provided in the contract, the 

judiciary shall bear the expense of judiciary inspections or tests made at other 

than the contractor’s or subcontractor’s premises; provided, that in case of 

rejection, the judiciary shall not be liable for any reduction in the value of 

inspection or test samples.

(d) The judiciary may require the contractor to correct or replace any products that 

fail to comply with the requirements of this contract. Products are nonconforming 

when they are defective in material or workmanship or are otherwise not in 

conformity with contract requirements. The judiciary may reject nonconforming 

supplies with or without disposition instructions. Upon determining that the 

products are nonconforming, the judiciary may, at its discretion:

(1) require replacement or correction of the defective products;

(2) acquire replacement products from another source, and charge the 

contractor for any costs incurred by the judiciary; or

(3) accept the nonconforming products at a reduced price.

(e) The contractor shall remove supplies rejected or required to be corrected. 

However, the contracting officer may require or permit correction in place, 

promptly after notice, by and at the expense of the contractor. Corrected or 

replaced products may not be tendered again unless the former tender and the 

requirement for correction or replacement are disclosed.

(f) If the contractor fails to proceed with reasonable promptness to remove, replace 

or correct rejected products, the judiciary may:

(1) by contract, or otherwise, remove, replace, or correct the products and 

charge the cost to the contractor; or

(2) terminate this contract for default.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

(g) If the contractor does not correct or replace the products within the contract 

delivery schedule, the contracting officer may require an equitable price reduction 

as consideration for late delivery.

(h) Acceptance shall be conclusive, except for latent defects, fraud, gross mistakes 

amounting to fraud, or as otherwise provided in the contract.

(i) The contracting officer may require a price reduction for consideration for any 

judiciary costs incurred for:

(1) the total time, including round-trip travel time, lost by judiciary 

representatives when the contractor is not ready for inspection at the time 

inspection and testing is requested by the judiciary; and

(2) the total time, including round-trip travel time, required by judiciary 

representatives for reinspection and retesting necessitated by rejection.

(end)

Clause 2-5B, Inspection of Services

Include the following clause as prescribed in § 220.10.70(b) (Clauses).

Inspection of Services (APR 2013)

(a) The contractor shall provide and maintain an inspection system acceptable to the 

judiciary covering the performance of services under this contract. Complete 

records of all inspection work performed by the contractor shall be maintained 

and made available to the judiciary during contract performance and for at least 

three years after acceptance.

(b) The judiciary has the right to inspect and test all services provided under this 

contract, to the extent practicable, at all times and places during the term of the 

contract. The judiciary will perform inspections and tests in a manner that will not 

unduly delay the work.

(c) If the judiciary performs inspections or tests on the premises of the contractor or 

a subcontractor, the contractor shall furnish, and shall require subcontractors to 

furnish, at no increase in contract price, all reasonable facilities and assistance 

for the safe and convenient performance of these duties.

(d) If any of the services do not conform with contract requirements, the judiciary 

may require the contractor to perform the services again in conformity with 

contract requirements, at no increase in contract amount. When the services 

cannot be corrected by re-performance, the judiciary may:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

(1) require the contractor to take necessary action to ensure that future 

performance conforms to contract requirements; and

(2) reduce the contract price to reflect the reduced value of the services 

performed.

(e) If the contractor fails to promptly perform the services again or to take the 

necessary action to ensure future performance in conformity with contract 

requirements, the judiciary may:

(1) by contract or otherwise, obtain performance of the services and charge to 

the contractor any cost incurred by the judiciary that is directly related to 

the performance of such service; or

(2) terminate the contract for default.

(end)

Clause 2-10, Responsibility for Products

Include the following clause as prescribed is § 220.10.70(c) (Clauses).

Responsibility for Products (JAN 2010)

(a) Title to products furnished under this contract shall pass to the judiciary upon 

formal acceptance, regardless of when or where the judiciary takes physical 

possession, unless the contract specifically provides for earlier passage of title.

(b) Unless the contract specifically provides otherwise, risk of loss of or damage to 

products shall remain with the contractor until, and shall pass to the judiciary 

upon:

(1) delivery of the products to a carrier, if transportation is F.o.b. origin; or

(2) acceptance by the judiciary or delivery of the products to the judiciary at 

the destination specified in the contract whichever is later, if transportation 

is f.o.b. destination.

(c) Paragraph (b) of this clause shall not apply to products that so fail to conform to 

contract requirements as to give a right of rejection. The risk of loss of or 

damage to such non-conforming products remains with the contractor until cure 

or acceptance. After cure or acceptance, paragraph (b) of this clause shall 

apply.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

(d) Under paragraph (b) of this clause, the contractor shall not be liable for loss of or 

damage to products caused by the negligence of officers, agents, or employees 

of the judiciary acting within the scope of their employment.

(end)

Provision 2-15, Warranty Information

Include the following provision as prescribed in § 220.20.40(a) (Clauses and 

Provisions).

Warranty Information (JAN 2003)

Offerors are encouraged to submit information on any standard 

commercial warranties provided for offered products. The judiciary will 

consider these warranties in determining the most advantageous offer, to 

the extent provided in the evaluation factors.

(end)

Clause 2-20A, Incorporation of Warranty

Include the following clause as prescribed in § 220.20.40(b) (Clauses and Provisions).

Incorporation of Warranty (JAN 2003)

Notwithstanding the contractor's standard commercial warranty, if offered 

and accepted by the judiciary, any dispute thereunder will be resolved 

under the Disputes clause of this contract, notwithstanding any disputes 

procedure that may be specified in the warranty.

(end)

Clause 2-20B, Contractor Warranty (Products)

Include this clause as prescribed in § 220.20.40(c) (Clauses and Provisions).

Contractor Warranty (Products) (JAN 2010)

(a) The contractor warrants that all products furnished under this contract, including 

packaging and markings, will be free from defects in material or workmanship 

and will conform with the specifications and all other requirements of this 

contract.

(b) The contracting officer will give written notice to the contractor of any breach of 

warranty and either:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

(1) require the prompt correction or replacement of any defective or 

nonconforming products; or

(2) retain them, reducing the contract price by an amount equitable under the 

circumstances.

(c) When return for correction or replacement is required, the contractor is 

responsible for all costs of transportation and for risk of loss in transit. If the 

contractor fails or refuses to correct or replace the defective or nonconforming 

products, the contracting officer may correct or replace them with similar 

products and charge the contractor for any cost to the judiciary. In addition, the 

contracting officer may dispose of the nonconforming products, with 

reimbursement from the contractor or from the proceeds for excess costs. Any 

products corrected or furnished in replacement are subject to this clause.

(d) The rights and remedies of the judiciary provided in this clause are in addition to, 

and do not limit, any rights afforded to the judiciary by any other clause of the 

contract.

(end)

Clause 2-20C, Warranty of Services

Include the following clause as prescribed in § 220.20.40(d) (Clauses and Provisions).

Warranty of Services (JAN 2003)

(a) Definition. "Acceptance," as used in this clause, means the act of an authorized 

representative of the judiciary by which the judiciary assumes for itself, or as an 

agent of another, approves specific services, as partial or complete performance 

of the contract.

(b) Notwithstanding inspection and acceptance by the judiciary or any provision 

concerning the conclusiveness thereof, the contractor warrants that all services 

performed under this contract will, at the time of acceptance, be free from defects 

in workmanship and conform to the requirements of this contract. The contracting 

officer will give written notice of any defect or nonconformance to the contractor 

[contracting officer will insert the specific period of time in which notice will be 

given to the contractor; e.g., "within 30 days from the date of acceptance by the 

judiciary"; within 1000 hours of use by the judiciary;" or other specified event 

whose occurrence will terminate the period of notice, or combination of any 

applicable events or period of time]. This notice will state either

(1) that the contractor shall correct or re-perform any defective or 

nonconforming services; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

(2) that the judiciary does not require correction or re-performance.

(c) If the contractor is required to correct or re-perform, it shall be at no cost to the 

judiciary, and any services corrected or re-performed by the contractor shall be 

subject to this clause to the same extent as work initially performed. If the 

contractor fails or refuses to correct or re-perform, the contracting officer may, by 

contract or otherwise, correct or replace with similar services and charge to the 

contractor the cost occasioned to the judiciary thereby, or make an equitable 

adjustment in the contract price.

(d) If the judiciary does not require correction or re-performance, the contracting 

officer will make an equitable adjustment in the contract price.

(end)

Clause 2-25A, Delivery Terms and Contractor's Responsibilities

Include the following clause as prescribed in § 220.25.70(a) (Product-Related Delivery 

Clauses and Provisions).

Delivery Terms and Contractor's Responsibilities (JAN 2003)

(a) The judiciary reserves the right to specify the mode of transportation and routing 

to be employed.

(b) Destination: If the contract specifies "F.o.b. destination," the following apply:

(1) “F.o.b. destination" means delivery to a destination specified in the 

purchase document by the consignor or seller (unless the contract 

provides otherwise). This includes within the doors of the specified 

building, including delivery to specific rooms within the building when 

specified. The cost of shipping and risk of loss are borne by the seller or 

consignor. Title to the products passes to the judiciary when deliverables 

arrive at the contract's stated destination.

(2) The contractor shall:

(i) pack and mark shipments to comply with contract specifications or, 

in their absence, prepare shipments in accordance with carrier 

requirements;

(ii) prepare and distribute commercial bills of lading;

(iii) deliver the shipment in good order and condition to the point of 

delivery specified in the contract;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

(iv) be responsible for loss or damage occurring before receipt at the 

specified point of delivery;

(v) furnish a delivery schedule and designate the mode of delivery;

(vi) pay and bear all delivery costs to the specified point of delivery.

(c) Origin: If the contract specifies "F.o.b. origin," the following apply:

(1) "F.o.b. origin" means delivery, free of expense to the judiciary to the 

carrier or shipment facility as follows:

(i) delivery on board the indicated type of conveyance of the carrier (or 

of the judiciary, if specified), to the specified point from which the 

shipment will be made and from which line haul transportation 

service (as distinguished from switching, local drayage, or other 

terminal service) begins;

(ii) to a U.S. Postal Service facility; or

(iii) delivered by the contractor, to any judiciary designated point 

located within the same commercial zone (as prescribed by the 

Interstate Commerce Commission) as the F.o.b. point named in the 

contract.

(2) The contractor shall:

(i) pack and mark shipments to comply with contract specifications or, 

in their absence, prepare the shipment in accordance with carrier 

requirements and good commercial practices and secure the lowest 

applicable transportation charge.

(ii) order specified carrier equipment when requested by the judiciary

or else order appropriate carrier equipment not in excess of 

capacity to accommodate the shipment.

(iii) deliver the shipment in good order and condition to the carrier, 

when loaded by the contractor, load, stow, trim, block, and/or brace 

shipments as required by the carrier's rules and regulations.

(iv) be responsible for loss or damage occurring before delivery to the 

carrier; and for loss or damage due to improper packing/marking 

and, when loaded by the contractor, from improper loading, 

stowing, trimming, blocking, and/or bracing of the shipment;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

(v) prepare a commercial bill of lading or other transportation receipt, 

to show:

(A) a description of the shipment in terms of the governing 

freight classification or tariff (or government rate tender) 

under which the lowest freight rates are applicable;

(B) the seals affixed to the conveyance, including the serial 

number on them, or other identification;

(C) the length and capacity of cars or trucks ordered and 

furnished;

(D) other pertinent information required to effect prompt delivery 

to the consignee, including name delivery address, postal 

address and ZIP code of consignee, routing, etc.;

(E) special instructions or annotations requested by the judiciary 

for commercial bills of lading (for example, “This shipment is 

the property of, and the freight charges paid to the carrier will 

be reimbursed by, the judiciary”); and

(F) the signature of carrier's agent and the date the shipment is 

received by the carrier.

(vi) distribute the copies of the bill of lading, or other transportation 

receipt, as directed by the judiciary.

(vii) supply with each invoice a memorandum copy of the bill of lading, 

clearly indicating the signature of the carrier's agent, date of pickup, 

and the weight accepted by the carrier. If the weight is determined 

by the carrier after pickup, it shall be annotated on the 

memorandum copy of the bill of lading along with the following:

• "I certify that the weight information is that obtained from the 

carrier.

• Signed:”

(3) If the judiciary has not specified otherwise, the contractor shall ship on 

commercial bills of lading.

(4) If the judiciary specifies that shipment is to be made on endorsed 

commercial bills of lading for transportation charges up to $100, the 

contractor shall be required to prepay all transportation charges, not to 

exceed $100, per shipment.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-10

(5) The contractor shall annotate the commercial bill of lading as follows:

"Property of the United States Judiciary"

(6) The actual transportation costs, not to exceed $100 per shipment, will be 

added to the contractor's invoice as a separate item. The costs shall be 

based on the lowest published rate on file with the Interstate Commerce 

Commission or any state regulatory body. They shall be supported by 

freight or express receipts marked "prepaid."

(end)

Clause 2-25B, Commercial Bill of Lading Notations

Include the following clause as prescribed in § 220.25.70(b) (Product-Related Delivery 

Clauses and Provisions).

Commercial Bill of Lading Notations (JAN 2003)

If the contracting officer authorizes products to be shipped on a 

commercial bill of lading and the contractor will be reimbursed these 

transportation costs as direct allowable costs, the contractor shall ensure 

before shipment is made that the commercial shipping documents are 

annotated as follows:

“Transportation is for the judiciary [name of the specific court unit or 

federal public defender organization] and the actual total transportation 

charges paid to the carrier(s) by the consignor or consignee are 

assignable to, and will be reimbursed by, the judiciary.”

(end)

Clause 2-30A, Time of Delivery

Include the following clause as prescribed in § 220.25.70(c) (Product-Related Delivery 

Clauses and Provisions).

Time of Delivery (APR 2013)

(a) The judiciary requires all items to be delivered by no later than _______. The 

offeror proposes delivery of all items by no later than __________.

(b) The judiciary will evaluate equally, as regards time of delivery, offers that 

propose delivery within the period specified above. Offers that propose delivery 

that will not clearly fall within the required delivery period will be deemed 

unacceptable. The judiciary reserves the right to award on the basis of either the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-11

required delivery schedule or the proposed delivery schedule when an offeror 

proposes an earlier delivery schedule than required above. If the offeror 

proposes no other delivery schedule, the required delivery schedule above will 

apply.

(c) The required delivery schedule may be stated in terms of days after the effective 

date of the contract award or specific dates.

(end)

Clause 2-30B, Desired And Required Time Of Delivery

Include the following clause as prescribed in § 220.25.70(d) (Product-Related Delivery 

Clauses and Provisions), and fill in the tables where indicated.

Desired And Required Time Of Delivery (JAN 2010)

(a) The judiciary desires delivery to be made according to the following schedule:

Desired Delivery Schedule

(Contracting Officer insert specific details)

Item No. Quantity Within Applicable Specified 

Time Frame (i.e., number of 

calendar days after award, after 

contract start date, or after a 

specified date, etc.)

If the offeror is unable to meet the desired delivery schedule, it may, 

without prejudicing evaluation of its offer, propose a delivery schedule 

below. However, the offeror's proposed delivery schedule shall not extend 

the delivery period beyond the time for delivery in the judiciary's required 

delivery schedule as follows:

Required Delivery Schedule

(Contracting Officer insert specific details)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-12

Item No. Quantity Within Applicable Specified 

Time Frame (i.e., number of 

calendar days after award, after 

contract start date, or after a 

specified date, etc.)

Offers that propose delivery of a quantity under such terms or conditions 

that delivery will not clearly fall within the applicable required delivery 

period specified above, will be considered non-responsive and rejected. If 

the offeror proposes no other delivery schedule, the desired delivery 

schedule above will apply.

Offeror’s Proposed Delivery Schedule

(Offeror insert specific details)

Item No. Quantity Within Applicable Specified 

Time Frame (i.e., number of 

calendar days after award, after 

contract start date, or after a 

specified date, etc.)

(b) Attention is directed to the Contract Award provision of the solicitation that 

provides that a written award or acceptance of offer mailed or otherwise 

furnished to the successful offeror results in a binding contract. The judiciary will 

mail or otherwise furnish to the offeror an award or notice of award not later than 

the day the award is dated. Therefore, the offeror shall compute the time 

available for performance beginning with the actual date of award, rather than the 

date the written notice of award is received from the contracting officer through 

the ordinary mails. However, the judiciary will evaluate an offer that proposes 

delivery based on the contractor's date of receipt of the contract or notice of 

award by adding (1) five calendar days for delivery of the award through the 

ordinary mails, or (2) one working day if the solicitation states that the contract or 

notice of award will be transmitted electronically. (The term "working day" 

excludes weekends and U.S. federal holidays.) If, as so computed, the offered 

delivery date is later than the required delivery date, the offer will be considered 

non-responsive and rejected.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-13

(end)

Clause 2-35 F.o.b. Destination, Within Judiciary’s Premises

Include the following clause as prescribed in § 220.25.70(e) (Product-Related Delivery 

Clauses and Provisions).

F.o.b. Destination, Within Judiciary’s Premises (JAN 2003)

(a) The term “F.o.b. destination, within judiciary’s premises,” as used in this clause, 

means free of expense to the judiciary delivered and laid down within the doors 

of the judiciary’s premises, including delivery to specific rooms within a building if 

so specified.

(b) The contractor shall:

(1) (i) pack and mark the shipment to comply with contract specifications; 

or

(ii) in the absence of specifications, prepare the shipment in 

conformance with carrier requirements;

(2) prepare and distribute commercial bills of lading;

(3) deliver the shipment in good order and condition to the point of delivery 

specified in the contract;

(4) be responsible for any loss of and/or damage to the products occurring 

before receipt of the shipment by the judiciary at the delivery point 

specified in the contract;

(5) furnish a delivery schedule and designate the mode of delivering carrier; 

and

(6) pay and bear all charges to the specified point of delivery.

(end)

Clause 2-40A, Variation in Quantity

Include the following clause as prescribed in § 220.25.70(f) (Product-Related Delivery 

Clauses and Provisions).

Variation in Quantity (JAN 2003)

(a) A variation in the quantity of any item called for by this contract will not be 

accepted unless the variation has been caused by conditions of loading, 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-14

shipping, or packing, or allowances in manufacturing processes, and then only to 

the extent, if any, specified in paragraph (b) of this clause.

(b) The permissible variation shall be limited to:

___ Percent increase [contracting officer insert percentage]

___ Percent decrease [contracting officer insert percentage]

This increase or decrease shall apply to __________.*

* Contracting officer will insert in the blank the designation(s) to which the percentages 

apply, such as:

(1) The total contract quantity;

(2) Item 1 only;

(3) Each quantity specified in the delivery schedule;

(4) The total item quantity for each destination; or

(5) The total quantity of each item without regard to destination.

(end)

Clause 2-40B, Delivery of Excess Quantities

Include the following clause as prescribed in § 220.25.70(g) (Product-Related Delivery 

Clauses and Provisions).

Delivery of Excess Quantities (JAN 2003)

The contractor is responsible for the delivery of each item quantity within 

allowable variations, if any. If the contractor delivers, and the judiciary 

receives, quantities of any item in excess of the quantity called for (after 

considering any allowable variation in quantity), such excess quantities will 

be treated as being delivered for the convenience of the contractor. The 

judiciary may retain such excess quantities up to $250 in value without 

compensating the contractor therefore, and the contractor waives all right, 

title, or interests therein. Quantities in excess of $250 will, at the option of 

the judiciary, either be returned at the contractor's expense or retained 

and paid for by the judiciary at the contract unit price.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-15

Clause 2-45, Packaging and Marking

Include the following clause as prescribed in § 220.25.70(h) (Product-Related Delivery 

Clauses and Provisions).

Packaging and Marking (AUG 2004)

(a) Unless otherwise specified, preservation, packaging, and marking for all items 

delivered hereunder shall be in accordance with commercial practice and 

adequate to insure acceptance by common carrier and safe arrival at destination. 

The contractor shall place the contract number and delivery order number, or 

purchase order, as applicable, on or adjacent to the exterior shipping label or 

include them on the internal packing slip. For any magnetic media provided, the 

contractor shall provide extra markings for protection against exposure to 

magnetic fields or temperature extremes.

(b) All documentation, reports, and other deliverables shall be clearly marked with 

the project title, contract number, and delivery order number (when applicable). 

Unless otherwise specified, all items shall be packaged and packed in 

accordance with normal commercial practices (e.g., if magnetic media is 

involved, extra marking shall be considered for protection against exposure to 

magnetic fields or temperature).

(end)

Clause 2-50, Continuity of Services

Include the following clause as prescribed in § 220.25.80(a) (Service-Related Provisions 

and Clauses).

Continuity of Services (JAN 2003)

(a) The contractor recognizes that the services under this contract are vital to the 

judiciary and shall be continued without interruption and that, upon contract 

expiration, a successor, either the judiciary or another contractor, may continue 

them. The contractor agrees to:

(1) furnish phase-in training, and

(2) exercise its best efforts and cooperation to effect an orderly and efficient 

transition to a successor.

(b) The contractor shall, upon the contracting officer’s written notice:

(1) furnish phase-in, phase-out services for up to 90 days after this contract 

expires, and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-16

(2) negotiate in good faith a plan with a successor to determine the nature 

and extent of phase-in, phase-out services required. The plan shall 

specify a training program and a date for transferring responsibilities for 

each division of work described in the plan, and will be subject to the 

contracting officer’s written approval. The contractor shall provide 

sufficient experienced personnel during the phase-in, phase-out period to 

ensure that the services called for by this contract are maintained at the 

required level of proficiency.

(c) The contractor shall allow as many personnel as practicable to remain on the job 

to help the successor maintain the continuity and consistency of the services 

required by this contract. The contractor also shall disclose necessary personnel 

records and allow the successor to conduct on-site interviews with these 

employees. If selected employees are agreeable to the change, the contractor 

shall release them at a mutually agreeable date and negotiate transfer of their 

earned fringe benefits to the successor.

(d) The contractor shall be reimbursed for all reasonable phase-in, phase-out costs 

(i.e., costs incurred within the agreed period after contract expiration that result 

from phase-in, phase-out operations) and a fee (profit) not to exceed a pro rata 

portion of the fee (profit) under this contract.

(end)

Clause 2-55, Privacy or Security Safeguards

Include the following clause as prescribed in § 220.25.80(b) (Service-Related Provisions 

and Clauses).

Privacy or Security Safeguards (JAN 2003)

(a) The contractor shall not publish or disclose in any manner, without the 

contracting officer's written consent, the details of any safeguards either 

designed or developed by the contractor under this contract or otherwise 

provided by the judiciary.

(b) To the extent required to carry out a program of inspection to safeguard against 

threats and hazards to the security, integrity, and confidentiality of judiciary data, 

the contractor shall afford the judiciary access to the contractor's facilities, 

installations, technical capabilities, operations, documentation, records, and 

databases.

(c) If new or unanticipated threats or hazards are discovered by either the judiciary 

or the contractor, or if existing safeguards have ceased to function, the 

discoverer shall immediately bring the situation to the attention of the other party.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-17

(end)

Clause 2-60, Stop-Work Order

Include the following clause as prescribed in § 220.25.80(c) (Service-Related Provisions 

and Clauses).

Stop-Work Order (JAN 2010)

(a) The contracting officer may, at any time, by written order to the contractor, 

require the contractor to stop all, or any part, of the work called for by this 

contract for a period of 90 days after the order is delivered to the contractor, and 

for any further period to which the parties may agree. The order will 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. Within a period of 90 

days after a stop-work order is delivered to the contractor, or within any 

extension of that period to which the parties shall have agreed, the contracting 

officer will 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, clause of this contract.

(b) If a stop-work order issued under this clause is canceled or the period of the 

order or any extension thereof expires, the contractor shall resume work. The 

contracting officer will make an equitable adjustment in the delivery schedule or 

contract price, or both, and the contract will 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 the 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 the claim submitted 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 judiciary, the contracting officer will allow 

reasonable costs resulting from the stop-work order in arriving at the termination 

settlement.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-18

(d) If a stop-work order is not canceled and the work covered by the order is 

terminated for default, the contracting officer will allow, by equitable adjustment 

or otherwise, reasonable costs resulting from the stop-work order.

(end)

Clause 2-65, Key Personnel

Include the following clause as prescribed in § 220.25.80(d) (Service-Related Provisions 

and Clauses) and § 520.75(b) (Provisions and Clauses).

Key Personnel (APR 2013)

(a) Individuals identified below as key personnel and accepted for this contract are 

expected to remain dedicated to this contract. However, in the event that it 

becomes necessary for the contractor to replace any of the individuals 

designated as key personnel, the contractor shall request such substitutions in 

accordance with this clause. Substitution of key personnel will be considered 

under the following circumstances only:

(1) All substitutes shall have qualifications at least equal to those of the 

person being replaced.

(2) All appointments of key personnel shall be approved in writing by the 

contracting officer, and no substitutions of such personnel shall be made 

without the advance written approval of the contracting officer.

(3) Except as provided in paragraph (4) of this clause, at least 30 days (60 

days if security clearance is required) in advance of the proposed 

substitution, all proposed substitutions of key personnel shall be submitted 

in writing to the contracting officer, including the information required in 

paragraph (5) of this provision.

(4) The following identifies the requirements for situations where individuals 

proposed as key personnel become unavailable because of sudden 

illness, death or termination of employment. The contractor shall within 5 

work days after the event, notify the contracting officer in writing of such 

unavailability. If the event happens after award, the contracting officer will 

determine if there is an immediate need for a temporary substitute and a 

continuing requirement for a permanent substitute for the key personnel 

position. The contracting officer will promptly inform the contractor of this 

determination. If the contracting officer specifies that a temporary 

substitute is required, the contractor shall as soon as is practical identify 

who will be performing the work as a temporary substitute. The temporary 

substitute will then start performance on a date mutually acceptable to the 

contracting officer and the contractor. Within 15 work days following the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-19

event, if the contracting officer specifies that a permanent substitute is 

required, the contractor shall submit, in writing, for the contracting officer’s 

approval, the information required in (5) and (6) below, for a proposed 

permanent substitute for the unavailable individual. The approval process 

will be the same as (7) below.

(5) Request for substitution of key personnel shall provide a detailed 

explanation of the circumstances necessitating substitution, a resume of 

the proposed substitute, and any other information requested by the 

contracting officer to make a determination as to the appropriateness of 

the proposed substitute’s qualifications. All resumes shall be signed by 

the proposed substitute and his/her formal (per company accepted 

organizational chart) direct supervisor or higher authority.

(6) As a minimum (or as otherwise specified in the solicitation), resumes shall 

include the following:

(a) name of person;

(b) functional responsibility;

(c) education (including, in reverse chronological order, colleges and/or 

technical schools attended (with dates), degree(s)/certification(s) 

received, major field(s) of study, and approximate number of total 

class hours);

(d) citizenship status;

(e) experience including, in reverse chronological order for up to ten 

years, area(s) or work in which a person is qualified, company and 

title of position, approximate starting and ending dates 

(month/year), concise descriptions of experience for each position 

held including specific experience related to the requirements of 

this contract; and

(f) certification that the information contained in the resume is correct 

and accurate (signature of key person and date signed, and 

signature of the supervisor or higher authority and date signed will 

be accepted as certification).

(7) The contracting officer will promptly notify the contractor in writing of 

his/her approval or disapproval of all requests for substitution of key 

personnel. All disapprovals will require re-submission of another 

proposed substitution within 15 days by the contractor.

(b) The following individuals are designated as key personnel under this contract:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-20

______________________________________________________________

______________________________________________________________

(end)

Provision 2-70, Site Visit

Include the following provision as prescribed in § 220.25.80(e) (Service-Related 

Provisions and Clauses).

Site Visit (JAN 2003)

Offerors or quoters are urged and expected to inspect the site where 

services are to be performed and to satisfy themselves regarding all 

general and local conditions that may affect the cost of contract 

performance, to the extent that the information is reasonably obtainable. In 

no event will failure to inspect the site constitute grounds for a claim after

contract award.

(end)

Clause 2-75, Liquidated Damages

Include the following clause as prescribed in § 220.30.50 (Clause), inserting the amount 

where indicated.

Liquidated Damages (JAN 2003)

(a) If the contractor fails to complete delivery of the products, or performance of the 

services within the time specified in this contract, or any extension, the contractor 

shall, in place of actual damages, pay to the judiciary $_______________ 

(contracting officer insert amount) for liquidated damages as agreed for each 

calendar day of delay.

(b) Alternatively, if completion of delivery or performance is delayed beyond the 

contract dates, the judiciary may, at its sole discretion, terminate this contract in 

whole or in part under the Termination for Default clause, and the contractor shall 

be liable for the agreed liquidated damages accruing until the time the judiciary 

may reasonably obtain delivery or performance of similar products or services. 

The liquidated damages will be in addition to excess costs of re-procurement.

(c) The contractor will not be charged with liquidated damages when the delay in 

completion of delivery or performance arises out of causes beyond the control 

and without the fault or negligence of the contractor.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-21

(end)

Clause 2-80, Judiciary Property

Include the following clause as prescribed in § 220.35(c) (Judiciary Property).

Judiciary Property (JAN 2003)

(a) Title to judiciary property provided under this contract remains in the judiciary. 

The contractor may use the judiciary property only in connection with this 

contract. The contractor shall secure judiciary property and maintain adequate 

property control records in accordance with sound industrial practice and shall 

make them available for judiciary inspection at all reasonable times.

(b) Upon delivery of judiciary property to the contractor, the contractor assumes the 

risk and responsibility for its loss or damage, except:

(1) for reasonable wear and tear;

(2) to the extent property is consumed in performing the contract; or

(3) as otherwise provided in the contract.

(c) Upon completing this contract, the contractor shall follow the contracting officer's 

instructions regarding the disposition of all judiciary property not consumed in 

performing this contract or previously delivered to the judiciary. The contractor 

shall prepare for shipment, deliver F.o.b. origin, or dispose of the judiciary 

property, as directed or authorized by the contracting officer. The net proceeds 

of any such disposal will be credited to the contract price or will be paid to the 

judiciary as directed by the contracting officer.

(d) The items of property are listed in an inventory of items attached to this contract 

and the contractor shall notify the judiciary on any required adjustments.

(end)

Provision 2-85A, Evaluation Inclusive of Options

Include the following provision as prescribed in § 220.40.60(a)(1) (Evaluation of Options 

Provisions).

Evaluation Inclusive of Options (JAN 2003)

(a) The judiciary will evaluate offers for purposes of award by adding the total price 

for all options to the total price for the basic requirement. Evaluation of options 

does not obligate the judiciary to exercise the option(s).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-22

(b) Any offer that is materially unbalanced as to prices for basic and option quantities 

may be rejected. An unbalanced offer is one that is based on prices significantly 

less than cost for some work and prices that are significantly overstated for other 

work.

(end)

Provision 2-85B, Evaluation Exclusive of Options

Include the following provision as prescribed in § 220.40.60(a)(2) (Evaluation of Options 

Provisions).

Evaluation Exclusive of Options (JAN 2003)

The judiciary will evaluate offers for award purposes by including only the 

price for the basic requirement; i.e., options will not be included in the 

evaluation for award purposes.

(end)

Provision 2-85C, Evaluation of Options Exercised at Time of Contract 

Award

Include the following provision as prescribed in § 220.40.60(a)(3) (Evaluation of Options 

Provisions).

Evaluation of Options Exercised at Time of Contract Award (JAN 

2003)

Except when it is determined not to be in the judiciary's best interests, the 

judiciary will evaluate the total price for the basic requirement together 

with any option(s) exercised at the time of award.

(end)

Clause 2-90A, Option for Increased Quantity

Include the following clause as prescribed in § 220.40.60(b)(1) (Option Clauses).

Option for Increased Quantity (APR 2013)

The judiciary may increase the quantity of products called for in this 

contract by requiring the delivery of the numbered line item(s) identified as 

an option item, in the quantity and at the price set forth in the line item(s). 

The contracting officer may exercise this option, at any time within the 

period specified in the contract, by giving written notice to the contractor. 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-23

Delivery of the items added by the exercise of this option will continue 

immediately after, and at the same rate as, delivery of like items called for 

under this contract, unless the parties otherwise agree.

(end)

Clause 2-90B, Option for Increased Quantity – Separately Priced Line Item

Include the following clause as prescribed in § 220.40.60(b)(2) (Option Clauses).

Option for Increased Quantity – Separately Priced Line Item (APR 

2013)

The judiciary may require the delivery of the numbered line item, identified 

as an option item, in the quantity and at the price stated in the line item. 

The contracting officer may exercise the option by written notice to the 

contractor within [insert in the clause the period of time in which the 

contracting officer has to exercise the option]. Delivery of added items 

shall continue at the same rate that like items are called for under the 

contract, unless the parties otherwise agree.

(end)

Clause 2-90C, Option to Extend Services

Include the following clause as prescribed in § 220.40.60(b)(3) (Option Clauses).

Option to Extend Services (APR 2013)

The judiciary may require continued performance of any services within 

the limits and at the rates specified in the contract. These rates may be 

adjusted only as a result of revisions to prevailing labor rates provided by 

the Secretary of Labor. The option provision may be exercised more than 

once, but the total extension of performance hereunder shall not exceed 6 

months. The contracting officer may exercise the option by written notice 

to the contractor no later than _____ calendar days prior to the contract’s 

current expiration date [insert the period of time within which the 

contracting officer may exercise the option].

(end)

Clause 2-90D, Option to Extend the Term of the Contract

Include the following clause as prescribed in § 220.40.60(b)(4) (Option Clauses).

Option to Extend the Term of the Contract (APR 2013)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-24

(a) The judiciary may extend the term of this contract by written notice to the 

contractor no later than ______ calendar days prior to the contract’s current 

expiration date [insert the period of time within which the contracting officer may 

exercise the option]; provided that the judiciary gives the contractor a preliminary 

written notice of its intent to extend at least ______ calendar days [60 days 

unless a different number of days is inserted] before the contract expires. The 

preliminary notice does not commit the judiciary to an extension.

(b) If the judiciary exercises this option, the extended contract shall be considered to 

include this option clause.

(c) The total duration of this contract, including the exercise of any options under this 

clause, shall not exceed ___________ (months) (years).

(end)

Clause 2-95, Material Requirements

Include the following clause as prescribed in § 220.25.70(i) (Product-Related Delivery 

Clauses and Provisions).

Material Requirements (JAN 2003)

(a) As used in this clause:

(1) “new" means composed of previously unused components, whether 

manufactured from virgin material, recovered material in the form of raw 

material, or materials and by-products generated from, and reused within, 

an original manufacturing process; provided that the products meet 

contract requirements, including but not limited to, performance, reliability, 

and life expectancy.

(2) "reconditioned" means restored to the original normal operating condition 

by readjustments and material replacement.

(3) "recovered material" means waste materials and by-products recovered or 

diverted from solid waste, but the term does not include those materials 

and by-products generated from, and commonly reused within, an original 

manufacturing process.

(4) "re-manufactured" means factory rebuilt to original specifications.

(5) "virgin material" means:

(i) previously unused raw material, including previously unused 

copper, aluminum, lead, zinc, iron, other metal or metal ore; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-25

(ii) any undeveloped resource that is, or with new technology will 

become, a source of raw materials.

(b) Unless this contract otherwise requires virgin material or products composed of 

or manufactured from virgin material, the contractor shall provide products that 

are new, reconditioned, or re-manufactured, as defined in this clause.

(c) An offer to provide unused former government surplus property shall include a 

complete description of the material, the quantity, the name of the government 

agency from which acquired, and the date of procurement.

(d) An offer to provide used, reconditioned, or re-manufactured products shall 

include a detailed description of such products and shall be submitted to the 

contracting officer for written approval.

(e) Used, reconditioned, or re-manufactured products, or unused former government 

surplus property, may be used in performance if the contractor has proposed the 

use of such products, and the contracting officer has authorized their use.

(end)

Provision 2-100, Brand Name or Equal

Include the following provision as prescribed in § 230.40.30 (Provision).

Brand Name or Equal (APR 2013)

(a) One or more items called for by this solicitation have been identified by a brandname-or-equal product description. Offers offering equal products will be 

considered for award if these products are clearly identified and are determined 

by the judiciary to contain all of the essential characteristics of the brand-name 

products referenced in the solicitation.

(b) Unless the offeror clearly indicates in the offer that the offer is for an equal 

product, the offer will be considered as offering a brand-name product referenced 

in the solicitation.

(c) If the offeror proposes to furnish an equal product, the brand name and model or 

catalog number, if any, of the product to be furnished shall be inserted in the 

space provided in the solicitation. The evaluation of offers and the determination 

as to equality of the product offered will be based on information furnished by the 

offeror or identified in the offer, as well as other information reasonably available 

to the purchasing activity. The purchasing activity is not responsible for locating 

or obtaining any information not identified in the offer and reasonably available to 

the purchasing activity. Accordingly, to ensure that sufficient information is 

available, the offeror shall furnish as a part of the offer:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-26

(1) all descriptive material (such as cuts, illustrations, drawings, or other 

information) necessary for the purchasing activity to establish exactly what 

the offeror proposes to furnish and to determine whether the product 

offered meets the requirements of the solicitation; or

(2) specific references to information previously furnished or to information 

otherwise available to the purchasing activity to permit a determination as 

to equality of the product offered.

(3) If the offeror proposes to modify a product so as to make it conform to the 

requirements of the solicitation, the offeror shall:

(i) Include in the offer a clear description of the proposed 

modifications; and

(ii) Clearly mark any descriptive material to show the proposed 

modifications.

(end)

Provision 2-105, Economic Purchase Quantity – Products

Include the following provision as prescribed in § 220.25.70(j) (Product-Related Delivery 

Clauses and Provisions).

Economic Purchase Quantity – Products (JAN 2003)

(a) Offerors are invited to state an opinion on whether the quantity(ies) of products 

on which offers or quotes are requested in this solicitation is (are) economically 

advantageous to the judiciary.

__________________________________________________________

__________________________________________________________

__________________________________________________________

(b) Each offeror who believes that procurements in different quantities would be 

more advantageous is invited to recommend an economic purchase quantity. If 

different quantities are recommended, a total and a unit price shall be quoted for 

applicable items. An economic purchase quantity is that quantity at which a 

significant price break occurs. If there are significant price breaks at different 

quantity points, this information is desired as well.

Offeror’s Recommendations

Item Quantity Price Quotation Total
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-27

(c) The information requested in this provision is being solicited to avoid 

procurements in disadvantageous quantities and to assist the judiciary in 

developing a database for future procurements of these items. However, the 

judiciary reserves the right to amend or cancel the solicitation and re-solicit with 

respect to any individual item in the event quotations received and the judiciary's 

requirements indicate that different quantities shall be acquired.

(end)

Clause 2-110, Option to Purchase Equipment

Include the following clause as prescribed in § 220.45.70 (Clauses).

Option to Purchase Equipment (JAN 2003)

(a) The judiciary may purchase the equipment provided on a lease or rental basis 

under this contract. The contracting officer may exercise this option only by 

providing a unilateral modification to the contractor. The effective date of the 

purchase will be specified in the unilateral modification and may be any time 

during the period of the contract, including any extensions thereto.

(b) Except for final payment and transfer of title to the judiciary, the lease or rental 

portion of the contract becomes complete and lease or rental charges shall be 

discontinued on the day immediately preceding the effective date of purchase 

specified in the unilateral modification required in paragraph (a) of this clause.

(c) The purchase conversion cost of the equipment shall be computed as of the 

effective date specified in the unilateral modification required in paragraph (a) of 

this clause, on the basis of the purchase price set forth in the contract, minus the 

total purchase option credits accumulated during the period of lease or rental, 

calculated by the formula contained elsewhere in this contract.

(d) The accumulated purchase option credits available to determine the purchase 

conversion cost will also include any credits accrued during a period of lease or 

rental of the equipment under any previous judiciary contract if the equipment 

has been on continuous lease or rental. The movement of equipment from one 

site to another site shall be "continuous rental."

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-28

Clause 2-115, Terms for Commercial Advance Payment of Purchases

Include the following clause as prescribed in § 220.55.70(a) (Clauses for Inclusion in 

Solicitations and Contracts Offering Commercial Advance Payment).

Terms for Commercial Advance Payment of Purchases (APR 2013)

(a) Contractor Entitlement to Advance Payment

The contractor may request, and the judiciary may authorize, payment in 

advance when: the payment requested is properly due in accordance with this 

contract; the products or services due under the contract will be delivered or 

performed in accordance with the contract; and there has been no impairment or 

diminution of the judiciary’s security under this contract.

(b) Special Terms Regarding Termination for Default

If this contract is terminated for default, the contractor shall, on demand, repay to 

the judiciary the amount of unliquidated advance payments. The judiciary shall 

be liable for no payment except as provided by Clause 7-230, Termination for 

Default – Fixed Price Products and Services.

(c) Security for Advance Payment

The contractor must provide adequate security prior to any authorization for 

advance payment. In the event the contractor fails to provide adequate security, 

as required by this clause, no advance payment shall be made under this 

contract. The contracting officer may determine that the contractor’s financial 

condition provides adequate security. If the contracting officer does not consider 

the contractor’s financial condition to provide adequate security, the contractor 

must provide an irrevocable letter of credit from a federally insured financial 

institution in an amount equal to the advance payment requested. If, at any time, 

the contracting officer determines that the security provided by the contractor is 

insufficient, the contractor shall promptly provide such additional security as the 

contracting officer determines necessary. In the event the contractor fails to 

provide such additional security, the contracting officer may collect or liquidate 

such security that has been provided and suspend further payments to the 

contractor; and the contractor shall repay to the judiciary the amount of 

unliquidated advance payments as the contracting officer at his / her sole 

discretion deems repayable.

(d) Reservation of Rights

(1) No payment or other action by the judiciary under this clause shall:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-29

(i) Excuse the contractor from performance of obligations under this 

contract; or

(ii) Constitute a waiver of any of the rights or remedies of the parties 

under the contract.

(2) The judiciary’s rights and remedies under this clause:

(i) Shall not be exclusive, but rather shall be in addition to any other 

rights and remedies provided by law or this contract; and

(ii) Shall not be affected by delayed, partial, or omitted exercise of any 

right, remedy, power, or privilege, nor shall such exercise or any 

single exercise preclude or impair any further exercise under this 

clause or the exercise of any other right, power, or privilege of the 

judiciary.

(e) Limitation on Frequency of Financing Payments

Contractor financing payments shall be provided no more frequently than 

monthly.

(f) Dates for Payment

A payment under this clause is a contract financing payment and not subject to 

the interest penalty provisions of the Prompt Payment Act.

(g) Restrictions on Novation

While any advance payments made under this contract remain outstanding with 

respect to performance (i.e., the judiciary has not received all of the performance 

which has been paid in advance), the contractor shall not substantially change 

the management, ownership, or control of the corporation without the prior 

written consent of the contracting officer.

(h) Prohibition Against Assignment

The contractor shall not assign this contract, any interest therein, or any claim 

under the contract to any party.

(end)

Alternate I (OCT 2006): In accordance with § 220.55.70(b) (Clauses for Inclusion in 

Solicitations and Contracts Offering Commercial Advance Payment), add the following 

paragraph to the basic clause in contracts for photocopy equipment maintenance 

agreements which authorize advance payment
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-30

(i) Any advance payment authorized by this contract is not inclusive of excess copy 

charges which may be incurred. These charges shall be invoiced in arrears, 

either at the end of the twelve month period of performance or when the 

cumulative amount of such charges reaches $500.00, whichever occurs first.

Clause 2-120, Submission of Invoice

Include the following clause as prescribed in § 220.55.70(c) (Clauses for Inclusion in 

Solicitations and Contracts Offering Commercial Advance Payment).

Submission of Invoice (OCT 2006)

Upon satisfactory completion of the first month of performance under this 

contract and approval by the contracting officer, the contractor may 

invoice and receive payment for a maximum of twelve months of 

performance.

(end)

Clause 2-125, Security for Advance Payment

Include the following clause as prescribed in § 220.55.70(d) (Clauses for Inclusion in 

Solicitations and Contracts Offering Commercial Advance Payment).

Security for Advance Payment (APR 2013)

The contractor’s financial condition has been accepted as adequate 

security for advance payments under this contract. Should the contracting 

officer determine that the contractor’s financial condition has changed to 

such an extent that it can no longer be considered adequate security, the 

contracting officer may exercise the judiciary’s rights to require other 

security under paragraph (c), Security for Advance Payment, of Clause 2-

115, Terms for Commercial Advance Payment of Purchases.

(end)

Clause 2-130, Energy Efficiency in Energy-Consuming Products

Include the following clause as prescribed in § 220.60.70(a) (Clauses).

Energy Efficiency in Energy-Consuming Products (APR 2013)

(a) Definition. As used in this clause:

“Energy-efficient product”:

(1) Means a product that:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-31

(i) Meets Department of Energy and Environmental Protection Agency 

criteria for use of the Energy Star trademark label; or

(ii) Is in the upper 25 percent of efficiency for all similar products as 

designated by the Department of Energy’s Federal Energy 

Management Program (FEMP)

(2) The term “product” does not include any energy-consuming product or 

system designed or procured for combat or combat-related missions (see

42 U.S.C. § 8259b).

(b) The contractor shall ensure that energy-consuming products are energy efficient 

products (i.e., ENERGY STAR® products or FEMP-designated products) at the 

time of contract award, for products that are:

(1) Delivered;

(2) Acquired by the contractor for use in performing services within judiciary 

facilities;

(3) Furnished by the contractor for use by the judiciary; or

(4) Specified in the design of a building or work, or incorporated during its 

construction, renovation, or maintenance.

(c) The requirements of paragraph (b) apply to the contractor (including any 

subcontractor) unless:

(1) The energy-consuming product is not listed in the ENERGY STAR®

Program or FEMP; or

(2) Otherwise approved in writing by the contracting officer.

(d) Information about these products is available at:

(1) ENERGY STAR® ; and

(2) FEMP.

(end)

Clause 2-135, Acquisition of EPEAT®-Registered Personal Computer 

Products

Include the following clause as prescribed in § 220.60.70(b) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-32

Acquisition of EPEAT®-Registered Personal Computer Products 

(MAR 2019)

(a) Definitions. As used in this clause—

“Computer” means a device that performs logical operations and processes data. 

Computers are composed of, at a minimum:

(1) A central processing unit (CPU) to perform operations;

(2) User input devices such as a keyboard, mouse, digitizer, or game 

controller; and

(3) A computer display screen to output information.

Computers include both stationary and portable units, including desktop 

computers, integrated desktop computers, notebook computers, thin 

clients, and workstations. Although computers must be capable of using 

input devices and computer displays, as noted in (2) and (3) above, 

computer systems do not need to include these devices on shipment to 

meet this definition. This definition does not include server computers, 

gaming consoles, mobile telephones, portable hand-held calculators, 

portable digital assistants (PDAs), MP3 players, or any other mobile 

computing device with displays less than 4 inches, measured diagonally.

“Computer display” means a display screen and its associated electronics 

encased in a single housing or within the computer housing (e.g., notebook or 

integrated desktop computer) that is capable of displaying output information 

from a computer via one or more inputs such as a VGA, DVI, USB, DisplayPort, 

and/or IEEE 1394-2008TM, Standard for High Performance Serial Bus. Examples 

of computer display technologies are the cathode-ray tube (CRT) and liquid 

crystal display (LCD).

“Desktop computer” means a computer where the main unit is intended to be 

located in a permanent location, often on a desk or on the floor. Desktops are 

not designed for portability and utilize an external computer display, keyboard, 

and mouse. Desktops are designed for a broad range of home and office 

applications.

“Integrated desktop computer” means a desktop system in which the computer 

and computer display function as a single unit that receives its AC power through 

a single cable. Integrated desktop computers come in one of two possible forms:

(1) A system where the computer display and computer are physically 

combined into a single unit; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-33

(2) A system packaged as a single system where the computer display is 

separate but is connected to the main chassis by a DC power cord and 

both the computer and computer display are powered from a single power 

supply. As a subset of desktop computers, integrated desktop computers 

are typically designed to provide similar functionality as desktop systems.

“Notebook computer” means a computer designed specifically for portability and 

to be operated for extended periods of time either with or without a direct 

connection to an AC power source. Notebooks must utilize an integrated 

computer display and be capable of operation off of an integrated battery or other 

portable power source. In addition, most notebooks use an external power 

supply and have an integrated keyboard and pointing device. Notebook 

computers are typically designed to provide similar functionality to desktops, 

including operation of software similar in functionality to that used in desktops.

Docking stations are considered accessories for notebook computers, not 

notebook computers. Tablet PCs, which may use touch-sensitive screens along 

with, or instead of, other input devices, are considered notebook computers.

“Personal computer product” means a computer, computer display, desktop 

computer, integrated desktop computer, or notebook computer.

(b) Under this contract, the Contractor shall deliver, furnish for government use, or 

furnish for contractor use within judiciary facilities, only personal computer 

products that, at the time of submission of proposals and at the time of award, 

were Electronic Product Environmental Assessment Tool (EPEAT)® bronzeregistered or higher.

(c) For information on EPEAT® standard, see: www.epa.gov/epeat.

(end)

Clause 2-140, Judiciary IT Security Standards

Include the following clause as prescribed in § 220.25.80(f) (Service-Related Provisions 

and Clauses).

Judiciary IT Security Standards (APR 2013)

(a) Policy

Contractors developing information systems on behalf of the judiciary are 

required to implement reasonable and effective security safeguards to protect the 

confidentiality, integrity, and availability of judiciary information. To ensure 

judiciary IT security, the contractor shall comply with the requirements below and 

incorporate this clause in any subcontracts involving the systems integration, 

software development, or the provision of software services.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-34

(b) Contractor Responsibilities

The contractor shall:

(1) Provide the contracting officer's representative (COR) or designee access 

to and information regarding the contractor's information security program 

and the systems used in performance of this contract when requested in 

connection with judiciary efforts to ensure compliance with all the 

contractor’s security requirements, and shall otherwise cooperate in 

assuring adequate security for judiciary data.

(2) Secure and maintain any computer system, including mobile devices, 

which it uses in the performance of this contract as further described 

below. This includes ensuring that security and other applications 

software is kept up-to-date and patched; anti-virus software is installed 

and current; security events are detected and addressed via a formal 

incident response program; physical security of assets is maintained; 

judiciary data is isolated from other customer or contractor data in such a 

manner that data leakage cannot occur between data sets and destruction 

of judiciary data is not impeded; transmissions of sensitive information 

taking place over insecure networks (such as the internet) are secure; and 

business continuity assured in the event of a system failure.

(3) Develop, maintain, and periodically provide to the COR a master asset 

inventory list that reflects all assets, government furnished equipment 

(GFE) or non-GFE that were used to process judiciary information. The 

initial version shall be provided to the COR within six months of contract 

award and updated versions shall be provided at the end of each sixmonth period thereafter (or a period mutually agreed upon between the 

COR and the contractor, not to exceed 12 months).

(4) Ensure that contractor-owned removable media such as removable hard 

drives, flash drives, CDs, and laptops, containing judiciary data, are 

encrypted using a NIST FIPS 140-2 (or its successor) approved product.

(5) Ensure that rules of behavior, approved by the COR, are signed by all 

contractor employees assigned to work on the judiciary contract and 

address at a minimum: authorized and official use; prohibition against 

unauthorized users; and protection of sensitive data and personally 

identifiable information.

(6) Use secure coding practices in a manner that minimizes security flaws 

within the software for any software developed in support of the contract. 

Prior to the execution of a software development task, the contractor shall 

provide the COR a copy of the contractor's secure coding best practices 

policy and upon delivery of the software, the contractor shall certify in 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-35

writing that the contractor complied with the policy in the performance of 

its obligations under the contract or task order.

(7) Represent and warrant that any software developed under a statement of 

work issued by the judiciary shall be free from all computer viruses, 

worms, time-outs, time bombs, back doors, disabling devices and other 

harmful or malicious code intended to or which may damage, disrupt, 

inconvenience or permit access to the software user's or another's 

software, hardware, networks, data or information.

(8) Correct security-related errors in contractor developed software and 

applicable documentation that are not commercial off the shelf that are 

reported by the COR or discovered by the contractor. If the system is in 

production, such corrections shall be completed within one working day of 

the date the contractor discovers or is notified of the error (or a date 

mutually agreed upon between the COR and the contractor not to exceed 

30 working days). If the system is not in production, such corrections shall 

be made within five working days of the date the contractor discovers or is 

notified of the error (or a date mutually agreed upon between the COR 

and the contractor, not to exceed 30 days). Latent defects will be handled 

in the same manner, as soon as they are discovered. If this is a task 

order contract, the requirement applies to any task order issued under the 

contract.

(9) Follow NIST 800-53A Revision 1, Guide for Assessing the Security 

Controls in Federal Information Systems and Organizations, NIST 800-18 

Revision 1, Guide for Developing Security Plans for Federal Information 

Systems, the Judiciary Information Security Framework, version 1.0, the 

Guide to Implementing the Judiciary Information Security Framework, 

version 1.0, and other Administrative Office of the US Courts security 

policies and guidelines, as well as industry best security practices, 

standards, and guidance, to ensure that the information system will be or 

has been developed with reasonable and effective security safeguards in 

place to protect the confidentiality, integrity, and availability of judiciary 

information. If the aforementioned versions and revisions numbers have 

been superseded by a more recent version or revision of the cited 

publication, the most recent version shall be used.

(10) Work with the COR in performing Security Risk Assessments (SRA). This 

includes identifying risks related to the design and functionality of a new 

system against compliance with the judiciary's security risk management 

model. Activities performed during this phase shall include analyzing how 

the security architecture protects the security of judicial information, 

identifying the system boundary, and assessing how management, 

operational, and technical security safeguards are implemented by the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-36

software and hardware, how the system interconnects with other networks 

while maintaining security, and lastly analyzing other inherent design 

features. Procedures, including a checklist, shall be developed by the 

contractor and used to document compliance with baseline security 

requirements and existing guidance from the Administrative Office of the 

US Courts.

(11) Initiate a Systems Security Plan (SSP) consistent with NIST 800-18 

Revision 1 (or its successor publication) during the planning phase of the 

contractor’s systems development life cycle and update the SSP regularly 

until it accurately reflects the production state of the information system. 

The contactor shall submit all drafts to the COR for review and comment. 

Comments shall be addressed to the satisfaction of the COR within five 

business days (or a date mutually agreed upon between the COR and the 

contractor, not to exceed 30 working days) of receipt. After a system is in 

production, the SSP must be updated the lesser of: within 30 calendar 

days of a major change to the system or every two years.

(12) Provide a requirements traceability matrix at the end of analysis phase, 

design phase, build phase, and deployment phase that designates the 

security requirements in a separate section so that they can be traced 

through the development life cycle. The contractor shall also provide the 

application designs and test plan documentation, and source code, if 

applicable, to the COR for review. Lastly, the contractor shall ensure that 

appropriate security management tools are in place to allow for the review 

of security configurations, user identities, etc., so that the implementation 

of security safeguards can be validated.

(13) Have in place configuration management and change control processes to 

prevent unauthorized modifications or additions to the information system 

and to ensure that any changes made to the information system are 

attributable to the individual who implemented the change.

(14) Without exception, prior to making changes that may produce a negative 

impact on security, perform a risk assessment that documents the 

purpose of the change, its security impact, and any compensating 

safeguards that need to be implemented to reduce residual risk. The risk 

assessment documentation shall be provided to the COR prior to change 

implementation.

(15) Perform self-testing of the contractor’s implemented security controls, and 

continuously monitor all testing activities and report on the performance 

and effectiveness of the information system's security safeguards to the 

COR. The specific assessments procedures as outlined in draft NIST 

Special Publication 800-53A (or its successor), shall be used by the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-37

contractor to assess the effectiveness of implemented security 

safeguards. The contractor shall provide security test plans and proposed 

test methods to the project manager within fifteen business days of test 

execution for review and approval.

(16) Provide a determination statement describing the results of each tested 

security safeguard within ten days of security test execution. When the 

results indicate that a safeguard is operating in a partially satisfied or 

otherwise not satisfied condition, the contractor shall document the 

security risk associated with the applicable condition, indicating which 

portions of the security safeguard have not been implemented or applied.

(17) Take corrective action to remedy any deficiencies impeding the successful 

implementation of a security safeguard. Corrective action must be taken 

within ten business days (or a date mutually agreed upon between the 

COR and the contractor not to exceed 30 working days) of discovery.

(18) Include verification and validation to ensure that the corrective action 

successfully remedies any safeguard failures identified during security 

testing.

(19) Provide a determination, in a written form agreed to by the COR, on 

whether the implemented corrective action was adequate to resolve the 

identified information security weaknesses and provide the reasons for 

any exceptions or risk-based decisions.

(20) Report to the COR, within 24 hours of discovery, any suspected or 

confirmed security incidents relative to the systems and data used in 

fulfillment of this contract and to cooperate in the investigation and 

resolution thereof. If a data breach occurs or is discovered outside of 

regular business hours and the COR cannot be reached, the contractor 

shall call the Judiciary Automated Systems Incident Response Capability 

(JASIRC) via phone on (202) 502-4370 or via an email message to either 

SOC@ao.uscourts.gov or JASIRC@ao.uscourts.gov.

(c) Personally Identifiable Information Notification and Use Requirement

If the contractor has access to sensitive personally identifiable information (PII), 

the contractor shall certify that it has a security policy in place that contains 

procedures to promptly notify any individual whose PII was, or is reasonably 

believed to have been, breached. Any notification shall be coordinated with the 

COR, for both method and content of notification, before the notification is 

released. The contractor assumes full responsibility for taking corrective action, 

which may include offering credit monitoring when appropriate.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-38

(d) Pass-through of Security Requirements to Subcontractors

For each subcontractor whose work requires access to judiciary facilities, IT 

resources, or data, the contractor must certify that it has incorporated this clause 

in the subcontract. Any breach by a subcontractor of any of the provisions set 

forth in this clause will be attributed to the contractor.

(e) Certification of Destruction/Sanitization

At the expiration of the contract, the contractor shall return all judiciary 

information and IT resources provided to the contractor during the contract, and 

provide a certification that all contractor assets, e.g., laptops, thumb drives, 

servers, and databases, containing or used to process judiciary information have 

been sanitized or destroyed. Upon submission of the final invoice (or sooner 

upon COR request), the contractor will certify in writing that sanitization and/or 

destruction has been performed pursuant to a method allowable under the NIST 

Special Publication 800-88, Guidelines for Media Sanitization (or its successor). 

This certification shall be in a form substantially similar to AO Form 553 and shall 

include a description of the data and the asset on which it was stored, the date 

and method of destruction/sanitization, and by whom. The contractor’s final 

invoice is due and payable only when it has complied with the requirements of 

this paragraph.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-1

Provisions and Clauses (Chapter 3)

Clause 3-1, Contractor Use of Mandatory Sources of Products or Services

Include the following clause as prescribed in § 310.20.70 (Clauses).

Contractor Use of Mandatory Sources of Products or Services (JUN 

2012)

(a) Certain products or services to be provided under this contract for use by the 

judiciary are required by law to be obtained from nonprofit agencies participating 

in the program operated by the Committee for Purchase from People Who Are 

Blind or Severely Disabled (the Committee) under Javits-Wagner-O'Day Act, 

(41 U.S.C. §§ 8501-8506). Additionally, certain of these products are available 

from the Defense Logistics Agency (DLA), the General Services Administration 

(GSA), or the Department of Veterans Affairs (VA). The contractor shall obtain 

mandatory products or services to be provided for judiciary use under this 

contract from the specific sources indicated in the contract.

(b) The contractor shall immediately notify the contracting officer if a mandatory 

source is unable to provide the products or services by the time required, or if the 

quality of products or services provided by the mandatory source is 

unsatisfactory. The contractor shall not purchase the products or services from 

other sources until the contracting officer has notified the contractor that the 

Committee or an AbilityOne central nonprofit agency has authorized purchase 

from other sources.

(c) Price and delivery information for mandatory products is available from the 

contracting officer for products obtained through the DLA/GSA/VA distribution 

facilities. For mandatory products or services not available from DLA/GSA/VA 

sources, price and delivery information is available from the appropriate central 

nonprofit agency. Payments will be made directly to the source making delivery. 

Points of contact for AbilityOne central nonprofit agencies are:

(1) National Industries for the Blind (NIB)

1310 Braddock Place

Alexandria, VA 22314-1591

703-310-0500; and

(2) National Industries for the Severely Handicapped (NISH)

8401 Old Courthouse Road

Vienna, VA 22182

571-226-4660
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

(end)

Clause 3-3, Provisions, Clauses, Terms and Conditions – Small Purchases

Include the following clause as prescribed in § 310.50.30(d) (Incidental Items Not on 

Schedule), § 325.30.20(b) (Written Solicitations), and § 325.45.15(b) (Open Market 

Purchases).

Provisions, Clauses, Terms and Conditions – Small Purchases (OCT

2023)

(a) The following provisions are incorporated by reference into the request for 

quotations (RFQ):

(1) Provision 3-70, Determination of Responsibility (JAN 2003)

(2) Provision 3-210, Protests (JUN 2014)

(3) Provision 7-60, Judiciary-Furnished Property or Services (JAN 2003)

(b) The contractor shall comply with the following clauses incorporated by reference:

(1) Clause 1-15, Disclosure of Contractor Information to the Public 

(AUG 2004)

(2) Clause 2-60, Stop-Work Order (JAN 2010)

(3) Clause 3-205, Protest After Award (JAN 2003)

(4) Clause 7-20, Security Requirements (APR 2013)

(5) Clause 7-30, Public Use of the Name of the Federal Judiciary (JUN 2014)

(6) Clause 7-35, Disclosure or Use of Information (APR 2013)

(7) Clause 7-85, Examination of Records (JAN 2003)

(8) Clause 7-125, Invoices (APR 2011)

(9) Clause 7-130, Interest (Prompt Payment) (JAN 2003)

(10) Clause 7-135, Payments (JAN 2003) (Payment means acceptance by the 

inclusion of this clause.)

(11) Clause 7-140, Discounts for Prompt Payment (JAN 2003)

(12) Clause 7-150, Extras (JAN 2003)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

(13) Clause 7-185, Changes (APR 2013)

(14) Clause 7-200, Judiciary Delay of Work (JAN 2003) (Applies for products 

and fixed-price services.)

(15) Clause 7-210, Payment for Emergency Closures (APR 2013)

(16) Clause 7-235, Disputes (JAN 2003)

(c) The contractor shall comply with the following clauses, incorporated by 

reference, unless the stated circumstances do not apply:

(1) Clause B-20, Computer Generated Forms (JAN 2003) (Applies when the 

contractor is required to submit data on standard or optional forms.)

(2) Clause 6-60, Rights in Data – General (JUN 2012) (Applies if data will be 

produced, furnished, or acquired under the purchase order.)

(3) Clause 7-145, Government Purchase Card (JAN 2003) (Applies when the 

CO determines that the purchase card can be used to make payments.)

(4) Clause 2-115, Terms for Commercial Advance Payment of Purchases 

(APR 2013) (Applies if advance payment will be authorized.)

(5) Clause 2-115, Alt I (OCT 2006) (Applies if advance payment is authorized 

for photocopy equipment maintenance.)

(6) The following apply to products only:

(a) Clause 2-25A, Delivery Terms and Contractor’s Responsibilities 

(JAN 2003) (Purchase order will specify whether delivery is 

expected at destination or origin.)

(b) Clause 2-45, Packaging and Marking (AUG 2004) (Applies to fixedprice contracts for products or for a service involving furnishing of 

products.)

(c) Clause 3-155, Walsh-Healey Public Contracts Act (JUN 2012) 

(Applies to purchase orders over $15,000 for the manufacturing or 

furnishing of products in the United States, Puerto Rico, or the U.S. 

Virgin Islands.)

(7) The following apply to services only:

(a) Clause 1-1, Employment by the Government (JAN 2003)

(b) Clause 1-5, Conflict of Interest (AUG 2004)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

(c) Clause 3-160, Service Contract Labor Standards (MAR 2019) 

(Applies to any purchase order over $2,500, the principal purpose 

of which is to furnish services through the use of service employees 

for work to be performed in the United States, Puerto Rico, Guam, 

or the U.S. Virgin Islands, except where Clause 3-215, Exemption 

from Application of the Service Contract Labor Standards to 

Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Requirements, or Clause 3-225, Exemption from 

Application of the Service Contract Labor Standards to Contracts 

for Certain Services – Requirements apply. See (7)(g) and (7)(h) 

below.)

(d) Clause 7-40, Judiciary-Contractor Relationship (JAN 2003) (Applies 

to all services.)

(e) Clause 7-65, Protection of Judiciary Buildings, Equipment and 

Vegetation (APR 2013) (Applies when services are performed at a 

judiciary building.)

(f) Clause 7-205, Payment for Judiciary Holidays (OCT 2023) (Applies 

to time-and-materials or labor-hour contracts.)

(g) Clause 3-215, Exemption from Application of the Service Contract 

Labor Standards to Contracts for Maintenance, Calibration, or 

Repair of Certain Equipment – Requirements (MAR 2019) (Applies 

if the request for quotation included Provision 3-195 and the 

contractor certified its compliance with the conditions stated in the 

provision.)

(h) Clause 3-225, Exemption from Application of the Service Contract 

Labor Standards to Contracts for Certain Services – Requirements 

(MAR 2019) (Applies if the request for quotation included Provision 

3-220 and the contractor certified its compliance with the conditions 

stated in the provision.)

(d) Inspection/Acceptance

The contractor shall tender for acceptance only those products and/or services 

that conform to the requirements of this contract. The judiciary reserves the right 

to inspect or test any products or services that have been tendered for 

acceptance. The judiciary may require repair or replacement of nonconforming 

products or re-performance of nonconforming services at no increase in contract 

price. The judiciary must exercise these rights:

(1) within a reasonable period of time after the defect or non-conformance 

was discovered or should have been discovered; and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

(2) before any substantial change occurs in the condition of the item, unless 

the change is due to the defect in the item.

(e) Excusable Delays

The contractor shall be liable for default unless nonperformance is caused by an 

occurrence beyond the reasonable control of the contractor and without its fault 

or negligence, such as acts of God or the public enemy, acts of the government 

in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine 

restrictions, strikes, unusually severe weather, and delays of common carriers. 

The contractor shall notify the contracting officer in writing as soon as it is 

reasonably possible after the commencement of any excusable delay, setting 

forth the full particulars in connection therewith, shall remedy such occurrence 

with all reasonable dispatch, and shall promptly give written notice to the 

contracting officer of the cessation of such occurrence.

(f) Termination for the Judiciary’s Convenience

The judiciary reserves the right to terminate this contract, or any part hereof, for 

its sole convenience. In the event of such termination, the contractor shall 

immediately stop all work hereunder and shall immediately cause any and all of 

its suppliers and subcontractors to cease work. Subject to the terms of this 

contract, the contractor shall be paid a percentage of the contract price reflecting 

the percentage of the work performed prior to the notice of termination, plus 

reasonable charges that the contractor can demonstrate to the satisfaction of the 

judiciary, using its standard record keeping system, have resulted from the 

termination. The contractor shall not be required to comply with the cost 

accounting standards or contract cost principles for this purpose. This paragraph 

does not give the judiciary any right to audit the contractor's records. The 

contractor shall not be paid for any work performed or costs incurred that 

reasonably could have been avoided.

(g) Termination for Cause

The judiciary may terminate this contract, or any part hereof, for cause in the 

event of any default by the contractor, or if the contractor fails to comply with any 

contract terms and conditions, or fails to provide the judiciary, upon request, with 

adequate assurances of future performance. In the event of termination for 

cause, the judiciary shall not be liable to the contractor for any amount for 

products or services not accepted, and the contractor shall be liable to the 

judiciary for any and all rights and remedies provided by law. If it is determined 

that the judiciary improperly terminated this contract for default, such termination 

shall be deemed a termination for convenience.

(h) Warranty
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

The contractor warrants and implies that the items delivered hereunder are 

merchantable and fit for use for the particular purpose described in this contract.

(end)

Provision 3-5, Taxpayer Identification and Other Offeror Information

Include the following provision as prescribed in § 325.30.20(b) (Written Solicitations) 

and § 330.10.30(a) (Provisions and Clauses).

Taxpayer Identification and Other Offeror Information (APR 2011)

(a) Definitions.

“Taxpayer Identification (TIN),” as used in this provision, means the number 

required by the Internal Revenue Service (IRS) to be used by the offeror in 

reporting income tax and other returns. The TIN may be either a social security 

number or an employer identification number.

(b) All offerors shall submit the information required in paragraphs (d) and (e) of this 

provision to comply with debt collection requirements of 31 U.S.C. §§ 7701(c) 

and 3325(d), reporting requirements of 26 U.S.C. §§ 6041, 6041A, and 

implementing regulations issued by the IRS. If the resulting contract is subject to 

the payment reporting requirements, the failure or refusal by the offeror to furnish 

the information may result in a 31 percent reduction of payments otherwise due 

under the contract.

(c) The TIN may be used by the government to collect and report on any delinquent 

amounts arising out of the offeror’s relationship with the government (31 U.S.C. 

§ 7701(c)(3)). If the resulting contract is subject to payment recording 

requirements, the TIN provided hereunder may be matched with IRS records to 

verify the accuracy of the offeror’s TIN.

(d) Taxpayer Identification Number (TIN): ______________________________

[ ] TIN has been applied for.

[ ] TIN is not required, because:

[ ] Offeror is a nonresident alien, foreign corporation or foreign partnership 

that does not have income effectively connected with the conduct of a 

trade or business in the United States and does not have an office or 

place of business or a fiscal paying agent in the United States;

[ ] Offeror is an agency or instrumentality of a foreign government;

[ ] Offeror is an agency or instrumentality of the federal government.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

(e) Type of Organization:

[ ] sole proprietorship;

[ ] partnership;

[ ] corporate entity (not tax-exempt);

[ ] corporate entity (tax-exempt);

[ ] government entity (federal, state or local);

[ ] foreign government;

[ ] international organization per 26 CFR 1.6049-4;

[ ] other _______________.

(f) Contractor representations.

The offeror represents as part of its offer that it is [___], is not [___] 51% owned 

and the management and daily operations are controlled by one or more 

members of the selected socio-economic group(s) below:

[___] Women Owned Business

[___] Minority Owned Business (if selected then one sub-type is required)

[___] Black American Owned

[___] Hispanic American Owned

[___] Native American Owned (American Indians, Eskimos, Aleuts, or Native 

Hawaiians)

[___] Asian-Pacific American Owned (persons with origins from Burma, 

Thailand, Malaysia, Indonesia, Singapore, Brunei, Japan, China, Taiwan, 

Laos, Cambodia (Kampuchea), Vietnam, Korea, The Philippines, U.S. 

Trust Territory of the Pacific Islands (Republic of Palau), Republic of the 

Marshall Islands, Federated States of Micronesia, the Commonwealth of 

the Northern Mariana Islands, Guam, Samoa, Macao, Hong Kong, Fiji, 

Tonga, Kiribati, Tuvalu, or Nauru)

[___] Subcontinent Asian (Asian-Indian) American Owned (persons with origins 

from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives 

Islands, or Nepal)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

[___] Individual/concern, other than one of the preceding.

(end)

Provision 3-15, Place of Performance

Include the following provision as prescribed in § 330.10.30(b) (Provisions and 

Clauses).

Place of Performance (JAN 2003)

If the judiciary intends or the offeror proposes, in the performance of any 

contract resulting from this solicitation, to use one or more facilities located 

at addresses different from the offeror's address as indicated in this offer, 

the offeror shall include in its offer a statement referencing this provision 

and identifying those facilities by street address, city, country, state, and 

ZIP code, and the name and address of the operators of those facilities if 

other than the offeror.

(end)

Provision 3-20, Certification Regarding Debarment, Suspension, Proposed 

Debarment, and Other Responsibility Matters

Include the following provision as prescribed in § 330.10.30(c) (Provisions and 

Clauses).

Certification Regarding Debarment, Suspension, Proposed 

Debarment, and Other Responsibility Matters (MAR 2019)

(a) (1) The offeror certifies, to the best of its knowledge and belief, that:

(i) the offeror and/or any of its principals:

(A) are ___ are not ___ presently debarred, suspended, 

proposed for debarment, or declared ineligible for the award 

of contracts by any federal agency;

(B) have ___ have not ___, within the three-year period 

preceding this offer, been convicted of or had a civil 

judgment rendered against them for: commission of fraud or 

a criminal offense in connection with obtaining, attempting to 

obtain, or performing a public (federal, state, or local) 

contract or subcontract; violation of federal or state antitrust 

statutes relating to the submission of offers; or commission 

of embezzlement, theft, forgery, bribery, falsification or 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

destruction of records, making false statements, tax evasion, 

violating federal criminal tax laws, or receiving stolen 

property;

(C) are ___ are not ___ presently indicted for, or otherwise 

criminally or civilly charged by a governmental entity with, 

commission of any of the offenses enumerated in paragraph 

(a)(1)(i)(B) of this provision;

(D) have ___, have not ___, within a three-year period preceding 

this offer, been notified of any delinquent federal taxes in an 

amount that exceeds $3,500 for which the liability remains 

unsatisfied.

(1) Federal taxes are considered delinquent if both of the 

following criteria apply:

(i) The tax liability is finally determined. The 

liability is finally determined if it has been 

assessed. A liability is not finally determined if 

there is a pending administrative or judicial 

challenge. In the case of a judicial challenge to 

the liability, the liability is not finally determined 

until all judicial appeal rights have been 

exhausted.

(ii) The taxpayer is delinquent in making payment. 

A taxpayer is delinquent if the taxpayer has 

failed to pay the tax liability when full payment 

was due and required. A taxpayer is not 

delinquent in cases where enforced collection 

action is precluded.

(2) Examples.

(i) The taxpayer has received a statutory notice of 

deficiency, under I.R.C. § 6212, which entitles 

the taxpayer to seek Tax Court review of a 

proposed tax deficiency. This is not a 

delinquent tax because it is not a final tax 

liability. Should the taxpayer seek Tax Court 

review, this will not be a final tax liability until 

the taxpayer has exercised all judicial appeal 

rights.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-10

(ii) The IRS has filed a notice of federal tax lien 

with respect to an assessed tax liability, and 

the taxpayer has been issued a notice under 

I.R.C. § 6320 entitling the taxpayer to request a 

hearing with the IRS Office of Appeals 

contesting the lien filing, and to further appeal 

to the Tax Court if the IRS determines to 

sustain the lien filing. In the course of the 

hearing, the taxpayer is entitled to contest the 

underlying tax liability because the taxpayer 

has had no prior opportunity to contest the 

liability. This is not a delinquent tax because it 

is not a final tax liability. Should the taxpayer 

seek Tax Court review, this will not be a final 

tax liability until the taxpayer has exercised all 

judicial appeal rights.

(iii) The taxpayer has entered into an installment 

agreement pursuant to I.R.C. § 6159. The 

taxpayer is making timely payments and is in 

full compliance with the agreement terms. The 

taxpayer is not delinquent because the 

taxpayer is not currently required to make full 

payment.

(iv) The taxpayer has filed for bankruptcy 

protection. The taxpayer is not delinquent 

because enforced collection action is stayed 

under 11 U.S.C. § 362 (the Bankruptcy Code).

(ii) The offeror ___ has ___ has not, within a three-year period 

preceding this offer, had one or more contracts terminated for 

default by any federal agency.

(2) "Principal," for the purposes of this certification, means an officer; director; 

owner; partner or a person having primary management or supervisory 

responsibilities within a business entity (e.g., general manager; plant 

manager; head of a division, or business segment, and similar positions).

This certification concerns a matter within the jurisdiction of an agency of 

the United States and the making of a false, fictitious, or fraudulent 

certification may render the maker subject to prosecution under 18 U.S.C. 

§ 1001.

(b) The offeror shall provide immediate written notice to the contracting officer if, at 

any time prior to contract award, the offeror learns that its certification was 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-11

erroneous when submitted or has become erroneous by reason of changed 

circumstances.

(c) A certification that any of the items in paragraph (a) of this provision exists will 

not necessarily result in withholding of an award under this solicitation. However, 

the certification will be considered in connection with a determination of the 

offeror's responsibility. Failure of the offeror to furnish a certification or provide 

such additional information as requested by the contracting officer may render 

the offeror nonresponsible.

(d) Nothing contained in the foregoing will be construed to require establishment of a 

system of records in order to render, in good faith, the certification required by 

paragraph (a) of this provision. The knowledge and information of an offeror is 

not required to exceed that which is normally possessed by a prudent person in 

the ordinary course of business dealings.

(e) The certification in paragraph (a) of this provision is a material representation of 

fact upon which reliance was placed when making award. If it is later determined 

that the offeror knowingly rendered an erroneous certification, in addition to other 

remedies available to the judiciary, the contracting officer may terminate the 

contract resulting from this solicitation for default.

(end)

Clause 3-25, Protecting the Judiciary’s Interest When Subcontracting with 

Contractors Debarred, Suspended, or Proposed for Debarment

Include the following clause as prescribed in § 330.10.30(d) (Provisions and Clauses).

Protecting the Judiciary’s Interest When Subcontracting with 

Contractors Debarred, Suspended, or Proposed for Debarment (MAR 

2019)

(a) The government (including the judiciary) suspends or debars contractors to 

protect the government’s interests. The contractor shall not enter into any 

subcontract in excess of $35,000 with a contractor that is debarred, suspended, 

or proposed for debarment unless there is a compelling reason to do so.

(b) The contractor shall require each proposed first-tier subcontractor, whose 

subcontract will exceed $35,000, to disclose to the contractor, in writing, whether 

as of the time of award of the subcontract, the subcontractor, or its principals, is 

or is not debarred, suspended, or proposed for debarment by the federal 

government.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-12

(c) A corporate officer or a designee of the contractor shall notify the contracting 

officer, in writing, before entering into a subcontract with a party that is debarred, 

suspended, or proposed for debarment. The notice shall include the following:

(1) the name of the subcontractor;

(2) the contractor's knowledge of the reasons for the subcontractor being on 

the List of Parties Excluded from Federal Procurement and 

Nonprocurement Programs;

(3) the compelling reason(s) for doing business with the subcontractor 

notwithstanding its inclusion on the List of Parties Excluded From Federal 

Procurement and Nonprocurement Programs; and

(4) the systems and procedures the contractor has established to ensure that 

it is fully protecting the judiciary’s interests when dealing with such 

subcontractor in view of the specific basis for the party's debarment, 

suspension, or proposed debarment.

(d) Subcontracts. Unless this is a contract for commercial items, the contractor shall 

include the requirements of this clause, including this paragraph (d) 

(appropriately modified for the identification of the parties), in each subcontract 

that exceeds $35,000 in value, and is not a subcontract for commercially 

available off-the-shelf items.

(end)

Provision 3-30, Certificate of Independent Price Determination

Include the following provision as prescribed in § 330.10.30(e) (Provisions and 

Clauses).

Certificate of Independent Price Determination (JAN 2003)

(a) The offeror certifies that:

(1) the prices in this offer have been arrived at independently, without, for the 

purpose of restricting competition, any consultation, communication, or 

agreement, with any other offeror or with any competitor relating to:

(A) those prices;

(B) the intention to submit an offer; or

(C) the methods or factors used to calculate the prices offered.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-13

(2) The prices in this offer have not been and will not be knowingly disclosed 

by the offeror, directly or indirectly, to any other offeror or contract award 

unless otherwise required by law; and

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

other concern to submit or not to submit an offer for the purpose of 

restricting competition.

(b) Each signature on the offer is considered to be a certification by the signatory 

that the signatory –

(1) is the person in the offeror's organization responsible for determining the 

prices in this offer, and that the signatory has not participated, and will not 

participate, in any action contrary to paragraphs (a)(1) through (a)(3) of 

this provision; or

(2) (i) has been authorized, in writing, to act as agent for the following 

principals in certifying that those principals have not participated, 

and will not participate, in any action contrary to paragraphs (a)(1) 

through (a)(3) of this provision ________________________ 

(insert full name of person(s) in the offeror’s organization 

responsible for determining the prices in this offer, and the title of 

his or her position in the offeror’s organization);

(ii) as an authorized agent, does certify that the principals named in 

subdivision (b)(2)(i) of this provision; have not participated, and will 

not participate, in any action contrary to paragraphs (a)(1) through 

(a)(3) of this provision; and

(iii) as an agent, has not personally participated, and will not 

participate, in any action contrary to paragraphs (a)(1) through 

(a)(3) of this provision.

(c) If the offeror deletes or modifies paragraph (a)(2) of this provision, the offeror 

shall furnish with its offer a signed statement setting forth in detail the 

circumstances of the disclosure.

(end)

Clause 3-35, Covenant Against Contingent Fees

Include the following clause as prescribed in § 330.10.30(f) (Provisions and Clauses).

Covenant Against Contingent Fees (JAN 2003)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-14

(a) The contractor warrants that no person or agency has been employed or retained 

to solicit or obtain this contract upon an agreement or understanding for a 

contingent fee, except a bona fide employee or agency. For breach or violation 

of this warranty, the judiciary will have the right to annul or terminate this contract 

without liability or, in its discretion, to deduct from the contract price or 

consideration, or otherwise recover, the full amount of the contingent fee.

(b) Definitions

"Bona fide agency," as used in this clause, 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 

judiciary contracts nor holds itself out as being able to obtain any judiciary 

contract or contracts through improper influence.

"Bona fide employee," as used in this clause, means a person, employed by a 

contractor and subject to the contractor's supervision and control as to time, 

place, and manner of performance, who neither exerts nor proposes to exert 

improper influence to solicit or obtain judiciary contracts nor holds out as being 

able to obtain any judiciary contract or contracts through improper influence.

"Contingent fee," as used in this clause, means any commission, percentage, 

brokerage, or other fee that is contingent upon the success that a person or 

concern has in securing a judiciary contract.

"Improper influence," as used in this clause, means any influence that induces or 

tends to induce a judiciary employee or officer to give consideration or to act 

regarding a judiciary contract on any basis other than the merits of the matter.

(end)

Clause 3-40, Restrictions on Subcontractor Sales to the Judiciary

Include the following clause as prescribed in § 330.10.30(g) (Provisions and Clauses).

Restrictions on Subcontractor Sales to the Judiciary (JUN 2014)

(a) Except as provided in (b) of this clause, the contractor shall not enter into any 

agreement with an actual or prospective subcontractor, nor otherwise act in any 

manner, which has or may have the effect of restricting sales by such 

subcontractors directly to the judiciary of any item or process (including computer 

software) made or furnished by the subcontractor under this contract or under 

any follow-on production contract.

(b) The prohibition in (a) of this clause does not preclude the contractor from 

asserting rights that are otherwise authorized by law or regulation.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-15

(c) The contractor agrees to incorporate the substance of this clause, including this 

paragraph (c), in all subcontracts under this contract which exceed the judiciary’s 

small purchase threshold.

(end)

Clause 3-45, Anti-Kickback Procedures

Include the following clause as prescribed in § 330.10.30(h) (Provisions and Clauses).

Anti-Kickback Procedures (JUN 2012)

(a) Definitions

"Kickback," as used in this clause, means any money, fee, commission, credit, 

gift, gratuity, thing of value, or compensation of any kind which is provided, 

directly or indirectly, to any prime contractor, prime contractor employee, 

subcontractor, or subcontractor employee for the purpose of improperly obtaining 

or rewarding favorable treatment in connection with a prime contract or in 

connection with a subcontract relating to a prime contract.

"Person," as used in this clause, means a corporation, partnership, business 

association of any kind, trust, joint-stock company, or individual.

"Prime contract," as used in this clause, means a contract or contractual action 

entered into by the United States for the purpose of obtaining products, 

materials, equipment, or services of any kind.

"Prime contractor" as used in this clause, means a person who has entered into 

a prime contract with the United States.

"Prime contractor employee," as used in this clause, means any officer, partner, 

employee, or agent of a prime contractor.

"Subcontract," as used in this clause, means a contract or contractual action 

entered into by a prime contractor or subcontractor for the purpose of obtaining 

products, materials, equipment, or services of any kind under a prime contract.

"Subcontractor," as used in this clause, (1) means any person, other than the 

prime contractor, who offers to furnish or furnishes any products, materials, 

equipment, or services of any kind under a prime contract or a subcontract 

entered into in connection with such prime contract, and (2) includes any person 

who offers to furnish or furnishes general products to the prime contractor or a 

higher tier subcontractor.

"Subcontractor employee," as used in this clause, means any officer, partner, 

employee, or agent of a subcontractor.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-16

(b) The Anti-Kickback Act of 1986 (41 U.S.C. §§ 8701-8707) (the Act), prohibits any 

person from:

(1) providing or attempting to provide or offering to provide any kickback;

(2) soliciting, accepting, or attempting to accept any kickback; or

(3) including, directly or indirectly, the amount of any kickback in the contract 

price charged by a prime contractor to the United States or in the contract 

price charged by a subcontractor to a prime contractor or higher tier 

subcontractor.

(c) (1) The contractor shall have in place and follow reasonable procedures 

designed to prevent and detect possible violations described in paragraph 

(b) of this clause in its own operations and direct business relationships.

(2) When the contractor has reasonable grounds to believe that a violation 

described in paragraph (b) of this clause may have occurred, the 

contractor shall promptly report in writing the possible violation. Such 

reports shall be made to the inspector general of the contracting office, the 

head of the contracting office if it does not have an inspector general, or 

the Department of Justice.

(3) The contractor shall cooperate fully with any federal agency investigating 

a possible violation described in paragraph (b) of this clause.

(4) The contracting officer may (i) offset the amount of the kickback against 

any monies owed by the United States under the prime contract and/or (ii) 

direct that the prime contractor withhold from sums owed a subcontractor 

under the prime contract the amount of the kickback. The contracting 

officer may order that monies withheld under subdivision (c)(4)(ii) of this 

clause be paid over to the government unless the government has already 

offset those monies under subdivision (c)(4)(i) of this clause. In either 

case, the prime contractor shall notify the contracting officer when the 

monies are withheld.

(5) The contractor agrees to incorporate the substance of this clause, 

including paragraph (c)(5) but excepting paragraph (c)(1), in all 

subcontracts under this contract which exceed the judiciary’s small 

purchase threshold.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-17

Clause 3-50, Cancellation, Rescission, and Recovery of Funds for Illegal or 

Improper Activity

Include the following clause as prescribed in § 330.10.30(i) (Provisions and Clauses).

Cancellation, Rescission, and Recovery of Funds for Illegal or 

Improper Activity (JUN 2012)

(a) If the judiciary 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. §§ 2101-2107) (the Act), 

as amended by section 4304 of the National Defense Authorization Act for Fiscal 

Year 1996 (Pub. L. 104-106), the judiciary 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 judiciary contract; or

(ii) The head of the contracting activity 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.

(b) If the judiciary rescinds the contract under paragraph (a) of this clause, the 

judiciary 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 judiciary specified herein are not exclusive, and 

are in addition to any other rights and remedies provided by law, regulation, or 

under this contract.

(end)

Clause 3-55, Price or Fee Adjustment for Illegal or Improper Activity

Include the following clause as prescribed in § 330.10.30(j) (Provisions and Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-18

Price or Fee Adjustment for Illegal or Improper Activity (JUN 2012)

(a) The judiciary, 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 head of the 

contracting activity 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. §§ 2101-2107).

(b) The price or fee reduction referred to in paragraph (a) of this clause will 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;

(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 judiciary 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 will 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 will be the 

total final contract price.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-19

(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 judiciary 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 judiciary 

may terminate this contract for default. The rights and remedies of the judiciary 

specified herein are not exclusive, and are in addition to any other rights and 

remedies provided by law or under this contract.

(end)

Provision 3-70, Determination of Responsibility

Include the following provision as prescribed in § 330.10.30(k) (Provisions and 

Clauses).

Determination of Responsibility (JAN 2003)

A determination of responsibility will be made on the apparent successful 

offeror prior to contract award. If the prospective contractor is found nonresponsible, that offeror will be rejected and will receive no further 

consideration for award. In the event a contractor is rejected based on a 

determination of non-responsibility, a determination will be made on the 

next apparent successful offeror.

(end)

Provision 3-85, Explanation to Prospective Offerors

Include the following provision as prescribed in § 330.10.30(m) (Provisions and 

Clauses).

Explanation to Prospective Offerors (AUG 2004)

Any prospective offeror desiring an explanation or interpretation of the 

solicitation, drawings, specifications, etc. shall submit such questions in 

writing only to the contracting officer soon enough to allow a reply to reach 

all prospective offerors before the submission of their offers. Oral 

explanations or instructions given before the award of the contract will not 

be binding. Any information given by the contracting officer to a 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-20

prospective offeror concerning a solicitation will be furnished promptly to 

all other prospective offerors as an amendment to the solicitation, if that 

information is deemed by the contracting officer to be necessary in 

submitting offers or if, in the judgment of the contracting officer, the lack of 

it would be prejudicial to any other prospective offerors. The offeror is 

instructed specifically to contact only the contracting officer in connection 

with any aspect of this procurement prior to contract award. Contact with 

any other judiciary official except the contracting officer, or without the 

contracting officer’s express consent, concerning this solicitation may 

result in disqualification of the offeror from consideration for award.

(end)

Provision 3-95, Preparation of Offers

Include the following provision as prescribed in § 330.10.30(n) (Provisions and 

Clauses).

Preparation of Offers (APR 2013)

(a) Offerors are expected to examine the drawings, specifications, clauses, line 

items, attachments, and all provisions and instructions. Failure to do so will be at 

the offeror's risk.

(b) Each offeror shall furnish the information required by the solicitation. The offeror 

shall sign the offer and print or type its name on the offer and each continuation 

sheet on which it makes an entry. Erasures or other changes shall be initialed by 

the person signing the offer. Offers signed by an agent shall be accompanied by 

evidence of that agent’s authority, unless that evidence has been previous 

furnished to the purchasing office.

(c) For each item in the offer, the offeror shall:

(1) show the unit price/cost, including, unless otherwise specified, packaging, 

packing, and preservation; and

(2) enter the extended price/cost for the quantity of each item offered in the 

“amount” column of the line item schedule.

In case of discrepancy between a unit price/cost and an extended 

price/cost, the unit price/cost will be presumed to be correct, 

subject, however, to correction to the same extent and in the same 

manner as any other mistake.

(d) Offers for products or services other than those specified will not be considered 

unless authorized by the solicitation.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-21

(e) Offerors shall state a definite time for delivery of products or for performance of 

services, unless otherwise specified in the solicitation.

(f) Time, if stated as a number of days, will include Saturdays, Sundays, and federal 

holidays.

(end)

Provision 3-100, Instructions to Offerors

Include the following provision as prescribed in § 330.10.30(o) (Provisions and 

Clauses).

Instructions to Offerors (APR 2013)

(a) Definitions. As used in this provision:

"Discussions" are negotiations that occur after establishment of the competitive 

range that may, at the contracting officer's discretion, result in the offeror being 

allowed to revise its offer.

“In writing," "writing," or "written" means any worded or numbered expression that 

can be read, reproduced, and later communicated, and includes electronically 

transmitted and stored information.

"Offer modification" is a change made to an offer before the solicitation's closing 

date and time, or made in response to an amendment, or made to correct a 

mistake at any time before award.

"Offer revision" is a change to an offer made after the solicitation closing date, at 

the request of or as allowed by a contracting officer as the result of negotiations.

"Time," if stated as a number of days, is calculated using calendar days, unless 

otherwise specified, and will include Saturdays, Sundays, and legal holidays. 

However, if the last day falls on a Saturday, Sunday, or legal holiday, then the 

period will include the next working day.

(b) Amendments to Solicitations

If this solicitation is amended, all terms and conditions that are not amended 

remain unchanged. Offerors shall acknowledge receipt of any amendment to this 

solicitation by the date and time specified in the amendment(s). An offeror’s 

failure to acknowledge amendments affecting price, quantity, quality or delivery 

may result in the offeror’s proposal being determined unacceptable where award 

is made without discussions.

(c) Submission, Modification, Revision, and Withdrawal of Offers
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-22

(1) Unless some other method (e.g., facsimile) is permitted in the solicitation, 

offers and modifications to offers shall be submitted in paper media in 

sealed envelopes or packages (i) addressed to the office specified in the 

solicitation, and (ii) showing the time and date specified for receipt, the 

solicitation number, and the name and address of the offeror. Offerors 

using commercial carriers shall ensure that the offer is marked on the 

outermost wrapper with the information in paragraphs (c)(1)(i) and (c)(1)(ii) 

of this provision.

(2) The first page of the offer shall show:

(i) the solicitation number;

(ii) the name, address, and telephone and facsimile numbers of the 

offeror (and email address if available);

(iii) a statement specifying the extent of agreement with all terms, 

conditions, and provisions included in the solicitation and 

agreement to furnish any or all items upon which prices are offered 

at the price set opposite each item;

(iv) names, titles, and telephone and facsimile numbers (and email 

addresses if available) of persons authorized to negotiate on the 

offeror's behalf with the judiciary in connection with this solicitation; 

and

(v) name, title, and signature of person authorized to sign the offer. 

Offers signed by an agent shall be accompanied by evidence of 

that agent's authority, unless that evidence has been previously 

furnished to the issuing office.

(3) Submission, Modification, Revision, and Withdrawal of Offers

(i) Offerors are responsible for submitting offers, and any 

modifications or revisions, so as to reach the judiciary office 

designated in the solicitation by the time specified in the solicitation. 

If no time is specified in the solicitation, the time for receipt is 4:30 

p.m., local time, for the designated judiciary office on the date that 

offer or revision is due.

(ii) Any offer, modification, or revision received at the judiciary office 

designated in the solicitation after the exact time specified for 

receipt of offers is "late" and will not be considered unless it is 

received before award is made, the contracting officer determines it 

is in the judiciary’s best interest, the contracting officer determines 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-23

that accepting the late offer would not unduly delay the 

procurement, and:

(A) there is acceptable evidence to establish that it was received 

at the judiciary office designated for receipt of offers prior to 

the time set for receipt; or

(B) it is the only offer received.

However, a late modification of an otherwise successful offer that 

makes its terms more favorable to the judiciary, will be considered 

at any time it is received and may be accepted.

(iii) Acceptable evidence to establish the time of receipt at the judiciary 

office includes the time/date stamp of that office on the offer 

wrapper, other documentary evidence of receipt maintained by the 

office, or oral testimony or statements of judiciary personnel.

(iv) If an emergency or unanticipated event interrupts normal judiciary 

processes so that offers cannot be received at the office designated 

for receipt of offers by the exact time specified in the solicitation, 

and urgent judiciary requirements preclude amendment of the 

solicitation, the time specified for receipt of offers will be deemed to 

be extended to the same time of day specified in the solicitation on 

the first work day on which normal judiciary processes resume.

(v) Offers may be withdrawn by written notice received at any time 

before award. Oral offers in response to oral solicitations may be 

withdrawn orally. If the solicitation authorizes facsimile offers, 

offers may be withdrawn via facsimile received at any time before 

award, subject to the conditions specified in the Provision 3-115, 

“Facsimile Offers.” Offers may be withdrawn in person by an 

offeror or an authorized representative, if the identity of the person 

requesting withdrawal is established and the person signs a receipt 

for the offer before award.

(4) Unless otherwise specified in the solicitation, offers on less than all items 

solicited will not be considered.

(5) Offerors shall submit offers in response to this solicitation in English and in 

U.S. dollars.

(6) Offerors may submit modifications to their offers at any time before the 

solicitation closing date and time, and may submit modifications in 

response to an amendment, or to correct a mistake at any time before 

award.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-24

(7) Offerors may submit revised offers only if requested or allowed by the 

contracting officer.

(8) Offers may be withdrawn at any time before award. Withdrawals are 

effective upon receipt of notice by the contracting officer.

(d) Offer Expiration Date

Offers in response to this solicitation will be valid for the number of days specified 

on the solicitation cover sheet (unless a different period is proposed by the 

offeror).

(e) Restriction on Disclosure and Use of Data

Offerors that include in their offers data that they do not want disclosed to the 

public for any purpose, or used by the judiciary except for evaluation purposes, 

shall:

(1) mark the title page with the following legend:

This offer includes data that shall not be disclosed outside the judiciary 

and shall not be duplicated, used, or disclosed — in whole or in part — for 

any purpose other than to evaluate this offer. If, however, a contract is 

awarded to this offeror as a result of — or in connection with — the 

submission of this data, the judiciary shall have the right to duplicate, use, 

or disclose the data to the extent provided in the resulting contract. This 

restriction does not limit the judiciary's right to use information contained in 

this data if it is obtained from another source without restriction. The data 

subject to this restriction are contained in sheets [insert numbers or other 

identification of sheets]; and

(2) mark each sheet of data it wishes to restrict with the following legend:

Use or disclosure of data contained on this sheet is subject to the 

restriction on the title page of this offer.

(f) Contract Award

(1) The judiciary intends to award a contract or contracts resulting from this 

solicitation to the responsible offeror(s) whose offer(s) represents the best 

value after evaluation in accordance with the factors and subfactors in the 

solicitation.

(2) The judiciary may reject any or all offers if such action is in the judiciary's 

interest.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-25

(3) The judiciary may waive informalities and minor irregularities in offers 

received.

(4) The judiciary intends to evaluate offers and award a contract without 

discussions with offerors (except clarifications). Therefore, the offeror's 

initial offer shall contain the offeror's best terms from a cost or price and 

technical standpoint. The judiciary reserves the right to conduct 

discussions if the contracting officer later determines them to be 

necessary. If the contracting officer determines that the number of offers 

that would otherwise be in the competitive range exceeds the number at 

which an efficient competition can be conducted, the contracting officer 

may limit the number of offers in the competitive range to the greatest 

number that will permit an efficient competition among the most highly 

rated offers.

(5) The judiciary reserves the right to make an award on any item for a 

quantity less than the quantity offered, at the unit cost or prices offered, 

unless the offeror specifies otherwise in the offer.

(6) The judiciary reserves the right to make multiple awards if, after 

considering the additional administrative costs, it is in the judiciary's best 

interest to do so.

(7) Exchanges with offerors after receipt of an offer do not constitute a 

rejection or counteroffer by the judiciary.

(8) The judiciary may determine that an offer is unacceptable if the prices 

proposed are materially unbalanced between line items or sub-line items. 

Unbalanced pricing exists when, despite an acceptable total evaluated 

price, the price of one or more contract line items is significantly 

overstated or understated as indicated by the application of cost or price 

analysis techniques. An offer may be rejected if the contracting officer 

determines that the lack of balance poses an unacceptable risk to the 

judiciary.

(9) If a cost realism analysis is performed, cost realism may be considered by 

the source selection authority in evaluating performance or schedule risk.

(10) A written award or acceptance of offer mailed or otherwise furnished to the 

successful offeror within the time specified in the offer shall result in a 

binding contract without further action by either party.

(11) The judiciary may disclose the following information in postaward 

debriefings to other offerors:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-26

(i) the overall evaluated cost or price, and technical rating of the 

successful offeror;

(ii) the overall ranking of all offerors, when any ranking was developed 

by the judiciary during source selection;

(iii) a summary of the rationale for award; and

(iv) for procurements of commercial items, the make and model of the 

item to be delivered by the successful offeror.

(end)

Alternate I (JAN 2003): As prescribed in § 330.10.30(o)(1) (Provisions 

and Clauses), substitute the following paragraph for paragraph (f)(4) of the 

basic provision if the judiciary intends to make award after discussions 

with offerors within the competitive range.

(f)(4) The judiciary intends to evaluate offers and award a contract after conducting 

discussions with offerors whose offers have been determined to be within the 

competitive range. If the contracting officer determines that the number of offers 

that would otherwise be in the competitive range exceeds the number at which 

an efficient competition can be conducted, the contracting officer may limit the 

number of offers in the competitive range to the greatest number that will permit 

an efficient competition among the most highly rated offers. Therefore, the 

offeror's initial offer shall contain the offeror's best terms from a price and 

technical standpoint.

Alternate II (JAN 2003): As prescribed in § 330.10.30(o)(2) (Provisions and 

Clauses), add paragraph (c)(9) to the basic clause, if the judiciary would be 

willing to accept alternate offers.

(c)(9) Offerors may submit offers that depart from stated requirements. Such offers 

shall clearly identify why the acceptance of the offer would be advantageous to 

the judiciary. Any deviations from the terms and conditions of the solicitation, as 

well as the comparative advantage to the judiciary, shall be clearly identified and 

explicitly defined. The judiciary reserves the right to amend the solicitation to 

allow all offerors an opportunity to submit revised offers based on the revised 

requirements.

Alternate III (SEP 2010): As prescribed in § 330.10.30(o)(3) (Provisions and 

Clauses), replace paragraph (c)(4) of the basic clause with the following, if the 

judiciary will consider offers that do not include all items solicited.

(c)(4) Unless otherwise specified in the solicitation, the offeror may propose to provide 

any item or combination of items.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-27

Clause 3-105, Audit and Records

Include the following clause as prescribed in § 330.10.30(p) (Provisions and Clauses).

Audit and Records (APR 2011)

(a) As used in this clause, "records" includes books, documents, accounting 

procedures and practices, and other data, regardless of type and regardless of 

whether such items are in written form, in the form of computer data, or in any 

other form.

(b) Examination of Costs

If this is a cost-reimbursement, incentive, time-and-materials, labor-hour, or price 

re-determinable contract, or any combination of these, the contractor shall 

maintain and the contracting officer, or an authorized representative of the 

contracting officer, will have the right to examine and audit all records and other 

evidence sufficient to reflect properly all costs claimed to have been incurred or 

anticipated to be incurred directly or indirectly in performance of this contract. 

This right of examination will include inspection at all reasonable times of the 

contractor's plants, or parts of them, engaged in performing the contract.

(c) Detailed Cost Information

If the contractor has been required to submit detailed cost information in 

connection with any pricing action relating to this contract, the contracting officer, 

or an authorized representative of the contracting officer, will have the right to 

examine and audit all of the contractor's records, including computations and 

projections, related to:

(1) the offer for the contract, subcontract, or modification;

(2) the discussions conducted on the offer(s), including those related to 

negotiating;

(3) pricing of the contract, subcontract, or modification; or

(4) performance of the contract, subcontract or modification.

(d) Comptroller General

(1) The Comptroller General of the United States, or an authorized 

representative, will have access to and the right to examine any of the 

contractor's directly pertinent records involving transactions related to this 

contract or a subcontract hereunder.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-28

(2) This paragraph may not be construed to require the contractor or 

subcontractor to create or maintain any record that the contractor or 

subcontractor does not maintain in the ordinary course of business or 

pursuant to a provision of law.

(e) Reports

If the contractor is required to furnish cost, funding, or performance reports, the 

contracting officer or an authorized representative of the contracting officer will 

have the right to examine and audit the supporting records and materials, for the 

purpose of evaluating:

(1) the effectiveness of the contractor's policies and procedures to produce 

data compatible with the objectives of these reports; and

(2) the data reported.

(f) Availability

The contractor shall make available at its office at all reasonable times the 

records, materials, and other evidence described in paragraphs (a), (b), (c), (d), 

and (e) of this clause, for examination, audit, or reproduction, until 3 years after 

final payment under this contract, or for any shorter or longer period required by 

statute or by other clauses of this contract. In addition:

(1) if this contract is completely or partially terminated, the contractor shall 

make available the records relating to the work terminated until 3 years 

after any resulting final termination settlement; and

(2) the contractor shall make available records relating to appeals under the 

Disputes clause or to litigation or the settlement of claims arising under or 

relating to this contract until such appeals, litigation, or claims are finally 

resolved.

(g) The contractor shall insert a clause containing all the terms of this clause, 

including this paragraph (g), in all subcontracts under this contract that exceed 

the judiciary’s small purchase threshold, and:

(1) that are cost-reimbursement, incentive, time-and-materials, labor-hour, or 

price re-determinable type or any combination of these;

(2) for which detailed cost information is required; or

(3) that require the subcontractor to furnish reports as discussed in paragraph 

(e) of this clause.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-29

The clause may be altered only as necessary to identify properly the contracting 

parties and the contracting officer under the judiciary prime contract.

(end)

Provision 3-115, Facsimile Offers

Include the following provision as prescribed in § 330.10.30(q) (Provisions and 

Clauses).

Facsimile Offers (JAN 2003)

(a) Definition

"Facsimile offer," as used in this provision, means an offer, revision or 

modification of an offer, or withdrawal of an offer that is transmitted to and 

received by the judiciary via facsimile machine.

(b) Offerors may submit facsimile offers as responses to this solicitation. Facsimile 

offers are subject to the same rules as paper offers.

(c) The telephone number of receiving facsimile equipment is: [insert telephone 

number].

(d) If any portion of a facsimile offer received by the contracting officer is unreadable 

to the degree that conformance to the essential requirements of the solicitation 

cannot be ascertained from the document:

(1) the contracting officer immediately will notify the offeror and permit the 

offeror to resubmit the offer;

(2) the method and time for re-submission will be prescribed by the 

contracting officer after consultation with the offeror; and

(3) the re-submission will be considered as if it were received at the date and 

time of the original unreadable submission for the purpose of determining 

timeliness, provided the offeror complies with the time and format

requirements for re-submission prescribed by the contracting officer.

(e) The judiciary reserves the right to make award solely on the facsimile offer. 

However, if requested to do so by the contracting officer, the apparently 

successful offeror promptly shall submit the complete original signed offer.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-30

Clause 3-120, Order of Precedence

Include the following clause as prescribed in § 330.10.30(r) (Provisions and Clauses).

Order of Precedence (JAN 2003)

Any inconsistency in this solicitation or contract shall be resolved by giving 

precedence in the following order:

(1) the schedule (excluding the specifications);

(2) representations and other instructions;

(3) the solicitation/contract provisions and clauses;

(4) other documents, exhibits, and attachments;

(5) the specifications.

(end)

Provision 3-130, Authorized Negotiators

Include the following provision as prescribed in § 330.10.30(s) (Provisions and 

Clauses).

Authorized Negotiators (JAN 2003)

The offeror represents that the following persons are authorized to 

negotiate on its behalf with the judiciary in connection with this solicitation 

(offeror lists names, titles, and telephone numbers of the authorized 

negotiators).

Name: ________________

Titles: ______________

Telephone: ________________

Fax: ________________

E-mail: ________________

(end)

Provision 3-135, Single or Multiple Awards

Include the following provision as prescribed in § 330.10.30(t) (Provisions and Clauses).

Single or Multiple Awards (JAN 2003)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-31

The judiciary may elect to award a single contract or to award multiple 

contracts for the same or similar products or services to two or more 

sources under this solicitation.

(end)

Clause 3-140, Notice to the Judiciary of Labor Disputes

Include the following clause as prescribed in Section § 330.10.30(u) (Provisions and 

Clauses).

Notice to the Judiciary of Labor Disputes (JAN 2003)

If the contractor has knowledge that any actual or potential labor dispute is 

delaying or threatens to delay the timely performance of this contract, the 

contractor shall immediately give notice, including all relevant information, 

to the contracting officer.

(end)

Clause 3-145, Payment for Overtime Premiums

Include the following clause as prescribed in § 330.10.30(v) (Provisions and Clauses).

Payment for Overtime Premiums (JAN 2003)

(a) The use of overtime is authorized under this contract if the overtime premium 

does not exceed *_____ or the overtime premium is paid for work:

(1) necessary to cope with emergencies such as those resulting from 

accidents, natural disasters, breakdowns of production equipment, or 

occasional production bottlenecks of a sporadic nature;

(2) by indirect-labor employees such as those performing duties in connection 

with administration, protection, transportation, maintenance, standby plant 

protection, operation of utilities, or accounting;

(3) to perform tests, industrial processes, laboratory procedures, loading or 

unloading of transportation conveyances, and operations in flight or afloat 

that are continuous in nature and cannot reasonably be interrupted or 

completed otherwise; or

(4) that will result in lower overall costs to the judiciary.

(b) Any requests for estimated overtime premiums that exceed the amount specified 

above shall include all estimated overtime for contract completion and shall:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-32

(1) identify the work unit; e.g., department or section in which the requested 

overtime will be used, together with present workload, staffing, and other 

data of the affected unit sufficient to permit the contracting officer to 

evaluate the necessity for the overtime;

(2) demonstrate the effect that denial of the request will have on the contract 

delivery or performance schedule;

(3) identify the extent to which approval of overtime would affect the 

performance or payments in connection with other judiciary contracts, 

together with identification of each affected contract; and

(4) provide reasons why the required work cannot be performed by using 

multishift operations or by employing additional personnel.

* Insert either "zero" or the dollar amount agreed to during negotiations. 

The inserted figure does not apply to the exceptions in paragraph (a)(1) 

through (a)(4) of the clause.

(end)

Clause 3-150, Contract Work Hours and Safety Standards Act – Overtime 

Compensation

Include the following clause as prescribed in § 330.10.30(w) (Provisions and Clauses).

Contract Work Hours and Safety Standards Act – Overtime 

Compensation (JAN 2003)

(a) Overtime Requirements

No contractor or subcontractor employing laborers or mechanics will require or 

permit them to work over 40 hours in any workweek unless they are paid at least 

1 and 1⁄2 times the basic rate of pay for each hour worked over 40 hours.

(b) Violation; Liability for Unpaid Wages; Liquidated Damages

The responsible contractor and subcontractor are liable for unpaid wages if they 

violate the terms in paragraph (a) of this clause. In addition, the contractor and 

subcontractor are liable for liquidated damages payable to the judiciary. The 

contracting officer will assess liquidated damages at the rate of $10 per affected 

employee for each calendar day on which the employer required or permitted the 

employee to work in excess of the standard workweek of 40 hours without paying 

overtime wages required by the Contract Work Hours and Safety Standards Act.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-33

(c) Withholding for Unpaid Wages and Liquidated Damages

The contracting officer will withhold from payments due under the contract 

sufficient funds required to satisfy any contractor or subcontractor liabilities for 

unpaid wages and liquidated damages. If amounts withheld under the contract 

are insufficient to satisfy contractor or subcontractor liabilities, the contracting 

officer will withhold payments from other federal or federally assisted contracts 

held by the same contractor that are subject to the Contract Work Hours and 

Safety Standards Act.

(d) Payrolls and Basic Records

(1) The contractor and its subcontractors shall maintain payrolls and basic 

payroll records for all laborers and mechanics working on the contract 

during the contract and shall make them available to the judiciary until 3 

years after contract completion. The records shall contain the name and 

address of each employee, social security number, labor classifications, 

hourly rates of wages paid, daily and weekly number of hours worked, 

deductions made, and actual wages paid. The records need not duplicate 

those required for construction work by Department of Labor regulations at 

29 CFR 5.5(a)(3) implementing the Davis-Bacon Act.

(2) The contractor and its subcontractors shall allow authorized 

representatives of the contracting officer or the Department of Labor to 

inspect, copy, or transcribe records maintained under paragraph (d)(1) of 

this clause. The contractor or subcontractor also shall allow authorized 

representatives of the contracting officer or Department of Labor to 

interview employees in the workplace during working hours.

(e) Subcontracts

The contractor shall insert the provisions set forth in paragraphs (a) through (d) 

of this clause in subcontracts exceeding the judiciary’s small purchase threshold 

and require subcontractors to include these provisions in any lower tier 

subcontracts. The contractor shall be responsible for compliance by any 

subcontractor with the provisions set forth in paragraphs (a) through (d) of this 

clause.

(end)

Clause 3-155, Walsh-Healey Public Contracts Act

Include the following clause as prescribed in § 330.10.30(x) (Provisions and Clauses).

Walsh-Healey Public Contracts Act (JUN 2012)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-34

If this contract is for the manufacture or furnishing of materials, products, 

articles or equipment in an amount that exceeds or may exceed $15,000, 

and is subject to the Walsh-Healey Public Contracts Act, as amended 

(41 U.S.C. § 6501 et seq.), the following terms and conditions apply:

(1) all stipulations required by the Act and regulations issued by the Secretary 

of Labor (41 CFR chapter 50) are incorporated by reference. These 

stipulations are subject to all applicable rulings and interpretations of the 

Secretary of Labor that are now, or may hereafter, be in effect;

(2) all employees whose work relates to this contract shall be paid not less 

than the minimum wage prescribed by regulations issued by the Secretary 

of Labor (41 CFR 50-202.2). Learners, student learners, apprentices, and 

handicapped workers may be employed at less than the prescribed 

minimum wage (see 14 CFR 50-202.3) to the same extent that such 

employment is permitted under Section 14 of the Fair Labor Standards Act 

(29 U.S.C. § 201 et seq.).

(end)

Clause 3-160, Service Contract Labor Standards

Include the following clause as prescribed in § 332.50(a) (Required Clauses and 

Provisions), § 332.30(b) (Exemptions), and § 332.40.20(b) (Incorporation of Wage 

Determinations).

Service Contract Labor Standards (MAR 2019)

(a) Definitions

“Contractor”, when this clause is used 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, or as computer systems analysts, computer 

programmers, software engineers, or other similarly skilled computer employees, 

as these terms are defined in 29 CFR part 541, 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 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-35

exempted by the Secretary of Labor or exempted by 41 U.S.C. § 6702, as 

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 an 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 employees performs any contract work. The contracting officer 

will 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 

contracting officer's 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.

(iii) The final determination of the conformance action by the Wage and 

Hour Division will be transmitted to the contracting officer, who will 

promptly notify the contractor of the action taken. Each affected 

employee shall be furnished by the contractor with a written copy of 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-36

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 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 that 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.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-37

(v) The wage rate and fringe benefits finally determined under this 

paragraph (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 paragraph (c)(2) of this 

clause, the Wage and Hour Division will make a final determination 

of conformed classification, wage rate, and/or fringe benefits which 

will be retroactive to the date the class 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 often 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 paragraph (c)(2) of this

clause 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 will relieve the 

contractor or any subcontractor of any other obligation under law or contract for 

the 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 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-38

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 the 

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 have been 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 section 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 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 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 under the 

predecessor contract was not entered into as a result of arm's-length 

negotiations, the Department will issue a new or revised wage determination 

setting forth the applicable wage rates and fringe benefits. Such determination 

shall be made part of the contract or subcontract, in accordance with the decision 

of the Administrator, the Administrative Law Judge, or the Administrative Review 

Board, as the case may be, irrespective of whether such issuance occurs prior to 

or after 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 the contract, or shall 

post the wage determination 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 work site. Failure to comply with this requirement is 

a violation of section 2(a)(4) of the Act and of this contract.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-39

(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 that are unsanitary, hazardous or dangerous to the health or safety 

of service employees. The contractor 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, 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.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-40

(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, will 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 work site 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 Payments and Termination of Contract

The contracting officer will 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 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 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-41

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 negotiation thereof.

(n) Seniority List

Not less than ten 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 the 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 will 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) (1) Contractor’s Certification

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 will 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
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-42

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 Public Law 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 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 subject 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 and 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 Office of Apprenticeship 

Training, Employer, and Labor Services (OATELS), 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 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-43

the contract work in any craft classification shall not be greater than the ratio 

permitted to the contractor as to its entire workforce 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 section 3(m) of the Fair 

Labor Standards Act and Regulations 29 CFR part 31. However, the amount of 

credit shall not exceed $1.34 per hour beginning January 1, 1981. To use this 

provision:

(1) the employer shall inform tipped employees about this tip credit allowance 

before the credit is used;

(2) the employees shall 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 shall be able to show by records that the employee receives 

at least the applicable Service Contract Labor Standards minimum wage 

through the combination of direct wages and tip credit; and

(4) the use of such tip credit shall 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 office, the U.S. Department of Labor, or the employees or their 

representatives.

(end)

Clause 3-175, Fair Labor Standards Act and Service Contract Labor 

Standards – Price Adjustment (Multi-Year and Option Contracts)

Include the following clause as prescribed in § 332.50(b) (Required Clauses and 

Provisions) and § 410.75.60(c) (Contract Clauses and Provisions).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-44

Fair Labor Standards Act and Service Contract Labor Standards –

Price Adjustment (Multi-Year and Option Contracts) (MAR 2019)

(a) This clause applies to both contracts subject to area prevailing wage 

determinations and contracts subject to collective bargaining agreements.

(b) The contractor warrants that the prices in this contract do not include any 

allowance for any contingency to cover increased costs for which adjustment is 

provided under this clause.

(c) The wage determination, issued under the Service Contract Labor Standards 

statute (41 U.S.C. § 6701 et seq.), by the Administrator, Wage and Hour Division, 

Employment Standards Administration, U.S. Department of Labor, current on the 

anniversary date of a multi-year contract or the beginning of each renewal option 

period, will apply to this contract. If no such determination has been made 

applicable to this contract, then the federal minimum wage as established by 

section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended, (29 U.S.C. 

§ 206) current on the anniversary date of a multi-year contract or the beginning of 

each renewal option period, will apply to this contract.

(d) The contract price, contract unit price labor rates, or fixed hourly labor rates will 

be adjusted to reflect the contractor's actual increase or decrease in applicable 

wages and fringe benefits to the extent that the increase is made to comply with 

or the decrease is voluntarily made by the contractor as a result of:

(1) the Department of Labor wage determination applicable on the 

anniversary date of the multi-year contract, or at the beginning of the 

renewal option period. For example, the prior year wage determination 

required a minimum wage rate of $4.00 per hour. The contractor chose to 

pay $4.10. The new wage determination increases the minimum rate to 

$4.50 per hour. Even if the contractor voluntarily increases the rate to 

$4.75 per hour, the allowable price adjustment is $.40 per hour;

(2) an increased or decreased wage determination otherwise applied to the 

contract by operation of law; or

(3) an amendment to the Fair Labor Standards Act of 1938 that is enacted 

after award of this contract, affects the minimum wage, and becomes 

applicable to this contract under law.

(e) Any adjustment will be limited to increases or decreases in wages and fringe 

benefits as described in paragraph (d) of this clause, and the accompanying 

increases or decreases in social security and unemployment taxes and workers' 

compensation insurance, but shall not otherwise include any amount for general 

and administrative costs, overhead, or profit.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-45

(f) The contractor shall notify the contracting officer of any increase claimed under 

this clause within 30 days after receiving a new wage determination unless this 

notification period is extended in writing by the contracting officer. The contractor 

shall promptly notify the contracting officer of any decrease under this clause, but 

nothing in the clause will preclude the government from asserting a claim within 

the period permitted by law. The notice shall contain a statement of the amount 

claimed and the change in fixed hourly rates (if this is a time-and-materials or 

labor-hour contract), any relevant supporting data, including payroll records, that 

the contracting officer may reasonably require. Upon agreement of the parties, 

the contract price or contract unit price labor rates will be modified in writing. The 

contractor shall continue performance pending agreement on or determination of 

any such adjustment and its effective date.

(g) The contracting officer or an authorized representative will have access to and 

the right to examine any directly pertinent books, documents, papers and records 

of the contractor until the expiration of 3 years after final payment under the 

contract.

(end)

Clause 3-180, Fair Labor Standards Act and Service Contract Labor 

Standards – Price Adjustment

Include the following clause as prescribed in § 332.50(c) (Required Clauses and 

Provisions).

Fair Labor Standards Act and Service Contract Labor Standards –

Price Adjustment (MAR 2019)

(a) This clause applies to both contracts subject to area prevailing wage 

determinations and contracts subject to contractor collective bargaining 

agreements.

(b) The contractor warrants that the prices in this contract do not include any 

allowance for any contingency to cover increased costs for which adjustment is 

provided under this clause.

(c) The contract price, contract unit price labor rates, or fixed hourly labor rates will 

be adjusted to reflect increases or decreases by the contractor in wages and 

fringe benefits to the extent that these increases or decreases are made to 

comply with:

(1) an increased or decreased wage determination applied to this contract by 

operation of law; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-46

(2) an amendment to the Fair Labor Standards Act of 1938 that is enacted 

subsequent to award of this contract, affects the minimum wage, and 

becomes applicable to this contract under law.

(d) Any such adjustment will be limited to increases or decreases in wages and 

fringe benefits as described in paragraph (c) of this clause, and to the 

accompanying increases or decreases in social security and unemployment 

taxes and workers' compensation insurance; it will not otherwise include any 

amount for general and administrative costs, overhead, or profit.

(e) The contractor shall notify the contracting officer of any increase claimed under 

this clause within 30 days after the effective date of the wage change, unless this 

period is extended by the contracting officer in writing. The contractor shall 

promptly notify the contracting officer of any decrease under this clause, but 

nothing in the clause will preclude the government from asserting a claim within 

the period permitted by law. The notice shall contain a statement of the amount 

and the change in fixed hourly rates (if this is a time-and-materials or labor-hour 

contract) claimed and any relevant supporting data that the contracting officer 

may reasonably require. Upon agreement of the parties, the contract price, 

contract unit price labor rates, or fixed hourly rates will be modified in writing. 

The contractor shall continue performance pending agreement on or 

determination of any such adjustment and its effective date.

(f) The contracting officer or an authorized representative will, until the expiration of 

3 years after final payment under the contract, have access to and the right to 

examine any directly pertinent books, documents, papers, and records of the 

contractor.

(end)

Provision 3-185, Evaluation of Compensation for Professional Employees

Include the following provision as prescribed in § 330.10.30(z) (Provisions and 

Clauses).

Evaluation of Compensation for Professional Employees (JAN 2003)

(a) Recompetition of service contracts may in some cases result in lowering the 

compensation (salaries and fringe benefits) paid or furnished professional 

employees. This lowering can be detrimental in obtaining the quality of 

professional services needed for adequate contract performance. It is therefore 

in the judiciary's best interest that professional employees, as defined in 

29 CFR 541, be properly and fairly compensated. As part of their offers, offerors 

will submit a total compensation plan setting forth salaries and fringe benefits 

proposed for the professional employees who will work under the contract. The 

judiciary will evaluate the plan to assure that it reflects a sound management 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-47

approach and understanding of the contract requirements. This evaluation will 

include an assessment of the offeror's ability to provide uninterrupted high-quality 

work. The professional compensation proposed will be considered in terms of its 

impact upon recruiting and retention, its realism, and its consistency with a total 

plan for compensation. Supporting information will include data, such as 

recognized national and regional compensation surveys and studies of 

professional, public and private organizations, used in establishing the total 

compensation structure.

(b) The compensation levels proposed shall reflect a clear understanding of work to 

be performed and shall indicate the capability of the proposed compensation 

structure to obtain and keep suitably qualified personnel to meet mission 

objectives. The salary rates or ranges shall take into account differences in 

skills, the complexity of various disciplines, and professional job difficulty. 

Additionally, offers envisioning compensation levels lower than those of 

predecessor contractors for the same work will be evaluated on the basis of 

maintaining program continuity, uninterrupted high-quality work, and availability 

of required competent professional service employees. Offerors are cautioned 

that lowered compensation for essentially the same professional work may 

indicate lack of sound management judgment and lack of understanding of the 

requirement.

(c) The judiciary is concerned with the quality and stability of the work force to be 

employed on this contract. Professional compensation that is unrealistically low 

or not in reasonable relationship to the various job categories, since it may impair 

the contractor's ability to attract and retain competent professional service 

employees, may be viewed as evidence of failure to comprehend the complexity 

of the contract requirements.

(d) Failure to comply with these provisions may constitute sufficient cause to justify 

rejection of an offer.

(end)

Provision 3-195, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Certification

Include the following provision as prescribed in § 332.50(d) (Required Clauses and 

Provisions).

Exemption from Application of the Service Contract Labor Standards

to Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Certification (MAR 2019)

(a) The offeror shall check following certification:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-48

CERTIFICATION

The offeror [ ] does [ ] does not certify that –

(1) the items of equipment to be serviced under this contract are used 

regularly for other than government purposes, and are sold or traded by 

the offeror (or subcontractor in the case of an exempt subcontractor) in 

substantial quantities to the general public in the course of normal 

business operations;

(2) the services will be furnished at prices which are, or are based on, 

established catalog or market prices for the maintenance, calibration, or 

repair of equipment.

(i) An "established catalog price" is a price included in a catalog, price 

list, schedule, or other form that is regularly maintained by the 

manufacturer or the offeror, is either published or otherwise 

available for inspection by customers, and states prices at which 

sales currently, or were last, made to a significant number of buyers 

constituting the general public.

(ii) An "established market price" is a current price, established in the 

usual course of trade between buyers and sellers free to bargain, 

which can be substantiated from sources independent of the 

manufacturer or contractor; and

(3) the compensation (wage and fringe benefits) plan for all service 

employees performing work under the contract is the same as that used 

for these employees and equivalent employees servicing the same 

equipment of commercial customers.

(b) Certification by the offeror as to its compliance with respect to the contract also 

constitutes its certification as to compliance by its subcontractor if it subcontracts 

out the exempt services. If the offeror certifies to the conditions in paragraph (a) 

of this provision then Clause 3-160, Service Contract Labor Standards, will not 

be included in any resultant contract to this offeror.

(c) If the offeror does not certify to the conditions in paragraph (a) of this provision –

(1) Clause 3-215, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Requirements, will not be included in any resultant contract 

awarded to this offeror; and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-49

(2) the offeror shall notify the contracting officer as soon as possible, if the 

contracting officer did not attach a Service Contract Labor Standards

wage determination to the solicitation.

(d) The contracting officer may not make an award to the offeror, if the offeror fails to 

execute the certification in paragraph (a) of this provision or to contact the 

contracting officer as required in paragraph (c) of this provision.

(end)

Clause 3-200, Service Contract Labor Standards – Place of Performance 

Unknown

Include the following clause as prescribed in § 332.50(e) (Required Clauses and 

Provisions).

Service Contract Labor Standards – Place of Performance Unknown 

(MAR 2019)

(a) This contract is subject to the Service Contract Labor Standards, and the place of 

performance was unknown when the solicitation was issued. In addition to 

places or areas identified in wage determinations, if any, attached to the 

solicitation, wage determinations have also been requested for the 

following:________ [insert places or areas]. The contracting officer will request 

wage determinations for additional places or areas of performance if asked to do 

so in writing by _____________ [insert time and date].

(b) Offerors who intend to perform in a place or area of performance for which a 

wage determination has not been attached or requested may nevertheless 

submit offers. However, a wage determination will be requested and 

incorporated in the resultant contract retroactive to the date of contract award, 

and there will be no adjustment in the contract price.

(end)

Clause 3-205, Protest after Award

Include the following clause as prescribed in § 330.10.30(aa) (Provisions and Clauses).

Protest after Award (JAN 2003)

(a) Upon receipt of a notice of protest or a determination that a protest is likely, 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 will 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 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-50

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 will either:

(1) cancel the stop-work order; or

(2) terminate the work covered by the order as provided in the Default, or the 

Termination 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 will make an equitable adjustment in the delivery schedule or contract 

price, or both, and the contract will 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 an offer 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 judiciary, the contracting officer will 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 will allow, by equitable adjustment 

or otherwise, reasonable costs resulting from the stop-work order.

(e) The judiciary's rights to terminate this contract at any time are not affected by 

action taken under this clause.

(f) If, as the result of the contractor's intentional or negligent misstatement, 

misrepresentation, or mis-certification, a protest related to this contract is 

sustained, and the judiciary pays costs, the judiciary may require the contractor 

to reimburse the judiciary the amount of such costs. In addition to any other 

remedy available, the judiciary may collect this debt by offsetting the amount 

against any payment due the contractor under any contract between the 

contractor and the judiciary.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-51

Provision 3-210, Protests

Include the following provision as prescribed in § 330.10.30(bb) (Provisions and 

Clauses).

Protests (JUN 2014)

(a) The protestor has a choice of protest forums. It is the policy of the judiciary to 

encourage parties first to seek resolution of disputes with the contracting officer. 

If the dispute cannot be resolved with the contracting officer, then it is the policy 

of the judiciary to encourage parties to seek a judiciary resolution of disputes with 

the Administrative Office of the United States Courts. However, if a party files a 

formal protest with an external forum on a solicitation on which it has filed a 

protest with the judiciary, the judiciary protest will be dismissed.

(b) Judiciary protests will be considered only if submitted in accordance with the 

following time limits and procedures:

(1) any protest shall be filed in writing with the contracting officer designated 

in the solicitation for resolution of the protest. It shall identify the 

solicitation or contract protested and set forth a complete statement of the 

alleged defects or grounds that make the solicitation terms or the award or 

proposed award defective. Mere statement of intent to file a protest is not 

a protest.

(2) a protest shall be filed not later than ten (10) calendar days after the basis 

of the protest is known, or should have been known. A protest based on 

alleged improprieties in a solicitation which are apparent prior to the 

closing date for receipt of offers, shall be filed prior to the closing date for 

receipt of offers. The judiciary, in its discretion, may consider the merits of 

any protest which is not timely filed. The office hours of the Administrative 

Office are 8:30 a.m. to 5:00 p.m., eastern time. Time for filing a document 

expires at 5:00 p.m., eastern time, on the last day on which such filing 

may be made.

(3) the protest shall include the following information:

(i) name, address, and fax and telephone numbers of the protester or 

its representative;

(ii) solicitation or contract number;

(iii) detailed statement of the legal and factual grounds for the protest, 

to include a description of resulting alleged prejudice to the 

protester;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-52

(iv) copies of relevant documents;

(v) request for a ruling by the judiciary;

(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; and

(viii) all information establishing the timeliness of the protest.

(c) Unless stated otherwise elsewhere in this solicitation, protests that are filed 

directly with the judiciary, and copies of any protests that are filed with an 

external forum, shall be served on the contracting officer at the Issuing Office 

address on the standard form, if any, or as provided elsewhere in this solicitation. 

Written and dated acknowledgment of receipt must be obtained from the 

Contracting Officer issuing this solicitation, or authorized designee.

(d) The copy of any protest shall be received in the office designated above within 

one day of filing a protest with an external forum.

(end)

Clause 3-215, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Requirements

Include the following clause as prescribed in § 332.50(f) (Required Clauses and 

Provisions).

Exemption from Application of the Service Contract Labor Standards

to Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Requirements (MAR 2019)

(a) The items of equipment to be serviced under this contract are used regularly for 

other than government purposes, and are sold or traded by the contractor in 

substantial quantities to the general public in the course of normal business 

operations.

(b) The services shall be furnished at prices which are, or are based on, established 

catalog or market prices for the maintenance, calibration, or repair of equipment.

(1) An “established catalog price” is a price included in a catalog, price list, 

schedule, or other form that is regularly maintained by the manufacturer or 

the contractor, is either published or otherwise available for inspection by 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-53

customers, and states prices at which sales currently, or were last, made 

to a significant number of buyers constituting the general public.

(2) An “established market price” is a current price, established in the usual 

course of trade between buyers and sellers free to bargain, which can be 

substantiated from sources independent of the manufacturer or contractor.

(c) The contractor shall use the same compensation (wage and fringe benefits) plan 

for all service employees performing work under the contract as is used for these 

employees and for equivalent employees servicing the same equipment of 

commercial customers.

(d) The contractor is responsible for compliance with all the conditions of this 

exemption by its subcontractors. The contractor shall determine the applicability 

of this exemption to any subcontract on or before subcontract award. In making a 

judgment that the exemption applies, the contractor shall consider all factors and 

make an affirmative determination that all of the conditions in paragraphs (a) 

through (c) of this clause will be met.

(e) If the Department of Labor determines that any conditions for exemption in 

paragraphs (a) through (c) of this clause have not been met, the exemption shall 

be deemed inapplicable, and the contract shall become subject to the Service 

Contract Labor Standards statute. In such case, the procedures at 29 CFR 

4.123(e)(1)(iv) and 29 CFR 4.5(c) will be followed.

(f) The contractor shall include the substance of this clause, including this 

paragraph (f), in subcontracts for exempt services under this contract.

(end)

Provision 3-220, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Certain Services – Certification

Include the following provision as prescribed in § 332.50(g) (Required Clauses and 

Provisions).

Exemption from Application of the Service Contract Labor Standards

to Contracts for Certain Services – Certification (MAR 2019)

(a) The offeror shall check following certification:

CERTIFICATION

The offeror [ ] does [ ] does not certify that –
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-54

(1) The services under the contract are offered and sold regularly to nongovernmental customers, and are provided by the offeror (or 

subcontractor in the case of an exempt subcontract) to the general public 

in substantial quantities in the course of normal business operations;

(2) The contract services are furnished at prices that are, or are based on, 

established catalog or market prices. An “established catalog price” is a 

price included in a catalog, price list, schedule, or other form that is 

regularly maintained by the manufacturer or the offeror, is either published 

or otherwise available for inspection by customers, and states prices at 

which sales currently, or were last, made to a significant number of buyers 

constituting the general public. An “established market price” is a current 

price, established in the usual course of ordinary and usual trade between 

buyers and sellers free to bargain, which can be substantiated from 

sources independent of the manufacturer or offeror;

(3) Each service employee who will perform the services under the contract 

will spend only a small portion of his or her time (a monthly average of 

less than 20 percent of the available hours on an annualized basis, or less 

than 20 percent of available hours during the contract period if the contract 

period is less than a month) servicing the government contract; and

(4) The offeror uses the same compensation (wage and fringe benefits) plan 

for all service employees performing work under the contract as the offeror 

uses for these employees and for equivalent employees servicing 

commercial customers.

(b) Certification by the offeror as to its compliance with respect to the contract also 

constitutes its certification as to compliance by its subcontractor if it subcontracts 

out the exempt services. If the offeror certifies to the conditions in paragraph (a) 

of this provision then Clause 3-160, Service Contract Labor Standards, as 

amended, will not be included in any resultant contract to this offeror.

(c) If the offeror does not certify to the conditions in paragraph (a) of this provision—

(1) Clause 3-225, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Certain Services – Requirements, will not be 

included in any resultant contract to this offeror; and

(2) The offeror shall notify the contracting officer as soon as possible if the 

contracting officer did not attach a Service Contract Labor Standards

wage determination to the solicitation.

(d) The contracting officer may not make an award to the offeror, if the offeror fails to 

execute the certification in paragraph (a) of this provision or to contact the 

Contracting Officer as required in paragraph (c) of this provision.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-55

(end)

Clause 3-225, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Certain Services – Requirements

Include the following clause as prescribed in § 332.50(h) (Required Clauses and 

Provisions).

Exemption from Application of the Service Contract Labor Standards

to Contracts for Certain Services – Requirements (MAR 2019)

(a) The services under this contract are offered and sold regularly to nongovernmental customers, and are provided by the contractor to the general 

public in substantial quantities in the course of normal business operations.

(b) The contract services are furnished at prices that are, or are based on, 

established catalog or market prices. An “established catalog price” is a price 

included in a catalog, price list, schedule, or other form that is regularly 

maintained by the manufacturer or the contractor, is either published or otherwise 

available for inspection by customers, and states prices at which sales currently, 

or were last, made to a significant number of buyers constituting the general 

public. An “established market price” is a current price, established in the usual 

course of ordinary and usual trade between buyers and sellers free to bargain, 

which can be substantiated from sources independent of the manufacturer or 

contractor.

(c) Each service employee who will perform the services under the contract will 

spend only a small portion of his or her time (a monthly average of less than 20 

percent of the available hours on an annualized basis, or less than 20 percent of 

available hours during the contract period if the contract period is less than a 

month) servicing the judiciary contract.

(d) The contractor shall use the same compensation (wage and fringe benefits) plan 

for all service employees performing work under the contract as is used for these 

employees and for equivalent employees servicing commercial customers.

(e) (1) The subcontractor, if any, for exempt services shall be selected for award 

based on other factors in addition to price or cost with the combination of 

other factors at least as important as price or cost; or

(2) A subcontract for exempt services shall be awarded on a sole source 

basis.

(f) The contractor is responsible for compliance with all the conditions of this 

exemption by its subcontractors. The contractor shall determine in advance, 

based on the nature of the subcontract requirements and knowledge of the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-56

practices of likely subcontractors, that all or nearly all likely subcontractors will 

meet the conditions in paragraphs (a) through (d) of this clause. If the services 

are currently being performed under a subcontract, the contractor shall consider 

the practices of the existing subcontractor in making a determination regarding 

the conditions in paragraphs (a) through (d) of this clause. If the contractor has 

reason to doubt the validity of the certification, the requirements of the Service 

Contract Labor Standards statute shall be included in the subcontract.

(g) If the Department of Labor determines that any conditions for exemption at 

paragraphs (a) through (e) of this clause have not been met, the exemption shall 

be deemed inapplicable, and the contract shall become subject to the Service 

Contract Labor Standards statute. In such case, the procedures in at 29 CFR 

4.123(e)(2)(iii) and 29 CFR 4.5(c) will be followed.

(h) The contractor shall include the substance of this clause, including this 

paragraph (h), in subcontracts for exempt services under this contract.

(end)

Clause 3-300, Registration in the System for Award Management (SAM)

Include the following clause as prescribed in § 330.10.30(dd)(1) (Provisions and 

Clauses).

Registration in the System for Award Management (SAM) (OCT 2023)

(a) Definitions. As used in this clause –

"System for Award Management (SAM)" means the federal government owned 

and operated free website that replaced the Central Contractor Registration 

(CCR) and is the primary government repository for contractor information 

required for the conduct of business with the government.

Unique entity identifier (UEI) means a number or other identifier used to identify a 

specific commercial, nonprofit, or Government entity. See www.sam.gov for the 

designated entity for establishing UEI.

"Registered in the SAM database" means that –

(1) The contractor has entered all mandatory information, including the UEI, 

into the SAM database; and

(2) The government has validated all mandatory data fields, to include 

validation of the Taxpayer Identification Number (TIN) with the Internal 

Revenue Service (IRS), and has marked the record "Active". The 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-57

contractor will be required to provide consent for TIN validation to the 

government as a part of the SAM registration process.

(b) (1) By submission of an offer, the offeror acknowledges the requirement that 

a prospective awardee shall be registered in the SAM database prior to 

award, during performance, and through final payment of any contract, 

basic agreement, basic ordering agreement, or blanket purchasing 

agreement resulting from this solicitation.

(2) The offeror shall enter, in the block with its name and address on the 

cover page of its offer, the annotation "Unique Entity Identifier" followed by 

the UEI that identifies the offeror's name and address exactly as stated in 

the offer. The UEI will be used by the contracting officer to verify that the 

offeror is registered in the SAM database.

(c) If the offeror does not have a UEI, it may obtain one at SAM.gov. The offeror 

should be prepared to provide the following information:

(1) company legal business name;

(2) tradestyle, doing business, or other name by which your entity is 

commonly recognized;

(3) company physical street address, city, state and ZIP code;

(4) company mailing address, city, state and ZIP code (if different from 

physical);

(5) company telephone number;

(6) date the company was started;

(7) number of employees at your location;

(8) chief executive officer/key manager;

(9) line of business (industry);

(10) company headquarters name and address (reporting relationship within 

your entity).

(d) If the offeror does not become registered in the SAM database within the time 

prescribed by the contracting officer, the contracting officer will proceed to award 

to the next otherwise successful registered offeror.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-58

(e) Processing time, which normally takes 48 hours, should be taken into 

consideration when registering. Offerors who are not registered should consider 

applying for registration immediately upon receipt of this solicitation.

(f) The contractor is responsible for the accuracy and completeness of the data 

within the SAM database, and for any liability resulting from the government's 

reliance on inaccurate or incomplete data. To remain registered in the SAM 

database after the initial registration, the contractor is required to review and 

update on an annual basis from the date of initial registration or subsequent 

updates its information in the SAM database to ensure it is current, accurate and 

complete. Updating information in the SAM does not alter the terms and 

conditions of this contract and is not a substitute for a properly executed 

contractual document.

(g) Change of Name and Novation Agreements:

(1) If a contractor has legally changed its business name, "doing business as" 

name, or division name (whichever is shown on the contract), or has 

transferred the assets used in performing the contract, but has not 

completed the necessary requirements regarding novation and change-ofname agreements, the contractor shall provide the responsible contracting 

officer a minimum of one business day's written notification of its intention 

to:

(i) change the name in the SAM database;

(ii) comply with the requirements of Guide to Judiciary Policy, Vol. 14, 

§ 745.55; and

(iii) agree in writing to the timeline and procedures specified by the 

responsible contracting officer. The contractor must provide with 

the notification sufficient documentation to support the legally 

changed name.

(2) If the contractor fails to comply with the requirements of paragraph (g)(1) 

of this clause, or fails to perform the agreement at paragraph (g)(1)(iii) of 

this clause, and, in the absence of a properly executed novation or 

change-of-name agreement, the SAM information showing the contractor 

to be other than the contractor indicated in the contract will be considered 

to be incorrect information within the meaning of the "Suspension of 

Payment" paragraph of the electronic funds transfer (EFT) clause of this 

contract.

(h) Assignment of Claims
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-59

The contractor shall not change the name or address for EFT payments or 

manual payments, as appropriate, in the SAM record to reflect an assignee for 

the purpose of assignment of claims. Assignees shall be separately registered in 

the SAM database. Information provided to the contractor's SAM record that 

indicates payments, including those made by EFT, to an ultimate recipient other 

than the contractor will be considered to be incorrect information within the 

meaning of the "Suspension of payment" paragraph of the EFT clause of this 

contract.

(i) Offerors and contractors may obtain information on registration and annual 

confirmation requirements via the internet at http://www.SAM.gov or by calling 1-

866-606-8220 or at http://www.FSD.gov.

(end)

Clause 3-305, Payment by Electronic Funds Transfer – System for Award 

Management (SAM) Registration

Include the following clause as prescribed in § 330.10.30(dd)(2) (Provisions and 

Clauses).

Payment by Electronic Funds Transfer – System for Award 

Management (SAM) Registration (APR 2013)

(a) Method of Payment

(1) All payments by the judiciary under this contract shall be made by 

electronic funds transfer (EFT), except as provided in paragraph (a)(2) of 

this clause.

(2) In the event the judiciary is unable to release one or more payments by 

EFT, the contractor agrees to either:

(i) Accept payment by check or some other mutually agreeable 

method of payment; or

(ii) Request the judiciary to extend the payment due date until such 

time as the judiciary can make payment by EFT (but see paragraph 

(d) of this clause).

(b) Contractor's EFT Information

The judiciary shall make payment to the contractor using the EFT information 

contained in the System for Award Management (SAM) database. In the event 

that the EFT information changes, the contractor shall be responsible for 

providing the updated information to the SAM database.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-60

(c) Mechanisms for EFT Payment

The judiciary will make payment by EFT through the Automated Clearing House 

(ACH) network, subject to the rules of the National Automated Clearing House 

Association. The rules governing Federal payments through the ACH are 

contained in 31 CFR part 210.

(d) Suspension of Payment

If the contractor's EFT information in the SAM database is incorrect, then the 

judiciary need not make payment to the contractor under this contract until 

correct EFT information is entered into the SAM database; and any invoice shall 

be deemed not to be a proper invoice.

(e) Liability for Uncompleted or Erroneous Transfers

(1) If an uncompleted or erroneous transfer occurs because the judiciary used 

the contractor's EFT information incorrectly, the judiciary remains 

responsible for –

(i) Making a correct payment; and

(ii) Recovering any erroneously directed funds.

(2) If an uncompleted or erroneous transfer occurs because the contractor's 

EFT information was incorrect, or was revised within 30 days of judiciary 

release of the EFT payment transaction instruction to the Federal Reserve 

System, and:

(i) If the funds are no longer under the control of the payment office, 

the judiciary is deemed to have made payment and the contractor 

is responsible for recovery of any erroneously directed funds; or

(ii) If the funds remain under the control of the payment office, the 

judiciary shall not make payment, and the provisions of paragraph 

(d) of this clause shall apply.

(f) EFT and Assignment of Claims

If the contractor assigns the proceeds of this contract as provided for in the 

assignment of claims terms of this contract, the contractor shall require as a 

condition of any such assignment, that the assignee shall register separately in 

the SAM database and shall be paid by EFT in accordance with the terms of this 

clause. Notwithstanding any other requirement of this contract, payment to an 

ultimate recipient other than the contractor, or a financial institution properly 

recognized under a proper assignment of claims, is not permitted. In all 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-61

respects, the requirements of this clause shall apply to the assignee as if it were 

the contractor. EFT information that shows the ultimate recipient of the transfer 

to be other than the contractor, in the absence of a proper assignment of claims 

acceptable to the judiciary, is incorrect EFT information within the meaning of 

paragraph (d) of this clause.

(g) Liability for Change of EFT Information by Financial Agent

The judiciary is not liable for errors resulting from changes to EFT information 

made by the contractor's financial agent.

(h) Payment Information

The judiciary will not provide EFT payment information. Payment information 

may be obtained by registering as a payee vendor with the United States 

Department of the Treasury at https://www.ipp.gov/. Registered vendors may 

retrieve and/or review check stub advice each time an EFT payment is received.

If the judiciary makes payment by check in accordance with paragraph (a) of this 

clause, the judiciary shall mail the check and any other payment information to 

the remittance address contained in the SAM database.

(end)

Clause 3-310, Payment by Electronic Funds Transfer – Other Than System 

for Award Management (SAM) Registration

Include the following clause as prescribed in § 330.10.30(dd)(3) (Provisions and 

Clauses).

Payment by Electronic Funds Transfer – Other Than System for 

Award Management (SAM) Registration (APR 2013)

(a) Method of Payment

(1) All payments by the judiciary under this contract shall be made by 

electronic funds transfer (EFT) except as provided in paragraph (a)(2) of 

this clause.

(2) In the event the judiciary is unable to release one or more payments by 

EFT, the contractor agrees to either:

(i) Accept payment by check or some other mutually agreeable 

method of payment; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-62

(ii) Request the judiciary to extend payment due dates until such time 

as the judiciary makes payment by EFT (but see paragraph (d) of 

this clause).

(b) Mandatory Submission of Contractor's EFT Information

(1) The contractor is required to provide the judiciary with the information 

required to make payment by EFT (see paragraph (i) of this clause). The 

contractor shall provide this information directly to the office designated in 

paragraph (j) of this clause by no later than 15 days prior to submission of 

the first request for payment. In the event that the EFT information 

changes, the contractor shall be responsible for providing the updated 

information to the same office.

(2) If the contractor provides EFT information applicable to multiple contracts, 

the contractor shall specifically state the applicability of this EFT 

information in terms acceptable to the office designated in paragraph (j).

(c) Mechanisms for EFT Payment

The judiciary will make payment by EFT through the Automated Clearing House 

(ACH) network, subject to the rules of the National Automated Clearing House 

Association. The rules governing Federal payments through the ACH are 

contained in 31 CFR part 210.

(d) Suspension of Payment

(1) The judiciary is not required to make any payment under this contract until 

after receipt, by the office designated in paragraph (j), of the correct EFT 

payment information from the contractor. Until receipt of the correct EFT 

information, any invoice or contract financing request shall be deemed not 

to be a proper invoice.

(2) If the EFT information changes after submission of correct EFT 

information, the judiciary shall begin using the changed EFT information 

no later than 30 days after its receipt by the office designated in paragraph 

(j) to the extent payment is made by EFT. However, the contractor may 

request that no further payments be made until the updated EFT 

information is implemented by the payment office.

(e) Liability for Uncompleted or Erroneous Transfers

(1) If an uncompleted or erroneous transfer occurs because the judiciary used 

the contractor's EFT information incorrectly, the judiciary remains 

responsible for:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-63

(i) Making a correct payment; and

(ii) Recovering any erroneously directed funds.

(2) If an uncompleted or erroneous transfer occurs because the contractor's 

EFT information was incorrect, or was revised within 30 days of judiciary 

release of the EFT payment transaction instruction to the Federal Reserve 

System, and:

(i) If the funds are no longer under the control of the payment office, 

the judiciary is deemed to have made payment and the contractor 

is responsible for recovery of any erroneously directed funds; or

(ii) If the funds remain under the control of the payment office, the 

judiciary shall not make payment and the provisions of paragraph 

(d) shall apply.

(f) EFT and Assignment of Claims

If the contractor assigns the proceeds of this contract as provided for in the 

assignment of claims terms of this contract, the contractor shall require as a 

condition of any such assignment, that the assignee shall provide the EFT 

information required by paragraph (i) of this clause to the office designated in 

paragraph (j), and shall be paid by EFT in accordance with the terms of this 

clause. In all respects, the requirements of this clause shall apply to the 

assignee as if it were the contractor. EFT information that shows the ultimate 

recipient of the transfer to be other than the contractor, in the absence of a 

proper assignment of claims acceptable to the judiciary, is incorrect EFT 

information within the meaning of paragraph (d) of this clause.

(g) Liability for Change of EFT Information by Financial Agent

The judiciary is not liable for errors resulting from changes to EFT information 

provided by the contractor's financial agent.

(h) Payment Information

The judiciary will not provide EFT payment information. EFT payment 

information may be obtained by registering as a payee vendor with the United 

States Department of the Treasury at https://www.ipp.gov/. Registered vendors 

may retrieve and/or review check stub advice each time an EFT payment is 

received.

If the judiciary makes payment by check in accordance with paragraph (a) of this 

clause, the judiciary shall mail the check and any other payment information to 

the remittance address provided in accordance with paragraph (i) of this clause.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-64

(i) EFT Information

The contractor shall provide the following information to the office designated in 

paragraph (j) of this clause. The contractor may supply this data for this or 

multiple contracts (see paragraph (b) of this clause). The contractor shall 

designate a single financial agent per contract capable of receiving and 

processing the EFT information using the EFT methods described in paragraph 

(c) of this clause.

(1) The contract number (or other procurement identification number).

(2) The contractor's name and remittance address, as stated in the 

contract(s).

(3) The signature (manual or electronic, as appropriate), title, and telephone 

number of the contract official authorized to provide this information.

(4) The name, address, and 9-digit Routing Transit Number of the contractor's 

financial agent.

(5) The contractor's bank account number and the type of account (checking, 

saving, or lockbox).

(j) Designated Office:

[insert name, address, phone, and fax for court’s paying office]

(end)

Provision 3-315, Submission of Electronic Funds Information with Offer

Include the following provision as prescribed in § 330.10.30(dd)(4) (Provisions and 

Clauses).

Submission of Electronic Funds Information with Offer (APR 2013)

The offeror shall provide, with its offer, the following information that is 

required to make payment by electronic funds transfer (EFT) under any 

contract that results from this solicitation. This submission satisfies the 

requirement to provide EFT information under paragraphs (b)(1) and (i) of 

Clause 3-310, Payment by Electronic Funds Transfer – Other Than 

System for Award Management (SAM) Registration.

(1) The solicitation number (or other procurement identification number).

(2) The offeror's name and remittance address, as stated in the offer.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-65

(3) The signature (manual or electronic, as appropriate), title, and telephone 

number of the offeror's official authorized to provide this information.

(4) The name, address, and 9-digit Routing Transit Number of the offeror's 

financial agent.

(5) The offeror's account number and the type of account (checking, savings, 

or lockbox).

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-1

Provisions and Clauses (Chapter 4)

Provision 4-1, Type of Contract

Include the following provision as prescribed in § 410.15.20(a) (Solicitation 

Requirements).

Type of Contract (JAN 2003)

The judiciary plans to award a ________________________ (Contracting 

officer inserts specific type of contract) type of contract under this 

solicitation, and all offers shall be submitted on this basis. Alternate offers 

based on other contract types will not be considered.

(end)

Clause 4-5, Ordering

Include the following clause as prescribed in § 410.30.64(a) (Clauses).

Ordering (APR 2013)

(a) Any products and services to be furnished under this contract will be ordered by 

issuance of written delivery orders or task orders by the individuals or activities 

designated in the contract. Such orders may be issued from the effective date of 

the contract through the last day of the contract.

(b) All delivery orders or task orders are subject to the terms and conditions of this 

contract and will specify the date, time and place for the products to be delivered 

or the services to be performed. If the contracting officer so requires, the 

contractor shall provide a written or oral acknowledgment. In the event of a 

conflict between a delivery order or a task order and this contract, this contract 

will control.

(c) If mailed, a delivery order or a task order is considered “issued” when the 

judiciary deposits the order in the mail. Orders may be issued orally, by 

facsimile, or by electronic commerce methods only if authorized in the contract.

(end)

Clause 4-10, Order Limitations

Include the following clause as prescribed in § 410.30.64(b) (Clauses).

Order Limitations (JUN 2014)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

(a) Minimum Order

When the judiciary requires products or services covered by this contract in an 

amount less than ________ (contracting officer insert minimum dollar amount or 

quantity), the judiciary is not obligated to purchase, nor is the contractor obligated 

to furnish, those products or services under this contract.

(b) Maximum Order

The contractor is not obligated to honor:

(1) any order for a single item in excess of ________ (contracting officer 

insert maximum dollar amount or quantity);

(2) any order for a combination of items in excess of ________ (contracting 

officer insert maximum dollar amount or quantity); or

(3) a series of orders from the same ordering office in the course of _____ 

days (contracting officer specify) that together call for quantities exceeding 

the limitations stated in subparagraph (b)(1) or (b)(2) above.

(c) If this is a requirements contract, (i.e., includes Clause 4-20, Requirements) the 

judiciary is not required to order a part of any one requirement from the 

contractor if that requirement exceeds the maximum-order limitations stated in 

paragraph (b) above.

(d) Notwithstanding paragraphs (b) and (c) of this clause, the contractor shall honor 

any order exceeding the maximum order limitations in paragraph (b), unless that 

order (or orders) is returned to the ordering office within _____ days (contracting 

officer specify) after issuance, with written notice stating the contractor’s intent 

not to ship the item (or items) called for and the reasons. Upon receiving this 

notice, the judiciary may acquire the products or services from another source.

(end)

Clause 4-20, Requirements

Include the following clause as prescribed in § 410.30.64(c) (Clauses).

Requirements (APR 2013)

(a) This is an indefinite-delivery requirements contract for the products or services 

specified, and effective for the period stated in the contract. The quantities of 

products or services specified in the contract are estimates only and are not 

purchased by this contract. Except as this contract may otherwise provide, if the 

judiciary's requirements do not result in orders in the quantities described as 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

“estimated” or “maximum” in the contract, that fact will not constitute the basis for 

an equitable price adjustment.

(b) Delivery or performance shall be made only as authorized by orders issued in 

accordance with the Ordering clause. Subject to any limitations in the Order 

Limitations clause or elsewhere in this contract, the contractor shall furnish to the 

judiciary all products or services specified in the contract and called for by orders 

issued in accordance with the Ordering clause.

(c) Except as this contract otherwise provides, the judiciary will order from the 

contractor all the products or services specified in the contract that are required 

to be purchased by the activity or activities specified in the contract.

(d) The judiciary is not required to purchase from the contractor requirements in 

excess of any limit on total orders under this contract.

(e) If the judiciary urgently requires delivery or performance of any quantity of an 

item before the earliest date that delivery may be specified under this contract, 

and if the contractor will not accept an order providing for the accelerated 

delivery, the judiciary may acquire the urgently required products or services 

from another source. In the event that the contractor accepts such an order for 

accelerated delivery, such accelerated delivery shall not constitute the basis for 

an equitable price adjustment.

(f) Any order issued during the effective period of this contract and not completed 

within that period shall be completed by the contractor within the time specified in 

the order. The contract will govern the contractor’s and judiciary’s rights and 

obligations with respect to that order to the same extent as if the order were 

completed during the contract’s effective period.

(end)

Clause 4-25, Indefinite Quantity

Include the following clause as prescribed in § 410.30.64(d) (Clauses).

Indefinite Quantity (APR 2013)

(a) This is an indefinite-delivery indefinite-quantity contract for the products or 

services specified, and effective for the period stated, in the contract. The 

quantities of products and services specified in the contract are estimates only 

and are not purchased by this contract.

(b) Delivery or performance shall be made only as authorized by orders issued in 

accordance with the Ordering clause. The contractor shall furnish to the 

judiciary, when and if ordered, the products or services specified in the contract 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

up to and including the quantity designated as the “maximum.” The judiciary will 

order at least the quantity of products or services designated as the “minimum.”

(c) Except for any limitations on quantities in the Order Limitations clause or 

elsewhere in the contract, there is no limit on the number of orders that may be 

issued.

(d) Any order issued during the effective period of this contract and not completed 

within that period shall be completed by the contractor within the time specified in 

the order. The contract will govern the contractor’s and judiciary’s rights and 

obligations with respect to that order to the same extent as if the order were 

completed during contract’s effective period.

(end)

Provision 4-27, Time-and-Materials/Labor-Hour Proposal Requirements –

Competitive Pricing

Include the following provision as prescribed in § 410.45.50(a) (Provisions and Clauses 

– Labor-Hour and Time-and-Materials Contracts).

Time-and-Materials/Labor-Hour Proposal Requirement – Competitive 

Pricing (APR 2011)

(a) The judiciary contemplates award of a time-and-materials or labor-hour type of 

contract resulting from this solicitation.

(b) The offeror must specify fixed hourly rates in its offer that include wages, general 

and administrative expenses, and profit. The offeror must specify whether the 

fixed hourly rate for each labor category applies to labor performed by –

(1) The offeror;

(2) Subcontractors; and/or

(3) Divisions, subsidiaries, or affiliates of the offeror under a common control;

(c) The offeror must establish fixed hourly rates using –

(1) Separate rates for each category of labor to be performed by each 

subcontractor and for each category of labor to be performed by the 

offeror, and for each category of labor to be transferred between divisions, 

subsidiaries, or affiliates of the offeror under a common control;

(2) Blended rates for each category of labor to be performed by the offeror, 

including labor transferred between divisions, subsidiaries, or affiliates of 

the offeror under a common control, and all subcontractors; or
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

(3) Any combination of separate and blended rates for each category of labor 

to be performed by the offeror, affiliates of the offeror under a common 

control, and subcontractors.

(end)

Provision 4-28, Time-and-Materials/Labor-Hour Proposal Requirements –

Non-Competitive Pricing

Include the following provision as prescribed in § 410.45.50(b) (Provisions and Clauses 

– Labor-Hour and Time-and-Materials Contracts).

Time-and-Materials/Labor-Hour Proposal Requirement – NonCompetitive Pricing (APR 2011)

(a) The judiciary contemplates award of a time-and-materials or labor-hour type of 

contract resulting from this solicitation.

(b) The offeror must specify fixed hourly rates in its offer that include wages, general 

and administrative expenses, and profit for each category of labor to be 

performed by –

(1) The offeror;

(2) Each subcontractor; and

(3) Each division, subsidiary, or affiliate of the offeror under a common 

control;

(c) The fixed hourly rates for services transferred between divisions, subsidiaries, or 

affiliates of the offeror under a common control shall not include profit for the 

transferring organization, but may include profit for the prime contractor.

(end)

Clause 4-30, Payment (Time-and-Materials and Labor-Hour Contracts)

Include the following clause as prescribed in § 410.45.50(c) (Provisions and Clauses –

Labor-Hour and Time-and-Materials Contracts).

Payment (Time-and-Materials and Labor-Hour Contracts) (APR 2011)

(a) The judiciary will pay the contractor as follows upon submission of invoices or 

vouchers approved in writing by the contracting officer or the contracting officer’s 

authorized representative:

(1) Hourly Rate
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

(i) Hourly rate means the rate(s) prescribed in the contract for 

payment for labor that meets the labor category qualifications of a 

labor category specified in the contract that are –

• Performed by the contractor;

• Performed by subcontractors; or

• Transferred between divisions, subsidiaries, or affiliates of the 

contractor under a common control.

(ii) The amounts will be computed by multiplying the appropriate hourly 

rates prescribed in the contract by the number of direct labor hours 

performed.

(iii) The hourly rates shall be paid for all labor performed on the 

contract that meets the labor qualifications specified in the contract. 

Labor hours incurred to perform tasks for which labor qualifications 

were specified in the contract will not be paid to the extent the work 

is performed by employees that do not meet the qualifications 

specified in the contract, unless specifically authorized by the 

contracting officer.

(iv) The hourly rates will include wages, indirect costs, general and 

administrative expense, and profit. Fractional parts of an hour will 

be payable on a prorated basis.

(v) Vouchers may be submitted once each month (or at more frequent 

intervals if approved in writing by the contracting officer). The 

contractor will substantiate vouchers (including any subcontractor 

hours reimbursed at the hourly rate in the contract) by evidence of 

actual payment and by –

(A) individual daily job timekeeping records;

(B) records that verify the employees meet the qualifications for 

the labor categories specified in the contract; or

(C) other substantiation approved in writing by the contracting 

officer.

(vi) Promptly after receipt of each substantiated voucher, the judiciary 

will, except as otherwise provided in this contract, and subject to 

the terms of paragraph (e) of this section, pay the voucher as 

approved by the contracting officer or authorized representative.

(vii) Unless otherwise prescribed in the contract, the contracting officer 

may unilaterally issue a contract modification requiring the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

contractor to withhold amounts from its billings until a reserve is set 

aside in an amount that the contracting officer considers necessary 

to protect the judiciary’s interests. The contracting officer may 

require a withhold of five percent of the amounts due under 

paragraph (a) of this clause, but the total amount withheld for the 

contract may not exceed $50,000. The amounts withheld will be 

retained until the contractor executes and delivers the release 

required by paragraph (g) of this clause.

(viii) Unless the contract prescribes otherwise, the hourly rates in the 

contract will not be varied by virtue of the contractor having 

performed work on an overtime basis. If no overtime rates are 

provided in the contract and overtime work is approved in writing in 

advance by the contracting officer, overtime rates may be 

negotiated. Failure to agree upon these overtime rates will be 

treated as a dispute under the Disputes clause of this contract. If 

the contract provides rates for overtime, the premium portion of 

those rates will be reimbursable only to the extent the overtime has 

been approved in writing in advance by the contracting officer.

(b) Materials

(1) For the purposes of this clause –

(i) Direct materials means those materials that enter directly into the 

end product, or that are used or consumed directly in connection 

with the furnishing of the end product or service.

(ii) Materials means –

(A) Direct materials, including supplies transferred between 

divisions, subsidiaries, or affiliates of the contractor under a 

common control;

(B) Subcontracts for supplies and incidental services for which 

there is not a labor category specified in the contract;

(C) Other direct costs (e.g., incidental services for which there is 

not a labor category specified in the contract, travel, 

computer usage charges, etc.); and

(D) Applicable indirect costs.

(2) If the contractor furnishes its own materials that meet the definition of 

commercial item in the Guide to Judiciary Policy’s Glossary of 

Procurement Terms, the price to be paid for such materials must not 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

exceed the contractor’s established catalog or market price, adjusted to 

reflect the quantities being acquired; and actual cost of any modifications 

necessary because of contract requirements.

(3) Except as provided for in paragraph (b)(2) of this clause, the judiciary will 

reimburse the contractor for allowable cost of materials provided the 

contractor –

(i) has made payments for materials in accordance with the terms and 

conditions of the agreement or invoice; or

(ii) ordinarily makes these payments within 30 days of the submission 

of the contractor’s payment request to the judiciary and such 

payment is in accordance with the terms and conditions of the 

agreement or invoice.

(4) Payment for materials is subject to Clause 4-60, Allowable Cost and 

Payment.

(5) The contractor may include allocable indirect costs and other direct costs 

to the extent they are –

(i) comprised only of costs that are clearly excluded from the hourly 

rate;

(ii) allocated in accordance with the contractor’s written or established 

accounting practices; and

(iii) indirect costs are not applied to subcontract that are paid at the 

hourly rates.

(6) To the extent practicable, the contractor shall –

(i) obtain materials at the most advantageous prices available, with 

due regard to securing prompt delivery of satisfactory materials; 

and

(ii) take all cash and trade discounts, rebates, allowances, credits, 

salvage, commissions, and other benefits. When unable to take 

advantage of the benefits, the contractor shall promptly notify the 

contracting officer and give the reasons. The contractor shall give 

credit to the judiciary for cash and trade discounts, rebates, scrap, 

commissions, and other amounts that have accrued to the benefit 

of the contractor, or would have accrued except for the fault or 

neglect of the contractor. The contractor shall not deduct from 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

gross costs the benefits lost without fault or neglect on the part of 

the contractor or lost through fault of the judiciary.

(7) The judiciary will not pay profit or fee to the prime contractor on materials, 

except when reimbursing for commercial items under paragraph (b)(2) 

above.

(c) If the contractor enters into any subcontract that requires consent under Clause 

7-75, Subcontracts, without obtaining such consent, the judiciary is not required 

to reimburse the contractor for any costs incurred under the subcontract prior to 

the date the contractor obtains the required consent. Any reimbursement of 

subcontract costs incurred prior to the date the consent was obtained shall be at 

the sole discretion of the judiciary.

(d) Total Cost

It is estimated that the total cost to the judiciary for the performance of this 

contract shall not exceed the ceiling price set forth in the contract, and the 

contractor agrees to use its best efforts to perform the work specified in the 

contract and all obligations under this contract within such ceiling price. If at any 

time the contractor has reason to believe that the hourly rate payments and 

material costs that will accrue in performing the contract in the next succeeding 

30 days, if added to all other payments and costs previously accrued, will exceed 

85 percent of the ceiling price in the contract, the contractor shall notify the 

contracting officer, giving a revised estimate of the total price to the judiciary for 

performing this contract with supporting reasons and documentation. If at any 

time during the performance of this contract, the contractor has reason to believe 

that the total price to the judiciary for the performance of this contract will be 

substantially greater or less than the then stated ceiling price, the contractor shall 

so notify the contracting officer, giving a revised estimate of the total price for 

performing this contract, with supporting reasons and documentation. If at any 

time during the performance of this contract, the judiciary has reason to believe 

that the work to be required in performing this contract will be substantially 

greater or less than the stated ceiling price, the contracting officer will advise the 

contractor, giving the then revised estimate of the total amount of effort to be 

required under the contract.

(e) Ceiling Price

The judiciary will not be obligated to pay the contractor any amount in excess of 

the ceiling price in the contract, and the contractor shall not be obligated to 

continue performance if to do so would exceed the ceiling price set forth in the 

contract, unless and until the contracting officer notifies the contractor in writing 

that the ceiling price has been increased and specifies in the notice a revised 

ceiling that shall constitute the ceiling price for performance under this contract. 

When and to the extent that the ceiling price set forth in the contract has been 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-10

increased, any hours expended and material costs incurred by the contractor in 

excess of the ceiling price before the increase will be allowable to the same 

extent as if the hours expended and material costs had been incurred after the 

increase in the ceiling price.

(f) Audit

At any time before final payment under this contract, the contracting officer may 

request audit of the invoices or vouchers and supporting documentation. Each 

payment previously made will be subject to reduction to the extent of amounts, 

on preceding invoices or vouchers, that are found by the contracting officer or 

authorized representative not to have been properly payable and will also be 

subject to reduction for overpayments or to increase for underpayments. Upon 

receipt and written approval of the voucher or invoice designated by the 

contractor as the “completion voucher” or “completion invoice” and supporting 

documentation, and upon compliance by the contractor with all terms of this 

contract (including, without limitation, terms related to patents and the terms of 

paragraph (g) of this clause), the judiciary will promptly pay any balance due the 

contractor. The completion invoice or voucher, and supporting documentation, 

shall be submitted by the contractor as promptly as practicable following 

completion of the work under this contract, but in no event later than one year (or 

such longer period as the contracting officer may approve in writing) from the 

date of completion.

(g) Assignment and Release of Claims

The contractor, and each assignee under an assignment entered into under this 

contract and in effect at the time of final payment under this contract, shall 

execute and deliver, at the time of and as a condition precedent to final payment 

under this contract, a release discharging the judiciary, its officers, agents, and 

employees of and from all liabilities, obligations, and claims arising out of or 

under this contract, subject only to the following exceptions:

(1) specified claims in stated amounts, or in estimated amounts if the 

amounts are not susceptible of exact statement by the contractor;

(2) claims, together with reasonable incidental expenses, based upon the 

liabilities of the contractor to third parties arising out of performing this 

contract, that are not known to the contractor on the date of the execution 

of the release, and of which the contractor gives notice in writing to the 

contracting officer not more than 6 years after the date of the release or 

the date of any notice to the contractor that the judiciary is prepared to 

make final payment, whichever is earlier; or

(3) claims for reimbursement of costs (other than expenses of the contractor 

by reason of its indemnification of the judiciary against patent liability), 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-11

including reasonable incidental expenses, incurred by the contractor under 

the terms of this contract relating to patents.

(end)

Alternate I (APR 2011): In accordance with § 410.45.50(c) (Provisions and Clauses –

Labor-Hour and Time-and-Materials Contracts), add the following paragraph (h) to the 

basic clause.

(h) The terms of this clause that govern reimbursement for materials furnished are 

considered to be deleted.

Clause 4-35, Execution and Commencement of Work (Letter Contract)

Include the following clause as prescribed in § 410.50.80(a) (Clauses).

Execution and Commencement of Work (Letter Contract) (JAN 2003)

The contractor shall indicate acceptance of this letter contract by signing 

three copies of the contract and returning them to the contracting officer 

not later than __________ (contracting officer inserts date). Upon 

acceptance by both parties, the contractor shall proceed with performance 

of the work, including purchase of necessary materials.

(end)

Clause 4-40, Limitation of Judiciary Liability (Letter Contract)

Include the following clause as prescribed in § 410.50.80(b) (Clauses).

Limitation of Judiciary Liability (Letter Contract) (JAN 2003)

(a) In performing this contract, the contractor is not authorized to make expenditures 

or to incur obligations exceeding $ _______________ (contracting officer inserts 

limit).

(b) The maximum amount for which the judiciary will be liable if this contract is 

terminated is $ ___________________(contracting officer inserts maximum 

liability).

(end)

Clause 4-45, Contract Definitization

Include the following clause as prescribed in § 410.50.80(c) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-12

Contract Definitization (JAN 2003)

(a) A ________________ (contracting officer inserts type of contract) definitive 

contract is contemplated. The contractor agrees to begin promptly negotiating 

with the contracting officer the terms of a definitive contract that will include:

(1) all judiciary clauses required on the date of execution of the letter contract;

(2) all clauses required by law on the date of execution of the definitive 

contract; and

(3) any other mutually agreeable clauses, terms, and conditions. The 

contractor agrees to submit a __________ (insert specific type of offer; 

e.g., fixed-price or cost-and-fee) offer and detailed cost information 

supporting its offer.

(b) The schedule for definitizing this contract is (insert target date for definitization of 

the contract and dates for submission of offer, beginning of negotiations, and, if 

appropriate, submission of make-or-buy and subcontracting plans and detailed 

cost information):

(1) Definitization target date: __________________________

(2) Offer submission date: __________________________

(3) Beginning of negotiations date: ______________________

(4) Other appropriate dates: ____________________________

(c) If agreement on a definitive contract to supersede this letter contract is not 

reached by the target date in paragraph (b) of this section, or within any 

extension of it granted by the contracting officer, the contracting officer may, with 

the prior written approval of the judiciary Procurement Executive, determine a 

reasonable price or fee, subject to contractor appeal as provided in the Disputes 

clause. In any event, the contractor shall proceed with completion of the 

contract, subject only to the Limitation of Judiciary Liability clause.

(1) After the contracting officer's determination of price or fee, the contract will 

be governed by:

(i) all judiciary required clauses on the date of execution of this letter 

contract for either fixed-price or cost-reimbursement contracts as 

determined by the contracting officer under this paragraph (c);

(ii) all clauses required by law as of the date of the contracting officer's 

determination; and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-13

(iii) any other clauses, terms, and conditions mutually agreed upon.

(2) To the extent consistent with paragraph (c)(1) of this section, all clauses, 

terms, and conditions included in this letter contract will continue in effect, 

except those that by their nature apply only to a letter contract.

(d) The definitive contract resulting from this letter contract will include a negotiated 

___________(contracting officer inserts “firm fixed price” or “total estimated 

reimbursable cost”) in no event to exceed $________________(contracting 

officer inserts the proposed amount upon which the award was based).

(end)

Clause 4-50, Payment of Allowable Costs before Definitization

Include the following clause as prescribed in § 410.50.80(d) (Clauses).

Payment of Allowable Costs before Definitization (JAN 2003)

(a) Reimbursement Rate

Pending the placing of the definitized contract referred to in this letter contract, 

the judiciary will promptly reimburse the contractor for all allowable costs under 

the contract at the following rates:

(1) 100 percent of written approved costs representing financing payments to 

subcontractors under fixed-price subcontracts, provided that the judiciary’s 

payments to the contractor will not exceed 80 percent of the allowable 

costs of those subcontracts;

(2) 100 percent of written approved costs representing cost-reimbursement 

subcontracts, provided, that the judiciary’s payments to the contractor will 

not exceed 85 percent of the allowable costs of those subcontracts;

(3) 85 percent of all other written approved costs.

(b) Limitation of Reimbursement

To determine the amounts payable to the contractor under this letter contract, the 

contracting officer will determine allowable costs. The total reimbursement made 

under this paragraph will not exceed 85 percent of the maximum amount of the 

judiciary’s liability, as stated in this contract.

(c) Invoicing

Payments will be made promptly to the contractor when requested as work 

progresses, but not more often than once each month (or more often if approved 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-14

in writing by the contracting officer). The contractor may submit to an authorized 

representative of the contracting officer, in such form and reasonable detail as 

the representative may require, an invoice or voucher supported by a statement 

of the claimed allowable costs incurred by the contractor in performance of this 

contract.

(d) Allowable Costs

For the purpose of determining allowable costs, the term “costs” includes:

(1) those recorded costs that result, at the time of the request for 

reimbursement, from payment by cash, check, or other form of actual 

payment for products or services purchased directly for the contract;

(2) when the contractor is not delinquent in payment of costs of contract 

performance in the ordinary course of business, costs incurred, but not 

necessarily paid for:

(i) products and services purchased directly for the contract, provided 

payments will be made:

(A) in accordance with the terms and conditions of a subcontract 

or invoice; and

(B) ordinarily prior to the submission of the contractor’s next 

payment request to the judiciary;

(ii) materials issued from the contractor's stores inventory and placed 

in the production process for use on the contract;

(iii) direct labor;

(iv) direct travel;

(v) other direct in-house costs; and

(vi) properly allocable and allowable indirect costs, as shown on the 

records maintained by the contractor for purposes of obtaining 

reimbursement under judiciary contracts; and

(3) the amount of financing payments that the contractor has paid by cash, 

check, or other forms of payment to subcontractors.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-15

(e) Audit

At any time before final payment, the contracting officer may have the 

contractor's invoices or vouchers and statements of cost audited. Any payment 

may be:

(1) reduced by any amounts found by the contracting officer not to constitute 

allowable costs; or

(2) adjusted for prior overpayments or under payments made on preceding 

invoices or vouchers.

(end)

Clause 4-55, Economic Price Adjustment – Standard Products

Include the following clause as prescribed in § 410.65.50 (Clauses) and § 410.75.60(b) 

(Contract Clauses and Provisions). The clause may be modified to increase the 10 

percent limit on aggregate increases in paragraph (c)(1), upon written approval by the 

Procurement Executive, PMD.

Economic Price Adjustment – Standard Products (MAR 2019)

(a) The contractor warrants that the unit price stated in the contract for _________ 

[offeror inserts contract line item number (CLIN)] is not in excess of the 

contractor's applicable established price in effect on the contract date for like 

quantities of the same item. The term "unit price" excludes any part of the price 

directly resulting from requirements for preservation, packaging, or packing 

beyond standard commercial practice. The term "established price" means a 

price that:

(1) is an established catalog or market price for a commercial item sold in 

substantial quantities to the general public; and

(2) is the net price after applying any standard trade discounts offered by the 

contractor.

(b) The contractor shall promptly notify the contracting officer of the amount and 

effective date of each decrease in any applicable established price. Each 

corresponding contract unit price will be decreased by the same percentage that 

the established price is decreased. The decrease will apply to those items 

delivered on and after the effective date of the decrease in the contractor's 

established price, and this contract will be modified accordingly.

(c) If the contractor's applicable established price is increased after the contract 

date, the corresponding contract unit price will be increased, upon the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-16

contractor's written request to the contracting officer, by the same percentage 

that the established price is increased, and the contract will be modified 

accordingly, subject to the following limitations:

(1) the aggregate of the increases in any contract unit price under this clause 

will not exceed 10 percent of the original contract unit price;

(2) the increased contract unit price will be effective:

(i) on the effective date of the increase in the applicable established 

price if the contracting officer receives the contractor's written 

request within 10 days thereafter; or

(ii) if the written request is received later, on the date the contracting 

officer receives the request;

(3) the increased contract unit price will not apply to quantities scheduled 

under the contract for delivery before the effective date of the increased 

contract unit price, unless failure to deliver before that date results from 

causes beyond the control and without the fault or negligence of the 

contractor, within the meaning of the Default clause.

(4) no modification increasing a contract unit price will be executed under this 

paragraph (c) until the contracting officer verifies the increase in the 

applicable established price;

(5) within 30 days after receipt of the contractor's written request, the 

contracting officer may cancel, without liability to either party, any 

undelivered portion of the contract items affected by the requested 

increase.

(d) During the time allowed for the cancellation provided for in paragraph (c)(5) of 

this clause, and thereafter if there is no cancellation, the contractor shall continue 

deliveries according to the contract delivery schedule, and the judiciary will pay 

for such deliveries at the contract unit price, increased to the extent provided by 

paragraph (c) of this clause.

(end)

Clause 4-60, Allowable Cost and Payment

Include the following clause as prescribed in § 410.70.80(a) (Cost Contract Clauses).

Allowable Cost and Payment (APR 2013)

(a) Invoicing
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-17

The judiciary will make payments to the contractor when requested as work 

progresses, but not more than monthly, in amounts determined to be allowable 

by the contracting officer. The contractor shall submit an invoice or voucher to 

the address specified in the contract, supported by a statement of claimed 

allowable costs of performing this contract, in such form and detail as the 

contracting officer may require.

(b) Reimbursing Costs

(1) For the purpose of reimbursing allowable costs, the term “costs” includes 

only:

(i) those recorded costs that, at the time of the request for 

reimbursement, the contractor has paid by cash, check, or other 

form of actual payment for items or services purchased directly for 

the contract;

(ii) when the contractor is not delinquent in paying costs of contract 

performance in the ordinary course of business, costs incurred, but 

not necessarily paid, for:

(A) products and services purchased directly for the contract 

and associated financing payments to subcontractors, 

provided payments will be made:

(1) in accordance with the terms and conditions of a 

subcontract or invoice; and

(2) ordinarily prior to the submission of the contractor’s 

next payment request to the judiciary;

(B) materials issued from the contractor's inventory and placed 

in the production process for use on the contract;

(C) direct labor;

(D) direct travel;

(E) other direct in-house costs; and

(F) Properly allocable and allowable indirect costs, as shown in 

the records maintained by the contractor for purposes of 

obtaining reimbursement under judiciary contracts; and

(iii) The amount of progress payments that have been paid by cash, 

check, or other forms of payment to subcontractors.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-18

(2) Accrued costs of contractor contributions under employee pension plans 

will be excluded until actually paid unless:

(i) the contractor’s practice is to make contributions to the retirement 

fund quarterly or more frequently; and

(ii) the contribution does not remain unpaid 30 days after the end of 

the applicable quarter or shorter payment period (any contribution 

remaining unpaid will be excluded from the contractor’s indirect 

costs for payment purposes).

(3) Notwithstanding the audit and adjustment of invoices or vouchers under 

paragraph (e) of this clause, allowable indirect costs under this contract 

will be obtained by applying indirect cost rates established in accordance 

with paragraph (c) of this clause.

(4) Any statements in specifications or other documents incorporated by 

reference in this contract designating performance of services or 

furnishing of materials at the contractor's expense or at no cost to the 

judiciary will be disregarded for purposes of cost reimbursement under this 

clause.

(c) Final Indirect Cost Rates

(1) Final annual indirect cost rates and the appropriate bases will be 

established in accordance with Guide to Judiciary Policy, Vol. 14, Ch. 4 in 

effect for the period covered by the indirect cost rate offer.

(2) (i) The contractor shall submit an adequate final indirect cost rate offer 

to the contracting officer and auditor within 90 days after the end of 

each of its fiscal years, or by a later date approved in writing by the 

contracting officer. The contractor shall support the cost data and 

specify the contract and/or subcontract to which the rates apply.

(ii) The proposed rates shall be based on the contractor's actual cost 

experience for that period. The contracting officer or contracting 

officer's representative and the contractor will establish the final 

indirect cost rates as promptly as practical after receipt of the 

contractor's offer.

(3) The contractor and the contracting officer will execute a written 

understanding setting forth the final indirect cost rates. The understanding 

will specify:

(i) the agreed-upon final annual indirect cost rates;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-19

(ii) the bases to which the rates apply;

(iii) the periods for which the rates apply;

(iv) any specific indirect cost items treated as direct costs in the 

settlement; and

(v) the affected contract an/or subcontract, identifying any with 

advance agreements or special terms and the applicable rates. 

The understanding will not change any monetary ceiling, contract 

obligation, or specific cost allowance or disallowance provided for in 

this contract. The understanding is incorporated into this contract 

upon execution.

(4) Failure by the parties to agree on a final annual indirect cost rate will be a 

dispute within the meaning of the Disputes clause.

(5) Within 120 days (or a period approved in writing by the contracting officer) 

after settlement of the final annual indirect cost rates for all years of a 

physically complete contract, the contractor shall submit a completion 

invoice or voucher to reflect the settled amounts and rates.

(6) (i) If the contractor fails to submit a completion invoice or voucher 

within the time specified in paragraph (c)(5) of this clause, the 

contracting officer may:

(A) determine the amounts due to the contractor under the 

contract; and

(B) record this determination in a unilateral modification to the 

contract.

(ii) The determination constitutes the final decision of the contracting 

officer in accordance with the Disputes clause.

(d) Billing Rates

Until final annual indirect cost rates are established for any period, the judiciary 

will reimburse the contractor at billing rates established by the contracting officer 

subject to adjustment when the final rates are established. These billing rates:

(1) will be the anticipated final rates; and

(2) may be prospectively or retroactively revised by mutual agreement, at 

either party's request, to prevent substantial overpayment or 

underpayment.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-20

(e) Audit

At any time or times before final payment, the contracting officer may have the 

contractor's invoices or vouchers and statements of cost audited. Any payment 

may be:

(1) reduced by amounts found by the contracting officer not to constitute 

allowable costs; or

(2) adjusted for prior overpayments or under-payments.

(f) Final Payment

(1) Upon written approval of a completion invoice or voucher, submitted by 

the contractor in accordance with paragraph (c)(5) of this clause, and 

upon the contractor’s compliance with all terms of this contract, the 

judiciary will promptly pay any balance of allowable costs and that part of 

the fee (if any) not previously paid.

(2) The contractor shall pay to the judiciary any refunds, rebates, credits, or 

other amounts (including interest, if any) accruing to or received by the 

contractor or any assignee under this contract, to the extent that those 

amounts are properly allocable to costs for which the contractor has been 

reimbursed by the judiciary. Reasonable expenses incurred by the 

contractor for securing refunds, rebates, credits, or other amounts are 

allowable costs if approved in writing by the contracting officer. Before 

final payment under this contract, the contractor and each assignee whose 

assignment is in effect at the time of final payment shall execute and 

deliver:

(i) an assignment to the judiciary, in form and substance satisfactory 

to the contracting officer, of refunds, rebates, credits, or other 

amounts (including interest, if any) properly allocable to costs for 

which the contractor has been reimbursed by the judiciary under 

this contract; and

(ii) a release discharging the judiciary, its officers, agents, and 

employees from all liabilities, obligations, and claims arising out of 

or under this contract, except:

(A) specified claims stated in exact amounts, or in estimated 

amounts when the exact amounts are not known;

(B) claims (including reasonable incidental expenses) based 

upon liabilities of the contractor to third parties arising out of 

the performance of this contract; provided that the claims are 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-21

not known to the contractor on the date of the execution of 

the release, and that the contractor gives notice of the claims 

in writing to the contracting officer within six years following 

the release date or notice of final payment date, whichever is 

earlier; and

(C) claims for reimbursement of costs, including reasonable 

incidental expenses, incurred by the contractor under the 

patent clauses of this contract, excluding, however, any 

expenses arising from the contractor's indemnification of the 

judiciary against patent liability.

(end)

Clause 4-65, Fixed Fee

Include the following clause as prescribed in § 410.70.80(b) (Cost Contract Clauses).

Fixed Fee (APR 2013)

(a) The judiciary will pay the contractor for performing this contract the fixed fee 

specified in the contract.

(b) Payment of the fixed fee will be made as specified in the contract; provided that 

after payment of 85 percent of the fixed fee, the contracting officer may withhold 

further payment of fee until a reserve is set aside in an amount that the 

contracting officer considers necessary to protect the judiciary's interest. This 

reserve will not exceed 15 percent of the total fixed fee or the judiciary’s small 

purchase threshold, whichever is less. The contracting officer will release 75 

percent of all fee withholds under this contract after receipt of the certified final 

indirect cost rate offer covering the year of physical completion of this contract, 

provided the contractor has satisfied all other contract terms and conditions, and 

is not delinquent in submitting final vouchers on prior years’ settlements. The 

contracting officer may release up to 90 percent of the fee withheld under this 

contract based on the contractor’s past performance related to the submission 

and settlement of final indirect cost rate offers.

(end)

Clause 4-70, Incentive Fee

Include the following clause as prescribed in § 410.70.80(c) (Cost Contract Clauses).

Incentive Fee (APR 2013)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-22

(a) General

The judiciary will pay the contractor for performing this contract a fee determined 

as provided in the contract.

(b) Target Cost and Target Fee

The target cost and target fee specified in the contract are subject to adjustment 

if the contract is modified in accordance with paragraph (d) of this clause.

(1) “Target cost” as used in this contract, means the estimated cost of this 

contract as initially negotiated, adjusted in accordance with paragraph (d) 

of this clause.

(2) “Target fee” as used in this contract, means the fee initially negotiated on 

the assumption that this contract would be performed for a cost equal to 

the estimated cost initially negotiated, adjusted in accordance with 

paragraph (d) of this clause.

(c) Withholding of Payment

Normally, the judiciary will pay the fee to the contractor as specified in the 

contract. However, when the contracting officer considers that performance or 

cost indicates that the contractor will not achieve target, the judiciary will pay on 

the basis of an appropriate lesser fee. When the contractor demonstrates that 

performance or cost clearly indicates that the contractor will earn a fee 

significantly above the target fee, the judiciary may, at the sole discretion of the 

contracting officer, pay on the basis of an appropriate higher fee. After payment 

of 85 percent of the applicable fee, the contracting officer may withhold further 

payment of fee until a reserve is set aside in an amount that the contracting 

officer considers necessary to protect the judiciary's interest. This reserve will 

not exceed 15 percent of the applicable fee or the judiciary’s small purchase 

threshold, whichever is less. The contracting officer will release 75 percent of all 

fee withholds under this contract after receipt of the certified final indirect cost 

rate offer covering the year of physical completion of this contract, provided the 

contractor has satisfied all other contract terms and conditions, and is not 

delinquent in submitting final vouchers on prior years’ settlements. The 

contracting officer may release up to 90 percent of the fee withholds under this 

contract based on the contractor’s past performance related to the submission 

and settlement of final indirect cost rate offers.

(d) Equitable Adjustments

When the work under this contract is increased or decreased by a contract 

modification or when any equitable adjustment in the target cost is authorized 

under any other clause, equitable adjustments in the target cost, target fee, 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-23

minimum fee, and maximum fee, as appropriate, will be stated in a supplemental 

agreement to this contract.

(e) Fee Payable

(1) The fee payable under this contract will be the target fee increased by 

____ cents (contracting officer inserts contractor's participation) for every 

dollar that the total allowable cost is less than the target cost or decreased 

by _____ cents (contracting officer inserts contractor's participation) for 

every dollar that the total allowable cost exceeds the target cost. In no 

event will the fee be greater than ____ percent or less than ____ percent 

(contracting officer inserts percentages) of the target cost.

(2) The fee will be subject to adjustment, to the extent provided in paragraph 

(d) of this clause, and within the minimum and maximum fee limitations in 

paragraph (e)(1) of this clause, when the total allowable cost is increased 

or decreased as a consequence of:

(i) payments made under assignments; or

(ii) claims excepted from the release required by paragraph (f)(2) of 

the Allowable Cost and Payment clause.

(3) If this contract is terminated in its entirety, the portion of the target fee 

payable will not be subject to an increase or decrease as provided in this 

paragraph. The termination will be accomplished in accordance with other 

applicable clauses of this contract.

(4) For the purpose of fee adjustment, “total allowable cost” does not include

allowable costs arising out of:

(i) any of the causes covered by the Excusable Delays clause, to the 

extent that they are beyond the control and without the fault or 

negligence of the contractor or any subcontractor;

(ii) the taking effect, after negotiating the target cost, of a statute, court 

decision, written ruling, or regulation that results in the contractor's 

being required to pay or bear the burden of any tax or duty or rate 

increase in a tax or duty;

(iii) any direct cost attributed to the contractor's involvement in litigation 

as required by the contracting officer pursuant to a clause of this 

contract, including furnishing evidence and information requested 

pursuant to the Notice and Assistance Regarding Patent and 

Copyright Infringement clause;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-24

(iv) the purchase and maintenance of additional insurance not in the 

target cost and required by the contracting officer, or claims for 

reimbursement for liabilities to third persons pursuant to the 

Insurance Liability to third Persons clause;

(v) any claim, loss, or damage resulting from a risk for which the 

contractor has been relieved of liability by the Judicial Property 

clause; or

(vi) any claim, loss, or damage resulting from a risk defined in the 

contract as unusually hazardous or as a nuclear risk and against 

which the judiciary has expressly agreed to indemnify the 

contractor.

(5) All other allowable costs are included in “total allowable cost” for fee 

adjustment in accordance with this paragraph (e), unless otherwise 

specifically provided in this contract.

(f) Contract Modification

The total allowable cost and the adjusted fee determined as provided in this 

clause will be evidenced by a modification to this contract signed by the 

contractor and contracting officer.

(g) Inconsistencies

In the event of any language inconsistencies between this clause and 

provisioning documents or judiciary options under this contract, compensation for 

spare parts or other products and services ordered under such documents will be 

determined in accordance with this clause.

(end)

Clause 4-75, Cost Contract – No Fee

Include the following clause as prescribed in § 410.70.80(d) (Cost Contract Clauses).

Cost Contract – No Fee (APR 2013)

(a) The judiciary will not pay the contractor a fee for performing this contract.

(b) After payment of 80 percent of the total estimated cost of the contract, the 

contracting officer may withhold further payment of allowable cost until a reserve 

is set aside in an amount that the contracting officer considers necessary to 

protect the judiciary's interest. This reserve will not exceed whichever is less —

one percent of the total estimated cost of the contract, or:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-25

(1) $10,000 for nonprofit organizations, or

(2) $100,000 for all other organizations.

(end)

Clause 4-80, Cost-Sharing Contract – No Fee

Include the following clause as prescribed in § 410.70.80(e) (Cost Contract Clauses).

Cost-Sharing Contract – No Fee (APR 2013)

(a) The judiciary will not pay the contractor a fee for performing this contract.

(b) After paying the contractor 80 percent of the judiciary’s share of the total 

estimated cost of performance of the contract, the contracting officer may 

withhold further payment of allowable cost until a reserve is set aside in an 

amount that the contracting officer considers necessary to protect the judiciary's 

interest. This reserve will not exceed whichever is less:

(1) one percent of the judiciary’s share of the total estimated cost as stated in 

the contract, or

(2) $10,000 for nonprofit organizations, or

(3) $100,000 for all other organizations.

(end)

Clause 4-85, Limitation of Cost

Include the following clause as prescribed in § 410.70.80(f) (Cost Contract Clauses).

Limitation of Cost (APR 2013)

(a) The parties estimate that performance of this contract, exclusive of any fee, will 

not cost the judiciary more than (1) the estimated cost specified in the contract, 

or, (2) if this is a cost-sharing contract, the judiciary’s share of the estimated cost 

specified in the contract. The contractor agrees to use its best efforts to perform 

the work specified in the contract and all obligations under this contract within the 

estimated cost, which, if this is a cost-sharing contract includes both the 

judiciary’s and the contractor’s share of the cost.

(b) The contractor shall notify the contracting officer in writing whenever it has 

reason to believe that:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-26

(1) the costs the contractor expects to incur under this contract in the next 60 

days, when added to all costs previously incurred, will exceed 75 percent 

of the estimated cost stated in the contract; or

(2) the total cost for the performance of this contract, exclusive of any fee, will 

be either greater or substantially less than had been previously estimated.

(c) As part of the notification, the contractor shall provide the contracting officer a 

revised estimate of the total cost of performing this contract.

(d) Except as required by other provisions of this contract, specifically citing and 

stated to be an exception to this clause:

(1) the judiciary is not obligated to reimburse the contractor for costs incurred 

in excess of (i) the estimated cost stated in the contract, or (ii) if this is a 

cost-sharing contract, the estimated cost to the judiciary stated in the 

contract; and

(2) the contractor is not obligated to continue performance under this contract 

(including actions under the Termination clause of this contract) or 

otherwise incur costs in excess of the estimated cost or otherwise incur 

costs in excess of the estimated cost stated in the contract, until the 

contracting officer (i) notifies the contractor in writing that the estimated 

cost has been increased and (ii) provides a revised estimated total cost of 

performing this contract. If this is a cost-sharing contract, the increase will 

be allocated in accordance with the formula stated in the contract.

(e) No notice, communication, or representation in any other form other than that 

specified in paragraph (d)(2) of this clause, or from any person other than the 

contracting officer, will affect this contract’s estimated cost to the judiciary. In the 

absence of the specified notice, the judiciary is not obligated to reimburse the 

contractor for any costs in excess of the estimated cost or, if this is a cost-sharing 

contract, for any costs in excess of the estimated cost to the judiciary stated in 

the contract, whether those excess costs were incurred during the course of the 

contract or as a result of termination.

(f) If the estimated cost stated in the contract is increased, any costs the contractor 

incurs before the increase that are in excess of the previously estimated cost will 

be allowable to the same extent as if incurred afterwards, unless the contracting 

officer issues a termination or other notice directing that the increase is solely to 

cover termination or other specified expenses.

(g) Change orders will not be considered an authorization to exceed the estimated 

cost to the judiciary stated in the contract, unless they contain a statement 

increasing the estimated cost.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-27

(h) If this contract is terminated or the estimated cost is not increased, the judiciary 

and the contractor will negotiate an equitable distribution of all property produced 

or purchased under the contract, based upon the share of costs incurred by 

each.

(end)

Clause 4-90, Limitation of Funds

Include the following clause as prescribed in § 410.70.80(g) (Cost Contract Clauses).

Limitation of Funds (APR 2013)

(a) The parties estimate that performance of this contract will not cost the judiciary 

more than (1) the estimated cost stated in the contract, or (2) if this is a costsharing contract, the judiciary’s share of the estimated cost stated in the contract. 

The contractor agrees to use its best efforts to perform the work specified in the 

contract and all obligations under this contract within this estimated cost, which if 

this is a cost-sharing contract, includes both the judiciary’s and the contractor’s 

share of the cost.

(b) The contract specifies the amount presently available for payment by the 

judiciary and allotted to this contract, the items covered, the judiciary’s share of 

the cost if this is a cost-sharing contract, and the period of performance it is 

estimated that allotted amount will cover. The parties contemplate that the 

judiciary will allot additional funds incrementally to the contract up to the full 

estimated cost to the judiciary stated in the contract, exclusive of any fee. The 

contractor agrees to perform, or have performed, work on the contract up to the 

point at which the total amount paid and payable by the judiciary under the 

contract approximates but does not exceed the total amount actually allotted by 

the judiciary to the contract.

(c) The contractor shall notify the contracting officer in writing whenever it has 

reason to believe that the costs it expects to incur under this contract in the next 

60 days, when added to all costs previously incurred, will exceed 75 percent of 

(1) the total amount so far allotted to the contract by the judiciary or, (2) if this is a 

cost-sharing contract, the amount then allotted to the contract by the judiciary 

plus the contractor’s corresponding share. The notice shall state the estimated 

amount of additional funds required to continue performance for the period 

specified in the contract.

(d) Sixty days before the end of the period specified in the contract, the contractor 

shall notify the contracting officer in writing of the estimated amount of additional 

funds, if any, required to continue timely performance under the contract or for 

any further period specified in the contract or otherwise agreed upon, and when 

the funds will be required.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-28

(e) If, after notification, additional funds are not allotted by the end of the period 

specified in the contract or another agreed-upon date, upon the contractor’s 

written request, the contracting officer will terminate this contract on that date in 

accordance with the provisions of the Termination clause of this contract. If the 

contractor estimates that the funds available will allow it to continue to discharge 

its obligations beyond that date, it may specify a later date in its request, and the 

contracting officer may terminate this contract on that later date.

(f) Except as required by other provisions of this contract specifically citing and 

stated to be an exception to this clause:

(1) the judiciary is not obligated to reimburse the contractor for costs incurred 

in excess of the total amount allotted by the judiciary to this contract; and

(2) the contractor is not obligated to continue performance under this contract 

(including actions under the contract's Termination clause of this contract) 

or otherwise incur costs in excess of:

(i) the amount then allotted to the contract by the judiciary or;

(ii) if this is a cost-sharing contract, the amount then allotted by the 

judiciary to the contract plus the contractor’s corresponding share, 

until the contracting officer notifies the contractor in writing that the 

amount allotted by the judiciary has been increased and specifies 

an increased amount, which will then constitute the total amount 

allotted by the judiciary to this contract.

(g) The estimated cost will be increased to the extent (1) the amount allotted by the 

judiciary or, (2) if this is a cost-sharing contract, the amount then allotted by the 

judiciary to the contract plus the contractor’s corresponding share, exceeds the 

estimated cost stated in the contract. If this is a cost-sharing contract, the 

increase will be allocated in accordance with the formula specified in the 

contract.

(h) No notice, communication, or representation in any other form other than that 

specified in paragraph (f)(2) of this clause, or from any person other than the 

contracting officer, will affect the amount allotted by the judiciary to this contract. 

In the absence of the specified notice, the judiciary is not obligated to reimburse 

the contractor for any costs in excess of the total amount allotted by the judiciary 

to this contract, whether incurred during the course of the contract or as a result 

of termination.

(i) When and to the extent that the amount allotted by the judiciary to the contract is 

increased, any costs the contractor incurs before the increase that are in excess 

of:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-29

(1) the amount previously allotted by the judiciary or;

(2) if this is a cost-sharing contract, the amount previously allotted by the 

judiciary to the contract plus the contractor’s corresponding share, will be 

allowable to the same extent as if incurred afterward, unless the 

contracting officer issues a termination or other notice and directs that the 

increase is solely to cover termination or other specified expenses.

(j) Change orders will not be considered an authorization to exceed the amount 

allotted by the judiciary stated in the contract, unless they contain a statement 

increasing the amount allotted.

(k) Nothing in this clause will affect the right of the judiciary to terminate this 

contract. If this contract is terminated, the judiciary and the contractor will 

negotiate an equitable distribution of all property produced or purchased under 

the contract, based upon the share of costs incurred by each.

(l) If the judiciary does not allot sufficient funds to allow completion of the work, the 

contractor is entitled to a percentage of the fee stated in the contract equaling the 

percentage of completion of the work contemplated by this contract.

(end)

Clause 4-150, Cancellation Under Multi-Year Contracts

Include the following clause as prescribed in § 410.75.60(a) (Contract Clauses and 

Provisions).

Cancellation Under Multi-Year Contracts (JUN 2014)

(a) “Cancellation,” as used in this clause, means that the judiciary is canceling all 

line items for all products or services in the contract year(s) subsequent to that in 

which notice of cancellation is provided.

(b) Except for cancellation under this clause or termination under the Default clause, 

any reduction by the contracting officer in the requirements of this contract shall 

be considered a termination under the Termination for Convenience of the 

Judiciary clause.

(c) If cancellation under this clause occurs, the contractor will be paid a cancellation 

charge not exceeding the cancellation ceiling specified in the contract as 

applicable at the time of cancellation.

(d) The cancellation charge will cover only:

(1) Costs:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-30

(i) Incurred by the contractor and/or subcontractor;

(ii) Reasonably necessary for performance of the contract; and

(iii) That would have been equitably amortized over the entire multiyear contract period but, because of the cancellation, are not so 

amortized; and

(2) A reasonable profit or fee on the costs.

(e) The cancellation charge shall be computed and the claim made for it as if the 

claim were being made under the Termination for Convenience of the Judiciary 

clause of this contract. The contractor shall submit the claim promptly but no 

later than 1 year from the date of notification that funds will not be made available 

for continued performance.

(f) The contractor’s claim may include:

(1) Reasonable fixed costs which are applicable to and normally would have 

been amortized in all products or services which are multi-year 

requirements;

(2) Allocable portions of the costs of facilities acquired or established for the 

conduct of the work, to the extent that it is impracticable for the contractor 

to use the facilities in its commercial work, and if the costs are not charged 

to the contract through overhead or otherwise depreciated;

(3) Costs incurred for the assembly, training, and transportation to and from 

the job site of a specialized work force; and

(4) Costs not amortized solely because the cancellation had precluded 

anticipated benefits of contractor or subcontractor learning.

(g) The claim shall not include:

(1) Labor, material, or other expenses incurred by the contractor or 

subcontractors for performance of the canceled work;

(2) Any cost already paid to the contractor;

(3) Anticipated profit or unearned fee on the canceled work; or

(4) For service contracts, the remaining useful commercial life of facilities. 

“Useful commercial life” means the commercial utility of the facilities rather 

than their physical life with due consideration given to such factors as 

location of facilities, their specialized nature, and obsolescence.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-31

(h) This contract may include an option clause with the period for exercising the 

option limited to the date in the contract for notification that funds are available 

for the next succeeding contract year. If so, the contractor agrees not to include 

in option quantities any costs of a startup or fixed nature that have been fully set 

forth in the contract. The contractor further agrees that the option quantities will 

reflect only those variable costs and a reasonable profit or fee necessary to 

furnish the additional option quantities.

(i) Quantities added to the original contract through the option clause of this contract 

shall be included in the quantity canceled for the purpose of computing allowable 

cancellation charges.

(end)

Provision 4-155, Alternate Awards

Include the following clause as prescribed in § 410.75.60(d) (Contract Clauses and 

Provisions).

Alternate Awards (JUN 2014)

If the solicitation has requested pricing for both a multi-year award and an 

award of a base year and option years, the judiciary reserves the right to 

award only the initial year’s requirement, without options.

(end)

Clause 4-160, Cancellation Ceilings

Include the following clause as prescribed in § 410.75.60(e) (Contract Clauses and 

Provisions).

Cancellation Ceilings (JUN 2014)

The cancellation ceilings applicable to each contract period are set forth 

below:

If Cancellation Takes 

Place Before

The Cancellation Ceiling is

Contract Year 2

Contract Year 3

Contract Year 4

Contract Year 5
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-32

(end)

Provision 4-165, Price Proposal Instruction – Multi-Year Contract

Include the following provision as prescribed in § 410.75.60(f) (Contract Clauses and 

Provisions).

Price Proposal Instruction – Multi-Year Contract (JUN 2014)

Offerors must include in their price proposal a separate cancellation 

ceiling (on either a percentage or dollar basis) for each contract year 

subject to cancellation. Price proposals must include the rationale and 

supporting data for each proposed cancellation ceiling. Upon award, the 

applicable cancellation ceilings will be inserted in Clause 4-160. These 

ceiling amounts apply to any claim submitted under Clause 4-150 in the 

event of actual cancellation of the awarded contract, and will not be part of 

any price evaluation for award.

(end)

Clause 4-170, Limitation of Judiciary’s Obligation

Include the following clause as prescribed in § 410.25.10(b) (Description).

Limitation of Judiciary’s Obligation (JUN 2014)

(a) Contract line item(s) ______ is/are incrementally funded. The sum of $ * is 

presently available for payment and allotted to this contract. An allotment 

schedule is contained in paragraph (j) of this clause.

(b) For item(s) identified in paragraph (a) of this clause, the contractor agrees to 

perform up to the point at which the total amount payable by the judiciary, 

including reimbursement in the event of termination of those item(s) for the

judiciary’s convenience, approximates the total amount currently allotted to the 

contract. The contractor is not authorized to continue work on those item(s) 

beyond that point. The judiciary will not be obligated in any event to reimburse 

the contractor in excess of the amount allotted to the contract for those item(s) 

regardless of anything to the contrary in the clause entitled “Termination for 

Convenience of the Judiciary.” As used in this clause, the total amount payable 

by the judiciary in the event of termination of applicable contract line item(s) for 

convenience includes costs, profit, and estimated termination settlement costs for 

those item(s).

(c) Notwithstanding the dates specified in the allotment schedule in paragraph (j) of 

this clause, the contractor will notify the contracting officer in writing at least 

ninety days prior to the date when, in the contractor’s best judgment, the work 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-33

will reach the point at which the total amount payable by the judiciary, including 

any cost for termination for convenience, will approximate 85 percent of the total 

amount then allotted to the contract for performance of the applicable item(s). 

The notification will state: (1) the estimated date when that point will be reached; 

and (2) an estimate of additional funding, if any, needed to continue performance 

of applicable line items up to the next scheduled date for allotment of funds 

identified in paragraph (j) of this clause, or to a mutually agreed upon substitute 

date. The notification will also advise the contracting officer of the estimated 

amount of additional funds that will be required for the timely performance of the 

item(s) funded pursuant to this clause, for a subsequent period as may be 

specified in the allotment schedule in paragraph (j) of this clause or otherwise 

agreed to by the parties. If after such notification additional funds are not allotted 

by the date identified in the contractor’s notification, or by an agreed substitute 

date, the contracting officer will terminate any item(s) for which additional funds 

have not been allotted, pursuant to the clause of this contract entitled 

“Termination for Convenience of the Judiciary.”

(d) When additional funds are allotted for continued performance of the contract line 

item(s) identified in paragraph (a) of this clause, the parties will agree as to the 

period of contract performance which will be covered by the funds. The 

provisions of paragraphs (b) through (d) of this clause will apply in like manner to 

the additional allotted funds and agreed substitute date, and the contract will be 

modified accordingly.

(e) If, solely by reason of failure of the judiciary to allot additional funds, by the dates 

indicated below, in amounts sufficient for timely performance of the contract line 

item(s) identified in paragraph (a) of this clause, the contractor incurs additional 

costs or is delayed in the performance of the work under this contract and if 

additional funds are allotted, an equitable adjustment will be made in the price or 

prices (including appropriate target, billing, and ceiling prices where applicable) 

of the item(s), or in the time of delivery, or both. Failure to agree to any such 

equitable adjustment hereunder will be a dispute concerning a question of fact 

within the meaning of the clause entitled “Disputes.”

(f) The judiciary may at any time prior to termination allot additional funds for the 

performance of the contract line item(s) identified in paragraph (a) of this clause.

(g) The termination provisions of this clause do not limit the rights of the judiciary 

under the clause entitled “Termination for Default.” The provisions of this clause 

are limited to the work and allotment of funds for the contract line item(s) set forth 

in paragraph (a) of this clause. This clause no longer applies once the contract is 

fully funded except with regard to the rights or obligations of the parties 

concerning equitable adjustments negotiated under paragraphs (d) and (e) of this 

clause.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-34

(h) Nothing in this clause affects the right of the judiciary to terminate this contract 

pursuant to the clause of this contract entitled “Termination for Convenience of 

the Judiciary.”

(i) Nothing in this clause shall be construed as authorization of voluntary services 

whose acceptance is otherwise prohibited under 31 U.S.C. § 1342.

(j) The parties contemplate that the judiciary will allot funds to this contract in 

accordance with the following schedule:

On execution of contract $ ________

(month) (day), (year) $ ________

(month) (day), (year) $ ________

(month) (day), (year) $ ________

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-1

Provisions and Clauses (Chapter 5)

Clause 5-1, Payments under Personal and Professional Services Contracts

Include the following clause as prescribed in § 510.50 (Clause) and § 520.75(c) 

(Provisions and Clauses).

Payments under Personal and Professional Services Contracts (APR 

2013)

(a) The judiciary will pay the contractor:

(1) for the services performed by the contractor;

(2) as set forth in the contract;

(3) at the rates prescribed;

(4) upon the submission by the contractor of proper invoices or time 

statements to the office or officer designated and at the time provided for 

in this contract.

(b) The judiciary will also pay the contractor:

(1) a per diem rate in lieu of subsistence for each day the contractor is in a 

travel status away from home or regular place of employment in 

accordance with Judiciary Travel Regulations as authorized in appropriate 

Travel Orders; and

(2) any other transportation expenses if provided for in the contract.

(end)

Clause 5-5, Non-disclosure (Professional Services)

Include the following clause as prescribed in § 520.75(d) (Provisions and Clauses).

Non-disclosure (Professional Services) (JAN 2003)

The contractor acknowledges that confidential information might be 

generated or made available during the course of performance of this 

agreement. In addition to the restrictions on disclosure established under 

the contractor's code of ethics, the contractor specifically agrees not to 

disclose any information received or generated under this contract, unless 

its release is approved in writing by the contracting officer. The contractor 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

further agrees to assert any privilege allowed by law and to defend 

vigorously judiciary rights to confidentiality.

(end)

Clause 5-10, Inspection of Professional Services

Include the following clause as prescribed in § 520.75(e) (Provisions and Clauses).

Inspection of Professional Services (SEP 2010)

(a) The contracting officer may, at any time or place, inspect the services performed 

and the products delivered, including documents and reports. The contracting 

officer may reject any products or services that do not meet the highest 

standards of professionalism, no matter what type of contract is employed, and in 

addition to any specific standards of quality set out in this agreement. No 

payment will be due for any products or services rejected under this clause.

(b) Acceptance of any product or service does not relieve the contractor of the duties 

imposed by contractor's code of professional ethics. The contractor remains 

liable for the period allowed under federal law for claims by the United States, for 

any errors or omissions occurring during performance. All partners or principals 

agree that they will be jointly and severally liable for such errors and omissions.

(end)

Clause 5-15, RESERVED

Clause 5-20, Records Ownership

Include the following clause as prescribed in § 520.75(g) (Provisions and Clauses).

Records Ownership (JAN 2003)

Notwithstanding any state law providing for retention of rights in the 

records, the contractor agrees that the judiciary may, at its option, demand 

and take without additional compensation all records relating to the 

services provided under this agreement. The contractor shall turn over all 

such records upon request but may retain copies of documents produced 

by the contractor.

(end)

Provision 5-25, Identification of Uncompensated Overtime

Include the following provision as prescribed in § 520.75(h) (Provisions and Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

Identification of Uncompensated Overtime (JAN 2003)

(a) Definitions. As used in this provision:

"Uncompensated overtime" means the hours worked without additional 

compensation in excess of an average of 40 hours per week by direct charge 

employees who are exempt from the Fair Labor Standards Act. Compensated 

personal absences such as holidays, vacations, and sick leave shall be included 

in the normal work week for purposes of computing uncompensated overtime 

hours.

"Uncompensated overtime rate" is the rate that results from multiplying the hourly 

rate for a 40-hour work week by 40, and then dividing by the proposed hours per 

week. For example, 45 hours proposed on a 40-hour work week basis at $20 per 

hour would be converted to an uncompensated overtime rate of $17.78 per hour 

($20.00 x 40 divided by 45 = $17.78).

(b) For any proposed hours against which an uncompensated overtime rate is 

applied, the offeror shall identify in its offer the hours in excess of an average of 

40 hours per week, by labor category at the same level of detail as compensated 

hours, and the uncompensated overtime rate per hour, whether at the prime or 

subcontract level. This includes uncompensated overtime hours that are in 

indirect cost pools for personnel whose regular hours are normally charged 

direct.

(c) The offeror's accounting practices used to estimate uncompensated overtime 

shall be consistent with its cost accounting practices used to accumulate and 

report uncompensated overtime hours.

(d) Offers that include unrealistically low labor rates, or that do not otherwise 

demonstrate cost realism, will be considered in a risk assessment and will be 

evaluated for award in accordance with that assessment.

(e) The offeror shall include a copy of its policy addressing uncompensated overtime 

with its offer.

(end)

Clause 5-30, Authorization and Consent

Include the following clause as prescribed in § 330.10.30(cc) (Provisions and Clauses), 

§ 530.70.60(a) (Clauses), and § 660.10(a) (In General).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

Authorization and Consent (JAN 2003)

(a) The judiciary authorizes and consents to all use and manufacture, in performing 

this contract or any subcontract at any tier, of any invention described in and 

covered by a United States patent (1) embodied in the structure or composition 

of any article the delivery of which is accepted by the judiciary under this contract 

or (2) used in machinery, tools, or methods whose use necessarily results from 

compliance by the contractor or a subcontractor with (i) specifications or written 

provisions forming a part of this contract or (ii) specific written instructions given 

by the contracting officer directing the manner of performance. The entire liability 

to the judiciary for infringement of a patent of the United States will be 

determined solely by the provisions of the indemnity clause, if any, included in 

this contract or any subcontract hereunder (including any lower-tier subcontract), 

and the judiciary assumes liability for all other infringement to the extent of the 

authorization and consent herein above granted.

(b) The contractor agrees to include, and require inclusion of, this clause, suitably 

modified to identify the parties, in all subcontracts at any tier for products or 

services (including construction, architect-engineer services, and materials, 

products, models, samples, and design or testing services expected to exceed 

the judiciary’s small purchase threshold); however, omission of this clause from 

any subcontract, including those at or below the judiciary’s small purchase 

threshold, does not affect this authorization and consent.

(end)

Alternate I: (JAN 2003) As prescribed in § 330.10.30(cc) (Provisions and 

Clauses), substitute the following for paragraph (a) of the clause:

(a) The judiciary authorizes and consents to all use and manufacture in the 

performance of any order at any tier or subcontract at any tier placed under this 

contract for communication services and facilities for which rates, charges, and 

tariffs are not established by a judiciary regulatory body, of any invention 

described in and covered by a United States patent:

(1) embodied in the structure or composition of any article the delivery of 

which is accepted by the judiciary under this contract; or

(2) used in machinery, tools, or methods whose use necessarily results from 

compliance by the contractor or a subcontractor with specifications or 

written provisions forming a part of this contract or with specific written 

instructions given by the contracting officer directing the manner of 

performance.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

Clause 5-35, Payments Under Fixed-Price Architect-Engineer Contracts

Include the following clause as prescribed in § 530.70.60(b) (Clauses).

Payments under Fixed-Price Architect-Engineer Contracts (JAN 

2003)

(a) Estimates shall be made monthly of the amount and value of the work and 

services performed by the contractor under this contract which meet the 

standards of quality established under this contract. The estimates shall be 

prepared by the contractor and accompanied by any supporting data required by 

the contracting officer.

(b) Upon written approval of the estimate by the contracting officer, payment upon 

properly executed vouchers will be made to the contractor, as soon as 

practicable, of 90 percent of the written approved amount, less all previous 

payments; provided, that payment may be made in full during any months in 

which the contracting officer determines that performance has been satisfactory. 

Also, whenever the contracting officer determines that the work is substantially 

complete and that the amount retained is in excess of the amount adequate for 

the protection of the judiciary, the contracting officer may release the excess 

amount to the contractor.

(c) Upon satisfactory completion by the contractor and acceptance by the 

contracting officer of the work done by the contractor under the "Statement of 

Architect-Engineer Services," the contractor will be paid the unpaid balance of 

any money due for work under the statement, including retained percentages 

relating to this portion of the work. Upon satisfactory completion and final 

acceptance of the construction work, the contractor shall be paid any unpaid 

balance of money due under this contract.

(d) Before final payment under the contract, or before settlement upon termination of 

the contract, and as a condition precedent thereto, the contractor shall execute 

and deliver to the contracting officer a release of all claims against the judiciary 

arising under or by virtue of this contract, other than any claims that are 

specifically excepted by the contractor from the operation of the release in 

amounts stated in the release.

(e) Notwithstanding any other provision in this contract, and specifically paragraph 

(b) of this clause, progress payments will not exceed 80 percent on work 

accomplished on undefinitized contract actions. A "contract action" is any action 

resulting in a contract including contract modifications for additional products or 

services, but not including contract modifications that are within the scope and 

under the terms of the contract, such as contract modifications issued pursuant 

to the Changes clause, or funding and other administrative changes.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

(end)

Clause 5-40, RESERVED

Clause 5-45, Design Within Funding Limitations

Include the following clause as prescribed in § 530.70.60(c) (Clauses), filling in the 

dollar amount in (c).

Design Within Funding Limitations (JAN 2003)

(a) The contractor shall accomplish the design services required under this contract 

so as to permit the award of a contract, using standard judiciary procedures, for 

the construction of the facilities designed at a price that does not exceed the 

estimated construction contract price as set forth in paragraph (c) of this clause. 

When offers for the construction contract are received that exceed the estimated 

price, the contractor shall perform such redesign and other services as are 

necessary to permit contract award within the funding limitation. These 

additional services shall be performed at no increase in the price of this contract. 

However, the contractor shall not be required to perform such additional services 

at no cost to the judiciary if the unfavorable offers are the result of conditions 

beyond its reasonable control.

(b) The contractor will promptly advise the contracting officer if it finds that the 

project being designed will exceed or is likely to exceed the funding limitations 

and it is unable to design a usable facility within these limitations. Upon receipt 

of such information, the contracting officer will review the contractor's revised 

estimate of construction cost. The judiciary may, if it determines that the 

estimated construction contract price set forth in this contract is so low that award 

of a construction contract not in excess of such estimate is improbable, authorize 

a change in scope or materials as required to reduce the estimated construction 

cost to an amount within the estimated construction contract price set forth in 

paragraph (c) of this clause, or the judiciary may adjust such estimated 

construction contract price. When offers are not solicited or are unreasonably 

delayed, the judiciary will prepare an estimate of constructing the design 

submitted and such estimate will be used in lieu of offers to determine 

compliance with the funding limitation.

(c) The estimated construction contract price for the project described in this 

contract is $______.

(end)

Clause 5-50, Responsibility of the Architect-Engineer Contractor

Include the following clause as prescribed in § 530.70.60(d) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

Responsibility of the Architect-Engineer Contractor (JAN 2003)

(a) The contractor shall be responsible for the professional quality, technical 

accuracy, and the coordination of all designs, drawings, specifications, and other 

services furnished by the contractor under this contract. The contractor shall, 

without additional compensation, correct or revise any errors or deficiencies in its 

designs, drawings, specifications, and other services.

(b) Neither the judiciary's review, approval or acceptance of, nor payment for, the 

services required under this contract will be construed to operate as a waiver of 

any rights under this contract or of any cause of action arising out of the 

performance of this contract, and the contractor shall be and remain liable to the 

judiciary in accordance with applicable law for all damages to the judiciary 

caused by the contractor's negligent performance of any of the services furnished 

under this contract.

(c) The rights and remedies of the judiciary provided for under this contract are in 

addition to any other rights and remedies provided by law.

(d) If the contractor is comprised of more than one legal entity, each such entity shall 

be jointly and severally liable hereunder.

(end)

Clause 5-55, Work Oversight in Architect-Engineer Contracts

Include the following clause as prescribed in § 530.70.60(e) (Clauses).

Work Oversight in Architect-Engineer Contracts (JAN 2003)

The extent and character of the work to be done by the contractor shall be 

subject to the general oversight, supervision, direction, control, and written 

approval of the contracting officer.

(end)

Clause 5-60, Requirements for Registration of Designers

Include the following clause as prescribed in § 530.70.60(f) (Clauses).

Requirements for Registration of Designers (AUG 2004)

Architects or engineers registered to practice in the particular professional 

field involved in a state, the District of Columbia, or an outlying area of the 

United States shall prepare or review and approve the design of 

architectural, structural, mechanical, electrical, civil, or other engineering 

features of the work.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

(end)

Clause 5-65, Subcontractors and Outside Associates and Consultants 

(Architect-Engineer Services)

Include the following clause as prescribed in § 530.70.60(g) (Clauses).

Subcontractors and Outside Associates and Consultants (ArchitectEngineer Services) (JAN 2003)

Any subcontractors and outside associates or consultants required by the 

contractor in connection with the services covered by the contract will be 

limited to individuals or firms that were specifically identified and agreed to 

during negotiations. The contractor shall obtain the contracting officer's 

written consent before making any substitution for these subcontractors, 

associates, or consultants.

(end)

Clause 5-70, Termination (Fixed-Price Architect-Engineer)

Include the following clause as prescribed in § 530.70.60(h) (Clauses).

Termination (Fixed-Price Architect-Engineer) (JAN 2003)

(a) The judiciary may terminate this contract in whole or, from time to time, in part, 

for the judiciary's convenience or because of the failure of the contractor to fulfill 

the contract obligations. The contracting officer will terminate by delivering to the 

contractor a Notice of Termination specifying the nature, extent, and effective 

date of the termination. Upon receipt of the notice, the contractor shall:

(1) immediately discontinue all services affected (unless the notice directs 

otherwise); and

(2) deliver to the contracting officer all data, drawings, specifications, reports, 

estimates, summaries, and other information and materials accumulated 

in performing this contract, whether completed or in process.

(b) If the termination is for the convenience of the judiciary, the contracting officer will 

make an equitable adjustment in the contract price but will allow no anticipated 

profit on unperformed services.

(c) If the termination is for failure of the contractor to fulfill the contract obligations, 

the judiciary may complete the work by contract or otherwise and the contractor 

shall be liable for any additional cost incurred by the judiciary.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

(d) If, after termination for failure to fulfill contract obligations, it is determined that 

the contractor had not failed, the rights and obligations of the parties will be the 

same as if the termination had been issued for the convenience of the judiciary.

(e) The rights and remedies of the judiciary provided in this clause are in addition to 

any other rights and remedies provided by law or under this contract.

(end)

Clause 5-75, Suspensions and Delays

Include the following clause as prescribed in § 530.70.60(i) (Clauses).

Suspensions and Delays (JAN 2003)

(a) If the performance of all or any part of the work of this contract is suspended, 

delayed, or interrupted by:

(1) an order or act of the contracting officer in administering this contract; or

(2) by a failure of the contracting officer to act within the time specified in this 

contract, or within a reasonable time if not specified, an adjustment will be 

made for any increase in the cost of performance of this contract caused 

by the delay or interruption (including the costs incurred during any 

suspension or interruption). An adjustment will also be made in the 

delivery or performance dates and any other contractual term or condition 

affected by the suspension, delay, or interruption. However, no 

adjustment may be made under this clause for any delay or interruption to 

the extent that performance would have been delayed or interrupted by 

any other cause, including the fault or negligence of the contractor, or for 

which an adjustment is provided or excluded under any other term or 

condition of this contract.

(b) A claim under this clause will not be allowed:

(1) for any costs incurred more than 20 days before the contractor has 

notified the contracting officer in writing of the act or failure to act involved; 

and

(2) unless the claim, in an amount stated, is asserted in writing as soon as 

practicable after the termination of the delay or interruption, but not later 

than the day of final payment under the contract.

(end)
Last revised (Transmittal 14-020) October 19, 2023

Provisions and Clauses (Chapter 6)

Clause 6-1, Performance Bond Requirements

Include the following clause as prescribed in § 610.20.30(a) (Clauses). If the penal 

amount is less than 100 percent of the contract price, modify the clause accordingly.

Performance Bond Requirements (APR 2011)

(a) Definitions. As used in this clause, “original contract price" means the award 

price of the contract; or for requirements contracts, the price payable for the 

estimated quantity; or, for indefinite-quantity contracts, the price payable for the 

specified minimum quantity. Original contract price does not include the price of 

any options, except those options exercised at the time of contract award.

(b) The contractor shall furnish a Form SF 1418, Performance Bond for the 

protection of the judiciary in an amount equal to ___ percent of the original 

contract price and a Form SF 1416, Payment Bond in an amount equal to ___ 

percent of the original contract price.

(c) The contractor shall furnish all executed bonds, including any necessary 

reinsurance agreements, to the contracting officer within ___ days, but in any 

event, before starting work.

(d) The judiciary may require additional performance and payment bond protection if 

the contract price is increased. The judiciary may secure the additional 

protection by directing the contractor to increase the penal amount of the existing 

bonds or to obtain additional bonds.

(e) The bonds shall be in the form of a firm commitment, supported by corporate 

sureties whose names are listed in Treasury Department Circular 570, individual 

sureties, or by other acceptable security such as postal money order, certified 

check, cashier's check, irrevocable letter of credit, or, in accordance with 

Treasury Department regulations, certain bonds or notes of the United States. 

Treasury Circular 570 is published in the Federal Register, or may be obtained 

from the:

U.S. Department of Treasury

Financial Management Service

Surety Bond Branch

401 14th Street, NW, 2nd Floor, West Wing

Washington, DC 20227

www.treas.gov

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

Alternate I (JAN 2003): As prescribed in § 610.20.30(b) (Clauses), 

substitute the following paragraphs (b) and (d) for paragraphs (b) and (d) 

of the basic clause. If the penal amount is less than 100 percent of the 

contract price, the clause will be modified accordingly.

(b) The contractor shall furnish a performance bond (Standard Form 1418) for the 

protection of the judiciary in an amount equal to ___ percent of the original 

contract price.

(d) The judiciary may require additional performance bond protection if the contract 

price is increased. The judiciary may secure the additional protection by 

directing the contractor to increase the penal amount of the existing bond or to 

obtain an additional bond.

Provision 6-5, Fidelity Bond Requirements

Include the following provision as prescribed in § 610.40 (Fidelity Bonds).

Fidelity Bond Requirements (APR 2013)

Any offeror awarded a contract as a result of this solicitation will be 

required to submit a fidelity bond in the penal amount of ___________, in 

a form acceptable to and within the time specified by the contracting 

officer. Corporate sureties must appear on the list in Treasury Circular 

570 and the amount of the bond may not exceed the underwriting limit 

stated for the surety on that list. Failure to submit an acceptable bond 

may be cause for termination of the contract for default.

(end)

Provision 6-10, Deposit of Assets Requirements

Include the following provision as prescribed in § 620.20.50(a) (Clauses/Provisions).

Deposit of Assets Requirements (APR 2013)

(a) Any offeror required to submit a surety bond as a result of this solicitation may 

instead deposit assets in a form acceptable to the judiciary in the amount of 

$___________ (contracting officer to fill-in amount).

(b) When assets are deposited, the offeror shall execute a bond in a form as 

specified in this solicitation. Failure to deposit assets acceptable to the judiciary 

may be cause for termination of the contract for default.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

Clause 6-15, Deposit of Assets Instead of Surety Bonds

Include the following clause as prescribed in § 620.20.50(b) (Clauses/Provisions).

Deposit of Assets Instead of Surety Bonds (JAN 2003)

(a) If the contractor has deposited assets instead of furnishing sureties for any bond 

required under this contract and the assets are in the form of checks, currency, 

or drafts, the contracting officer will hold the assets in an account for the

contractor's benefit.

(b) Upon contract completion, the contractor's funds will be returned as soon as 

possible, unless the contracting officer determines that part or all of the account 

is required to compensate the judiciary for costs it incurs as a result of the 

contractor's delay, default, or failure to perform. In such a case, the entire 

account will be available to compensate the judiciary.

(end)

Clause 6-20, Insurance – Work On or Within a Judiciary Facility

Include the following clause as prescribed in § 630.20.40(a) (Clauses).

Insurance – Work On or Within a Judiciary Facility (APR 2011)

(a) The contractor shall, at its own expense, provide and maintain during the entire 

performance of this contract, at least the following kinds and minimum amounts 

of insurance:

(1) Workman's Compensation and Employee's Liability Insurance

The contractor shall comply with applicable federal and state workers’ 

compensation and occupational disease statutes. If occupational 

diseases are not compensable under those statutes, they shall be covered 

under the employer’s liability section of the insurance policy. Employer’s 

liability coverage of at least $100,000 per incident is required.

(2) Automobile Liability Insurance

The contractor shall have coverage at a minimum of $200,000 per person; 

$500,000 per occurrence for bodily injury; and $20,000 per occurrence for 

property damage.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

(3) General Liability Insurance

The contractor shall have coverage at a minimum of $200,000 per person 

and $500,000 per occurrence for death or bodily injury and $20,000 per 

occurrence for property damage.

(4) Self-Insurance

If the contractor has been approved to provide a qualified program of self 

insurance, the contractor must submit any proposed changes to the 

program to the contracting officer for approval.

(b) Prior to beginning performance under this contract, the contractor shall provide 

the insurance carrier certification of the above minimum amounts.

(c) The maintenance of insurance coverage as required by this clause is a 

continuing obligation, and the lapse or termination of insurance coverage without 

replacement coverage being obtained will be grounds for termination for default.

(d) The certification evidencing required insurance shall contain an endorsement to 

the effect that any cancellation or any material change adversely affecting the 

judiciary's interest shall not be effective:

(1) for such period as the laws of the state in which this contract is to be 

performed prescribe; or

(2) until 30 days after the insurer or the contractor gives written notice to the 

contracting officer, whichever period is longer.

(e) The contractor shall insert the substance of this clause, including this paragraph 

(e), in subcontracts under this contract that require work in a judiciary facility and 

shall require subcontractors to provide and maintain the required insurance. The 

contractor shall maintain a copy of all subcontractors' proofs of required 

insurance, and shall make copies available to the contracting officer upon 

request.

(end)

Clause 6-25, Insurance – Liability to Third Persons

Include the following clause as prescribed in § 630.20.40(b) (Clauses).

Insurance – Liability to Third Persons (APR 2013)

(a) (1) Except as provided in paragraph (a)(2) of this clause, the contractor shall 

provide and maintain workers' compensation, employer's liability, 

comprehensive general liability (bodily injury), comprehensive automobile 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

liability (bodily injury and property damage) insurance, and such other 

insurance as the contracting officer may require under this contract.

(2) The contractor may, with the written approval of the contracting officer, 

maintain a self-insurance program, provided that, with respect to workers' 

compensation, the contractor is qualified pursuant to statutory authority.

(3) All insurance required by this paragraph shall be in a form and amount 

and for those periods as the contracting officer may require or approve 

and with insurers approved in writing by the contracting officer.

(b) The contractor agrees to submit for the contracting officer's written approval, to 

the extent and in the manner required by the contracting officer, any other 

insurance that is maintained by the contractor in connection with the performance 

of this contract and for which the contractor seeks reimbursement.

(c) The contractor shall be reimbursed:

(1) for that portion:

(i) of the reasonable cost of insurance allocable to this contract; and

(ii) required or approved in writing under this clause; and

(2) for certain liabilities (and expenses incidental to such liabilities) to third 

persons not compensated by insurance or otherwise without regard to and 

as an exception to the limitation of cost or the limitation of funds clause of 

this contract. These liabilities shall arise out of the performance of this 

contract, whether or not caused by the negligence of the contractor or of 

the contractor's agents, servants, or employees, and shall be represented 

by final judgments or settlements approved in writing by the judiciary. 

These liabilities are for:

(i) loss of or damage to property (other than property owned, 

occupied, or used by the contractor, rented to the contractor, or in 

the care, custody, or control of the contractor); or

(ii) death or bodily injury.

(d) The judiciary's liability under paragraph (c) of this clause is subject to the 

availability of appropriated funds at the time a contingency occurs. Nothing in 

this contract will be construed as implying that the Congress will, at a later date, 

appropriate funds sufficient to meet deficiencies.

(e) The contractor will not be reimbursed for liabilities (and expenses incidental to 

such liabilities):
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

(1) for which the contractor is otherwise responsible under the express terms 

of any clause incorporated in the contract, whether incorporated by 

reference or in full text;

(2) for which the contractor has failed to insure or to maintain insurance as 

required by the contracting officer; or

(3) that result from willful misconduct or lack of good faith on the part of any of 

the contractor's directors, officers, managers, superintendents, or other 

representatives who have supervision or direction of:

(i) all or substantially all of the contractor's business;

(ii) all or substantially all of the contractor's operations at any one plant 

or separate location in which this contract is being performed; or

(iii) a separate and complete major industrial operation in connection 

with the performance of this contract.

(f) The provisions of paragraph (e) of this clause will not restrict the right of the 

contractor to be reimbursed for the cost of insurance maintained by the 

contractor in connection with the performance of this contract, other than 

insurance required in accordance with this clause; provided, that such cost is 

allowable under Clause 4-60, Allowable Cost and Payment.

(g) If any suit or action is filed or any claim is made against the contractor, the cost 

and expense of which may be reimbursable to the contractor under this contract, 

and the risk of which is then uninsured or is insured for less than the amount 

claimed, the contractor shall:

(1) immediately notify the contracting officer and promptly furnish copies of all 

pertinent papers received;

(2) authorize judiciary representatives to collaborate with counsel for the 

insurance carrier in settling or defending the claim when the amount of the 

liability claimed exceeds the amount of coverage; and

(3) authorize judiciary representatives to settle or defend the claim and to 

represent the contractor in or to take charge of any litigation, if required by 

the judiciary, when the liability is not insured or covered by bond. The 

contractor may, at its own expense, be associated with the judiciary 

representatives in any such claim or litigation.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

Clause 6-30, RESERVED

Clause 6-35, Errors and Omissions

Include the following clause as prescribed in § 630.40.50 (Clauses) and § 520.75(j) 

(Provisions and Clauses).

Errors and Omissions (APR 2013)

(a) The contractor warrants that it is insured for ___________ ($200,000, unless a 

greater amount is entered by the contracting officer) for errors and omissions per 

claim in an amount in excess of the minimum set forth in the schedule in the 

performance of this contract.

(b) Unless the contractor's policy is prepaid, noncancellable, and issued for a period 

at least equal to the term of this contract on an occurrence basis, the contractor 

shall have the policy amended to include substantially the following provision:

"It is a condition of this policy that the company furnish written notice to the 

____________(fill in the name of the finance office for the individual court 

unit, federal public defender organization, or the Administrative Office, 

whichever required the insurance) 30 days in advance of the effective date 

of any reduction in or cancellation of this policy."

(c) The contractor shall furnish a certificate of insurance or, if required by the 

contracting officer, true copies of liability policies and manually countersigned 

endorsements of any changes. Insurance shall be effective, and evidence of 

acceptable insurance furnished, before beginning performance under this 

contract. Evidence of renewal shall be furnished not later than five days before a 

policy expires.

(end)

Clause 6-40, Federal, State, and Local Taxes

Include the following clause as prescribed in § 640.30.70(a) (Clauses).

Federal, State, and Local Taxes (JAN 2003)

(a) Definitions.

"Contract Date" means the effective date of this contract or modification.

"All applicable federal, state, and local taxes and duties," as used in this clause, 

means all taxes and duties, in effect on the contract date, that the taxing authority 

is imposing and collecting on the transactions or property covered by this 

contract.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

"After-Imposed Federal Tax," as used in this clause, means any new or 

increased federal excise tax or duty, or tax that was exempted on the contract 

date but whose exemption was later revoked or reduced during the contract 

period, on the transactions or property covered by this contract that the 

contractor is required to pay or bear as the result of legislative, judicial, or 

administrative action taking effect after the contract date. It does not include 

social security tax or other employment taxes.

"After-Relieved Federal Tax," as used in this clause, means any amount of 

federal excise tax or duty, except social security or other employment taxes, that 

would otherwise have been payable on the transactions or property covered by 

this contract, but which the contractor is not required to pay or bear, or for which 

the contractor obtains a refund or drawback, as the result of legislative, judicial, 

or administrative action taking effect after the contract date.

“Local Taxes,” as used in this clause, means any taxes that a local governing 

organization (i.e., city or county) taxing authority is imposing and collecting on the 

transactions or property covered by this contract.

(b) The contract price includes all applicable federal, state, and local taxes and 

duties.

(c) The contract price shall be increased by the amount of any after-imposed federal 

tax, provided the contractor warrants in writing that no amount for such newly 

imposed federal excise tax or duty or rate increase was included in the contract 

price, as a contingency reserve or otherwise.

(d) The contract price shall be decreased by the amount of any after-relieved federal 

tax.

(e) The contract price shall be decreased by the amount of any federal excise tax or 

duty, except social security or other employment taxes, that the contractor is 

required to pay or bear, or does not obtain a refund of, through the contractor's 

fault, negligence, or failure to follow instructions of the contracting officer.

(f) No adjustment shall be made in the contract price under this clause unless the 

amount of the adjustment exceeds $250.

(g) The contractor shall promptly notify the contracting officer of all matters relating 

to any federal excise tax or duty that reasonably may be expected to result in 

either an increase or decrease in the contract price and shall take appropriate 

action as the contracting officer directs.

(h) The judiciary shall, without liability, furnish evidence appropriate to establish 

exemption from any federal, state, or local tax when the contractor requests such 

evidence and a reasonable basis exists to sustain the exemption.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

(end)

Clause 6-45, Federal, State, and Local Taxes (Noncompetitive Contract)

Include the following clause as prescribed in § 640.30.70(b) (Clauses).

Federal, State, and Local Taxes (Noncompetitive Contract) (JAN 

2003)

(a) Definitions.

"Contract Date," as used in this clause, means the effective date of this contract 

and, for any modification to this contract, the effective date of the modification.

"All Applicable Federal, State, and Local Taxes and Duties," as used in this 

clause, means all taxes and duties, in effect on the contract date, that the taxing 

authority is imposing and collecting on the transactions or property covered by 

this contract.

"After-Imposed Tax," as used in this clause, means any new or increased 

federal, state, or local tax or duty, or tax that was excluded on the contract date 

but whose exclusion was later revoked or amount of exemption reduced during 

the contract period, other than an excepted tax, on the transactions or property 

covered by this contract that the contractor is required to pay or bear as the 

result of legislative, judicial, or administrative action taking effect after the 

contract date.

"After-Relieved Tax," as used in this clause, means any amount of federal, state, 

or local tax or duty, other than an excepted tax, that would otherwise have been 

payable on the transactions or property covered by this contract, but which the 

contractor is not required to pay or bear, or for which the contractor obtains a 

refund or drawback, as the result of legislative, judicial, or administrative action 

taking effect after the contract date.

"Excepted Tax," as used in this clause, means social security or other 

employment taxes, net income and franchise taxes, excess profits taxes, capital 

stock taxes, transportation taxes, unemployment compensation taxes, and 

property taxes. "Excepted tax" does not include gross income taxes levied on or 

measured by sales or receipts from sales, property taxes assessed on completed 

products covered by this contract, or any tax assessed on the contractor's 

possession of, interest in, or use of property, title to which is in the judiciary.

“Local Taxes,” as used in this clause, means any taxes that a local governing 

organization (i.e., city or county) taxing authority is imposing and collecting on the 

transactions or property covered by this contract.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-10

(b) Unless otherwise provided in this contract, the contract price includes all 

applicable federal, state, and local taxes and duties.

(c) The contract price shall be increased by the amount of any after-imposed tax, or 

of any tax or duty specifically excluded from the contract price by a term or 

condition of this contract that the contractor is required to pay or bear, including 

any interest or penalty, if the contractor states in writing that the contract price 

does not include any contingency for such tax and if liability for such tax, interest, 

or penalty was not incurred through the contractor's fault, negligence, or failure to 

follow instructions of the contracting officer.

(d) The contract price shall be decreased by the amount of any after-relieved tax. 

The judiciary shall be entitled to interest received by the contractor incident to a 

refund of taxes to the extent that such interest was earned after the contractor 

was paid by the judiciary for such taxes. The judiciary is entitled to repayment of 

any penalty refunded to the contractor to the extent that the penalty was paid by 

the judiciary.

(e) The contract price shall be decreased by the amount of any federal, state, or 

local tax, other than an excepted tax, that was included in the contract price and 

that the contractor is required to pay or bear, or does not obtain a refund of, 

through the contractor's fault, negligence, or failure to follow instructions of the 

contracting officer.

(f) No adjustment will be made in the contract price under this clause unless the 

amount of the adjustment exceeds $250.

(g) The contractor shall promptly notify the contracting officer of all matters relating 

to federal, state, and local taxes and duties that reasonably may be expected to 

result in either an increase or decrease in the contract price and shall take 

appropriate action as the contracting officer directs. The contract price will be 

equitably adjusted to cover the costs of action taken by the contractor at the 

direction of the contracting officer, including any interest, penalty, and reasonable 

attorneys' fees.

(h) The judiciary will furnish evidence appropriate to establish exemption from any 

federal, state, or local tax when:

(1) the contractor requests such exemption and states in writing that it applies 

to a tax excluded from the contract price; and

(2) a reasonable basis exists to sustain the exemption.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-11

Provision 6-50, Representation of Rights in Data

Include the following provision as prescribed in § 650.65(a) (Clauses).

Representation of Rights in Data (APR 2013)

(a) This solicitation sets forth the judiciary’s known delivery requirements for data (as 

defined in Clause 6-60, Rights in Data – General). Any data delivered under the 

resulting contract will be subject to Clause 6-60, Rights in Data – General 

included in this contract. Under Clause 6-60, a contractor may withhold from 

delivery data that qualify as limited rights data or restricted computer software, 

and deliver form, fit, and function data instead. Clause 6-60 also may be used 

with its Alternates I and/or II to obtain delivery of limited rights data or restricted 

computer software, marked with limited rights or restricted rights notices, as 

appropriate.

(b) By completing the remainder of this paragraph, the offeror represents that it has 

reviewed the requirements for the delivery of technical data or computer software 

and states (offeror check appropriate block):

[ ] None of the data proposed for fulfilling the data delivery 

requirements qualifies as limited rights data or restricted computer 

software; or

[ ] Data proposed for fulfilling the data delivery requirements 

qualify as limited rights data or restricted computer software and 

are identified as follows:

_____________________________________________________

_____________________________________________________

_____________________________________________________

(c) Any identification of limited rights data or restricted computer software in the 

offeror’s response is not determinative of the status of the data should a contract 

be awarded to the offeror.

(end)

Clause 6-55, RESERVED

Clause 6-60, Rights in Data – General

Include the following clause as prescribed in § 650.65(b) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-12

Rights in Data – General (JUN 2012)

(a) Definitions. As used in this clause:

“Computer Database” or “Database” means a collection of recorded information 

in a form capable of, and for the purpose of, being stored in, processed, and 

operated on by a computer. The term does not include computer software.

“Computer software”:

(1) Means:

(i) Computer programs that comprise a series of instructions, rules, 

routines, or statements, regardless of the media in which recorded, 

that allow or cause a computer to perform a specific operation or 

series of operations; and

(ii) Recorded information comprising source code listings, design 

details, algorithms, processes, flow charts, formulas, and related 

material that would enable the computer program to be produced, 

created, or compiled.

(2) Does not include computer databases or computer software 

documentation.

“Computer Software Documentation” means owner’s manuals, user’s manuals, 

installation instructions, operating instructions, and other similar items, regardless 

of storage medium, that explain the capabilities of the computer software or 

provide instructions for using the software.

“Data” means recorded information, regardless of form or the media on which it 

may be recorded. The term includes technical data and computer software. The 

term does not include information incidental to contract administration, such as 

financial, administrative, cost or pricing, or management information.

“Form, Fit, and Function Data” means data relating to items, components, or 

processes that are sufficient to enable physical and functional interchangeability, 

and data identifying source, size, configuration, mating and attachment 

characteristics, functional characteristics, and performance requirements. For 

computer software it means data identifying source, functional characteristics, 

and performance requirements but specifically excludes the source code, 

algorithms, processes, formulas, and flow charts of the software.

“Limited Rights” means the rights of the judiciary in limited rights data as set forth 

in the Limited Rights Notice of paragraph (g)(3) if included in this clause.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-13

“Limited Rights Data” means data, other than computer software, that embody 

trade secrets or are commercial or financial and confidential or privileged, to the 

extent that such data pertain to items, components, or processes developed at 

private expense, including minor modifications.

“Restricted Computer Software” means computer software developed at private 

expense and that is a trade secret, is commercial or financial and confidential or 

privileged, or is copyrighted computer software, including minor modifications of 

the computer software.

“Restricted Rights,” as used in this clause, means the rights of the judiciary in 

restricted computer software, as set forth in a Restricted Rights Notice of 

paragraph (g)(4) if included in this clause, or as otherwise may be provided in a 

collateral agreement incorporated in and made part of this contract, including 

minor modifications of such computer software.

“Technical Data” means recorded information (regardless of the form or method 

of the recording) of a scientific or technical nature (including computer databases 

and computer software documentation). This term does not include computer 

software or financial, administrative, cost or pricing, or management data or other 

information incidental to contract administration. The term includes recorded 

information of a scientific or technical nature that is included in computer 

databases (see 41 U.S.C. § 116).

“Unlimited Rights” means the rights of the judiciary to use, disclose, reproduce, 

prepare derivative works, distribute copies to the public, and perform publicly and 

display publicly, in any manner and for any purpose, and to have or permit others 

to do so.

(b) Allocation of Rights

(1) Except as provided in paragraph (c) of this clause, the judiciary shall have 

unlimited rights in:

(i) Data first produced in the performance of this contract;

(ii) Form, fit, and function data delivered under this contract;

(iii) Data delivered under this contract (except for restricted computer 

software) that constitute manuals or instructional and training 

material for installation, operation, or routine maintenance and 

repair of items, components, or processes delivered or furnished for 

use under this contract; and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-14

(iv) All other data delivered under this contract unless provided 

otherwise for limited rights data or restricted computer software in 

accordance with paragraph (g) of this clause.

(2) The contractor shall have the right to:

(i) Assert copyright in data first produced in the performance of this 

contract to the extent provided in paragraph (c)(1) of this clause;

(ii) Use, release to others, reproduce, distribute, or publish any data 

first produced or specifically used by the contractor in the 

performance of this contract, unless provided otherwise in 

paragraph (d) of this clause;

(iii) Substantiate the use of, add, or correct limited rights, restricted 

rights, or copyright notices and to take other appropriate action, in 

accordance with paragraphs (e) and (f) of this clause; and

(iv) Protect from unauthorized disclosure and use those data that are 

limited rights data or restricted computer software to the extent 

provided in paragraph (g) of this clause.

(c) Copyright:

(1) Data First Produced in the Performance of this Contract

(i) Unless provided otherwise in paragraph (d) of this clause, the 

contractor may, without prior approval of the contracting officer, 

assert copyright in scientific and technical articles based on or 

containing data first produced in the performance of this contract 

and published in academic, technical or professional journals, 

symposia proceedings, or similar works. The prior, express written

permission of the contracting officer is required to assert copyright 

in all other data first produced in the performance of this contract.

(ii) When authorized to assert copyright to the data, the contractor 

shall affix the applicable copyright notices of 17 U.S.C. § 401 or 

§ 402, and an acknowledgment of judiciary sponsorship (including 

contract number).

(iii) For data other than computer software, the contractor grants to the 

judiciary, and others acting on its behalf, a paid-up, nonexclusive, 

irrevocable, worldwide license in such copyrighted data to 

reproduce, prepare derivative works, distribute copies to the public, 

and perform publicly and display publicly by or on behalf of the 

judiciary. For computer software, the contractor grants to the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-15

judiciary, and others acting on its behalf, a paid-up, nonexclusive, 

irrevocable, worldwide license in such copyrighted computer 

software to reproduce, prepare derivative works, and perform 

publicly and display publicly (but not to distribute copies to the 

public) by or on behalf of the judiciary.

(2) Data Not First Produced in the Performance of this Contract

The contractor shall not, without the prior written permission of the 

contracting officer, incorporate in data delivered under this contract any 

data not first produced in the performance of this contract unless the 

contractor:

(i) Identifies the data; and

(ii) Grants to the judiciary, or acquires on its behalf, a license of the 

same scope as set forth in paragraph (c)(1) of this clause or, if such 

data are restricted computer software, the judiciary shall acquire a 

copyright license as set forth in paragraph (g)(4) of this clause (if 

included in this contract) or as otherwise provided in a collateral 

agreement incorporated in or made part of this contract.

(3) Removal of Copyright Notices

The judiciary will not remove any authorized copyright notices placed on 

data pursuant to this paragraph (c), and will include such notices on all 

reproductions of the data.

(d) Release, Publication, and Use of Data

The contractor shall have the right to use, release to others, reproduce, 

distribute, or publish any data first produced or specifically used by the contractor 

in the performance of this contract, except:

(1) As prohibited by federal law or regulation (e.g., export control or national 

security laws or regulations);

(2) As expressly set forth in this contract; or

(3) If the contractor receives or is given access to data necessary for the 

performance of this contract that contain restrictive markings, the 

contractor shall treat the data in accordance with such markings unless 

specifically authorized otherwise in writing by the contracting officer.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-16

(e) Unauthorized Marking of Data

(1) Notwithstanding any other provisions of this contract concerning 

inspection or acceptance, if any data delivered under this contract are 

marked with the notices specified in paragraph (g)(3) or (g) (4) if included 

in this clause, and use of the notices is not authorized by this clause, or if 

the data bears any other restrictive or limiting markings not authorized by 

this contract, the contracting officer may at any time either return the data 

to the contractor, or cancel or ignore the markings. The following 

procedures shall apply prior to canceling or ignoring the markings:

(i) The contracting officer will make written inquiry to the contractor 

affording the contractor 60 days from receipt of the inquiry to 

provide written justification to substantiate the propriety of the 

markings;

(ii) If the contractor fails to respond or fails to provide written 

justification to substantiate the propriety of the markings within the 

60-day period (or a longer time approved in writing by the 

contracting officer for good cause shown), the judiciary shall have 

the right to cancel or ignore the markings at any time after said 

period and the data will no longer be made subject to any 

disclosure prohibitions.

(iii) If the contractor provides written justification to substantiate the 

propriety of the markings within the period set in paragraph (e)(1)(i) 

of this clause, the contracting officer will consider such written 

justification and determine whether or not the markings are to be 

cancelled or ignored. If the contracting officer determines that the 

markings are authorized, the contractor will be so notified in writing. 

If the contracting officer determines, with concurrence of the 

judiciary Procurement Executive, that the markings are not 

authorized, the contracting officer will furnish the contractor a 

written determination, which determination will become the final 

agency decision regarding the appropriateness of the markings 

unless the contractor files suit in a court of competent jurisdiction 

within 90 days of receipt of the contracting officer’s decision. The 

judiciary will continue to abide by the markings under this 

paragraph (e)(1)(iii) until final resolution of the matter either by the 

contracting officer’s determination becoming final (in which instance 

the judiciary will thereafter have the right to cancel or ignore the 

markings at any time and the data will no longer be made subject to 

any disclosure prohibitions), or by final disposition of the matter by 

court decision if suit is filed.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-17

(2) Except to the extent the judiciary’s action occurs as the result of final 

disposition of the matter by a court of competent jurisdiction, the 

contractor is not precluded by paragraph (e) of the clause from bringing a 

claim, in accordance with the Disputes clause of this contract, that may 

arise as the result of the judiciary removing or ignoring authorized 

markings on data delivered under this contract.

(f) Omitted or Incorrect Markings

(1) Data delivered to the judiciary without any restrictive markings shall be 

deemed to have been furnished with unlimited rights. The judiciary is not 

liable for the disclosure, use, or reproduction of such data.

(2) If the unmarked data has not been disclosed without restriction outside the 

judiciary, the contractor may request, within 6 months (or a longer time 

approved by the contracting officer in writing for good cause shown) after 

delivery of the data, permission to have authorized notices placed on the 

data at the contractor’s expense. The contracting officer may agree to do 

so if the contractor:

(i) Identifies the data to which the omitted notice is to be applied;

(ii) Demonstrates that the omission of the notice was inadvertent;

(iii) Establishes that the proposed notice is authorized; and

(iv) Acknowledges that the judiciary has no liability for the disclosure, 

use, or reproduction of any data made prior to the addition of the 

notice or resulting from the omission of the notice.

(3) If data has been marked with an incorrect notice, the contracting officer 

may:

(i) Permit correction of the notice at the contractor’s expense if the 

contractor identifies the data and demonstrates that the correct 

notice is authorized; or

(ii) Correct any incorrect notices.

(g) Protection of Limited Rights Data and Restricted Computer Software

(1) The contractor may withhold from delivery qualifying limited rights data or 

restricted computer software that are not data identified in paragraphs 

(b)(1)(i), (ii), and (iii) of this clause. As a condition to this withholding, the 

contractor shall:

(i) Identify the data being withheld; and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-18

(ii) Furnish form, fit, and function data instead.

(2) Limited rights data that are formatted as a computer database for delivery 

to the judiciary shall be treated as limited rights data and not restricted 

computer software.

(h) Subcontracting

The contractor shall obtain from its subcontractors all data and rights therein 

necessary to fulfill the contractor’s obligations to the judiciary under this contract. 

If a subcontractor refuses to accept terms affording the judiciary those rights, the 

contractor shall promptly notify the contracting officer of the refusal and shall not 

proceed with the subcontract award without authorization in writing from the 

contracting officer.

(i) Relationship to Patents or Other Rights

Nothing contained in this clause shall imply a license to the judiciary under any 

patent or be construed as affecting the scope of any license or other right 

otherwise granted to the judiciary.

(end)

Alternate I (JAN 2010): As prescribed in § 650.65(c) (Clauses), insert the following 

paragraph (g)(3) in the basic clause:

(g) (3) Notwithstanding paragraph (g)(1) of this clause, the contract may identify 

and specify the delivery of limited rights data, or the contracting officer 

may require by written request the delivery of limited rights data that has 

been withheld or would otherwise be entitled to be withheld. If delivery of 

that data is required, the contractor shall affix the following “Limited Rights 

Notice” to the data and the judiciary will treat the data, subject to the 

provisions of paragraphs (e) and (f) of this clause, in accordance with the 

notice:

Limited Rights Notice (JAN 2010)

(a) These data are submitted with limited rights under judiciary Contract No. 

_____ (and subcontract ______, if appropriate). These data may be 

reproduced and used by the judiciary with the express limitation that they 

will not, without written permission of the contractor, be used for purposes 

of manufacture nor disclosed outside the judiciary; except that the 

judiciary may disclose these data outside the judiciary for the following 

purposes, if any; provided that the judiciary makes such disclosure subject 

to prohibition against further use and disclosure: [COs may list additional 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-19

purposes as set forth in § 650.65(c) or state there are no additional 

purposes.]

(b) This notice shall be marked on any reproduction of these data, in whole or 

in part.

(End of notice)

Alternate II (APR 2013): As prescribed in § 650.65(d) (Clauses), insert the following 

paragraph (g)(4) in the basic clause:

(g) (4) (i) Notwithstanding paragraph (g)(1) of this clause, the contract may 

identify and specify the delivery of restricted computer software, or 

the contracting officer may require by written request the delivery of 

restricted computer software that has been withheld or would 

otherwise be entitled to be withheld. If delivery of that computer 

software is required, the contractor shall affix the following 

“Restricted Rights Notice” to the computer software and the 

judiciary will treat the computer software, subject to paragraphs (e) 

and (f) of this clause, in accordance with the notice:

Restricted Rights Notice (JAN 2010)

(a) This computer software is submitted with restricted rights under judiciary 

Contract No. _______ (and subcontract ________, if appropriate). It may 

not be used, reproduced, or disclosed by the judiciary except as provided 

in paragraph (b) of this notice or as otherwise expressly stated in the 

contract.

(b) This computer software may be:

(1) Used or copied for use with the computer(s) for which it was 

acquired, including use at any judiciary facility to which the 

computer(s) may be transferred;

(2) Used or copied for use with a backup computer if any computer for 

which it was acquired is inoperative;

(3) Reproduced for safekeeping (archives) or backup purposes;

(4) Modified, adapted, or combined with other computer software, 

provided that the modified, adapted, or combined portions of the 

derivative software incorporating any of the delivered, restricted 

computer software shall be subject to the same restricted rights;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-20

(5) Disclosed to and reproduced for use by support service contractors 

or their subcontractors in accordance with paragraphs (b)(1) 

through (4) of this notice; and

(6) Used or copied for use with a replacement computer.

(c) Notwithstanding the foregoing, if this computer software is copyrighted 

computer software, it is licensed to the judiciary with the minimum rights 

set forth in paragraph (b) of this notice.

(d) Any other rights or limitations regarding the use, duplication, or disclosure 

of this computer software are to be expressly stated in, or incorporated in, 

the contract.

(e) This notice shall be marked on any reproduction of this computer 

software, in whole or in part.

(End of notice)

(ii) Where it is impractical to include the Restricted Rights Notice on 

restricted computer software, the following short-form notice may 

be used instead:

Restricted Rights Notice Short Form (JAN 2010)

Use, reproduction, or disclosure is subject to 

restrictions set forth in Contract No. _______ (and 

subcontract, if appropriate) with ________ (name of 

contractor and subcontractor).

(End of notice)

(iii) If restricted computer software is delivered with the copyright notice 

of 17 U.S.C. § 401, it will be presumed to be licensed to the 

judiciary without disclosure prohibitions, with the minimum rights set 

forth in paragraph (b) of this clause.

Clause 6-65, Rights in Data – Special Works

Include the following clause as prescribed in § 650.65(e) (Clauses).

Rights in Data – Special Works (JAN 2010)

(a) Definitions. As used in this clause:

“Data” means recorded information, regardless of form or the media on which it 

may be recorded. The term includes technical data and computer software. The 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-21

term does not include information incidental to contract administration, such as 

financial, administrative, cost or pricing, or management information.

“Unlimited Rights” means the rights of the judiciary to use, disclose, reproduce, 

prepare derivative works, distribute copies to the public, and perform publicly and 

display publicly, in any manner and for any purpose, and to have or permit others 

to do so.

(b) Allocation of Rights

(1) The judiciary shall have:

(i) Unlimited rights in all data delivered under this contract, and in all 

data first produced in the performance of this contract, except as 

provided in paragraph (c) of this clause;

(ii) The right to limit assertion of copyright in data first produced in the 

performance of this contract, and to obtain assignment of copyright 

in that data, in accordance with paragraph (c)(1) of this clause;

(iii) The right to limit the release and use of certain data in accordance 

with paragraph (d) of this clause.

(2) The contractor shall have, to the extent permission is granted in 

accordance with paragraph (c)(1) of this clause, the right to assert claim to 

copyright subsisting in data first produced in the performance of this 

contract.

(c) Copyright:

(1) Data first produced in the performance of this contract.

(i) The contractor shall not assert or authorize others to assert any 

claim to copyright subsisting in any data first produced in the 

performance of this contract without prior written permission of the 

contracting officer. When copyright is asserted, the contractor shall 

affix the appropriate copyright notice of 17 U.S.C. § 401 or § 402 

and acknowledgment of judiciary sponsorship (including contract 

number) to the data when delivered to the judiciary, as well as 

when the data are published or deposited for registration as a 

published work in the U.S. Copyright Office. The contractor grants 

to the judiciary, and others acting on its behalf, a paid-up, 

nonexclusive, irrevocable, worldwide license for all delivered data 

to reproduce, prepare derivative works, distribute copies to the 

public, and perform publicly and display publicly, by or on behalf of 

the judiciary.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-22

(ii) If the judiciary desires to obtain copyright in data first produced in 

the performance of this contract and permission has not been 

granted as set forth in paragraph (c)(1)(i) of this clause, the 

contracting officer shall direct the contractor to assign (with or 

without registration), or obtain the assignment of, the copyright to 

the judiciary or its designated assignee.

(2) Data not first produced in the performance of this contract. The contractor 

shall not, without prior written permission of the contracting officer, 

incorporate in data delivered under this contract any data not first 

produced in the performance of this contract and that contain the copyright 

notice of 17 U.S.C. § 401 or § 402, unless the contractor identifies such 

data and grants to the judiciary, or acquires on its behalf, a license of the 

same scope as set forth in paragraph (c)(1) of this clause.

(d) Release and Use Restrictions

Except as otherwise specifically provided for in this contract, the contractor shall 

not use, release, reproduce, distribute, or publish any data first produced in the 

performance of this contract, nor authorize others to do so, without written 

permission of the contracting officer.

(e) Indemnity

The contractor shall indemnify the judiciary and its officers, agents, and 

employees acting for the judiciary against any liability, including costs and 

expenses, incurred as the result of the violation of trade secrets, copyrights, or 

right of privacy or publicity, arising out of the creation, delivery, publication, or 

use of any data furnished under this contract; or any libelous or other unlawful 

matter contained in such data. The provisions of this paragraph do not apply 

unless the judiciary provides notice to the contractor as soon as practicable of 

any claim or suit, affords the contractor an opportunity under applicable laws, 

rules, or regulations to participate in the defense of the claim or suit, and obtains 

the contractor’s consent to the settlement of any claim or suit other than as 

required by final decree of a court of competent jurisdiction; and these provisions 

do not apply to material furnished to the contractor by the judiciary and 

incorporated in data to which this clause applies.

(end)

Clause 6-70, Work for Hire

Include the following clause as prescribed in § 520.75(i) (Provisions and Clauses) and 

§ 650.65(f) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-23

Work for Hire (JAN 2003)

The contractor agrees that the work performed under this contract is a 

work made for hire. The contractor further understands that as such, the 

work provided under the contract, including all materials, data, and other 

information developed, delivered, furnished, or otherwise called for under 

the contract, are works of the United States and are therefore in the public 

domain. If, for some reason, it is later determined that this is not a work 

made for hire, the contractor agrees to assign all rights, title, and interest 

in this program/project/material (whichever is applicable) to the federal 

judiciary.

(end)

Clause 6-75, Rights to Data in an Offer

Include the following clause as prescribed in § 650.65(g) (Clauses).

Rights to Data in an Offer (APR 2013)

Except for data contained on pages_____, it is agreed that as a condition 

of award of this contract, and notwithstanding the conditions of any notice 

appearing thereon, the judiciary will have unlimited rights (as defined in 

Clause 6-60, Rights in Data – General) in and to the technical data 

contained in the offer dated ______, upon which this contract is based.

(end)

Clause 6-80, Rights in Data – Existing Works

Include the following clause as prescribed in § 650.65(h) (Clauses).

Rights in Data – Existing Works (JAN 2010)

(a) Except as otherwise provided in this contract, the contractor grants to the 

judiciary, and others acting on its behalf, a paid-up nonexclusive, irrevocable, 

worldwide license to reproduce, prepare derivative works, and perform publicly 

and display publicly, by or on behalf of the judiciary, for all the material or subject 

matter called for under this contract, or for which this clause is specifically made 

applicable.

(b) The contractor shall indemnify the judiciary and its officers, agents, and 

employees acting for the judiciary against any liability, including costs and 

expenses, incurred as the result of (1) the violation of trade secrets, copyrights, 

or right of privacy or publicity, arising out of the creation, delivery, publication or 

use of any data furnished under this contract; or (2) any libelous or other unlawful 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-24

matter contained in such data. The provisions of this paragraph do not apply 

unless the judiciary provides notice to the contractor as soon as practicable of 

any claim or suit, affords the contractor an opportunity under applicable laws, 

rules, or regulations to participate in the defense of the claim or suit, and obtains 

the contractor’s consent to the settlement of any claim or suit other than as 

required by final decree of a court of competent jurisdiction; and do not apply to 

material furnished to the contractor by the judiciary and incorporated in data to 

which this clause applies.

(end)

Clause 6-85, Commercial Computer Software License

Include the following clause as prescribed in § 650.65(i) (Clauses).

Commercial Computer Software License (APR 2013)

(a) Notwithstanding any contrary provisions contained in the contractor’s standard 

commercial license or lease agreement, the contractor agrees that the judiciary 

will have the rights that are set forth in paragraph (b) of this clause to use, 

duplicate or disclose any commercial computer software delivered under this 

contract. The terms and provisions of this contract shall comply with federal laws 

and Volume 14 of the Guide to Judiciary Policy.

(b) (1) The commercial computer software delivered under this contract may not 

be used, reproduced, or disclosed by the judiciary except as provided in 

paragraph (b)(2) of this clause or as expressly stated otherwise in this 

contract.

(2) The commercial computer software may be:

(i) Used or copied for use with the computer(s) for which it was 

acquired, including use at any judiciary facility to which the 

computer(s) may be transferred;

(ii) Used or copied for use with a backup computer if any computer for 

which it was acquired is inoperative;

(iii) Reproduced for safekeeping (archives) or backup purposes;

(iv) Modified, adapted, or combined with other computer software, 

provided that the modified, adapted, or combined portions of the 

derivative software incorporating any of the delivered, commercial 

computer software shall be subject to same restrictions set forth in 

this contract;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-25

(v) Disclosed to and reproduced for use by support service contractors 

or their subcontractors, subject to the same restrictions set forth in 

this contract; and

(vi) Used or copied for use with a replacement computer.

(3) If the commercial computer software is otherwise available without 

disclosure restrictions, the contractor licenses it to the judiciary without 

disclosure restrictions.

(c) The contractor shall affix a notice substantially as follows to any commercial

computer software delivered under this contract:

Notice: Notwithstanding any other lease or license agreement that may 

pertain to, or accompany the delivery of, this computer software, the rights 

of the judiciary regarding its use, reproduction and disclosure are as set 

forth in judiciary Contract No.___________________________.

(end)

Clause 6-90, Notice and Assistance Regarding Patent and Copyright 

Infringement

Include the following clause as prescribed in § 660.20(a) (Clauses).

Notice and Assistance Regarding Patent and Copyright Infringement 

(APR 2010)

(a) The contractor shall report to the contracting officer, promptly and in reasonable 

written detail, each notice or claim of patent or copyright infringement based on 

the performance of this contract of which the contractor has knowledge.

(b) In the event of any claim or suit against the judiciary on account of any alleged 

patent or copyright infringement arising out of the performance of this contract or 

out of the use of any supplies furnished or work or services performed under this 

contract, the contractor shall furnish to the judiciary, when requested by the 

contracting officer, all evidence and information in the contractor’s possession 

pertaining to such claim or suit. Such evidence and information shall be 

furnished at the expense of the judiciary except where the contractor has agreed 

to indemnify the judiciary.

(c) The contractor shall include the substance of this clause, including this 

paragraph (c), in all subcontracts that are expected to exceed the judiciary small 

purchase threshold.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-26

Clause 6-95, Patent Indemnity

Include the following clause as prescribed in § 660.20(b) (Clauses).

Patent Indemnity (JAN 2010)

(a) The contractor shall indemnify the judiciary and its officers, agents, and

employees against liability, including costs, for infringement of any United States 

patent (except a patent issued upon an application that is now or may hereafter 

be withheld from issue pursuant to a Secrecy Order under 35 U.S.C. § 181) 

arising out of the manufacture or delivery of supplies, the performance of 

services, or the construction, alteration, modification, or repair of real property 

(hereinafter referred to as “construction work”) under this contract, or out of the 

use or disposal by or for the account of the judiciary of such supplies or 

construction work.

(b) This indemnity shall not apply unless the contractor shall have been informed as 

soon as practicable by the judiciary of the suit or action alleging such 

infringement and shall have been given such opportunity as is afforded by 

applicable laws, rules, or regulations to participate in its defense. Further, this 

indemnity shall not apply to:

(1) An infringement resulting from compliance with specific written instructions 

of the contracting officer directing a change in the supplies to be delivered 

or in the materials or equipment to be used, or directing a manner of 

performance of the contract not normally used by the contractor;

(2) An infringement resulting from addition to or change in supplies or 

components furnished or construction work performed that was made 

subsequent to delivery or performance; or

(3) A claimed infringement that is unreasonably settled without the consent of 

the contractor, unless required by final decree of a court of competent 

jurisdiction.

(end)

Alternate I (JAN 2010): As prescribed in § 660.20(c) (Clauses), add the 

following paragraph (c) to the basic clause:

(c) This patent indemnification shall not apply to the following items:

__________________________________________________

[Contracting Officer list and/or identify the items to be excluded from this indemnity.]
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-27

Alternate II (JAN 2010): As prescribed in § 660.20(d) (Clauses), add the 

following paragraph (c) to the basic clause:

(c) This patent indemnification shall cover the following items:

__________________________________________________

[List and/or identify the items to be included under this indemnity.]

Alternate III (JAN 2010): As prescribed in § 660.20(e) (Clauses), add the 

following paragraph (c) to the basic clause:

(c) As to subcontracts at any tier for communication service, this clause shall apply 

only to individual communication service authorizations over the simplified 

acquisition threshold issued under this contract and covering those 

communications services and facilities:

(1) That are or have been sold or offered for sale by the contractor to the 

public,

(2) That can be provided over commercially available equipment, or

(3) That involve relatively minor modifications.

Clause 6-100, Waiver of Indemnity

Include the following clause as prescribed in § 660.20(f) (Clauses).

Waiver of Indemnity (JAN 2010)

Any provision or clause of this contract to the contrary notwithstanding, the 

judiciary hereby authorizes and consents to the use and manufacture, 

solely in performing this contract, of any invention covered by the United 

States patents identified below and waives indemnification by the 

contractor with respect to such patents:

__________________________________________________

[Contracting Officer identify the patents by number or by other means if 

more appropriate.]

(end)

Clause 6-105, California E-Waste Fee

Include the following clause as prescribed in § 640.30.70(c) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-28

California E-Waste Fee (APR 2013)

(a) The State of California enacted the Electronic Waste Recycling Act of 2003 (as 

amended) establishing a statewide program to promote and fund the collection 

and recycling for “covered electronic devices”. The Act, among other provisions, 

establishes a charge applicable to purchase of such devices that will cover the 

cost of the ultimate disposal of such devices (e-waste recycling fee).

(b) The U. S. Government Accountability Office (GAO) has analyzed the California 

E-Waste Recycling fee and determined it to be a state tax from which the federal 

government is exempt in Administrative Office of the U.S. Courts – California EWaste Recycling Fee, B-320998, May 4, 2011, and has so informed the State of 

California. The government, including the judiciary, may not pay this fee.

(c) The contractor shall not charge or attempt to collect the California E-Waste 

Recycling Fee under this contract.

(end)

Clause 6-110, Deferred Ordering of Technical Data or Computer Software

Include the following clause as prescribed in § 650.65(j) (Clauses).

Deferred Ordering of Technical Data or Computer Software (JUN 

2014)

In addition to technical data or computer software specified elsewhere in 

this contract to be delivered hereunder, the government may, at any time 

during the performance of this contract or within a period of three (3) years 

after acceptance of all items (other than technical data or computer 

software) to be delivered under this contract or the termination of this 

contract, order any technical data or computer software generated in the 

performance of this contract or any subcontract hereunder. When the 

technical data or computer software is ordered, the Contractor shall be 

compensated for converting the data or computer software into the 

prescribed form, for reproduction and delivery. The obligation to deliver 

the technical data of a subcontractor and pertaining to an item obtained 

from him shall expire three (3) years after the date the Contractor accepts 

the last delivery of that item from that subcontractor under this contract. 

The government's rights to use said data or computer software shall be 

pursuant to the "Rights in Data" clause of this contract.

(end)
Last revised (Transmittal 14-020) October 19, 2023

Provisions and Clauses (Chapter 7)

Clause 7-1, Contract Administration

Include the following clause as prescribed in § 715.55(a) (Clauses/Provisions).

Contract Administration (JAN 2003)

(a) The contracting officer and contracting officer’s representative for the contract will 

be the judiciary’s primary points of contact during the performance of the 

contract. The contracting officer responsible for the administration of this 

contract will provide a cover letter providing the contracting officer’s name, 

business address, e-mail address, and telephone number. Written 

communications from the contractor shall make reference to the contract number 

and shall be mailed to the address provided in the cover letter. Communications 

pertaining to contract administration matters will be addressed to the contracting 

officer.

(b) Notwithstanding the contractor’s responsibility for total management during the 

performance of this contract, the administration of this contract will require the 

maximum coordination between the judiciary and the contractor. All contract 

administration will be effected by the contracting officer except as may be 

redelegated. In no event will any understanding or agreement, contract 

modification, change order, or other matter in deviation from the terms of this 

contract between the contractor and a person other than the contracting officer 

be effective or binding upon the judiciary. All such actions shall be formalized by 

a proper contractual document executed by the contracting officer.

(end)

Clause 7-5, Contracting Officer’s Representative

Include the following clause as prescribed in § 715.55(b) (Clauses/Provisions).

Contracting Officer’s Representative (APR 2013)

(a) Upon award, a contracting officer’s representative (COR) may be appointed by 

the contracting officer. The COR will be responsible for coordinating the 

technical aspects of this contract and inspecting products/services furnished 

hereunder; however, the COR will not be authorized to change any terms and 

conditions of the resultant contract, including price.

(b) The COR, if appointed, may be assigned one or more of the following 

responsibilities:

(1) monitoring the contractor's performance under the contract to ensure 

compliance with technical requirements of the contract;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-2

(2) notifying the contracting officer immediately if performance is not 

proceeding satisfactorily;

(3) ensuring that changes in work under the contract are not initiated before 

written authorization or modification is issued by the contracting officer;

(4) providing the contracting officer a written request and justification for 

changes;

(5) providing interpretations relative to the meaning of technical specifications 

and technical advice relative to contracting officer’s written approvals, and

(6) providing general technical guidance to the contractor within the scope of 

the contract and without constituting a change to the contract.

(end)

Clause 7-10, Contractor Representative

Include the following clause as prescribed in § 715.55(c) (Clauses/Provisions).

Contractor Representative (JAN 2003)

(a) The contractor’s representative to be contacted for all contract administration 

matters is as follows (contractor complete the information):

Name:

Address:

Telephone:

E-mail:

Fax:

(b) The contractor’s representative shall act as the central point of contact with the 

judiciary, shall be responsible for all contract administration issues relative to this 

contract, and shall have full authority to act for and legally bind the contractor on 

all such issues.

(end)

Clause 7-15, Observance of Regulations/Standards of Conduct

Include the following clause as prescribed in § 715.55(d) (Clauses/Provisions).

Observance of Regulations/Standards of Conduct (JAN 2003)

(a) When contractor personnel are performing contract work at a judiciary facility, 

they shall comply with all rules and regulations of the facility, including, but not 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-3

limited to, rules and regulations governing security, controlled access, personnel 

clearances and conduct with respect to health and safety and to property at the 

site, regardless of whether or not title to such property is vested in the judiciary. 

The facilities to which the contractor has access belong to the judiciary and will 

not at any time be considered “Judiciary Property” furnished to the contractor.

(b) The contractor and its employees shall only conduct business covered by the 

contract during periods paid for by the judiciary, and will not conduct any other 

business on judiciary premises.

(c) The contractor shall be responsible for maintaining satisfactory standards of 

employee competency, conduct, appearance and integrity. It is the contractor’s 

responsibility to take disciplinary action with respect to its employees as may be 

necessary. The contractor is also responsible for ensuring that its employees do 

not disturb papers on desks, open desk drawers or cabinets, or use judiciary 

property (such as, but not limited to, telephones or copiers) except as authorized.

(end)

Clause 7-20, Security Requirements

Include the following clause as prescribed in § 330.10.30(l) (Provisions and Clauses)

and § 715.55(e) (Clauses/Provisions).

Security Requirements (APR 2013)

(a) Definitions. As used in this clause:

"Access" means physical entry into, and to the extent authorized, mobility within, 

a judiciary facility.

"Contractor employee" means an employee of the prime contractor or of any 

subcontractor, affiliate, partner, joint venture, or team members with which the 

contractor is associated. It also includes consultants engaged by any of those 

entities.

"Facility" and "judiciary facility" mean buildings, including areas within buildings, 

owned, leased, shared, occupied, or otherwise controlled by the judiciary.

“Judiciary IT resources” include, but are not limited to, computer equipment, 

networking equipment, telecommunications equipment, cabling, network drives, 

computer drives, network software, computer software, software programs, 

intranet sites, and internet sites.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-4

(b) Requirements.

Contractor employees working on this contract must complete such forms as 

may be necessary for security purposes or other reasons. Completed forms 

shall be submitted as directed by the Contracting Officer’s Representative 

(COR). Depending upon the level of access required to judiciary facilities or IT 

resources for performance of the work, contractor employees may be subject to 

any of the following types of security checks:

Fingerprint Check

Credit Check

National Agency Check with Inquires (NACI)

National Agency Check with Inquiries and Credit (NACIC)

National Agency Check with Law and Credit (NACLC)

Single Scope Background Investigation (SSBI)

Single Scope Background Investigation – Periodic Reinvestigation 

(SSBI-PR)

Public Trust Special Background Investigation (PTSBI)

Citizenship and Immigration Services (CIS) Check

Contractor employees visiting court sites to provide support covered under this 

contract may be subjected to additional FBI screening and U.S. Marshal 

inspection.

(c) Exemption.

Affected contractor employees who have had a Federal background investigation 

without a subsequent break in Federal employment or Federal contract service 

exceeding two (2) years may be exempt from the investigation requirements of 

this clause subject to verification of the previous investigation. For each such 

employee, the contractor shall submit the following information: employee's full 

name, Social Security Number, and place and date of birth.

(d) Facility Access Cards (FAC).

The contractor shall be responsible for all Facility Access Cards or other judiciary 

identification cards issued to the contractor's employees and shall immediately 

notify the COR if any Facility Access Card(s) cannot be accounted for. The 

contractor shall notify the COR immediately whenever any contractor employee 

no longer has a need for his/her judiciary-issued FAC (e.g., employee terminates 

employment with the contractor, employee's duties no longer require access to 

judiciary facilities). The COR will instruct the contractor as to how to return the 

FAC. Upon expiration of this contract, the COR will instruct the contractor as to 

how to return all judiciary-issued FACs not previously returned. The contractor 

shall not return FACs to any person other than the individual(s) named by the 

COR.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-5

(e) Control of access.

The judiciary shall have and exercise full and complete control over granting, 

denying, withholding, and terminating access of contractor employees to judiciary 

facilities and IT resources. The COR will notify the contractor immediately when 

the judiciary has determined that an employee is unsuitable or unfit to be 

permitted access to a judiciary facility following the completion of any of the 

security checks/investigations listed in (b) above, or as a result of new 

information obtained at any time during the contractor’s performance. The 

contractor shall immediately notify such employee that he/she no longer has 

access to any judiciary facility and/or judiciary IT resources, remove the 

employee from any such facility that he/she may be in, and provide a suitable 

replacement who must comply with the requirements of this and other applicable 

clauses. In addition, the contracting officer may require the contractor to prohibit 

individuals from access to judiciary facilities or IT resources if the judiciary deems 

their initial or continued access contrary to the public interest for any reason, 

including, but not limited to, carelessness, insubordination, incompetence, or 

security concerns.

(f) The contractor shall include the substance of this clause in all subcontracts at 

any tier where the subcontractor may be required to have routine physical access 

to a judiciary facility or routine access to a judiciary IT resource.

(g) The judiciary reserves the right to refuse to grant facility access for any 

contractor employee who has been convicted of a felony.

(end)

Clause 7-25, Indemnification

Include the following clause as prescribed in § 715.55(f) (Clauses/Provisions).

Indemnification (AUG 2004)

(a) The contractor assumes full responsibility for and shall indemnify the judiciary 

against any and all losses or damage of whatsoever kind and nature to any and 

all judiciary property, including any equipment, products, accessories, or parts 

furnished, while in its custody and care for storage, repairs, or service to be 

performed under the terms of this contract, resulting in whole or in part from the 

negligent acts or omissions of the contractor, any subcontractor, or any 

employee, agent or representative of the contractor or subcontractor.

(b) If due to the fault, negligent acts (whether of commission or omission) and/or 

dishonesty of the contractor or its employees, any judiciary-owned or controlled 

property is lost or damaged as a result of the contractor's performance of this 

contract, the contractor shall be responsible to the judiciary for such loss or 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-6

damage, and the judiciary, at its option, may, in lieu of requiring reimbursement 

therefor, require the contractor to replace at its own expense, all property lost or 

damaged.

(c) Hold Harmless and Indemnification Agreement

The contractor shall save and hold harmless and indemnify the judiciary against 

any and all liability claims and cost of whatsoever kind and nature for injury to or 

death of any person or persons and for loss or damage to any contractor 

property or property owned by a third party occurring in connection with or in any 

way incident to or arising out of the occupancy, use, service, operation, or 

performance of work under the terms of this contract, resulting in whole or in part 

from the acts or omissions of the contractor, any subcontractor, or any employee, 

agent, or representative of the contractor or subcontractor.

(d) The contractor shall indemnify and hold the judiciary, its employees, and others 

acting on its behalf harmless against any and all loss, liability, or damage arising 

out of the negligence, failure to act, fraud, embezzlement, or other misconduct by 

the contractor, its employees, subcontractors, agents, or representatives of the 

contractor or subcontractor.

(e) Judiciary's Right of Recovery

Nothing in the above paragraphs will be considered to preclude the judiciary from 

receiving the benefits of any insurance/bonds the contractor may carry which 

provides for the indemnification of any loss or destruction of, or damages to, 

property in the custody and care of the contractor where such loss, destruction or 

damage is to judiciary property. The contractor shall do nothing to prejudice the 

judiciary's right to recover against third parties for any loss, destruction of, or 

damage to, judiciary property, and upon the request of the contracting officer will, 

at the judiciary's expense, furnish to the judiciary all reasonable assistance and 

cooperation (including assistance in the prosecution of suit and the execution of

instruments of assignment in favor of the judiciary) in obtaining recovery.

(f) Judiciary Liability

The judiciary will not be liable for any injury to the contractor’s personnel or 

damage to the contractor’s property unless such injury or damage is due to

negligence on the part of the judiciary and is recoverable under the Federal Torts 

Claims Act, or pursuant to other statutory authority applicable to the judiciary.

(end)

Clause 7-30, Public Use of the Name of the Federal Judiciary

Include the following clause as prescribed in § 715.55(g) (Clauses/Provisions).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-7

Public Use of the Name of the Federal Judiciary (JUN 2014)

(a) The contractor shall not refer to the judiciary, or to any court or other 

organizational entities existing thereunder (hereinafter referred to as "the 

judiciary"), in advertising, news releases, brochures, catalogs, television and 

radio advertising, letters of reference, websites, or any other media used 

generally by the vendor in its commercial marketing initiatives, in such a way that 

it represents or implies that the judiciary prefers or endorses the products or 

services offered by the contractor. This provision will not be construed as limiting 

the contractor's ability to refer to the judiciary as one of its customers when 

providing past performance information as part of a proposal submission, as 

opposed to general-public marketing.

(b) No public release of information pertaining to this contract will be made without 

prior judiciary written approval, as appropriate, and then only with written 

approval of the contracting officer.

(end)

Clause 7-35, Disclosure or Use of Information

Include the following clause as prescribed in § 715.55(h) (Clauses/Provisions).

Disclosure or Use of Information (APR 2013)

(a) Judiciary information made available to the contractor for the performance or 

administration of this contract shall be used only for those purposes and shall not 

be used in any other way without the written agreement of the contracting officer. 

This clause takes precedence over and is an explicit limitation to the rights 

enumerated in section (d)(2) of Clause 6-60, Rights in Data – General.

(b) To the extent the information is otherwise publicly available, it is public 

information and is not restricted by operation of this clause. However, if public 

information is provided to the contractor for use in performance or administration 

of this contract in a media, format, or otherwise in a manner in which it is not 

available the public, such information may not be used for any other purpose by 

the contractor except with the written permission of the contracting officer. If the 

contractor is uncertain about the availability or proposed use of information 

provided for the performance or administration of this contract, the contractor 

shall consult with the contracting officer regarding use of that information for 

other purposes.

(c) The contractor agrees to assume responsibility for protecting the confidentiality of 

judiciary records which are not public information. Such information may include, 

but is not limited to, all employee data and any written and oral information of a 

personal nature. Such information is to be safeguarded to ensure that it is not 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-8

improperly disclosed. Each officer or employee of the contractor to whom 

information may be made available or disclosed shall be notified in writing by the 

contractor that such information may be disclosed only for a purpose and to the 

extent authorized herein, and that further disclosure of any such information for a 

purpose or to an extent not so authorized may subject the person(s) responsible 

to criminal sanctions imposed by 18 U.S.C. § 641. That section provides, in 

pertinent part, that whoever without authority, sells, conveys, or disposes of any 

record of the United States or whoever receives the same with intent to convert it 

to their use or gain, knowing it to have been converted, will be guilty of a crime 

punishable by a fine up to $10,000, or imprisoned up to ten years, or both. The 

contractor shall obtain written acknowledgment from each officer and employee 

to whom information is made available, that they are aware of the above 

penalties associated with unauthorized disclosure. Such acknowledgments are 

subject to the review of the contracting officer.

(d) Performance of this contract may require the contractor to access and use data 

and information, proprietary to the judiciary or to a judiciary contractor, which is of 

such a nature that its dissemination or use, other than in performance of this 

contract, would be adverse to the interests of the judiciary and/or others.

(e) Contractor and/or contractor personnel shall not divulge or release data or 

information developed or obtained in performance of this contract until made 

public by the judiciary, except as authorized by the contracting officer. The 

contractor shall not use, disclose, or reproduce proprietary data which bears a 

restrictive legend, other than as required in the performance of this contract. 

Nothing herein will preclude the use of any data independently acquired by the 

contractor without such limitations or prohibit an agreement at no cost to the 

judiciary between the contractor and the data owner which provides for greater 

rights to the contractor.

(f) The judiciary and contractor agree that neither expects the performance under 

this contract to involve reporting or handling of classified information or materials. 

Either party shall notify the other promptly in writing if the expectation of that 

party changes, and shall include in the notice reasons therefore. If there are 

sealed records, in camera proceedings or grand jury matters, the contractor shall 

consult with the contracting officer as to the proper safeguarding, security, and 

secrecy of the original notes and transcript orders.

(g) The contracting officer will advise the contractor whenever the judiciary places a 

service order which will require classified information or materials. The 

contractor will have the right to decline to provide services, in which event such 

services shall be outside the scope of this contract.

(h) The contractor shall hold inviolate and in strictest confidence any and all 

information of an official nature not for inclusion in the document, any information 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-9

which the presiding judicial official designates as “off the record” and all classified 

information and material.

(i) The contractor shall classify, safeguard, and otherwise act with respect to all 

classified information and material in accordance with applicable law and 

requirements of the contracting officer. The contractor shall not permit any 

individual to have or gain access to the classified information or material without 

written permission of the contracting officer, except as access may be necessary 

for authorized employees of the contractor to perform services under this 

contract.

(j) Notwithstanding any other provision of this contract, the contractor may deliver 

transcript containing classified material or information only to the judiciary. The 

contractor shall never sell or deliver such document to a private person without 

the express written permission of the contracting officer. Notwithstanding any 

other provision of this contract, the contractor shall never keep a copy of a 

document containing classified material or information after the delivery of the

original to the contracting officer.

(end)

Clause 7-40, Judiciary-Contractor Relationships

Include the following clause as prescribed in § 715.55(i) (Clauses/Provisions).

Judiciary-Contractor Relationships (JAN 2003)

(a) The judiciary and the contractor understand and agree that the services to be 

delivered under this contract by the contractor to the judiciary are non-personal 

services. The parties recognize and agree that no employer-employee or 

master-servant relationships exist or will exist under the contract between the 

judiciary and the contractor and/or between the judiciary and the contractor's 

employees. It is therefore, in the best interest of the judiciary to afford the parties 

a full and complete understanding of their respective obligations.

(b) The contractor and/or the contractor's personnel under this contract shall not:

(1) be placed in a position where they are appointed or employed by a federal 

officer, or are under the supervision, direction, or evaluation of a federal 

officer;

(2) be placed in a staff or policy making position;

(3) be placed in a position of command, supervision, administration or control 

over judiciary personnel or the personnel of other contractors, or become 

a part of the judiciary organization;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-10

(4) be used for the purpose of avoiding manpower ceilings or other personnel 

rules and regulations.

(c) Employee Relationship

(1) The services to be performed under this contract do not require the 

contractor or its employees to exercise personal judgement and discretion 

on behalf of the judiciary. The contractor's employees will act and 

exercise personal judgement and discretion on the behalf of the 

contractor, as directed by the contractor's supervisory personnel, and in 

accordance with the contract terms and conditions.

(2) Rules, regulations, directions, and requirements issued by the judiciary 

under the judiciary's responsibility for good order, administration, security, 

and safety are applicable to all personnel physically located on-site, 

inclusive of contractor personnel who are required under the terms and 

conditions of this contract to be so located. This is not to be construed or 

interpreted to establish any degree of judiciary control which is 

inconsistent with a non-personal services contract.

(end)

Clause 7-45, Travel

Include the following clause as prescribed in § 715.55(j) (Clauses/Provisions).

Travel (APR 2013)

The contractor may propose travel costs if travel is required for 

performance of the contract and is an authorized reimbursable expense 

under the contract. The extent of reimbursement for incurred travel costs 

will be subject to the limitations set forth in Guide to Judiciary Policy, Vol. 

19, Ch. 4 (Judiciary Staff Travel Regulations).

(end)

Clause 7-50, Parking

Include the following clause as prescribed in § 715.55(k) (Clauses/Provisions).

Parking (APR 2013)

There is no contractor parking available at the Thurgood Marshall Federal 

Judiciary Building (TMFJB). In the event that this contract requires the 

delivery of equipment or materials to the TMFJB, the contractor shall park 

delivery vehicles at designated locations within the TMFJB Complex 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-11

ONLY WHILE LOADING AND UNLOADING THE VEHICLE. 

Arrangements for pick-up and delivery at the TMFJB shall be coordinated 

with the Contracting Officer’s Representative (COR) and made in 

accordance with building management policies.

(end)

Clause 7-55, Contractor Use of Judiciary Networks

Include the following clause as prescribed in § 715.55(l) (Clauses/Provisions).

Contractor Use of Judiciary Networks (JUN 2014)

Whenever authorized to use judiciary networks, the contractor, subcontractor, teaming 

partner, and all employees (hereinafter referred to as “entities”), shall not perform or 

participate, directly or indirectly, in any of the following:

(a) accessing internet sites which may be inappropriate or reflect poorly on the 

judiciary: Unless accessing internet sites is case-related, entities shall refrain 

from creating, downloading, viewing, storing, copying, and transmitting sexually

explicit or sexually oriented materials which are never appropriate and may be 

illegal in some cases. Internet sites capture the domain name of all sites 

accessing them and maintain a record of this information. It could be 

embarrassing to the judiciary if the judiciary’s domain name were found on the 

access records of inappropriate sites;

(b) logging onto video or audio sites, such as broadcast services or radio stations 

and downloading music files. This consumes significant disk space on local 

computers and may be a violation of copyright law. Each of the several thousand 

video clips downloaded daily can be equal to downloading a 400-page 

memorandum;

(c) using judiciary systems to send or receive e-mails containing greeting cards, 

political statements, jokes, pictures, chain letters or other unauthorized mass 

mailings, regardless of the subject matter, and other items of a personal nature;

(d) sending large attachments unless required for official business. Video, sound, or 

other large file attachments consume large amounts of network capacity. E-mail 

attachments, large files, and executable programs present two problems. First, 

large attachments consume network capacity and storage space on both national 

and local e-mail servers and desktops, slowing the network down for everyone. 

Second, executable programs present a risk for infection by computer viruses;

(e) participating in chat rooms or using “instant messaging” software;

(f) checking personal e-mail accounts over the judiciary’s network;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-12

(g) using the network connection for personal commercial purposes, private gain, or 

illegal activities. Unless use is required for official judiciary and contract- related 

business, all entities shall refrain from using the network connection for 

commercial purposes (including shopping). It is also inappropriate to use the 

network connection in support of outside employment activities (including 

consulting for pay, sales or administration of business transactions, and sales of 

products or services) or for illegal activities (such as gambling or hacking);

(h) using the e-mail or the network connection for offensive activities. It is 

inappropriate to use e-mail or the internet to access, send, or receive information 

on, or in support of, activities that are illegal or offensive. Such activities include, 

but are not limited to, hate speech or material that ridicules or degrades others 

on the basis of race, creed, religion, color, sex, disability, national origin, or 

sexual orientation.

(end)

Provision 7-60, Judiciary-Furnished Property or Services

Include the following provision as prescribed in § 720.10.40(a) (Clauses).

Judiciary-Furnished Property or Services (JAN 2003)

No property or services will be furnished by the judiciary unless 

specifically provided for in the solicitation.

(end)

Clause 7-65, Protection of Judiciary Buildings, Equipment, and Vegetation

Include the following clause as prescribed in § 720.10.40(b) (Clauses).

Protection of Judiciary Buildings, Equipment, and Vegetation (APR 

2013)

The contractor shall use reasonable care to avoid damaging buildings, 

equipment, and vegetation (such as trees, shrubs, and grass) on the 

judiciary facility. If the contractor’s failure to use reasonable care causes 

damage to any of this property, the contractor shall replace or repair the 

damage at no expense to the judiciary, as the contracting officer directs. If 

the contractor fails or refuses to make such repair or replacement, the 

contractor shall be liable for the cost, which may be deducted from the 

contract price.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-13

Clause 7-70, Judiciary Property Furnished "As Is"

Include the following clause as prescribed in § 720.10.40(c) (Clauses).

Judiciary Property Furnished "As Is" (APR 2013)

(a) The judiciary makes no warranty whatsoever with respect to judiciary property 

furnished "as is," except that the property is in the same condition when placed at 

the F.o.b. point specified in the solicitation as when inspected by the contractor 

pursuant to the solicitation or, if not inspected by the contractor, as when last 

available for inspection under the solicitation.

(b) The contractor may repair any property made available on an "as is" basis. Such 

repair will be at the contractor's expense except as otherwise provided in this 

clause. Such property may be modified at the contractor's expense, but only with 

the written permission of the contracting officer. Any repair or modification of 

property furnished "as is" shall not affect the title of the judiciary.

(c) If there is any change in the condition of judiciary property furnished "as is " from 

the time inspected or last available for inspection under the solicitation to the time 

placed on board at the location specified in the solicitation, and such change will 

adversely affect the contractor, the contractor shall, upon receipt of the property, 

notify the contracting officer detailing the facts and, as directed by the contracting 

officer, either (1) return such property at the judiciary's expense or otherwise 

dispose of the property or (2) effect repairs to return the property to its condition 

when inspected under the solicitation or, if not inspected, last available for 

inspection under the solicitation. After completing the directed action and upon 

written request of the contractor, the contracting officer will equitably adjust any 

contractual provisions affected by the return, disposition, or repair in accordance 

with the procedures provided for in the Changes clause of this contract. The 

foregoing provisions for adjustment are the exclusive remedy available to the 

contractor, and the judiciary shall not be otherwise liable for any delivery of 

judiciary property furnished "as is" in a condition other than that in which it was 

originally offered.

(end)

Clause 7-75, Subcontracts

Include the following clause as prescribed in § 725.10.40(a) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-14

Subcontracts (JAN 2003)

(a) Definitions. As used in this clause:

“Approved Purchasing System” means a contractor’s purchasing system that has 

been reviewed and approved in writing.

“Consent to Subcontract” means the contracting officer’s written consent for the 

contractor to enter into a particular subcontract.

“Subcontract” means any contract entered into by a subcontractor to furnish 

products or services for performance of the prime contract or a subcontract. It 

includes, but is not limited to, purchase orders, and changes and modifications to 

purchase orders.

(b) This clause does not apply to subcontracts for special test equipment.

(c) When this clause is included in a fixed-price type contract, consent to 

subcontract is required only on unpriced contract actions (including unpriced 

modifications or unpriced purchase/delivery/task orders), and only if required in 

accordance with paragraph (d) or (e) of this clause.

(d) If the contractor does not have a written approved purchasing system, consent to 

subcontract is required for any subcontract that:

(1) is of the cost-reimbursement, time-and-materials, or labor-hour type; or

(2) is fixed price and exceeds either the judiciary’s small purchase threshold 

or five percent of the total estimated cost of the contract.

(e) If the contractor has a written approved purchasing system, the contractor 

nevertheless shall obtain the contracting officer’s written consent before placing 

the following contracts: 

_____________________________________________________________

_____________________________________________________________

(f) (1) The contractor shall notify the contracting officer reasonably in advance of 

placing any subcontract or modification thereof for which consent is 

required under paragraph (c), (d), or (e) of this clause, including the 

following information:

(i) a description of the products or services to be subcontracted;

(ii) identification of the type of subcontract to be used;

(iii) identification of the proposed subcontractor;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-15

(iv) the proposed subcontract price;

(v) the subcontractor’s detailed cost information, if required by other 

contract provisions;

(vi) a negotiation memorandum reflecting:

(A) the principal elements of the subcontract price negotiations;

(B) the most significant considerations controlling establishment 

of initial or revised prices;

(C) the reason detailed cost information was or was not 

required;

(D) the extent, if any, to which the contractor did not rely on the 

subcontractor’s detailed cost information in determining the 

price objective and in negotiating the final price;

(E) the extent to which it was recognized in the negotiation that 

the subcontractor’s detailed cost information was not 

accurate, complete, or current; the action taken by the 

contractor and the subcontractor; and the effect of any such 

defective cost information on the total price negotiated;

(F) the reasons for any significant difference between the 

contractor’s price objective and the price negotiated; and

(G) a complete explanation of the incentive fee or profit plan 

when incentives are used. The explanation shall identify 

each critical performance element, management decisions 

used to quantify each incentive element, reasons for the 

incentives, and a summary of all trade-off possibilities 

considered.

(2) If the contractor has a written approved purchasing system and consent is 

not required under paragraph (c), (d), or (e) of this clause, the contractor 

nevertheless shall notify the contracting officer reasonably in advance of 

entering into any (i) cost-plus-fixed-fee subcontract, or (ii) fixed-price 

subcontract that exceeds either the small purchases threshold or five 

percent of the total estimated cost of this contract. The notification shall 

include the information required by paragraphs (f)(1)(i) through (f)(1)(iv) of 

this clause.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-16

(g) Unless the consent or approval specifically provides otherwise, neither consent 

by the contracting officer to any subcontract nor approval of the contractor’s

purchasing system will constitute a determination:

(1) of the acceptability of any subcontract terms or conditions;

(2) of the allowability of any cost under this contract; or

(3) to relieve the contractor of any responsibility for performing this contract.

(h) No subcontract or modification thereof placed under this contract shall provide for 

payment on a cost-plus-a-percentage-of-cost basis, or any fee payable under 

cost-reimbursement type subcontracts will not exceed the fee limitations.

(i) The contractor shall give the contracting officer immediate written notice of any 

action or suit filed and prompt notice of any claim made against the contractor by 

any subcontractor or vendor that, in the opinion of the contractor, may result in 

litigation related in any way to this contract, with respect to which the contractor 

may be entitled to reimbursement from the judiciary.

(j) The judiciary reserves the right to review the contractor’s purchasing system.

(k) Paragraphs (d) and (f) of this clause do not apply to the following subcontracts, 

which were evaluated during negotiations.

(end)

Clause 7-80, Competition in Subcontracting

Include the following clause as prescribed in § 725.10.40(b) (Clauses).

Competition in Subcontracting (JAN 2003)

The contractor shall select subcontractors (including suppliers) on a 

competitive basis to the maximum practical extent consistent with the 

objectives and requirements of the contract.

(end)

Clause 7-85, Examination of Records

Include the following clause as prescribed in § 730.20.20 (Contractor Record 

Retention).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-17

Examination of Records (JAN 2003)

(a) The judiciary will have access to and the right to examine any directly pertinent 

books, documents, papers, or other records of the contractor involving 

transactions related to this contract, until three years after final payment under 

this contract, or for any shorter period specified for particular records.

(b) The contractor agrees to include in all subcontracts under this contract a 

provision to the effect that the judiciary will have until three years after final 

payment under the contract, or for any shorter specified period for particular 

records, have access to and the right to examine any directly pertinent books, 

documents, papers, or other records of the subcontractor involving transactions 

related to the subcontract. The term subcontract as used in this clause excludes:

(1) purchase orders; and

(2) subcontracts for public utility services at rates established for uniform 

applicability to the general public.

(end)

Clause 7-95, Contractor Inspection Requirements

Include the following clause as prescribed in § 220.10.70(d) (Clauses for Inclusion in 

Solicitations or Contracts).

Contractor Inspection Requirements (JAN 2003)

The contractor is responsible for performing or having performed all 

inspections and tests necessary to substantiate that the products or 

services furnished under this contract conform to contract requirements, 

including any applicable technical requirements for specified 

manufacturers' parts. This clause takes precedence over any judiciary 

inspection and testing required in the contract's specifications, except for 

specialized inspections or tests specified to be performed solely by the 

judiciary.

(end)

Clause 7-100A, Limitation of Liability (Products)

Include the following clause as prescribed in § 220.10.70(e) (Clauses for Inclusion in 

Solicitations or Contracts).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-18

Limitation of Liability (Products) (JAN 2003)

(a) Except as provided in paragraphs (b) and (c) this clause, and except for 

remedies expressly provided elsewhere in this contract, the contractor shall not 

be liable for loss of or damage to property of the judiciary (excluding the products 

delivered under this contract) that:

(1) occurs after judiciary acceptance of the products delivered under this 

contract; and

(2) results from any defects or deficiencies in the products.

(b) The limitation of liability under paragraph (a) of this clause shall not apply when a 

defect or deficiency in, or the judiciary's acceptance of, the products results from 

willful misconduct or lack of good faith on the part of any of the contractor's 

managerial personnel. The term "contractor's managerial personnel," as used in 

this clause, means the contractor's directors, officers, and any of the contractor's 

managers, superintendents, or equivalent representatives who have supervision 

or direction of:

(1) all or substantially all of the contractor's business;

(2) all or substantially all of the contractor's operations at any one plant, 

laboratory, or separate location at which the contract is being performed; 

or

(3) a separate and complete major industrial operation connected with the 

performance of this contract.

(c) If the contractor carries insurance, or has established a reserve for selfinsurance, covering liability for loss or damage suffered by the judiciary through 

purchase or use of the products required to be delivered under this contract or 

the contractor’s performance of services or furnishing of materials under this 

contract, the contractor shall be liable to the judiciary, to the extent of such 

insurance or reserve, for loss of or damage to property of the judiciary occurring 

after judiciary acceptance of, and resulting from any defects or deficiencies in, 

the products delivered under this contract.

(end)

Clause 7-100B, Limitation of Liability (Services)

Include the following clause as prescribed in § 220.10.70(f) (Clauses for Inclusion in 

Solicitations or Contracts).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-19

Limitation of Liability (Services) (JAN 2003)

(a) Except as provided in paragraphs (b) and (c) of this clause, and except to the 

extent that the contractor is expressly responsible under this contract for 

deficiencies in the services required to be performed under it (including any 

materials furnished in conjunction with those services), the contractor shall not be 

liable for loss of or damage to property of the judiciary that:

(1) occurs after judiciary acceptance of services performed under this 

contract; and

(2) results from any defects or deficiencies in the services performed or 

materials furnished.

(b) The limitation of liability under paragraph (a) of this clause shall not apply when a 

defect or deficiency in, or the judiciary’s acceptance of, services performed or 

materials furnished results from willful misconduct or lack of good faith on the 

part of any of the contractor’s managerial personnel. The term “contractor’s 

managerial personnel,” as used in this clause, means the contractor’s directors, 

officers, and any of the contractor’s managers, superintendents, or equivalent 

representatives who have supervision or direction of:

(1) all or substantially all of the contractor’s business;

(2) all or substantially all of the contractor’s operations at any one plant, 

laboratory, or separate location at which the contract is being performed; 

or

(3) a separate and complete major industrial operation connected with the 

performance of this contract.

(c) If the contractor carries insurance, or has established a reserve for selfinsurance, covering liability for loss or damage suffered by the judiciary through 

the contractor’s performance of services or furnishing of materials under this 

contract, the contractor shall be liable to the judiciary, to the extent of such 

insurance or reserve, for loss of or damage to property of the judiciary occurring 

after judiciary acceptance of, and resulting from any defects and deficiencies in, 

services performed or materials furnished under this contract.

(end)

Clause 7-105, RESERVED

Clause 7-110, Bankruptcy

Include the following clause as prescribed in § 735.60.40 (Clause).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-20

Bankruptcy (JAN 2003)

In the event the contractor enters into proceedings relating to bankruptcy, 

whether voluntary or involuntary, the contractor agrees to furnish, by 

certified mail or electronic commerce method authorized by the contract, 

written notification of the bankruptcy to the contracting officer responsible 

for administering the contract. This notification shall be furnished within 

five calendar days of the initiation of the bankruptcy proceedings relating 

to bankruptcy filing. This notification shall include the date on which the 

bankruptcy petition was filed, the identity of the court in which the petition 

was filed, and a list of judiciary contract numbers and contracting offices 

for all judiciary contracts pursuant to which final payment has not been 

made. This obligation remains in effect until final payment under this 

contract.

(end)

Clause 7-115, Availability of Funds

Include the following clause as prescribed in § 220.50.90(a) (Clauses for Contracting in 

Advance of Funds).

Availability of Funds (JAN 2003)

Funds are not presently available for this contract. The judiciary's 

obligation under this contract is contingent upon the availability of 

appropriated funds from which payment for contract purposes can be 

made. No legal liability on the part of the judiciary for any payment may 

arise until funds are made available to the contracting officer for this 

contract and until the contractor receives notice of such availability, to be 

confirmed in writing by the contracting officer.

(end)

Clause 7-120, Availability of Funds for the Next Fiscal Year

Include the following clause as prescribed in § 220.50.90(b) (Clauses for Contracting in 

Advance of Funds).

Availability of Funds for the Next Fiscal Year (JAN 2003)

Funds are not presently available for performance under this contract 

beyond ________. The judiciary's obligation for performance of this 

contract beyond that date is contingent upon the availability of 

appropriated funds from which payment for contract purposes can be 

made. No legal liability on the part of the judiciary for any payment may 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-21

arise for performance under this contract beyond _____, until funds are 

made available to the contracting officer for performance and until the 

contractor receives notice of availability, to be confirmed in writing by the 

contracting officer.

(end)

Clause 7-125, Invoices

Include the following clause as prescribed in § 740.20.30 (Clause).

Invoices (APR 2011)

(a) Invoices shall be submitted to the address (physical or e-mail) specified in this 

contract and in accordance with any schedule for payments set forth elsewhere 

under this contract.

(b) The office that will make payments due under this contract will be designated in 

the contract at the time of contract award.

(c) To constitute a proper invoice, the billing document shall include the following 

information and/or attached documentation:

(1) name of business concern and such business’s Taxpayer Identification 

Number;

(2) period(s) covered by invoice and invoice date;

(3) purchase order or contract number or other authorization for delivery of 

property or services, e.g., delivery/task order number for orders under 

indefinite delivery contracts;

(4) for each line item — general description of product delivered or services 

rendered, measured unit, and associated price;

(5) any applicable payment discount terms;

(6) total amount billed;

(7) a subtotal of any and all fees or credits applied to the invoice;

(8) an amount due (if any) or credit balance;

(9) name (where practicable), title, phone number, fax number, and complete 

mailing address of the responsible official to whom payment is to be sent. 

The “remit to” address shall correspond to the remittance address in the 

contract;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-22

(10) other substantiating documentation or information as required by the 

purchase/delivery/task order or contract;

(11) all follow-up invoices shall be marked “Duplicate of Original.” Contractor 

questions regarding payment information or check identification shall be 

directed to the relevant paying authority specified in the contract.

(end)

Alternate I (JAN 2010): As prescribed in § 520.75(f), and when 

applicable, the contracting officer must substitute the following paragraph 

(c)(4) for paragraphs (c)(4) of the basic Clause 7-125.

(4) All invoices for services under this agreement shall indicate in detail the 

following:

(i) person performing service each day by hour and part of an hour;

(ii) services performed each day by hour and part of an hour;

(iii) rates and charges for each service so detailed; and

(iv) individual expenses charged, if allowed under this agreement.

Note: Minimum charges for portions of an hour may be allowed, if such a 

charging practice has been disclosed before award of this agreement.

Clause 7-130, Interest (Prompt Payment)

Include the following clause as prescribed in § 740.30.30 (Payment of Interest).

Interest (Prompt Payment) (JAN 2003)

The provisions of the Prompt Payment Act of 1982 and OMB Budget 

Circular A-125 concerning interest on overdue payments are not 

applicable to the judiciary. Therefore, interest is not payable under this 

contract for overdue payments.

(end)

Clause 7-135, Payments

Include the following clause as prescribed in § 740.30.50(a) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-23

Payments (APR 2013)

The judiciary will pay the contractor, upon the submission of proper 

invoices or vouchers, the prices stipulated in this contract for products 

delivered and accepted or services rendered and accepted, less any 

deductions provided in this contract. Unless otherwise specified in this 

contract, payment will be made on partial deliveries accepted by the 

judiciary if:

(1) the amount due on the deliveries warrants it; or

(2) the contractor requests it and the amount due on the deliveries is at least 

$1,000 or 50 percent of the total contract price.

Unless authorized elsewhere in this contract, payments will not be made more 

often than monthly.

(end)

Clause 7-140, Discounts for Prompt Payment

Include the following clause as prescribed in § 740.30.50(b) (Clauses).

Discounts for Prompt Payment (JAN 2003)

(a) Discounts for prompt payment will not be considered in the evaluation of offers. 

However, any offered discount will form a part of the award, and will be taken if 

payment is made within the discount period indicated in the offer by the offeror. 

As an alternative to offering a discount for prompt payment in conjunction with 

the offer, offerors awarded contracts may include discounts for prompt payment 

on individual invoices.

(b) In connection with any discount offered for prompt payment, time will be 

computed from the date of the invoice. If the contractor has not placed a date on 

the invoice, the due date will be calculated from the date the designated billing 

office receives a proper invoice, provided the judiciary annotates such invoice 

with the date of receipt at the time of receipt. For the purpose of computing the 

discount earned, payment will be considered to have been made on the date that 

appears on the payment check or, for an electronic funds transfer, the specified 

payment date. When the discount date falls on a Saturday, Sunday, or legal 

holiday when judiciary offices are closed and judiciary business is not expected 

to be conducted, payment may be made on the following business day.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-24

Clause 7-145, Government Purchase Card

Include the following clause as prescribed in § 740.30.50(c) (Clauses).

Government Purchase Card (JAN 2003)

(a) Card holders may use an authorized government purchase card to make 

payments for orders placed against this contract.

(b) Purchase Card Terms: In accepting the purchase card as payment, the 

contractor agrees to abide by the terms of the GSA purchase card contract.

(c) Backorder: In accordance with the GSA purchase card contract, the contractor 

may not charge for back-ordered products before shipment,

(d) Taxes: government purchases are generally not subject to state or local taxes, 

with limited exceptions in Arizona, New Mexico and Hawaii.

(e) Unauthorized card: If the contractor determines that the card bearer is not an 

authorized cardholder, or that the card is not an authorized government purchase 

card, then the contractor shall immediately notify the contracting officer.

(f) Disputes: Any purchase card disputes will be resolved in accordance with the 

GSA purchase card contract.

(g) Payments: Purchase card payments will be made in accordance with the GSA 

purchase card contract.

(end)

Clause 7-150, Extras

Include the following clause as prescribed in § 740.30.50(d) (Clauses).

Extras (JAN 2003)

Except as otherwise provided in this contract, no payment for extras will 

be made unless such extras, and the price for such extras, have been 

authorized in writing by the contracting officer.

(end)

Clause 7-155, Certification of Final Indirect Costs

Include the following clause as prescribed in § 740.30.50(e) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-25

Certification of Final Indirect Costs (JAN 2003)

(a) The contractor shall:

(1) certify any offer to establish or modify final indirect cost rates;

(2) use the format in paragraph (c) of this clause to certify; and

(3) have the certificate signed by an individual of the contractor's organization 

at a level no lower than a vice president or chief financial officer of the 

business segment of the contractor that submits the offer.

(b) Failure by the contractor to submit a signed certificate, as described in this 

clause, may result in final indirect costs at rates unilaterally established by the 

contracting officer.

(c) The certificate of final indirect costs shall read as follows:

Certificate of Final Indirect Costs

This is to certify that I have reviewed this offer to establish final indirect 

cost rates and to the best of my knowledge and belief:

(1) all costs included in this offer ____________(identify offer and date) to 

establish final indirect cost rates for ________(identify period covered by 

rate) are allowable in accordance with the cost principles in Guide to 

Judiciary Policy, Vol. 14, Ch. 4 applicable to the contracts to which the 

final indirect cost rates will apply; and

(2) this offer does not include any costs which are expressly unallowable 

under cost principles of Guide to Judiciary Policy, Vol. 14, Ch. 4.

Firm: _____________________________________

Signature: _________________________________

Name of Certifying Official: __________________

Title: _____________________________________

Date of Execution: __________________________

(end)

Clause 7-160, Limitation on Withholding of Payments

Include the following clause as prescribed in § 740.40.50(a) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-26

Limitation on Withholding of Payments (APR 2013)

If more than one clause or term of this contract authorizes the temporary 

withholding of amounts otherwise payable to the contractor for products 

delivered or services performed, the total of the amounts withheld at any 

one time shall not exceed the greatest amount that may be withheld under 

any one clause or term at that time; provided, that this limitation shall not 

apply to:

(1) withholdings pursuant to any clause relating to wages or hours of 

employees;

(2) withholdings not specifically provided for by this contract;

(3) the recovery of overpayments; and

(4) any other withholding for which the contracting officer determines that this 

limitation is inappropriate.

(end)

Clause 7-165, Penalties for Unallowable Costs

Include the following clause as prescribed in § 740.40.50(b) (Clauses).

Penalties for Unallowable Costs (JUN 2012)

(a) Definition. "Offer," as used in this clause, means either:

(1) a final indirect cost rate offer submitted by the contractor after the 

expiration of its fiscal year which:

(i) relates to any payment made on the basis of billing rates; or

(ii) will be used in negotiating the final contract price; or

(2) the final statement of costs incurred and estimated to be incurred under 

the Incentive Price Revision clause (if applicable), which is used to 

establish the final contract price.

(b) Contractors that include unallowable indirect costs in an offer may be subject to 

penalties. The penalties are prescribed in 10 U.S.C. § 2324 or 41 U.S.C. § 4303, 

as applicable.

(c) The contractor shall not include in any offer any cost that is unallowable, as 

defined in Guide to Judiciary Policy, Vol. 14, Ch. 4.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-27

(d) If the contracting officer determines that a cost submitted by the contractor in its 

offer is expressly unallowable, the contractor shall be assessed a penalty equal 

to:

(1) the amount of the disallowed cost allocated to this contract; plus

(2) simple interest, to be computed:

(i) on the amount the contractor was paid on a billing payment in 

excess of the amount to which the contractor was entitled; and

(ii) using the applicable rate effective for each six-month interval 

prescribed by the Secretary of the Treasury pursuant to Pub. L. 92-

41 (85 Stat. 97).

(e) If the contracting officer determines that a cost submitted by the contractor in its 

offer includes a cost previously determined to be unallowable for that contractor, 

then the contractor will be assessed a penalty in an amount equal to two times 

the amount of the disallowed cost allocated to this contract.

(f) Determinations under paragraphs (d) and (e) of this clause are final decisions.

(g) In certain cases, the contracting officer may waive the penalties in paragraph (d) 

or (e) of this clause. The contracting officer will provide a written determination of 

the reasons for the waiver in the contract file.

(h) Payment by the contractor of any penalty assessed under this clause does not 

constitute repayment to the judiciary of any unallowable cost which has been 

paid by the judiciary to the contractor.

(end)

Clause 7-170, Notice of Intent to Disallow Costs

Include the following clause as prescribed in § 740.40.50(c) (Clauses).

Notice of Intent to Disallow Costs (JAN 2003)

(a) Notwithstanding any other clause of this contract:

(1) The contracting officer may at any time issue to the contractor a written 

notice of intent to disallow specified costs incurred or planned for 

incurrence under this contract that have been determined not to be 

allowable under the contract terms; and

(2) The contractor may, after receiving a notice under paragraph (a)(1) of this 

clause, submit a written response to the contracting officer, with 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-28

justification for allowance of the costs. If the contractor does respond 

within 60 days, the contracting officer will, within 60 days of receiving the 

response, either make a written withdrawal of the notice or issue a written 

decision.

(b) Failure to issue a notice under this Notice of Intent to Disallow Costs clause will 

not affect the judiciary's rights to take exception to incurred costs.

(end)

Clause 7-175, Assignment of Claims

Include the following clause as prescribed in § 740.50.40(a) (Clauses).

Assignment of Claims (JAN 2003)

(a) The contractor may assign its rights to be paid amounts due or to become due as 

a result of the performance of this contract to a bank, trust company, or other 

financing institution, including any federal lending agency. The assignee under 

such an assignment may thereafter further assign or reassign its right under the 

original assignment to any type of financing institution described in the preceding 

sentence.

(b) Any assignment or reassignment authorized under this clause will cover all 

unpaid amounts payable under this contract, and will not be made to more than 

one party, except that an assignment or reassignment may be made to one party 

as agent or trustee for two or more parties participating in the financing of this 

contract.

(c) The contractor shall not furnish or disclose to any assignee under this contract 

any sensitive or classified document (including this contract) or information 

related to work under this contract unless the contracting officer authorizes such 

action in writing.

(end)

Clause 7-180, Prohibition of Assignment of Claims

Include the following clause as prescribed in § 740.50.40(b) (Clauses).

Prohibition of Assignment of Claims (JUN 2012)

The assignment of claims under the Assignment of Claims Act of 1940, as 

amended, 31 U.S.C. § 3727, 41 U.S.C. § 6305, is prohibited for this 

contract.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-29

Clause 7-185, Changes

Include the following clause as prescribed in § 745.40.40(a) (Clauses).

Changes (APR 2013)

(a) The contracting officer may at any time, by written order, and without notice to 

the sureties, if any, make changes within the general scope of this contract in any 

one or more of the following:

(1) drawings, designs, or specifications when the products to be furnished are 

to be specially manufactured for the judiciary in accordance with the 

drawings, designs, or specifications;

(2) statement of work or description of services to be performed;

(3) method of shipment or packing of products;

(4) place of delivery of products or place of performance;

(5) delivery or performance schedule, time (i.e., hours of the day, days of the 

week, etc.) or place of delivery or performance of services;

(6) judiciary-furnished property or facilities.

(b) If any such change causes an increase or decrease in the cost of, or the time 

required for, performance of any part of the work under this contract, whether or 

not changed by the order, the contracting officer will make an equitable 

adjustment in the contract price, the delivery schedule, or both, and will modify 

the contract.

(c) The contractor shall assert its right to an adjustment within 30 days from the date 

of receipt of the written order. However, if the contracting officer decides that the 

facts justify it, the contracting officer may receive and act upon an offer submitted 

before final payment of the contract.

(d) If the contractor’s offer includes the cost of property made obsolete or excess by 

the change, the contracting officer will have the right to prescribe the manner of 

the disposition of the property.

(e) Failure to agree to any adjustment is a dispute under the Disputes clause. 

However, nothing in this clause will excuse the contractor from proceeding with 

the contract as changed.

(end)
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-30

Alternate I (APR 2013): In accordance with § 745.40.40(b) (Clauses), substitute the 

following paragraphs (b) and (d) for the same numbered paragraphs of the basic clause 

in cost-reimbursement contracts.

(b) If any such change causes an increase or decrease in the estimated cost of, or 

the time required for, performance of any part of the work under this contract, 

whether or not changed by the order, or otherwise affects any other terms and 

conditions of this contract, the contracting officer will make an equitable 

adjustment in the:

(1) estimated cost, delivery or completion schedule, or both;

(2) amount of any fixed fee; and

(3) other affected terms and shall modify the contract accordingly.

(d) Notwithstanding the terms and conditions of paragraphs (a) and (b) of this 

clause, the estimated cost of this contract and, if this contract is incrementally 

funded, the funds allotted for the performance of this contract, shall not be 

increased or considered to be increased except by specific written modification of 

the contract indicating the new contract estimated cost and, if this contract is 

incrementally funded, the new amount allotted to the contract. Until this 

modification is made, the contractor shall not be obligated to continue 

performance or incur costs beyond the point established in either Clause 4-85, 

Limitation of Cost, or Clause 4-90, Limitation of Funds, of this contract, whichever 

is applicable.

Alternate II (APR 2013): In accordance with § 745.40.40(c) (Clauses), substitute 

following for paragraph (b) of the basic clause in time-and-materials or labor-hour 

contracts.

(b) If any change causes an increase or decrease in the hourly rates, the ceiling 

price, or the time required for performance of any part of the work under this 

contract, whether or not changed by the order, or otherwise affects any other 

terms and conditions of this contract, the contracting officer will make an 

equitable adjustment in any one or more of the following and will modify the 

contract accordingly:

(1) ceiling price;

(2) hourly rates;

(3) delivery schedule or completion date; and

(4) other affected terms.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-31

Alternate III (APR 2013): In accordance with § 745.40.40(d) (Clauses), substitute 

following for paragraph (a) of the basic clause in firm-fixed-price architect-engineer 

contracts and add paragraph (f).

(a) The contracting officer may at any time, by written order, and without notice to 

the sureties, if any, make changes within the general scope of this contract in the 

services to be performed.

(f) No services for which an additional cost or fee will be charged by the contractor 

shall be furnished without the prior written authorization of the contracting officer.

Clause 7-190, Change Order Accounting

Include the following clause as prescribed in § 745.40.40(e) (Clauses).

Change Order Accounting (JAN 2003)

The contracting officer may require change order accounting whenever 

the estimated cost of a change or series of related changes exceeds the 

judiciary’s small purchase threshold. The contractor, for each change or 

series of related changes, shall maintain separate accounts, by job order 

or other suitable accounting procedure, of all incurred segregable, direct 

costs (less allocable credits) of work, both changed and not changed,

allocable to the change. The contractor shall maintain such accounts until 

the parties agree to an equitable adjustment for the changes ordered by 

the contracting officer or the matter is conclusively disposed of in 

accordance with the Disputes clause.

(end)

Clause 7-195, Excusable Delays

Include the following clause as prescribed in § 745.45.55(a) (Clauses).

Excusable Delays (JAN 2003)

(a) Except for defaults of subcontractors at any tier, the contractor will not be in 

default because of any failure to perform this contract under its terms if the failure 

arises from causes beyond the control and without the fault or negligence of the 

contractor. Examples of these causes are (1) acts of God or of the public enemy, 

(2) acts of the government in its sovereign capacity or of the judiciary in its 

contractual capacity, (3) fires, (4) floods, (5) epidemics, (6) quarantine 

restrictions, (7) strikes, (8) freight embargoes, and (9) unusually severe weather. 

In each instance, the failure to perform shall be beyond the control and without 

the fault or negligence of the contractor. “Default” includes failure to make 

progress in the work so as to endanger performance.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-32

(b) If failure to perform is caused by the failure of a subcontractor at any tier to 

perform or make progress, and if the cause of the failure was beyond the control 

of both the contractor and subcontractor, and without the fault or negligence of 

either, the contractor will not be deemed to be in default, unless:

(1) the subcontract products or services were obtainable from other sources;

(2) the contracting officer ordered the contractor in writing to purchase these 

products or services from the other source; and

(3) the contractor failed to comply reasonably with this order.

(c) Upon request of the contractor, the contracting officer will ascertain the facts and 

extent of the failure. If the contracting officer determines that any failure to 

perform resulted from one or more of the causes above, the delivery schedule 

will be revised, subject to the rights of the judiciary under the termination clause 

of this contract.

(end)

Clause 7-200, Judiciary Delay of Work

Include the following clause as prescribed in § 745.45.55(b) (Clauses).

Judiciary Delay of Work (JAN 2003)

(a) If the performance of all or any part of the work of this contract is delayed or 

interrupted (1) by an act of the contracting officer in the administration of this 

contract that is not expressly or impliedly authorized by this contract, or (2) by a 

failure of the contracting officer to act within the time specified in this contract, or 

within a reasonable time if not specified, an adjustment (excluding profit) will be 

made for any increase in the cost of performance of this contract caused by the 

delay or interruption and the contract will be modified in writing accordingly. 

Adjustment will also be made in the delivery or performance dates and any other 

contractual term or condition affected by the delay or interruption. However, no 

adjustment will be made under this clause for any delay or interruption to the 

extent that performance would have been delayed or interrupted by any other 

cause, including the fault or negligence of the contractor, or for which an 

adjustment is provided or excluded under any other term or condition of this 

contract.

(b) A claim under this clause will not be allowed:

(1) for any costs incurred more than 20 days before the contractor shall have 

notified the contracting officer in writing of the act or failure to act involved; 

and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-33

(2) unless the claim, in an amount stated, is asserted in writing as soon as 

practicable after the termination of the delay or interruption, but not later 

than the day of final payment under the contract.

(end)

Clause 7-205, Payment for Judiciary Holidays

Include the following clause as prescribed in § 745.45.55(c) (Clauses).

Payment for Judiciary Holidays (OCT 2023)

On judiciary holidays, on-site contractors are not entitled to compensation 

unless:

(1) the contract requires the contractor to be on-site at the judiciary facility 

during the holiday;

(2) the contract specifically provides for compensation to the contractor on 

judiciary holidays; or

(3) the contractor obtains written approval from the contracting officer or 

designated contracting officer’s representative (COR) to perform work at 

an off-site location. The following holidays are observed by the judiciary: 

New Year’s Day, Birthday of Martin Luther King, Jr., Presidential 

Inauguration Day (metropolitan DC area only), Washington’s Birthday, 

Memorial Day, Juneteenth National Independence Day, Independence 

Day, Labor Day, Columbus Day, Veteran’s Day, Thanksgiving Day, 

Christmas Day.

(end)

Clause 7-210, Payment for Emergency Closures

Include the following clause as prescribed in § 745.45.55(d) (Clauses).

Payment for Emergency Closures (APR 2013)

During an emergency closure of the judiciary, or any individual judiciary 

office, taken in its sovereign capacity for the public good, the judiciary is 

not obligated to compensate contractors during the emergency closure, 

unless: 1) the contract specifically requires the contractor to be on-site at 

the judiciary facility during an emergency closure; 2) the contract 

specifically provides for compensation to the contractor even when the 

government acts in its sovereign capacity; or 3) the contractor obtains 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-34

approval from the contracting officer or designated contracting officer’s 

representative (COR) to perform work at an off-site location.

(end)

Clause 7-215, Notification of Ownership Changes

Include the following clause as prescribed in § 745.55.40(i) (Novation Agreements).

Notification of Ownership Changes (JAN 2003)

(a) The contractor shall make the following notifications in writing:

(1) when the contractor becomes aware that a change in its ownership has 

occurred, or is certain to occur, that could result in changes in the 

valuation of its capitalized assets in the accounting records, the contractor 

shall notify the contracting officer within 30 days;

(2) the contractor shall also notify the contracting officer within 30 days 

whenever changes to asset valuations or any other cost changes have 

occurred or are certain to occur as a result of a change in ownership.

(b) The contractor shall:

(1) maintain current, accurate, and complete inventory records of assets and 

their costs;

(2) provide the contracting officer or designated representative ready access 

to the records upon request;

(3) ensure that all-individual and grouped assets, their capitalized values, 

accumulated depreciation or amortization, and remaining useful lives are 

identified accurately before and after each of the contractor's ownership 

changes; and

(4) retain and continue to maintain depreciation and amortization schedules 

based on the asset records maintained before each contractor ownership 

change.

(c) The contractor shall include the substance of this clause in all subcontracts under 

this contract.

(end)

Clause 7-220, Termination for Convenience of the Judiciary (Fixed-Price)

Include the following clause as prescribed in § 755.20.60(a) (Clauses).
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-35

Termination for Convenience of the Judiciary (Fixed-Price) (JAN 

2003)

(a) The judiciary may terminate performance of work under this contract in whole or, 

from time to time, in part if the contracting officer determines that termination is in 

the judiciary’s interest. The contracting officer will terminate by delivering to the 

contractor a notice of termination specifying the extent of the termination and the 

effective date.

(b) After receipt of a notice of termination, and except as directed by the contracting 

officer, the contractor shall immediately proceed with the following obligations, 

regardless of any delay in determining or adjusting any amounts due under this 

clause:

(1) stop work as specified in the notice;

(2) place no further subcontracts or orders (referred to as subcontracts in this 

clause) for materials, services, or facilities except as necessary to 

complete the continued portion of the contract;

(3) terminate all orders and subcontracts to the extent they relate to the work 

terminated;

(4) assign to the judiciary, as directed by the contracting officer, all right, title, 

and interest of the contractor under the subcontracts terminated, in which 

case the judiciary shall have the right to settle or to pay any termination 

settlement offer arising out of those terminations;

(5) with written approval or ratification to the extent required by the 

contracting officer, settle all outstanding liabilities and termination 

settlement offers arising from the termination of subcontracts; the written 

approval or ratification will be final for purposes of this clause;

(6) as directed by the contracting officer, transfer title and deliver to the 

judiciary:

(i) the fabricated or unfabricated parts, work in process, completed 

work, supplies, and other material produced or acquired for the 

work terminated; and

(ii) the completed or partially completed plans, drawings, information, 

and other property that, if the contract had been completed, would 

be required to be furnished to the judiciary;

(7) complete performance of the work not terminated;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-36

(8) take any action that may be necessary, or that the contracting officer may 

direct, for the protection and preservation of the property related to this 

contract that is in the possession of the contractor and in which the 

judiciary has or may acquire an interest;

(9) use its best efforts to sell, as directed or authorized by the contracting 

officer, any property of the types referred to in paragraph (b)(6) of this 

clause, provided, however, that the contractor (i) is not required to extend

credit to any purchaser and (ii) may acquire the property under the 

conditions prescribed by, and at prices approved in writing by, the 

contracting officer. The proceeds of any transfer or disposition will be 

applied to reduce any payments to be made by the judiciary under this 

contract, credited to the price or cost of the work, or paid in any other 

manner directed by the contracting officer.

(c) The contractor shall submit complete termination inventory schedules no later 

than 120 days from the effective date of termination, unless extended in writing 

by the contracting officer upon written request of the contractor within this 120-

day period.

(d) After expiration of the plant clearance period, the contractor may submit to the 

contracting officer a list, certified as to quantity and quality, of termination 

inventory not previously disposed of, excluding items authorized for disposition 

by the contracting officer. The contractor may request the judiciary to remove 

those items or enter into an agreement for their storage. Within 15 days, the 

judiciary will accept title to those items and remove them or enter into a storage 

agreement. The contracting officer may verify the list upon removal of the items, 

or if stored, within 45 days from submission of the list, and will correct the list, as 

necessary, before final settlement.

(e) After termination, the contractor shall submit a final termination settlement offer 

to the contracting officer in the form and with the certification prescribed by the 

contracting officer. The contractor shall submit the offer promptly, but no later 

than 1 year from the effective date of termination, unless extended in writing by 

the contracting officer upon written request of the contractor within this 1-year 

period. However, if the contracting officer determines that the facts justify it, a 

termination settlement offer may be received and acted on after the 1 year or any 

extension. If the contractor fails to submit the offer within the time allowed, the 

contracting officer may determine, on the basis of information available, the 

amount, if any, due the contractor because of the termination and shall pay the 

amount determined.

(f) Subject to paragraph (e) of this clause, the contractor and contracting officer may 

agree upon the whole or any part of the amount to be paid or remaining to be 

paid because of the termination. The amount may include a reasonable 

allowance for profit on work done. However, the agreed amount, whether under 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-37

this paragraph (f) or paragraph (g) of this clause, exclusive of costs shown in 

paragraph (g)(3) of this clause, may not exceed the total contract price as 

reduced by (1) the amount of payments previously made and (2) the contract 

price of work not terminated. The contract will be modified, and the contractor 

paid the agreed amount. Paragraph (g) of this clause will not limit, restrict, or 

affect the amount that may be agreed upon to be paid under this paragraph.

(g) If the contractor and the contracting officer fail to agree on the whole amount to 

be paid because of the termination of work, the contracting officer will pay the 

contractor amounts determined by the contracting officer as follow, but without 

duplication of any amounts agreed on under paragraph (f) of this clause:

(1) the contract price for completed products or services accepted by the 

judiciary (or sold or acquired under paragraph (b)(9) of this clause) not 

previously paid for, adjusted for any saving of freight and other charges;

(2) the total of:

(i) the costs incurred in the performance of the work terminated, 

including initial costs and preparatory expense allocable thereto, 

but excluding any costs attributable to products or services paid or 

to be paid under paragraph (g)(1) of this clause;

(ii) the cost of settling and paying termination settlement offers under 

terminated subcontracts that are properly chargeable to the 

terminated portion of the contract if not included in subdivision 

(g)(2)(i) of this clause; and

(iii) a sum, as profit on subdivision (g)(2)(i) of this clause, determined 

by the contracting officer; in effect on the date of the contract, to be 

fair and reasonable; however, if it appears that the contractor would 

have sustained a loss on the entire contract had it been completed, 

the contracting officer will allow no profit under this subdivision 

(g)(2)(iii) and will reduce the settlement to reflect the indicated rate 

of loss.

(3) the reasonable costs of settlement of the work terminated, including:

(i) accounting, legal, clerical, and other expenses reasonably 

necessary for the preparation of termination settlement offers and 

supporting data;

(ii) the termination and settlement of subcontracts (excluding the 

amounts of such settlements); and
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-38

(iii) storage, transportation, and other costs incurred, reasonably 

necessary for the preservation, protection, or disposition of the 

termination inventory.

(h) Except for normal spoilage, and except to the extent that the judiciary expressly 

assumed the risk of loss, the contracting officer will exclude from the amounts 

payable to the contractor under paragraph (g) of this clause, the fair value, as 

determined by the contracting officer, of property that is destroyed, lost, stolen, or 

damaged so as to become undeliverable to the judiciary or to a buyer.

(i) The cost principles and procedures of Guide to Judiciary Policy, Vol. 14, Ch. 4 in 

effect on the date of this contract will govern all costs claimed, agreed to, or 

determined under this clause.

(j) The contractor shall have the right of appeal under the Disputes clause, from any 

determination made by the contracting officer under paragraph (e), (g), or (l) of 

this clause, except that if the contractor has failed to submit the termination 

settlement offer or request for equitable adjustment within the time provided in 

paragraph (e) or (l), respectively, and failed to request an extension of time, there 

is no right of appeal.

(k) In arriving at the amount due the contractor under this clause, there will be 

deducted:

(1) all unliquidated advance or other payments to the contractor under the 

terminated portion of this contract;

(2) any claim which the judiciary has against the contractor under this 

contract; and

(3) the agreed price for, or the proceeds of sale of materials, products, or 

other things acquired by the contractor or sold under the provisions of this 

clause and not recovered by or credited to the judiciary.

(l) If the termination is partial, the contractor may file an offer with the contracting 

officer for an equitable adjustment of the price(s) of the continued portion of the 

contract. The contracting officer will make any equitable adjustment agreed 

upon. Any offer by the contractor for an equitable adjustment under this clause 

shall be requested within 90 days from the effective date of termination unless 

extended in writing by the contracting officer.

(m) (1) The judiciary may, under the terms and conditions it prescribes, make 

partial payments and payments against costs incurred by the contractor 

for the terminated portion of the contract, if the contracting officer believes 

the total of these payments will not exceed the amount to which the 

contractor will be entitled.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-39

(2) If the total payments exceed the amount finally determined to be due, the 

contractor shall repay the excess to the judiciary upon demand, together 

with interest computed at the rate established by the Secretary of the 

Treasury under 50 U.S.C. App. 1215(b)(2). Interest will be computed for 

the period from the date the excess is repaid. Interest will not be charged 

on any excess payment due to a reduction in the contractor’s termination 

settlement offer because of retention or other disposition of termination 

inventory until 10 days after the date of the retention or disposition, or a 

later date determined by the contracting officer because of the 

circumstances.

(n) Unless otherwise provided in this contract, or by statute, the contractor shall 

maintain all records and documents relating to the terminated portion of this 

contract for 3 years after final settlement. This includes all books and other 

evidence bearing on the contractor’s costs and expenses under this contract. 

The contractor shall make these records and documents available to the 

judiciary, at the contractor’s office, at all reasonable times, without any direct 

charge. If approved in writing by the contracting officer, photographs, 

microphotographs, or other authentic reproductions may be maintained instead 

of original records and documents.

(end)

Clause 7-223 Termination for Convenience of the Judiciary (Short Form)

Include the following clause as prescribed in § 755.20.60(b) (Clauses).

Termination for Convenience of the Judiciary (Short Form) (AUG 

2004)

The contracting officer, by written notice, may terminate this contract, in 

whole or in part, when it is in the judiciary’s interest. If this contract is 

terminated, the judiciary shall be liable only for payment under the 

payment provisions of this contract for products received or services 

rendered before the effective date of termination.

(end)

Clause 7-225, Termination (Cost-Reimbursement)

Include the following clause as prescribed in § 755.20.60(c) (Clauses).

Termination (Cost-Reimbursement) (MAR 2019)

(a) The judiciary may terminate performance of work under this contract in whole or, 

from time to time, in part, if:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-40

(1) the contracting officer determines that a termination is in the judiciary's 

interest; or

(2) the contractor defaults in performing this contract and fails to cure the 

default within 10 days (unless extended by the contracting officer) after 

receiving a notice specifying the default. "Default" includes failure to make 

progress in the work so as to endanger performance.

(b) The contracting officer will terminate by delivering to the contractor a notice of 

termination specifying whether termination is for default of the contractor or for 

convenience of the judiciary, the extent of termination, and the effective date. If, 

after termination for default, it is determined that the contractor was not in default 

or that the contractor's failure to perform or to make progress in performance is 

due to causes beyond the control and without the fault or negligence of the 

contractor as set forth in the Excusable Delays clause, the rights and obligations 

of the parties will be the same as if the termination was for the convenience of 

the judiciary.

(c) After receipt of a Notice of Termination, and except as directed by the contracting 

officer, the contractor shall immediately proceed with the following obligations, 

regardless of any delay in determining or adjusting any amounts due under this 

clause:

(1) stop work as specified in the notice;

(2) place no further subcontracts or orders (referred to as subcontracts in this 

clause), except as necessary to complete the continued portion of the 

contract;

(3) terminate all subcontracts to the extent they relate to the work terminated;

(4) assign to the judiciary, as directed by the contracting officer, all right, title, 

and interest of the contractor under the subcontracts terminated, in which 

case the judiciary will have the right to settle or to pay any termination 

settlement offer arising out of those terminations;

(5) with written approval or ratification to the extent required by the 

contracting officer, settle all outstanding liabilities and termination 

settlement offers arising from the termination of subcontracts, the cost of 

which would be reimbursable in whole or in part, under this contract; 

written approval or ratification will be final for purposes of this clause;

(6) transfer title (if not already transferred) and, as directed by the contracting 

officer, deliver to the judiciary:
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-41

(i) the fabricated or unfabricated parts, work in process, completed 

work, products, and other material produced or acquired for the 

work terminated;

(ii) the completed or partially completed plans, drawings, information, 

and other property that, if the contract had been completed, would 

be required to be furnished to the judiciary; and

(iii) the jigs, dies, fixtures, and other special tools and tooling acquired 

or manufactured for this contract, the cost of which the contractor 

has been or will be reimbursed under this contract;

(7) complete performance of the work not terminated;

(8) take any action that may be necessary, or that the contracting officer may 

direct, for the protection and preservation of the property related to this 

contract that is in the possession of the contractor and in which the 

judiciary has or may acquire an interest; and

(9) use its best efforts to sell, as directed or authorized by the contracting 

officer, any property of the types referred to in paragraph (c)(6) of this 

clause; provided, however, that the contractor (i) is not required to extend 

credit to any purchaser and (ii) may acquire the property under the 

conditions prescribed by, and at prices approved in writing by the 

contracting officer. The proceeds of any transfer or disposition will be 

applied to reduce any payments to be made by the judiciary under this 

contract, credited to the price or cost of the work, or paid in any other 

manner directed by the contracting officer.

(d) The contractor shall submit complete termination inventory schedules no later 

than 120 days from the effective date of termination, unless extended in writing 

by the contracting officer upon written request of the contractor within this 120-

day period.

(e) After expiration of the plant clearance period, the contractor may submit to the 

contracting officer a list, certified as to quantity and quality, of termination 

inventory not previously disposed of, excluding items authorized for disposition 

by the contracting officer. The contractor may request the judiciary to remove 

those items or enter into an agreement for their storage. Within 15 days, the 

judiciary will accept the items and remove them or enter into a storage 

agreement. The contracting officer may verify the list upon removal of the items, 

or if stored, within 45 days from submission of the list, and will correct the list, as 

necessary, before final settlement.

(f) After termination, the contractor shall submit a final termination settlement offer 

to the contracting officer in the form and with the certification prescribed by the 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-42

contracting officer. The contractor shall submit the offer promptly, but no later 

than 1 year from the effective date of termination, unless extended in writing by 

the contracting officer upon written request of the contractor within this 1-year 

period. However, if the contracting officer determines that the facts justify it, a 

termination settlement offer may be received and acted on after 1 year or any 

extension. If the contractor fails to submit the offer within the time allowed, the 

contracting officer may determine, on the basis of information available, the 

amount, if any, due the contractor because of the termination and will pay the 

amount determined.

(g) Subject to paragraph (f) of this clause, the contractor and the contracting officer 

may agree on the whole or any part of the amount to be paid (including an 

allowance for fee) because of the termination. The contract will be amended, 

and the contractor paid the agreed amount.

(h) If the contractor and the contracting officer fail to agree in whole or in part on the 

amount of costs and/or fee to be paid because of the termination of work, the 

contracting officer will determine, on the basis of information available, the 

amount, if any, due the contractor, and will pay that amount, which will include 

the following:

(1) all costs reimbursable under this contract, not previously paid, for the 

performance of this contract before the effective date of the termination, 

and those costs that may continue for a reasonable time with the written 

approval of or as directed by the contracting officer; however, the 

contractor shall discontinue those costs as rapidly as practicable;

(2) the cost of settling and paying termination settlement offers under 

terminated subcontracts that are properly chargeable to the terminated 

portion of the contract if not included in paragraph (h)(1) of this clause;

(3) the reasonable costs of settlement of the work terminated, including:

(i) accounting, legal, clerical, and other expenses reasonably 

necessary for the preparation of termination settlement offers and 

supporting data;

(ii) the termination and settlement of subcontracts (excluding the 

amounts of such settlements); and

(iii) storage, transportation, and other costs incurred, reasonably 

necessary for the preservation, protection, or disposition of the 

termination inventory. If the termination is for default, no amounts 

for the preparation of the contractor's termination settlement offer 

may be included;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-43

(4) a portion of the fee payable under the contract, determined as follows:

(i) if the contract is terminated for the convenience of the judiciary, the 

settlement will include a percentage of the fee equal to the 

percentage of completion of work contemplated under the contract, 

but excluding subcontract effort included in subcontractors' 

termination offers, less previous payments for fee;

(ii) if the contract is terminated for default, the total fee payable will be

such proportionate part of the fee as the total number of articles (or 

amount of services) delivered to and accepted by the judiciary is to 

the total number of articles (or amount of services) of a like kind 

required by the contract.

(5) If the settlement includes only fee, it will be determined under paragraph 

(h)(4) of this clause.

(i) The cost principles and procedures in effect on the date of this contract, will 

govern all costs claimed, agreed to, or determined under this clause.

(j) The contractor shall have the right of appeal, under the Disputes clause, from 

any determination made by the contracting officer under paragraph (f), (h), or (l) 

of this clause, except that if the contractor failed to submit the termination 

settlement offer within the time provided in paragraph (f) and failed to request a 

time extension, there is no right of appeal. If the contracting officer has made a 

determination of the amount due under paragraph (f), (h) or (l) of this clause, the 

judiciary will pay the contractor:

(1) the amount determined by the contracting officer if there is no right of 

appeal or if no timely appeal has been taken or

(2) the amount finally determined on an appeal.

(k) In arriving at the amount due the contractor under this clause, there will be 

deducted:

(1) all unliquidated advance or other payments to the contractor, under the 

terminated portion of this contract;

(2) any claim which the judiciary has against the contractor under this 

contract; and

(3) the agreed price for, or the proceeds of sale of materials, products, or 

other things acquired by the contractor or sold under this clause and not 

recovered by or credited to the judiciary.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-44

(l) The contractor and contracting officer shall agree to any equitable adjustment in 

fee for the continued portion of the contract when there is a partial termination. 

The contracting officer will amend the contract to reflect the agreement.

(m) (1) The judiciary may, under the terms and conditions it prescribes, make 

partial payments and payments against costs incurred by the contractor 

for the terminated portion of the contract, if the contracting officer believes 

the total of these payments will not exceed the amount to which the 

contractor will be entitled.

(2) If the total payments exceed the amount finally determined to be due, the 

contractor shall repay the excess to the judiciary upon demand, together 

with interest computed at the rate established by the Secretary of the 

Treasury under the criteria established by the Renegotiation Act of 1971 

(P.L. 92-41, 85 Stat. 97), and published at 

https://www.fiscal.treasury.gov/prompt-payment/. Interest will be 

computed for the period from the date the excess payment is received by 

the contractor to the date the excess is repaid. Interest will not be 

charged on any excess payment due to a reduction in the contractor's 

termination settlement offer because of retention or other disposition of 

termination inventory until 10 days after the date of the retention or 

disposition, or a later date determined by the contracting officer because 

of the circumstances.

(n) The provisions of this clause relating to fee are inapplicable if this contract does 

not include a fee.

(end)

Alternate I (APR 2013): As prescribed in § 755.20.60(d) (Clauses), substitute the 

following paragraphs (h) and (l) for paragraphs (h) and (l) of the basic Clause 7-225.

(h) If the contractor and the contracting officer fail to agree in whole or in part on the 

amount to be paid because of the termination of work, the contracting officer will 

determine, on the basis of information available, the amount, if any, due the 

contractor and will pay the amount determined as follows:

(1) If the termination is for the convenience of the judiciary, include:

(i) an amount for direct labor hours (as defined in the contract) 

determined by multiplying the number of direct labor hours 

expended before the effective date of termination by the hourly 

rate(s) in the contract, less any hourly rate payments already made 

to the contractor;
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-45

(ii) an amount (computed under the provisions for payment of 

materials) for material expenses incurred before the effective date 

of termination, not previously paid to the contractor;

(iii) an amount for labor and material expenses computed as if the 

expenses were incurred before the effective date of termination, if 

they are reasonably incurred after the effective date, with the 

approval of or as directed by the contracting officer; however, the 

contractor shall discontinue these expenses as rapidly as 

practicable;

(iv) if not included in subdivision (h)(1)(i), (ii), or (iii) of this clause, the 

cost of settling and paying termination settlement proposals under 

terminated subcontracts that are properly chargeable to the 

terminated portion of the contract; and

(v) the reasonable costs of settlement of the work terminated; 

including:

(A) accounting, legal, clerical, and other expenses reasonably 

necessary for the preparation of termination settlement 

proposals and supporting data;

(B) the termination and settlement of subcontracts (excluding 

the amounts of such settlements); and

(C) storage, transportation, and other costs incurred, reasonably 

necessary for the protection or disposition of the termination 

inventory.

(2) If the termination is for default of the contractor, include the amounts 

computed under paragraph (h)(1) of this clause but omit:

(i) any amount for preparation of the contractor’s termination 

settlement proposal; and

(ii) the portion of the hourly rate allocable to profit for any direct labor 

hours expended in furnishing materials and services not delivered 

to and accepted by the judiciary.

(l) If the termination is partial, the contractor may file with the contracting officer a 

proposal for an equitable adjustment of price(s) for the continued portion of the 

contract. The contracting officer will make any equitable adjustment agreed 

upon. Any proposal by the contractor for an equitable adjustment under this 

clause shall be requested within 90 days from the effective date of termination, 

unless extended in writing by the contracting officer.
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-46

Clause 7-230, Termination for Default (Fixed-Price – Products and Services)

Include the following clause as prescribed in § 755.25.60(a) (Clause).

Termination for Default (Fixed-Price – Products and Services) (JAN 

2003)

(a) (1) The judiciary may, subject to paragraphs (c) and (d) of this clause, by 

written notice of default to the contractor, terminate this contract in whole 

or in part if the contractor fails to:

(i) deliver the products or to perform the services within the time 

specified in this contract or any extension;

(ii) make progress, so as to endanger performance of this contract (but 

see paragraph (a)(2) of this clause); or

(iii) perform any of the other provisions of this contract (but see

paragraph (a)(2) of this clause).

(2) The judiciary's right to terminate this contract under subdivisions (a)(1)(ii) 

and (1)(iii) of this clause, may be exercised if the contractor does not cure 

the failure within 10 days (or more if authorized in writing by the 

contracting officer) after receipt of the notice from the contracting officer 

specifying the failure.

(b) If the judiciary terminates this contract in whole or in part, it may acquire, under 

the terms and in the manner the contracting officer considers appropriate, 

products or services similar to those terminated, and the contractor will be liable 

to the judiciary for any excess costs for those products or services. However, the 

contractor shall continue the work not terminated.

(c) Except for defaults of subcontractors at any tier, the contractor shall not be liable 

for any excess costs if the failure to perform the contract arises from causes 

beyond the control and without the fault or negligence of the contractor. 

Examples of such causes include (1) acts of God or of the public enemy, (2) acts 

of the government in its sovereign capacity or of the judiciary in its contractual 

capacity, (3) fires, (4) floods, (5) epidemics, (6) quarantine restrictions, (7) 

strikes, (8) freight embargoes, and (9) unusually severe weather. In each 

instance the failure to perform shall be beyond the control and without the fault or 

negligence of the contractor.

(d) If the failure to perform is caused by the default of a subcontractor at any tier, 

and if the cause of the default is beyond the control of both the contractor and 

subcontractor, and without the fault or negligence of either, the contractor shall 

not be liable for any excess costs for failure to perform, unless the subcontracted 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-47

products or services were obtainable from other sources in sufficient time for the 

contractor to meet the required delivery schedule.

(e) If this contract is terminated for default, the judiciary may require the contractor to 

transfer title and deliver to the judiciary, as directed by the contracting officer, any 

(1) completed products, and (2) partially completed products, and materials, 

parts, tools, dies, jigs, fixtures, plans, drawings, information, and contract rights 

(collectively referred to as “manufacturing materials” in this clause) that the 

contractor has specifically produced or acquired for the terminated portion of this 

contract. Upon direction of the contracting officer, the contractor shall also 

protect and preserve property in its possession in which the judiciary has an 

interest.

(f) The judiciary will pay the contract price for completed products delivered and 

accepted. The contractor and contracting officer will agree on the amount of 

payment for manufacturing materials delivered and accepted and for the 

protection and preservation of the property. Failure to agree will be a dispute 

under the Disputes clause. The judiciary may withhold from these amounts any 

sum the contracting officer determines to be necessary to protect the judiciary 

against loss because of outstanding liens or claims of former lien holders.

(g) If, after termination, it is determined that the contractor was not in default, or that 

the delay was excusable, the rights and obligations of the parties will be the 

same as if the termination had been issued for the convenience of the judiciary.

(h) The rights and remedies of the judiciary in this clause are in addition to any other 

rights and remedies provided by law or under this contract.

(end)

Clause 7-235, Disputes

Include the following clause as prescribed in § 750.20.70 (Clause).

Disputes (JAN 2003)

(a) A contract dispute means a written claim, demand or assertion by a contracting 

party for the payment of money in a sum certain, the adjustment or interpretation 

of contract terms, or other specific relief arising under or relating to the contract. 

A dispute also includes a termination for convenience settlement proposal and 

any request for an equitable adjustment, which is denied. A voucher, invoice, or 

other routine payment that is not disputed by the parties is not a dispute under 

this clause.

(b) A contract dispute shall be filed within 12 months of its accrual and shall be 

submitted in writing to the contracting officer. The dispute shall contain a 
Guide to Judiciary Policy, Vol. 14, Appx. 1B Page 1-48

detailed statement of the legal and factual basis of the dispute and shall be 

accompanied by any documents that support the claim. The claimant shall seek 

specific relief, as provided in paragraph (a) above. However, the time periods set 

forth here shall be superseded if the contract contains specific provisions for the 

processing of any claim which would otherwise be considered a dispute under 

this clause.

(c) Contracting officers are authorized to decide or settle all disputes under this 

clause. If the contracting officer requires additional information the contracting 

officer shall promptly request the claimant to provide such information. The 

contracting officer will issue a written determination within 60 days of the receipt 

of all the requested information from the claimant. If the contracting officer is 

unable to render a determination within 60 days, the claimant shall be notified of 

the date on which a determination will be made. The determination of the 

contracting officer shall be considered the final determination of the judiciary.

(d) The contractor shall proceed diligently with performance of this contract pending 

resolution of the dispute. The contractor shall comply with the final determination 

of the contracting officer unless such determination is overturned by a court of 

competent jurisdiction. Failure to diligently continue contract performance during 

the pendency of the claim or failure to comply with the final determination of the 

contracting officer may result in termination of the contract for default or 

imposition of other available remedies.

(end)
Last revised (Transmittal 

Guide to Judiciary Policy Vol. 14: Procurement Ch. 1: OverviewAppx. 1C: Matrix of Solicitation Provisions and Clauses (Including Key) Key to Matrix Prov or Cls Provision or Clause IBR? Incorporation by Reference authorized or not UCF Sec Uniform Contract Format Section (open market over $100,000 or certain special delegate

FP PROD Fixed-Price Product (open market over $100,000) CR PROD Cost-Reimbursement Product (open market over $100,000) FP SERV Fixed-Price Service (open market over $100,000) CR SERV Cost-Reimbursement Service (open market over $100,000) 

T&M LH Time & Material/Labor Hours A&E Architect-Engineering IND DEL Indefinite Delivery SM PUR Small Purchase (open market under $100,000) OFAC Other Federal Agency Contract — Include in delivery/task orders at any dollar level that a

contracts awarded by federal agencies outside of the judiciary, e.g., GSA schedule order

NASA SEWP contracts, orders under a BATF weapons contract, etc. 

R Required A Required when Applicable (See Provision or Clause prescription) * See Clause 3-3 (Provision or Clause is already included when Clause 3-3 is used for ope

purchases) 

Note 1: The following clauses are required for Experts or Consulting Services in addition to all and Required When Applicable clauses: 

 Clause 1-5, Conflict of Interest  Clause 2-65, Key Personnel 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

 Clause 5-1, Payments under Personal and Professional Services Contracts  Clause 5-5, Nondisclosure (Professional Services)  Clause 5 10, Inspection of Professional Services  Clause 5-20, Records Ownership  Provision 5-25, Identification of Uncompensated Overtime  Clause 6-70, Work for Hire  Clause 7-125 Invoices, Alternate I 

Note 2: The following clauses are required for Letter Contracts in addition to all other Required When Applicable clauses: 

 Clause 4-35, Execution and Commencement of Work (Letter Contract)  Clause 4-40, Limitation of Judiciary Liability (Letter Contract)  Clause 4-45, Contract Definitization  Clause 4-50, Payment of Allowable Costs Before Definitization 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

Provisions and Clauses (Appx. 1B and Chapter 1) 

B-1 Solicitation Provisions Incorporated by 

Reference 

Appx. B, § B.2.1.(a) 

P No L R R R R R 

B-5 Clauses Incorporated by Reference Appx. B, 

§ B.2.1.(b) 

C No I R R R R R 

B-10 RESERVED B-15 RESERVED B-20 Computer Generated Forms Appx. B, § B.2.1(c) C Yes I A A A A A 1-1 Employment by the Government § 150.30.40 C Yes H R R R 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

1-5 Conflict of Interest (See Note 1) § 150.30.40 and 

§ 520.75(a) 

C Yes I R R R 

1-10 Gratuities or Gifts § 150.50.50 C Yes I R R R R R 1-15 Disclosure of Contractor Information to the 

Public 

§ 170.70 C Yes I R R R R R 

Provisions and Clauses (Chapter 2) 

2-1 Request for Information or Solicitation for 

Planning Purposes 

§ 210.60.40 P No L A A A A A 

2-5A Inspection of Products § 220.10.70(a) C Yes E R R A 2-5B Inspection of Services § 220.10.70(b) C Yes E R R R 2-10 Responsibility for Products § 220.10.70(c) C Yes E R A 2-15 Warranty Information § 220.20.40(a) P Yes L A A A A A 2-20A Incorporation of Warranty § 220.20.40(b) C Yes I A A A A A 2-20B Contractor Warranty (Products) § 220.20.40(c) C Yes I A A A A A 2-20C Warranty of Services § 220.20.40(d) C No I A A A 2-25A Delivery Terms and Contractor's 

Responsibilities 

§ 220.25.70(a) C Yes F R R A 

2-25B Commercial Bill of Lading Notations § 220.25.70(b) C No F A A A 2-30A Time of Delivery § 220.25.70(c) C No F A A A 2-30B Desired and Required Time of Delivery § 220.25.70(d) C No F A A A 2-35 F.o.b. Destination, Within Judiciary's 

Premises 

§ 220.25.70(e) C Yes F A A 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

2-40A Variation in Quantity § 220.25.70(f) C No F A 2-40B Delivery of Excess Quantities § 220.25.70(g) C Yes F A 2-45 Packaging and Marking § 220.25.70(h) C Yes D R R A A A 2-50 Continuity of Services § 220.25.80(a) C Yes I A A A 2-55 Privacy or Security Safeguards § 220.25.80(b) C Yes I A A A A A 2-60 Stop-Work Order § 220.25.80(c) C Yes F R R R R R 2-65 Key Personnel (See Note 1) § 220.25.80(d) and 

§ 520.75(b) 

C No H A A A 

2-70 Site Visit § 220.25.80(e) P Yes L A A A 2-75 Liquidated Damages § 220.30.50 C No F A A A A A 2-80 Judiciary Property § 220.35(c) C Yes I A A A 2-85A Evaluation Inclusive of Options § 220.40.60(a)(1) P Yes M A A A A A 2-85B Evaluation Exclusive of Options § 220.40.60(a)(2) P Yes M A A A A A 2-85C Evaluation of Options Exercised at Time of 

Contract Award 

§ 220.40.60(a)(3) P Yes M A A A A A 

2-90A Option for Increased Quantity § 220.40.60(b)(1) C Yes I A A 2-90B Option for Increased Quantity – Separately 

Priced Line Item 

§ 220.40.60(b)(2) C No I A A A 

2-90C Option to Extend Services § 220.40.60(b)(3) C No I A A A 2-90D Option to Extend the Term of the Contract § 220.40.60(b)(4) C No I A A A A A 2-95 Material Requirements § 220.25.70(i) C Yes I R R 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

2-100 Brand Name or Equal § 230.40.30 P Yes L A A A 2-105 Economic Purchase Quantity – Products § 220.25.70(j) P No K A A 2-110 Option to Purchase Equipment § 220.45.70 C Yes I A A A A A 2-115 Terms for Commercial Advance Payment of 

Purchases 

§ 220.55.70(a) C Yes I A A 

2-115, Alt I § 220.55.70(b) C Yes I A A 2-120 Submission of Invoice § 220.55.70(c) C Yes G A A 2-125 Security for Advance Payment § 220.55.70(d) C Yes I A A 2-130 Energy Efficiency in Energy-Consuming 

Products 

§ 220.60.70(a) C Yes I A A A 

2-135 IEEE Standard for the Environmental 

Assessment of Personal Computer Products 

§ 220.60.70(b) C Yes I A A A 

2-140 Judiciary IT Security Standards § 220.25.80(f) C Yes I A A A A A 

Provisions and Clauses (Chapter 3) 

3-1 Contractor Use of Mandatory Sources of 

Products or Services 

§ 310.20.70 C Yes I A A A A A 

 3-3 Provisions, Clauses, Terms and Conditions – 

Small Purchases 

§ 310.50.30(d), § 325.30.20(b), and § 325.45.15(b) 

C Yes A A A 

3-5 Taxpayer Identification And Other Offeror 

Information 

§ 325.30.20(b) and § 330.10.30(a) 

P No K R R R R R 

3-15 Place of Performance § 330.10.30(b) P Yes K R R A A A 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

3-20 Certification Regarding Debarment, 

Suspension, Proposed Debarment, and Other Responsibility Matters 

§ 330.10.30(c) P No K R R R R R 

3-25 Protecting the Judiciary's Interest When 

Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment 

§ 330.10.30(d) C Yes I R R R R R 

3-30 Certificate of Independent Price 

Determination 

§ 330.10.30(e) P No K R R R 

3-35 Covenant Against Contingent Fees § 330.10.30(f) C Yes I R R R R R 3-40 Restrictions on Subcontractor Sales to the 

Government 

§ 330.10.30(g) C Yes I R R R R R 

3-45 Anti-Kickback Procedures § 330.10.30(h) C Yes I R R R R R 3-50 Cancellation, Rescission, and Recovery of 

Funds for Illegal or Improper Activity 

§ 330.10.30(i) C Yes I R R R R R 

3-55 Price or Fee Adjustment for Illegal or 

Improper Activity 

§ 330.10.30(j) C Yes I R R R R R 

3-70 Determination of Responsibility § 330.10.30(k) P Yes M R R R R R 3-85 Explanation to Prospective Offerors § 330.10.30(m) P Yes L R R R R R 3-95 Preparation of Offers § 330.10.30(n) P Yes L R R R R R 3-100 Instructions to Offerors § 330.10.30(o) P Yes L R R R R R 3-100, Alt I § 330.10.30(o)(1) P Yes L A A A A A 3-100, Alt II § 330.10.30(o)(2) P Yes L A A A A A 3-100, Alt III § 330.10.30(o)(3) P Yes L A A A A A 3-105 Audit and Records § 330.10.30(p) C Yes I R R R R R 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

3-115 Facsimile Offers § 330.10.30(q) P No L A A A A A 3-120 Order of Precedence § 330.10.30(r) C Yes I R R R R R 3-130 Authorized Negotiators § 330.10.30(s) P No K R R R R R 3-135 Single or Multiple Awards § 330.10.30(t) P Yes L A A A A A 3-140 Notice to the Judiciary of Labor Disputes § 330.10.30(u) C Yes I A A A A A 3-145 Payment for Overtime Premiums § 330.10.30(v) C No I R R A 3-150 Contract Work Hours and Safety Standards 

Act – Overtime Compensation 

§ 330.10.30(w) C Yes I A A A 

3-155 Walsh-Healey Public Contracts Act § 330.10.30(x) C Yes I A A A 3-160 Service Contract Labor Standards § 332.50(a) and 

§ 332.30(b) and § 332.40.20(b) 

C Yes I A A A 

3-175 Fair Labor Standards Act and Service 

Contract Labor Standards – Price Adjustment (Multi-Year and Option Contracts) 

§ 332.50(b) and § 410.75.60(c) 

C Yes I A A 

3-180 Fair Labor Standards Act and Service 

Contract Labor Standards – Price Adjustment 

§ 332.50(c) C Yes I A A 

3-185 Evaluation of Compensation for Professional 

Employees 

§ 330.10.30(z) P Yes L A A A 

3-195 Exemption from Application of the Service 

Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment – Certification 

§ 332.50(d) P No K A A A 

3-200 Service Contract Labor Standards – Place of 

Performance Unknown 

§ 332.50(e) C No I A A A 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

3-205 Protest after Award § 330.10.30(aa) C Yes I R R R R R 3-210 Protests § 330.10.30(bb) P Yes L R R R R R 3-215 Exemption from Application of the Service 

Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment – Requirements 

§ 332.50(f) C Yes I A A A 

3-220 Exemption from Application of the Service 

Contract Labor Standards to Contracts for Certain Services – Certification 

§ 332.50(g) P No L A A A 

3-225 Exemption from Application of the Service 

Contract Labor Standards to Contracts for Certain Services – Requirements 

§ 332.50(h) C Yes I A A A 

3-300 Registration in the System for Award 

Management (SAM) 

§ 330.10.30(dd)(1) C Yes I A A A A A 

3-305 Payment by Electronic Funds Transfer – 

System for Award Management (SAM) Registration 

§ 330.10.30(dd)(2) C Yes G A A A A A 

3-310 Payment by Electronic Funds Transfer – 

Other Than System for Award Management (SAM) Registration 

§ 330.10.30(dd)(3) C Yes G A A A A A 

3-315 Submission of Electronic Funds Information 

with Offer

§ 330.10.30(dd)(4) P Yes L A A A A A 

Provisions and Clauses (Chapter 4) 

4-1 Type of Contract § 410.15.20(a) P No L R R R R R 4-5 Ordering § 410.30.64(a) C Yes I A A A A A 4-10 Order Limitations § 410.30.64(b) C No I A A A A A 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

4-20 Requirements § 410.30.64(c) C Yes I 4-25 Indefinite Quantity § 410.30.64(d) C Yes I 4-27 Time-and-Materials/Labor-Hour Proposal 

Requirements – Competitive Pricing 

§ 410.45.50(a) P No L R 

4-28 Time-and-Materials/Labor-Hour Proposal 

Requirements – Non-Competitive Pricing 

§ 410.45.50(b) P No L R 

4-30 Payment (Time-and-Materials and LaborHour Contracts) § 410.45.50(c) C Yes I A 4-30, Alt I § 410.45.50(c) C Yes I A 4-35 Execution and Commencement of Work 

(Letter Contract) (See Note 2) 

§ 410.50.80(a) C No I A A A A A 

4-40 Limitation of Judiciary Liability (Letter 

Contract) (See Note 2) 

§ 410.50.80(b) C No I A A A A A 

4-45 Contract Definitization (See Note 2) § 410.50.80(c) C No I A A A A A 4-50 Payment of Allowable Costs Before 

Definitization (See Note 2) 

§ 410.50.80(d) C Yes I A A A A A 

4-55 Economic Price Adjustment – Standard 

Products 

§ 410.65.50 and § 410.75.60(b) 

C No I A A 

4-60 Allowable Cost and Payment § 410.70.80(a) C Yes I A A A 4-65 Fixed Fee § 410.70.80(b) C Yes I A A A 4-70 Incentive Fee § 410.70.80(c) C No I A A A 4-75 Cost Contract – No Fee § 410.70.80(d) C Yes I A A A 4-80 Cost-Sharing Contract – No Fee § 410.70.80(e) C Yes I A A A 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

4-85 Limitation of Cost § 410.70.80(f) C Yes I A A A 4-90 Limitation of Funds § 410.70.80(g) C Yes I A A A 4-150 Cancellation under Multi-Year Contracts § 410.75.60(a) C Yes I A A A A A 4-155 Alternate Awards § 410.75.60(d) P Yes M A A A A A 4-160 Cancellation Ceilings § 410.75.60(e) C No H A A A A A 4-165 Price Proposal Instruction – Multi-Year 

Contract 

§ 410.75.60(f) P Yes L A A A A A 

4-170 Limitation of Judiciary’s Obligation § 410.25.10(b) C No I A A 

Provisions and Clauses (Chapter 5) 

5-1 Payments under Personal and Professional 

Services Contracts (See Note 1) 

§ 510.50 and § 520.75(c) 

C Yes I A A A 

5-5 Non-disclosure (Professional Services) (See 

Note 1) 

§ 520.75(d) C Yes I A A A 

5-10 Inspection of Professional Services (See 

Note 1) 

§ 520.75(e) C Yes E A A A 

5-15 RESERVED 5-20 Records Ownership (See Note 1) § 520.75(g) C Yes I A A A 5-25 Identification of Uncompensated Overtime 

(See Note 1) 

§ 520.75(h) P Yes L A A A 

5-30 Authorization and Consent § 330.10.30(cc), 

§ 530.70.60(a) and § 660.10(a) 

C Yes I 

5-30, Alt I § 330.10.30(cc) C Yes I 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

5-35 Payments under Fixed-Price ArchitectEngineer Contracts § 530.70.60(b) C Yes I 5-40 RESERVED 5-45 Design Within Funding Limitations § 530.70.60(c) C No I 5-50 Responsibility of the Architect-Engineer 

Contractor

§ 530.70.60(d) C Yes I 

5-55 Work Oversight in Architect-Engineer 

Contracts 

§ 530.70.60(e) C Yes I 

5-60 Requirements for Registration of Designers § 530.70.60(f) C Yes I 5-65 Subcontractors and Outside Associates and 

Consultants (Architect-Engineer Services) 

§ 530.70.60(g) C Yes I 

5-70 Termination (Fixed-Price Architect-Engineer) § 530.70.60(h) C Yes I 5-75 Suspensions and Delays § 530.70.60(i) C Yes F 

Provisions and Clauses (Chapter 6) 

6-1 Performance Bond Requirements § 610.20.30(a) C No I A A A A A 6-1, Alt I § 610.20.30(b) C No I A A A A A 6-5 Fidelity Bond Requirements § 610.40 P Yes L A A A A A 6-10 Deposit of Assets Requirements § 610.20.50(a) P Yes L A A A A A 6-15 Deposits of Assets Instead of Surety Bonds § 620.20.50(b) C Yes I A A A A A 6-20 Insurance – Work On or Within a Judiciary 

Facility 

§ 630.20.40(a) C No G A A A A A 

6-25 Insurance – Liability to Third Persons § 630.20.40(b) C Yes I A A A 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

6-30 RESERVED 6-35 Errors and Omissions § 630.40.50 C No I A A A 6-40 Federal, State, and Local Taxes § 640.30.70(a) C Yes I A A 6-45 Federal, State, and Local Taxes 

(Noncompetitive Contract) 

§ 640.30.70(b) C Yes I A A 

6-50 Representation of Rights in Data § 650.65(a) P No K A A A A A 6-55 RESERVED 6-60 Rights in Data – General § 650.65(b) C Yes I A A A A A 6-60 Alt I § 650.65(c) C Yes I A A A A A 6-60 Alt II § 650.65(d) C Yes I A A A A A 6-65 Rights in Data – Special Works § 650.65(e) C Yes I A A A A A 6-70 Work for Hire (See Note 1) § 520.75(i) and 

§ 650.65(f) 

C Yes I A A A 

6-75 Rights to Data in an Offer § 650.65(g) C No I A A A A A 6-80 Rights in Data – Existing Works § 650.65(h) C Yes I A A A A A 6-85 Commercial Computer Software License § 650.65(i) C Yes I A A A A A 6-90 Notice and Assistance Regarding Patent and 

Copyright Infringement 

§ 660.20(a) C Yes I A A A A A 

6-95 Patent Indemnity § 660.20(b) C Yes I A A A A A 6-95 Alt I § 660.20(c) C No I A A A A A 6-95 Alt II § 660.20(d) C No I A A A A A 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

6-95 Alt III § 660.20(e) C Yes I A A A A A 6-100 Waiver of Indemnity § 660.20(f) C No I A A A A A 6-105 California E-Waste Fee § 640.30.70(c) C No I A A A A A 6-110 Deferred Ordering of Technical Data or 

Computer Software 

§ 650.65(i) C Yes I A A A 

Provisions and Clauses (Chapter 7) 

7-1 Contract Administration § 715.55(a) C Yes G R R R R R 7-5 Contracting Officer's Representative § 715.55(b) C Yes G R R R R R 7-10 Contractor Representative § 715.55(c) C No G R R R R R 7-15 Observance of Regulations/Standards of 

Conduct 

§ 715.55(d) C Yes I A A A A A 

7-20 Security Requirements § 330.10.30(l) and 

§ 715.55(e) 

C Yes I R R R R R 

7-25 Indemnification § 715.55(f) C Yes I R R R R R 7-30 Public Use of the Name of the Federal 

Judiciary 

§ 715.55(g) C Yes I R R R R R 

7-35 Disclosure or Use of Information § 715.55(h) C Yes I R R R R R 7-40 Judiciary-Contractor Relationships § 715.55(i) C Yes I A A A A A 7-45 Travel § 715.55(j) C Yes H A A A A A 7-50 Parking § 715.55(k) C No H A A A A A 7-55 Contractor Use of Judiciary Networks § 715.55(l) C Yes H A A A A A 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

7-60 Judiciary-Furnished Property or Services § 720.10.40(a) P Yes L R R R R R 7-65 Protection of Judiciary Buildings, Equipment, 

and Vegetation 

§ 720.10.40(b) C Yes I A A A 

7-70 Judiciary Property Furnished "As Is" § 720.10.40(c) C Yes I A A A A A 7-75 Subcontracts § 725.10.40(a) C No I A R A R R 7-80 Competition in Subcontracting § 725.10.40(b) C Yes I A R A R 7-85 Examination of Records § 730.20.20 C Yes I R R R R R 7-95 Contractor Inspection Requirements § 220.10.70(d) C Yes I 7-100A Limitation of Liability (Products) § 220.10.70(e) C Yes I R R 7-100B Limitation of Liability (Services) § 220.10.70(f) C Yes I R R R 7-105 RESERVED 7-110 Bankruptcy § 735.60.40 C Yes I R R R R R 7-115 Availability of Funds § 220.50.90(a) C Yes I A A A A A 7-120 Availability of Funds for the Next Fiscal Year § 220.50.90(b) C No I A A 7-125 Invoices § 740.20.30 C Yes G R R R R R 7-125, Alt I § 520.75(f) C Yes G A A 7-130 Interest (Prompt Payment) § 740.30.30 C Yes I R R R R R 7-135 Payments § 740.30.50(a) C Yes I R R A 7-140 Discounts for Prompt Payment § 740.30.50(b) C Yes I R R A 7-145 Government Purchase Card § 740.30.50(c) C Yes I A A A A A 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

7-150 Extras § 740.30.50(d) C Yes I R R A 7-155 Certification of Final Indirect Costs § 740.30.50(e) C No I A A A 7-160 Limitation on Withholding of Payments § 740.40.50(a) C Yes I A A A A A 7-165 Penalties for Unallowable Costs § 740.40.50(b) C Yes I A A A A A 7-170 Notice of Intent to Disallow Costs § 740.40.50(c) C Yes I A R A R A 7-175 Assignment of Claims § 740.50.40(a) C Yes I A A A A A 7-180 Prohibition of Assignment of Claims § 740.50.40(b) C Yes I A A A A A 7-185 Changes § 745.40.40(a) C Yes I R R 7-185, Alt I § 745.40.40(b) C Yes I R R 7-185, Alt II § 745.40.40(c) C Yes I R 7-185, Alt III § 745.40.40(d) C Yes I 7-190 Change Order Accounting § 745.40.40(b) C Yes I A A 7-195 Excusable Delays § 745.45.55(a) C Yes I A A A A A 7-200 Judiciary Delay of Work § 745.45.55(b) C Yes F R R A 7-205 Payment for Judiciary Holidays § 745.45.55(c) C Yes I A A R 7-210 Payment for Emergency Closures § 745.45.55(d) C Yes I R R R R R 7-215 Notification of Ownership Changes § 745.55.40(i) C Yes I R R R R R 7-220 Termination for Convenience of the Judiciary 

(Fixed- Price) 

§ 755.20.60(a) C Yes I R R A 
Guide to Judiciary Policy, Vol. 14, Appx. 1C 

Matrix of Solicitation Provisions and Clauses 

Clause or 

Provision # 

Title Presc. (all 

references are to 

Volume 14) 

Prov 

or Cls 

IBR

? 

UCF 

Sec 

Open Market over $100,000 T&

L

FP PROD 

CR PROD 

FP SVC 

CR SVC 

7-223 Termination for Convenience of the Judiciary 

(Short Form) 

§ 755.20.60(b) C Yes I A A A A A 

7-225 Termination (Cost-Reimbursement) § 755.20.60(c) C Yes I A A 7-225, Alt I § 755.20.60(d) C Yes I A 7-230 Termination for Default (Fixed-Price – 

Products and Services) 

§ 755.25.60 C Yes I R R A 

7-235 Disputes § 750.20.70 C Yes I R R R R R 
Last revised (Transmittal 14-020) October 19, 2023

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 1: Overview

Appx. 1D: Contracting Officers' Certification Program – Level 1 

Purchase Card Program

(Note: The entire chart must be read to determine the authorities and limitations of 

Level 1.)

Training Required for Level 1 Certification – Judiciary Purchase Card Program Training ;

training must be completed every two years.

Contracting Officers' Certification Program – Level 1

Dollars Conditions

Up to $10,000 per 

purchase

open market (with or without competition) using the purchase card 

only

Types of Actions

Small Purchase

Purchase Orders

open market small purchases using the purchase card up to 

$10,000 per purchase;

no authority to sign purchase orders is delegated

Orders Under GSA 

Federal Supply 

Schedules or Contracts 

Awarded by Judiciary 

GSA Federal Supply Schedules: up to the GSA competition 

threshold, provided the terms of the contract allow orders using 

the Government purchase card. See: Guide, Vol 14, § 310.50.43 

(Required Ordering Procedures).

Judiciary-wide contracts or BPAs up to the specified maximum 

order limitation if:

(1) the contract and/or BPA doesn’t require competition; and

(2) the terms of the contract/BPA allow orders using the 

Government purchase card.

Commercial/ 

License/Special Use 

Agreements

not delegated

Competitive Open 

Market Contracts and 

Contract Modifications

not delegated
Guide to Judiciary Policy, Vol. 14, Appx. 1D Page 2

Contracting Officers' Certification Program – Level 1

Procurement Method

Other Than Full and 

Open Competition 

Procurement Actions 

(over $10,000)

not delegated

Competitive Lowest 

Price Technically 

Acceptable Open Market 

Procurements

up to $10,000: delegated

Best Value Competitive 

Procurements 

not delegated

Products/Services

Products delegated up to the authorized dollar limit of Level 1

Services delegated up to the authorized dollar limit of Level 1. Restrictions 

on the purchase of services using the purchase card are in the 

Judiciary Purchase Card Program Manual.

Experts and Consultants 

under 5 U.S.C. § 3109

not delegated

Space Alteration not delegated with the exception for those courts delegated real 

property operations and management authority (i.e., a GSA 

building delegation). Subject to additional restrictions provided in 

the Judiciary Purchase Card Program Manual.

Lease of Real Property not delegated

Architect/ Engineering 

Services

not delegated
Last revised (Transmittal 14-020) October 19, 2023

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 1: Overview

Appx. 1E: Contracting Officers' Certification Program – Level 2

Special Program Delegation

(Note: The entire chart must be read to determine the authorities and limitations of 

Level 2.)

Applicable Programs:

1: Treatment Services

2: Halfway House Services

3: Copy Center Services

4: Contract Court Reporting Services

5: Law Books

6: GSA Real Property Operations and Management Delegation (GSA Building 

Delegation)

7: Court Interpreter Services

8: FPD Case-Related Expert or Consultant Services

Training Required for Level 2 Certification – Small Purchase Procedures, Standard 

Competitive Contracting Procedures, Special Categories of Procurements, and

Appropriations Law for the U.S. Courts, plus any specialized training programs offered 

by the responsible AO program office. See: Guide, Vol. 14, § 120.40.15 (AO Office 

with Primary Program Responsibility).

Contracting Officers' Certification Program – Level 2

Dollars Special

Program

Conditions of Delegation

Up to $100,000 5, 6, 8 5: sole source and open market. Programmatic 

approval required for online resources over $25,000.

6: up to the COs delegated limit.

8: case-related expert or consultant services 

purchased by FPDs.

Unlimited 1, 2, 3, 4, 

7

must follow approved procedures and use approved 

boilerplate documents.
Guide to Judiciary Policy, Vol. 14, Appx. 1E Page 2

Contracting Officers' Certification Program – Level 2

Types of Actions Special

Program

Conditions of Delegation

Commercial/License/ 

Special Use Agreements

3 copy centers only: must use approved boilerplate.

Competitive Open 

Market Contracts and 

Contract Mods 

1, 2, 3, 4, 

5, 6

1, 2, 3, 4: only with use of approved boilerplate 

document.

6: up to the delegated limit.

Orders Under Contracts 

Awarded by Judiciary or 

Other Federal Agencies

1, 2, 5, 6 1, 2: authorized for services up to maximum order of 

judiciary-wide and other federal agencies' contracts. 

Use of the approved J-Net template document is not 

required when using this authority.

5: authorized up to the maximum order limitation of 

GSA schedules, as well as judiciary-wide contracts 

and other federal agencies' contracts.

6: authorized within limits established by the building 

delegation agreement with GSA.

Procurement Method Special

Program

Conditions of Delegation

Other Than Full and 

Open Competition 

Procurement Actions 

4, 5, 7 4: refer to programmatic restrictions

5: up to $100,000. Programmatic approval required 

for online resources over $25,000

7: refer to programmatic restrictions

otherwise: not delegated

Lowest Price Technically 

Acceptable Competitive 

Open Market 

Procurements

1, 2, 3, 4, 

5, 6

1, 2, 3, 4: delegated: must use approved boilerplate.

5 and 6: up to the COs delegated limit.

Best Value Competitive 

Procurements 

N/A Not delegated

Products/Services Special

Program

Conditions of Delegation

Products 1, 5, 6 only items covered under special delegated 

procurement program

Services 1, 2, 3, 4, 

5, 6, 7 

only those specific services authorized under 

delegated program
Guide to Judiciary Policy, Vol. 14, Appx. 1E Page 3

Contracting Officers' Certification Program – Level 2

Experts and Consultants 

under 5 U.S.C. § 3109

8 delegated to FPDs for case-related services up to 

$100,000; must follow approved procedures and use 

approved boilerplate documents; subject to 

restrictions and limitations provided in Guide, Vol. 14, 

§ 520 (Expert and Consultant Nonpersonal Services 

Contracts).

Space Alteration N/A not delegated with the exception for those courts 

delegated real property operations and management 

authority (i.e., a GSA building delegation).

Lease of Real Property N/A not delegated

Architect/Engineering 

Services

6 other than 6: not delegated
Last revised (Transmittal 14-020) October 19, 2023

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 1: Overview

Appx. 1F: Contracting Officers’ Certification Program – Level 3

(Note: The entire chart must be read to determine the authorities and limitations of 

Level 3.)

Training Required for Level 3 Certification – Judiciary Procurement Workshop 

(classroom training), plus Small Purchase Procedures, Standard Competitive 

Contracting Procedures, and Appropriations Law for the U.S. Courts. Level 3 COs must 

also complete a minimum of 16 hours of continuing education every two years.

Contracting Officers’ Certification Program – Level 3

Dollars Conditions

Up to $100,000 small purchases and competitive procurements: see other 

conditions below

Unlimited judiciary-wide and other agency contracts: see other 

conditions below

Types of Actions

Noncompetitive open market 

procurements

up to $10,000 for all purchases (other than training products 

or services)

up to $25,000 for training products and services

above $10,000 but not more than $25,000 for products and 

services (other than training products or services) with signed 

approval of the chief judge or other judiciary official

Competitive Small Purchase 

Open Market Purchase 

Orders

Competitive lowest price technically acceptable procurement 

up to $100,000: delegated

Commercial/License/Special 

Use Agreements

as supplements and conditions to purchases conducted within 

the authorized delegation: delegated

Contract Modifications within scope modifications up to $100,000: delegated

Orders Under Contracts 

Awarded by Judiciary or 

Other Federal Agencies

Authorized for competitive lowest price technically acceptable 

orders placed under:

(1) GSA federal supply schedules up to the specified 

maximum order threshold.
Guide to Judiciary Policy, Vol. 1, Appx. 1F Page 2

Contracting Officers’ Certification Program – Level 3

(2) Other precompeted contracts awarded by other federal 

agencies up to the maximum order threshold of the 

contract.

(3) Judiciary-wide contracts delegated up to the maximum 

order, if any, of the contract.

Interagency Agreements 

(IAs) and Memoranda of 

Understanding (MOUs) for 

Procurements

Interagency agreements and memoranda of understanding for 

procurements when the judiciary is the receiving agency: 

delegated up to $100,000 when approved by the chief judge 

or other judiciary official identified at § 120.20.10(b) 

(Delegation to Chief Judges and Certain Judiciary Officials)

(or PLO, if delegated) prior to signing.

When the judiciary is the providing agency, this is not 

delegated and the request must be submitted to the PE for 

processing.

Procurement Method

Other Than Full And Open 

Competition Procurements

Unlimited:

(1) Transit Passes/Vouchers

(2) Purchase of non-commercial products or services only 

available from state/local government entities

up to $10,000: all purchases (other than training products or 

services)

up to $25,000: training products and services

above $10,000 but not more than $25,000: products and 

services (other than training products or services) with signed 

approval of the chief judge or other judiciary official

All other non-competitive purchases exceeding the applicable 

competition threshold: not delegated.

Lowest Price Technically 

Acceptable Competitive 

Open Market Procurements

up to $100,000: delegated

Best Value Competitive 

Procurements

not delegated

Products/Services

Products delegated: to be used only up to the authorized dollar limits of 

Level 3
Guide to Judiciary Policy, Vol. 1, Appx. 1F Page 3

Contracting Officers’ Certification Program – Level 3

Services delegated: to be used only up to the authorized dollar limits of 

Level 3

Experts and Consultants 

pursuant to 5 U.S.C. § 3109

up to $25,000: delegated (see also: Guide, Vol. 14, Ch. 5 

(Special Categories of Procurements)) 

For FPD case-related experts and consultants, see: Guide, 

Vol. 14, Appx. 1E (Contracting Officers’ Certification Program 

– Level 2 Special Delegated Procurement Programs).

Space Alteration not delegated; court units must use GSA Reimbursable Work 

Authorization (RWA) 

Lease of Real Property not delegated

Architect/Engineering 

Services

not delegated
Last revised (Transmittal 14-021) December 1, 2023

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 1: Overview

Appx. 1K: Required Training by Certification Level (Contracting 

Officers Certification Program)

(Note: Certification Level 4 is reserved. All “CON” required courses are Federal Acquisition 

Institute (FAI) training courses or equivalent. All judiciary-specific courses are available on JNet 

Procurement Training page. See also: fai.gov.)

(a) To obtain FAC-C (Professional) certification, all career procurement 

personnel in the 1102 job series (COCP levels 5-7), must:

(1) complete four training courses (CON 1100, CON 1200, CON 1300, 

CON 1400),

(2) have at least 12 months of full-time experience applying contracting 

technical competencies, and

(3) pass the contracting professional certification exam.

(b) Career procurement personnel in the 1102 job series (COCP levels 5-7) 

who were certified at the legacy Federal Acquisition Certification in 

Contracting (FAC-C) Levels I, II, or III, as of Feb. 1, 2023, were

automatically certified as FAC-C (Professional) and are not required to 

complete the four training courses.

Required Training Approx 

Hours

Certification Level

1 2 3 4 5 6 7

Procurement Liaison Officers

Judiciary Executive Procurement Oversight Seminar

(online) *

Contracting Officers

Judiciary Purchase Card (online) 1 X

Small Purchase Procedures (online) 6 X X X X X

Standard Competitive Contracting Procedures (online) 2 X X X X X

Special Categories of Procurements (online) 1 X

Judiciary Procurement Workshop (instructor led) 16 X

Specialized Training Programs Offered by the 

Responsible Program Office and AO [hours vary by 

program]

X
Guide to Judiciary Policy, Vol. 14, Appx. 1K Page 2

Required Training Approx 

Hours

Certification Level

1 2 3 4 5 6 7

Appropriations Law for the U.S. Courts (online) 6 X X X X X

Contract Foundational Skills (CON 1100) 64 X X X

Contract Pre-Award (CON 1200) 80 X X X

Contract Award (CON 1300) 80 X X X

Contract Post-Award (CON 1400) 64 X X X

* The approximate time to complete each module will be displayed in the online course.

X = Mandatory (Note: Mandatory training required only for COCP Levels 5, 6 and 7 may be 

obtained from FAI or various commercial and educational organizations and is subject to the 

Procurement Executive’s approval.)
Last revised (Transmittal 14-015) September 3, 2020

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 2: Procurement Planning and Preparations

§ 210 Policy

§ 210.10 In General

§ 210.20 Roles and Responsibilities

§ 210.30 Requesting Office Responsibilities

§ 210.40 Purchasing Office Responsibilities

§ 210.50 Procurement Planning Benefits

§ 210.60 Market Research

§ 210.70 Source Selection Plans

§ 220 Terms and Conditions

§ 220.10 Quality Control/Assurance Requirements

§ 220.15 Acceptance of Products and Services

§ 220.20 Warranties

§ 220.25 Delivery or Performance Schedule

§ 220.30 Liquidated Damages

§ 220.35 Judiciary Property

§ 220.40 Options

§ 220.45 Equipment Lease or Purchase

§ 220.50 Funding Contract Awards

§ 220.55 Contract Financing

§ 220.60 Energy and Environmental Considerations

§ 230 Specifications, Statements of Work, and Product Descriptions

§ 230.10 Overview

§ 230.20 Specifications

§ 230.30 Statements of Work

§ 230.40 Product Descriptions

§ 210 Policy

§ 210.10 In General

(a) Procurement planning is the process by which the efforts of all personnel 

responsible for significant aspects of a procurement are coordinated and 

integrated comprehensively. The formality and detail of the planning and 

preparation process will vary with the size, complexity, mission-criticality, 

and projected dollar value of the requirement.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 2

(b) Procurement planning must include the related budget planning. Major 

purchases must be planned and budgeted consistently with the court’s 

budget process, governance mechanisms and management reporting 

processes.

(c) A summary of planned major procurements is included as part of 

management reports to the chief judge or other judiciary official identified 

in Guide, Vol. 14, § 120.20.10(b) (Delegation to Chief Judges and Other 

Judiciary Officials). It includes one-year, two-year, and five-year planning 

lead times.

§ 210.20 Roles and Responsibilities

(a) Initiating and planning procurement actions require a team effort. The 

team must include staff from both the requesting and purchasing offices.

(b) Purchasing Office

(1) For judiciary organizations, excluding the Administrative Office of 

the U.S. Courts (AO), the purchasing office is the office where the 

procuring function resides.

(2) In the AO, the purchasing office is the AO’s Procurement 

Management Division (PMD).

(c) Requesting Office

(1) The requesting office is the organizational unit that initiates a 

purchase action by identifying a specific need, such as a judiciary 

organization’s IT staff, chambers staff or facility staff.

(2) Although other judiciary organizations play a role in the 

procurement process, overall responsibility for the contracting 

aspects within the procurement process lies with the contracting 

officer (CO).

(3) However, the planning for major purchases is the responsibility of 

the court unit executive or equivalent.

§ 210.30 Requesting Office Responsibilities

The requesting office must identify, prepare, and provide procurement requirements to 

the purchasing office. The procurement requirements will be in a requirements package 

that contains documents supporting the requirements. Requesting office staff are 

responsible for:
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 3

(a) identifying potential procurement requirements;

(b) initiating discussions with purchasing office staff;

(c) providing a complete requisition, including, but not limited to:

(1) properly approved, in writing, expenditure authority;

(2) any required justifications (e.g., preparing a justification for other 

than full and open competition, if applicable);

(3) description of the essential elements of the proposed purchase;

(A) a clear and specific description of the products or services 

required;

(B) a schedule for delivery or performance;

(C) a list of deliverable data or reports, including:

• media in which they will be furnished,

• frequency,

• due date, and

• recipients;

(d) independently developing a government price or cost estimate for the 

requested products or services, including the base period and all option 

periods, as applicable; and

(e) identifying technical evaluation criteria for use in evaluating offers, if 

appropriate;

(f) conducting market research and suggesting potential sources of supply;

(g) recommending additional information/requirements to be incorporated into 

the solicitation package, including:

• the need for options,

• applicability of special payment terms,

• license prerequisites,

• insurance or warranty requirements,

• the need for an indemnity,

• any special security requirements,

• limitations on subcontracting, and

• other requirement-specific contractual provisions; and
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 4

(h) advising on the necessity of conducting a pre-solicitation or pre-offer 

conference.

§ 210.40 Purchasing Office Responsibilities

The purchasing office will help the requesting office prepare the requirements 

packages, as needed. COs are responsible for:

(a) working with the requesting office to identify upcoming requirements, 

planning how to meet them, and preparing a source selection plan, as 

applicable;

(b) ensuring that purchasing office resources will be available once the 

requesting office has established its requirements;

(c) maintaining effective working relationships with requesting office staff and 

other organizations that participate in the procurement process;

(d) reviewing requirements packages for completeness and clarity;

(e) conducting market research (see: § 210.60 (Market Research)) and 

ensuring that all firms to be solicited are given a fair and equitable 

opportunity to provide their most effective and economical products or 

services;

(f) working directly with requesting office staff to finalize statements of work 

and/or specifications and resolve any deficiencies;

(g) ensuring that any public announcement or advertising requirements are 

met (see: Guide, Vol. 14, § 320 (Contractor Qualifications));

(h) establishing offer evaluation panels as needed (see: § 210.70.40 

(Evaluation Panels));

(i) determining appropriate contract type and terms and conditions;

(j) sending all procurement actions exceeding the CO’s delegation level to 

PMD for review (judiciary organizations excluding the AO);

(k) adhering to the procurement milestone schedule to ensure timely award;

(l) issuing the solicitation package: request for quotations (RFQ); request for 

proposals (RFP); request for information (RFI) (for definitions of these 

terms, see: Glossary of Procurement Terms);

(m) serving as the primary point of contact with potential and actual offerors;
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 5

(n) reviewing the reports from the offer evaluation panel, source selection 

boards, etc., to ensure the evaluation criteria stated in the solicitation are 

applied properly;

(o) determining the most advantageous offer (where there is no designated 

Source Selection Authority (SSA) other than the CO); and

(p) executing the award.

§ 210.50 Procurement Planning Benefits

Among the benefits of procurement planning are:

(a) saving the judiciary money by obtaining price reductions through quantity 

discounts;

(b) allowing better workload planning and scheduling;

(c) consolidating requirements for greater economies;

(d) providing sufficient lead time and resources in the selection of appropriate 

contract types and development of innovative contracting methods;

(e) providing sufficient time to obtain required approvals before submission of 

requisitions;

(f) identifying and obtaining necessary reviews and approvals throughout the 

procurement process;

(g) allowing for early identification and resolution of potential problems;

(h) ensuring the adequacy of specifications or statements of work;

(i) identifying a sufficient number of capable sources to promote adequate 

competition;

(j) preventing unrealistic delivery or performance schedules; and

(k) receiving acceptable products and services in a timely manner.

§ 210.60 Market Research

§ 210.60.10 In General

Market research is central to sound procurement planning and must be addressed by 

the whole procurement team. Market research helps identify:
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 6

(a) products or services that are available to satisfy a requirement;

(b) whether the judiciary’s minimum requirements are practical/realistic;

(c) source availability to furnish the required products or services;

(d) how to appropriately describe the requirements; and

(e) whether cost estimates and schedules are realistic.

§ 210.60.20 Market Research Methods

(a) Market research methods include:

(1) conducting industry briefings or presolicitation discussions or 

conferences with potential contractors to discuss requirements and 

to obtain recommendations;

(2) publicizing new specifications and, when appropriate, issuing 

solicitations for informational or planning purposes far enough in 

advance to permit generation and consideration of industry 

comments;

(3) attending industry and scientific conferences and acquiring 

literature about commercial products, industry trends, product 

availability, business practices, product/service reliability, and 

prices;

(4) analyzing the purchase history of requirements to determine the 

level of competition, prices, and performance results;

(5) publishing sources-sought notices according to Guide, Vol. 14, 

§ 315 (Publicizing Open Market Procurement Actions); or

(6) consulting with AO staff, other judiciary organizations, other 

government agencies, or non-profit organizations.

(b) Market research generally does not include the temporary “trial” or 

“demonstration” use of equipment/products delivered to and used within 

the judiciary organization’s facilities. Only if it can be definitely determined 

that the eventual purchase will not exceed the applicable competition

threshold — $10,000 for open market purchases ($25,000 for training 

products); $10,000 for GSA schedule purchases — may equipment or 

products be used on a “trial” basis in this manner.

(c) When a product demonstration is desired as part of the evaluation process 

of a solicitation, the solicitation must require that all competing offerors 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 7

provide a demonstration of their product. The solicitation also may not 

impose undue costs on offerors to provide demonstrations within the 

judiciary organization’s facilities versus providing the demonstration at the 

offeror’s facilities. For example, requiring each competing offeror to 

deliver a proposed copier to the court’s offices to do a demonstration 

rather than performing the demonstration at the offeror’s facilities would be 

imposing an undue cost.

(d) Any solicitation requiring product demonstrations as part of the evaluation 

process must be approved by PMD.

§ 210.60.30 Market Research Results

Market research results may include:

(a) assessing the suitability and adaptability of commercially available 

products or services to satisfy judiciary requirements;

(b) identifying those elements of the requirements that may pose significant 

risks and added costs; or

(c) determining the status of applicable technology and the extent and 

success of its commercial application.

§ 210.60.40 Solicitation Provision

The CO will insert Provision 2-1, Request for Information or Solicitation for Planning 

Purposes in solicitations issued for planning or informational purposes, and clearly note 

on the face of the solicitation that it is for information or planning purposes only. The 

CO will appropriately fill in the provision’s blank spaces.

§ 210.70 Source Selection Plans

§ 210.70.10 General

The CO will develop a source selection plan for each competitive procurement that is:

(a) above the judiciary’s small purchase threshold (see: Guide, Vol. 14, 

§ 325.10 (Applicability)) or

(b) below the judiciary’s small purchase threshold when the CO determines a 

best value solicitation is appropriate.

§ 210.70.20 Plan Requirements

The CO will develop the source selection plan in collaboration with the evaluation panel, 

requesting office, and other advisors as needed.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 8

(a) The plan must outline the objective of the procurement and address 

operational requirements, the independent government estimate of the 

cost, and any special requirements for quality and reliability.

(b) If using best value, the plan must also include evaluation factors, tailored 

to the specific needs and nature of the specific procurement. The 

evaluation factors must address the significant discriminating areas that 

will be considered in evaluating and determining the best choice. The 

source selection plan must include:

• the order of relative importance of the factors, and

• the evaluation methods and procedures that will be used in 

evaluating competing offers.

§ 210.70.30 Source Selection Processes

(a) Technically acceptable lowest price source selection is used when a 

contract will be awarded to the technically acceptable offeror offering the 

lowest price. Solicitations using this approach must state the judiciary’s 

minimum technical requirements. For example, a copy machine’s 

technical standard could be the number of pages photocopied per minute. 

All offers meeting or exceeding these technical requirements will be 

evaluated based on price. Technically acceptable lowest price:

(1) is best suited for procurements where the judiciary is acquiring a 

product or routine service for which it has a well-defined 

specification or statement of work; and

(2) will include commercial or off-the-shelf products or services where 

there has been no justification for a best value source selection.

(b) Best value source selection is used for procurements when the quality of 

performance above the minimum acceptable level is necessary or will 

enhance critical mission accomplishment. The best value method:

(1) involves an evaluation and comparison of technical, experience and 

performance factors.

(2) is suitable only for certain types of negotiated procurements and is 

more complicated to conduct than the technically acceptable lowest 

price approach.

(3) is preferred when the judiciary is buying professional and technical 

services, or a product to be built to a performance specification.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 9

(4) requires the CO (or other source selection official) to make a 

meaningful price/technical trade-off decision, which is derived from 

an analysis of the offers measured against the evaluation criteria.

(5) requires that the solicitation clearly state:

(A) all evaluation factors and significant subfactors that will 

affect the award decision,

(B) their relative importance, and

(C) whether all evaluation factors other than cost or price, when 

combined, are significantly more important, equal to, or 

significantly less important than cost or price.

(6) allows award to other than the lowest price offer, but the 

price/technical trade-off documentation must justify the 

determination to make award other than to the lowest 

priced/technically acceptable offer.

§ 210.70.40 Evaluation Panels

For each source selection plan, the CO must establish an evaluation panel.

(a) The size and membership depend upon the purchase’s:

• size,

• scope,

• complexity, and

• mission-criticality of the goods or services being procured.

(b) Evaluation panel responsibilities include the following:

(1) assist the CO in developing a source selection plan;

(2) evaluate the offers received, efficiently and impartially, consistent 

with:

• the source selection plan, and

• the evaluation factors included in the solicitation; and

(3) present a written report of its findings to the CO or Source Selection 

Authority. The report will contain narrative statements discussing 

the major strengths and weaknesses of the various offers as 

compared to the evaluation factors. This report will be used by the 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 10

CO to hold discussions, if necessary, and will be used to select the 

successful offeror.

(c) Evaluation panel efforts may be limited to:

(1) one panel but two separate reviews:

• first reviewing the technical offers,

• then with cost or price evaluated; or

(2) subpanels may be established for separate evaluation of:

• the technical offer, and

• the proposed price.

(d) It may occasionally be appropriate to contract with outside consultants to 

participate in evaluation panels when the necessary expertise does not 

exist within the judiciary. An outside evaluator must sign a non-disclosure 

agreement before being given access to any offer information.

§ 210.70.50 Evaluation Factors and Sub-Factors

Properly chosen and clearly stated evaluation factors are essential to effective offer 

evaluation and proper ratings by evaluation panel members. Evaluation factors to be 

used for commercial off-the-shelf product solicitations are generally less complex. 

Evaluation sub-factors may be established under the appropriate factor. For example, 

under a “management plan” factor, there could be sub-factors for “organization” and 

“quality control plan.”

(a) Evaluation factors and sub-factors must be consistent with the objectives 

of the purchase. Cost or price related factors or sub-factors and past 

performance ratings are always evaluated, even if their relative weight 

(i.e., importance) is low relative to technical factors.

(b) The appropriate weight must be stated for each factor or sub-factor in 

relation to the other factors/sub-factors.

(c) These weights could be stated as:

(1) a list of the factors and sub-factors with a statement that they are in 

descending order of importance;

(2) a statement that one factor or sub-factor is more important, or 

significantly more important, than another; or
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 11

(3) any other expression that clearly communicates the relative weight 

of the factors or sub-factors and indicates factors or sub-factors that

are of equal weight.

(d) The absence of a statement in the solicitation reflecting the relative 

weight(s) of evaluation factors or sub-factors will be construed as all 

factors or sub-factors being of equal weight.

(e) Use of too many factors and sub-factors can:

• unduly complicate and extend the evaluation process;

• dilute essential evaluation elements; and

• lead to an unintended leveling of the evaluation scores. (Note: 

Leveling of the scores tends to make the offers appear to be equal, 

when in fact they are not. This will make the final choice more 

difficult.)

(f) Examples of evaluation factors other than cost or price that may apply are:

• a demonstrated understanding of the solicitation requirement;

• a clearly developed management plan;

• an effective quality assurance plan;

• qualified and experienced key personnel;

• adequate resources;

• appropriate experience; and

• excellence of design.

§ 210.70.60 Cost or Price Related Factors

Cost or price related factors must be treated and evaluated separately from the other 

evaluation factors. The weight to be given to them must always be stated relative to the 

other evaluation factors in the solicitation, and may increase in importance if the 

technical ranking of offerors is close. Cost/price offer specifics (e.g., proposed number 

of hours in each labor category) can also provide insight into an offeror’s understanding 

of the requirement, their resources, or other evaluation factors.

§ 210.70.70 Rating Systems

Many forms of rating systems are suitable for evaluation purposes, from adjectival 

ratings (outstanding/excellent/good) to color codes (blue/green/yellow/red) to various 

forms of numerical scoring. Depending on the specific procurement, one system may 

be preferable to another. However, the rating system used must be:

• simple,
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 12

• practical, and

• applied consistently to all proposals by the evaluation panel members.

§ 220 Terms and Conditions

§ 220.10 Quality Control/Assurance Requirements

§ 220.10.10 In General

The CO must include the appropriate quality control/assurance requirements in all 

solicitations and contracts. The type and extent of contract quality control/assurance 

requirements depend on the complexity, size, and risks for delivery or completion of 

service or product involved in the procurement. Such requirements range from 

inspection at time of delivery to the contractor’s implementation of a comprehensive 

quality control program. Solicitations and contracts may provide for alternate inspection 

methods to promote competition and lower costs. The solicitation may also permit 

contractor-recommended alternatives.

§ 220.10.20 Small Purchase Procedures

For products or services purchased using small purchase procedures, the judiciary 

usually relies on the contractor to accomplish all appropriate inspection and testing to 

ensure the deliverables conform to contract quality requirements up to the point of 

delivery to the judiciary for acceptance. For these types of purchases, the rights 

described in paragraph (d) of Clause 3-3, Provisions, Clauses, Terms and Conditions –

Small Purchases are sufficient to protect the judiciary in the event of nonconforming 

services or products.

§ 220.10.30 Inspection Before Delivery

When the CO determines that the judiciary needs to test the products or services before 

delivery, or decides that the contractor’s internal work processes are insufficient, the 

judiciary should not rely on inspection by the contractor. When making these 

determinations, the CO must consider the:

(a) nature of the products or services being purchased and their intended use;

(b) potential losses in the event of defects;

(c) likelihood of uncontested replacement or correction of defective work; and

(d) cost of detailed inspection.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 13

§ 220.10.40 Standard Inspection Terms

For procurements in excess of the small purchase threshold, both Clause 2-5A, 

Inspection of Products and Clause 2-5B, Inspection of Services include the following 

standard inspection terms/requirements:

(a) the contractor is required to provide and maintain an internal inspection 

system acceptable to the judiciary;

(b) the judiciary has the right to make inspections and tests while work is in 

process, if appropriate; and

(c) the contractor is required to keep and make available to the judiciary 

complete records of its inspection system.

§ 220.10.50 Quality Assurance at Judiciary Site or Destination

(a) Quality assurance performed at destination is normally limited to 

inspection of the products or services. Inspection is appropriate at 

destination when:

(1) products are commercial or off-the-shelf and require no technical 

inspection;

(2) necessary testing equipment is located only at destination;

(3) the procurement is for services performed at destination; or

(4) it is determined to be in the judiciary’s interest.

(b) For information on remedies available to the judiciary in the event 

nonconforming goods or services are delivered after award, see: Guide, 

Vol. 14, § 735.30 (Nonconforming Products or Services).

§ 220.10.60 Quality Assurance at Contractor Site or Origin

Solicitations and contracts must require that quality assurance, including inspection, be 

performed at origin (contractor’s site) when:

(a) performance at any other place would require uneconomical disassembly 

or destructive testing;

(b) considerable loss would result from the manufacture and shipment of 

unacceptable products or from a delay in making necessary corrections;

(c) special required instruments, gauges, or facilities are available only at

origin;
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 14

(d) performance at any other place would destroy or require the replacement 

of costly packing and packaging; or

(e) it is determined to be in the judiciary’s interest.

§ 220.10.70 Clauses for Inclusion in Solicitations or Contracts

The CO will include the following clause(s), as indicated, in the solicitation or contract 

document:

§ 220.10.70 Clauses for Inclusion in Solicitations or Contracts

Clause or Provision is included... 

(a) Clause 2-5A, Inspection 

of Products

In all solicitations and contracts for products, which are 

expected to exceed the judiciary’s small purchase threshold. 

The CO may include in solicitations and contracts below the 

judiciary’s small purchase threshold if the CO determines 

inclusion is in the judiciary’s interest.

(b) Clause 2-5B, Inspection 

of Services

In all solicitations and contracts for services, which are 

expected to exceed the judiciary’s small purchase threshold, 

unless another appropriate inspection clause applies (e.g., 

Clause 5-10, Inspection of Professional Services). The CO 

may include in solicitations and contracts below the judiciary’s 

small purchase threshold if the CO determines inclusion is in 

the judiciary’s interest.

(c) Clause 2-10, 

Responsibility for 

Products

In solicitations and contracts for (a) products or (b) services 

involving the furnishing of products, when a fixed-price contract 

is contemplated and the contract is expected to exceed the 

small purchase threshold. The CO may include the clause in 

actions below the small purchase threshold when the CO 

determines the clause is needed.

(d) Clause 7-95, Contractor 

Inspection 

Requirements

In solicitations and contracts for products or services when the 

contract amount is expected to be at or below the judiciary’s 

small purchase threshold and inclusion of the clause is 

necessary to ensure an explicit understanding of the 

contractor’s inspection responsibilities.

(e) Clause 7-100A, 

Limitation of Liability 

(Products)

In all solicitations and contracts in excess of the judiciary’s 

small purchase threshold requiring delivery of products.

(f) Clause 7-100B, 

Limitation of Liability 

(Services)

In all solicitations and contracts in excess of the judiciary’s 

small purchase threshold requiring performance of services. 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 15

§ 220.15 Acceptance of Products and Services

§ 220.15.10 Definition

Acceptance constitutes acknowledgment that the products or services provided conform 

to applicable quality and quantity requirements of the contract.

§ 220.15.20 Solicitation and Contract Requirements

Solicitations and contracts must specify the time, place and criteria for acceptance. 

Failure to provide clear and unambiguous criteria for acceptance can undermine the 

judiciary’s ability to reject unacceptable products and/or services. Acceptance may take 

place before delivery, at the time of delivery, or after delivery. Products or services will 

ordinarily not be accepted before completion of judiciary contract quality assurance 

actions. Service contracts may include a deduction schedule stating how much or how 

to calculate what may be deducted from the contractor’s invoice for unsatisfactory 

performance.

§ 220.15.30 Transfer of Title and Risk of Loss (Products Only)

(a) Title to products will pass to the judiciary upon formal acceptance,

regardless of when or where the judiciary takes physical possession, 

unless the contract specifically provides for earlier transfer of title. An 

example of when it might be appropriate to specify earlier transfer of title is 

if it is anticipated that delivery of the product(s) will be significantly in 

advance of installation and final acceptance (e.g., when equipment is 

ordered and delivered during a renovation project and cannot be installed 

until the renovation is completed). In this instance, if the product will be 

under the judiciary’s control for a lengthy period of time before 

acceptance, specifying earlier transfer of title may be appropriate.

(b) Unless the contract specifically provides otherwise, inclusion of Clause 2-

10, Responsibility for Products means that risk of loss of or damage to 

products will remain with the contractor until, and will pass to the judiciary 

upon:

(1) delivery of the products to a carrier, if transportation is F.O.B.

origin; or

(2) acceptance by the judiciary or delivery of the products to the 

judiciary at the destination specified in the contract, whichever is 

later, if transportation is F.O.B. destination.

(c) Paragraph (b) of this section will not apply to products that so fail to 

conform to contract requirements as to give a right of rejection. The risk of 

loss of or damage to such non-conforming products remains with the 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 16

contractor until cure or acceptance. After cure or acceptance, paragraph 

(b) of this section will apply. For information on acceptance and rejection 

and cure, see: Guide, Vol. 14, § 735 (Quality Assurance).

(d) The contractor will not be liable for loss of, or damage to, products that is 

caused by the negligence of officers, agents, or employees of the judiciary 

acting within the scope of their employment.

§ 220.20 Warranties

§ 220.20.10 In General

A warranty clause must be used when it is in the judiciary’s interest to have the right to 

assert claims regarding defective products or services after their acceptance. A 

warranty clause gives the CO additional time after acceptance to require contractor 

correction of deficiencies or defects, re-performance, an equitable adjustment in the 

price, or other appropriate remedies. Warranties should generally not be used in cost 

contracts, labor-hour or time-and-material contracts.

§ 220.20.20 Warranty Variables

(a) Warranty coverage may begin with delivery or at the occurrence of a 

specified event (e.g., equipment installation).

(b) This coverage may continue for a given number of days or months or until 

the occurrence of another specified event.

(c) The value of a warranty clause depends upon the particular products or 

services being procured.

(d) The clause, its use, terms, and conditions are influenced by many factors 

and must be tailored to fit the specific purchase and individual risks 

involved.

(e) It is important to remember that a contractor may factor warranty clause 

requirements into an item’s purchase price, making it more expensive. In 

addition, there is a cost to the judiciary in administration and enforcement 

of the warranty.

(f) For additional information on enforcing warranties, see: Guide, Vol. 14, 

§ 735.50 (Express Warranties).

§ 220.20.30 Criteria for Requiring a Warranty

With input from the requesting office as to their needs, the CO decides whether or not to 

require and use a warranty clause. The clause may be used either for individual 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 17

purchases or classes of purchases. Before making this decision, the CO must consider 

the following:

(a) cost of the warranty (including the effect of a warranty on pricing and the 

administrative cost of enforcing the warranty);

(b) criticality of meeting specifications;

(c) potential damage to the judiciary in the event of defective performance;

(d) cost of correction or replacement, either by the contractor or another 

source, in the absence of a warranty;

(e) ability to take advantage of the warranty, considering shipping time, 

distance of the user from the source, and other factors;

(f) the effect of the warranty as a deterrent against deficiencies;

(g) the extent to which acceptance is to be based upon contractor inspection 

or quality control;

(h) whether the inspection and acceptance system provides adequate 

protection against deficiencies;

(i) reliance on brand-name integrity;

(j) whether a warranty is regularly given for a commercial component of a 

more complex end item;

(k) whether the product or service is intended for the safety or protection of 

employees;

(l) the stage of development of the item and the state of the art;

(m) customary trade practices; and

(n) the level of difficulty of detecting defects before acceptance.

§ 220.20.40 Warranty Clauses for Inclusion in Solicitations or Contracts

A warranty clause may be included in solicitations and contracts as indicated in the

table below.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 18

§ 220.20.40 Warranty Clauses for Inclusion in Solicitations or Contracts

Clause or Provision is included in... 

(a) Provision 2-15, Warranty 

Information

solicitations for products or services, if warranties are 

customary in the trade.

(b) Clause 2-20A, Incorporation 

of Warranty

solicitations and contracts when it is anticipated that a 

contractor’s standard commercial warranty will be offered.

(c) Clause 2-20B, Contractor 

Warranty (Products)

solicitations and contracts for products when the CO has 

made a written determination for the file that a warranty is 

appropriate for the products being purchased and that the 

benefits are expected to outweigh the costs.

(d) Clause 2-20C, Warranty of 

Services

solicitations and contracts for services when the CO has 

made a written determination for the file that a warranty is 

appropriate for the services being purchased and that the 

benefits are expected to outweigh the costs.

§ 220.25 Delivery or Performance Schedule

§ 220.25.10 In General

An essential element of the solicitation and contract is a realistic delivery or 

performance schedule, which must be clearly stated. The solicitation and contract must 

specify the delivery mode, as well as the time and place of delivery or performance.

§ 220.25.20 Solicitation Delivery Instructions

Solicitation delivery instructions must specify the F.O.B. point, defined as follows:

(a) F.O.B. Destination

F.O.B. destination means that the consignor or seller is responsible 

for delivery of the products to a destination specified in the 

solicitation, usually a judiciary office. Unless the contract provides 

otherwise, the cost of shipping and risk of loss are borne by the 

seller or consignor. Title to the products passes to the judiciary 

when the products arrive at the stated destination; or

(b) F.O.B. Origin

F.O.B. origin means that the consignor or seller is responsible for 

delivery of the products to the carrier (e.g., rail station, airport, post 

office). Unless the contract provides otherwise, the cost of shipping 

and risk of loss must be borne by the judiciary, either as a 

separately identifiable invoice amount paid to the contractor over 

and above the price of the product purchased or through a 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 19

separately awarded shipping contract. Title passes to the judiciary 

when delivery is made to the carrier. The contractor’s risk is limited 

to loss or damage caused by improper marking or packing of the 

products.

§ 220.25.30 Selecting the F.O.B. Point

The F.O.B. point must be determined on the basis of overall costs involved. It is 

important to remember that delivery clauses impact an item’s price. The destination 

shipment expense may be included in an item’s purchase price, and make it more 

expensive. The CO must consider that lower freight rates may be available to the 

judiciary and that government-controlled transportation may be available.

§ 220.25.40 Acceptance at Destination

When acceptance of products is at destination, the purchase document delivery terms 

must specify F.O.B. destination.

§ 220.25.50 Liquidated Damages

If the judiciary can expect to suffer damage from late delivery or performance, liquidated 

damages may be included in the solicitation or contract (see: § 220.30 (Liquidated 

Damages)).

§ 220.25.60 Delivery Schedules

(a) Delivery or performance schedules may be expressed in terms of:

(1) Specific calendar dates;

(2) Specific periods from the date of the contract (i.e., from the date of 

award or from the date shown as the effective date of the contract);

(3) Specific periods from the date of receipt by the contractor of the 

notice of award (including notice by receipt of an executed contract 

document from the judiciary); or

(4) Specific time for delivery after receipt by the contractor of each 

individual delivery order issued under the contract, as in indefinite 

delivery type contracts.

(b) A solicitation’s delivery schedule may be a firm date and state that it is 

based upon an assumption that award will be made by a certain date. In 

the event that award is made after that date, the delivery schedule must 

be appropriately adjusted in order not to curtail the delivery time to the 

prejudice of the contractor because of delay by the judiciary in making an 

award.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 20

(c) If the delivery schedule is based on the date of the contract, the 

contracting officer will mail or otherwise furnish to the contractor the 

contract, notice of award, or other contract document not later than the 

date of the contract.

(d) If the delivery schedule is based on the date the contractor receives the 

notice of award, or expressed in terms of specific calendar dates on the 

stated assumption that notice of award will be received by a specified 

date, the CO will send the contract, notice of award or other contract 

document by certified mail, return receipt requested, or by any other 

method that will provide evidence of the date of receipt by the contractor.

§ 220.25.70 Product-Related Delivery Clauses and Provisions

The CO will include the following clause(s) as applicable in the solicitation or contract 

document:

§ 220.25.70 Product-Related Delivery Clauses and Provisions

Clause or Provision is included in...

(a) Clause 2-25A, Delivery 

Terms and Contractor’s 

Responsibilities

solicitations and contracts for products or services involving 

the furnishing of products.

(b) Clause 2-25B, 

Commercial Bill of 

Lading Notations

cost-reimbursement or fixed price F.O.B. origin solicitations 

and contracts for products or services involving the furnishing 

of products anticipated to exceed the judiciary’s small 

purchase threshold. The CO will appropriately fill in the 

clause’s blank spaces.

(c) Clause 2-30A, Time of 

Delivery

solicitations and contracts that specify a required delivery 

schedule, but the judiciary may consider an earlier delivery 

advantageous.

(d) Clause 2-30B, Desired 

and Required Time of 

Delivery

solicitations and contracts when the judiciary desires delivery 

by a certain time, but requires delivery by a specified later 

time, and the delivery schedule is to be based on the date of 

the contract award. 

(e) Clause 2-35, F.O.B.

Destination, Within 

Judiciary’s Premises

solicitations and contracts when delivery term is F.O.B.

destination within the judiciary’s premises (e.g., delivery of 

heavy equipment by the contractor to a specific room within a 

building rather than to a loading dock).

(f) Clause 2-40A, Variation 

in Quantity

solicitations and contracts when authorizing a variation in 

quantity in fixed-price contracts for products or for services 

that involve the furnishing of products. The CO will 

appropriately fill in the clause’s blank spaces.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 21

§ 220.25.70 Product-Related Delivery Clauses and Provisions

Clause or Provision is included in...

(g) Clause 2-40B, Delivery 

of Excess Quantities

solicitations and contracts when a fixed-price products 

contract is contemplated and the judiciary may be willing to 

accept a quantity greater than that specified.

(h) Clause 2-45, Packaging 

and Marking

all solicitations and contracts for products, or for services 

involving the furnishing of products.

(i) Clause 2-95, Material 

Requirements

solicitations and contracts for products that are not 

commercial or off-the-shelf items.

(j) Provision 2-105, 

Economic Purchase 

Quantity-Products

solicitations for products unless:

• the purchase is being made under a GSA multiple award 

schedule;

• the CO determines the judiciary already has the data;

• the data is not otherwise readily available; or

• it is impracticable for the judiciary to vary its future 

requirements to take advantage of economic purchase 

quantities.

§ 220.25.80 Service-Related Provisions and Clauses

Procurement planning also requires the CO to determine the applicability of various 

provisions and clauses to the performance of services. Include the following provisions 

and clauses as indicated:

§ 220.25.80 Service-Related Provisions and Clauses

Clause or Provision is included in...

(a) Clause 2-50, 

Continuity of 

Services

solicitations and contracts for services, when:

(1) the services are considered vital to the judiciary;

(2) the services must be continued without interruption;

(3) a successor (either the judiciary or another contractor), is likely to 

continue the services upon contract expiration; and

(4) the judiciary anticipates difficulties during the transition from one 

contractor to another, or from the contractor to the judiciary.

(b) Clause 2-55, 

Privacy or Security 

Safeguards

all solicitations and contracts for information technology that require 

security of information technology, and/or are for the design, 

development, or operation of a system of records using commercial 

information technology services or information technology support 

services.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 22

§ 220.25.80 Service-Related Provisions and Clauses

Clause or Provision is included in...

(c) Clause 2-60, 

Stop-Work Order

all solicitations and contracts.

(d) Clause 2-65, Key 

Personnel

solicitations and contracts for services when it is necessary to identify 

contractor key personnel because they have the required expertise. 

The CO may determine that this clause is not necessary, either 

because contractor flexibility is desired, or it is cost prohibitive to pay 

extra for specific expertise. The CO will appropriately fill in the 

clause’s blank spaces to identify, for the solicitation, the labor 

categories or positions considered key and, in the contract award, the 

individuals identified for these key positions in the successful offeror’s 

proposal.

(e) Provision 2-70, 

Site Visit

solicitations for services to be performed in judiciary facilities, when a 

site visit is deemed appropriate.

(f) Clause 2-140, 

Judiciary IT 

Security 

Standards

solicitations and contracts involving systems integration or software 

development. The clause may be included in solicitations and 

contracts for software services if inclusion is determined appropriate 

after coordination with the AO’s IT Security Office and OGC.

§ 220.30 Liquidated Damages

§ 220.30.10 In General

Liquidated damages are one of several remedies the judiciary may use when a delay in 

delivery or performance, attributable to the contractor, will cause damage to the 

judiciary. The CO must receive written approval from PMD before including a liquidated 

damages clause in the solicitation. For guidance on imposing liquidated damages after 

contract award, see: Guide, Vol. 14, § 735.25 (Assessing Liquidated Damages).

§ 220.30.20 Applicability

Liquidated damages may be included in solicitations and contracts when:

(a) the time, delivery, or performance is such an important factor in the 

performance of the contract that the judiciary may reasonably expect to 

suffer damage if the delivery or performance is delinquent; and

(b) the amount of actual damages would be difficult or impossible to 

determine or prove.

§ 220.30.30 Basis of Liquidated Damages Amount

Liquidated damages must not be used punitively for a contractor’s failure or as a 

negative performance incentive, but only as a re-payment of judiciary loss. Any formula 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 23

for calculating liquidated damages must be based on an analysis of the procurementspecific anticipated amount of judiciary losses that would directly result from delay in 

contractor delivery or performance.

§ 220.30.40 Determination and Documentation

(a) The CO must determine and document in the file in each case:

(1) why the use of liquidated damages is appropriate; and

(2) how the rate was determined reasonable, and not punitive.

(b) The determined rate must, at a minimum, cover the estimated cost of 

inspection and oversight for each day of delay. Whenever the judiciary is 

likely to suffer other specific damages due to a contractor-caused delay, 

the rate must also include an amount for these damages. Examples of 

specific damages are the:

• cost of substitute facilities,

• cost of lost work-hours or productivity, or

• rental of buildings or equipment.

§ 220.30.50 Clause

If PMD approves use of liquidated damages, include Clause 2-75, Liquidated Damages 

in solicitations and contracts, inserting in the blank the dollar amount of the damages to 

be assessed per day (or per alternate unit of time) in the event of contractor caused 

delay.

§ 220.35 Judiciary Property

(a) The judiciary may provide materials or other property to a contractor for its 

use in performance of a contract when doing so will result in significant 

economies, standardization, expedited production, or when it is otherwise 

in the judiciary’s interest.

(b) Judiciary-furnished property must be specified in the solicitation and the 

resulting award document in sufficient detail (including inventories or 

requisitioning procedures) to enable offerors to evaluate the requirement 

and consider it in their pricing proposal.

(c) When the judiciary will furnish property, the solicitation and resulting 

award document must include Clause 2-80, Judiciary Property. See also: 

Guide, Vol. 14, § 720 (Judiciary Property).
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 24

§ 220.40 Options

§ 220.40.10 In General

Options are useful tools for soliciting either future periods of performance for services or 

for soliciting a combination of minimum base (i.e., “must have”) products and optional 

products that are desired, but could be omitted if they exceed the funding available. 

Inclusion of an option in a contract provides the judiciary with a unilateral right by which, 

during a time period specified in the solicitation or contract, the judiciary may elect to 

purchase additional products or services called for by the solicitation or contract, or may 

elect to extend the term of the contract. Options may be included in solicitations and 

contracts when:

(a) increased requirements during the performance period are anticipated and 

subsequent competition would be impractical due to such factors as 

production lead-time and delivery requirements;

(b) continuing performance past the original performance period may be 

required; or

(c) it is unclear that funding will be available for all items solicited, such as 

when soliciting for furniture, in which case certain items may be listed as 

optional and awarded only if there are sufficient funds to include them in 

the award.

Note: Options that have been priced and evaluated in a competitive procurement are 

preferable to negotiating a price for additional quantities or time extensions with the 

successful contractor after award of a contract. The judiciary will generally receive 

more favorable pricing when the options are separately identified and priced in the initial 

offer. If, after award, a need arises for additional quantities or continued performance, 

the CO must determine whether the new quantity or time extension may be considered 

to be within the original scope of the contract or not. Additional quantities or continued 

performance that cannot be considered within scope must be the subject of a new 

competitive procurement or justified as a sole source procurement. See: Guide, Vol. 

14, § 335 (Justification and Approvals for Limiting Competition).

§ 220.40.20 Option Pricing

Solicitations must clearly identify those products or services that are considered to be 

optional and instruct offerors to price each option separately. Solicitations normally 

should allow options to be offered without limitation as to price, especially if the 

option(s) will be considered in the evaluation for award. Any restriction on option pricing

(e.g., requiring option quantities of products to be priced the same as the base 

quantities) must be approved by PMD before the solicitation is issued.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 25

§ 220.40.30 Restrictions

Option provisions and clauses may not be included in solicitations or contracts when:

(a) the contractor would be required to incur undue risks (e.g., when the price 

or availability of necessary materials or labor cannot be reasonably 

estimated);

(b) market prices for the products or services involved are likely to fluctuate or 

change substantially (e.g., sometimes in procurement of paper, petroleum,

or petroleum-based products); or

(c) the option represents known firm requirements for which funds are 

available, unless:

(1) the basic quantity is a learning or testing quantity and there is some 

uncertainty as to contractor or equipment performance, and

(2) competition for the option is impracticable once the initial contract is 

awarded.

§ 220.40.40 Limitations on Options

In the case of options for the performance of services, the total of the base and option 

periods must not exceed five years for contracts that are subject to the Service Contract

Labor Standards.

§ 220.40.50 Required Contract Terms

The solicitation and resulting contract must specify:

(a) the limits of the option(s) as to additional quantities of products and/or 

services that may be purchased;

or

(b) the duration of the period for which performance may be extended under 

period of performance option(s);

and

(c) the time period or window within which the option(s) may be exercised. 

This period must be set to give the contractor adequate notice for 

performance under the option. In determining the period, consideration 

must be given to the necessary lead-time to ensure continuous production 

in a manufacturing context or employee retention in an on-going services 

context and the time required for additional funding and other approvals. 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 26

The time period for exercising the option must always be kept to a 

minimum.

§ 220.40.60 Option Provisions and Clauses

(a) A solicitation that includes options must inform competing offerors of how 

the option quantity or option period will be evaluated for award. 

Incorporate one of the following Evaluation of Options provisions, as 

applicable.

§ 220.40.60(a) Evaluation of Options Provisions

Provision is included in solicitations...

(1) Provision 2-85A, 

Evaluation Inclusive 

of Options

when price evaluation will include the option prices.

(2) Provision 2-85B, 

Evaluation Exclusive 

of Options

when price evaluation will exclude the option prices. Note: Use 

of this provision may not result in obtaining the most 

advantageous prices for the option periods or quantities.

(3) Provision 2-85C, 

Evaluation of Options 

Exercised at Time of 

Contract Award

when the CO has determined that there is a reasonable 

likelihood that the option will be exercised, and it may be 

desirable to exercise the option at the time of award. For 

example, the solicitation includes a number of items of furniture, 

some of which are identified as optional, that will be awarded 

only if sufficient funds are available at the time of award.

(b) Include one of the following option clauses as applicable in solicitations 

and contracts that include options that may be exercised after award. Do 

not include when the options may only be exercised at the time of award 

(i.e., the solicitation includes Provision 2-85C, Evaluation of Options 

Exercised at Time of Contract Award). For guidance on exercising options 

after contract award, see: Guide, Vol. 14, § 745.30 (Exercise of Options).

§ 220.40.60(b) Option Clauses

Clause is included in...

(1) Clause 2-90A, Option 

for Increased Quantity 

solicitations and contracts for products that express the option 

quantity as a percentage of the basic quantity or as an 

additional quantity of a specific line item.

(2) Clause 2-90B, Option 

for Increased Quantity 

– Separately Priced 

Line Item

solicitations and contracts for products when the option quantity 

is identified as a separately priced line item having the same 

nomenclature as a corresponding base line item.

(3) Clause 2-90C, Option 

to Extend Services

solicitations and contracts for services when it is intended to 

have the option to extend the period of performance up to six 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 27

§ 220.40.60(b) Option Clauses

Clause is included in...

months beyond the resulting award’s period of performance. 

The CO will appropriately fill in the clause’s blank spaces.

(4) Clause 2-90D, Option 

to Extend the Term of 

the Contract

solicitations and contracts for products or services when it is 

necessary to include any or all of the following:

• a requirement that the judiciary must give the contractor a 

preliminary written notice of its intent to extend the contract; 

• a statement that an extension of the contract includes an 

extension of the option;

• a specified limitation on the total duration of the contract.

Note: The CO will appropriately fill in the clause’s blank 

spaces.

§ 220.45 Equipment Lease or Purchase

§ 220.45.10 In General

This guidance pertains to the decision to obtain equipment by lease or purchase. It 

applies to both the initial procurement of equipment and the renewal or extension of 

existing equipment leases. The judiciary should consider whether to lease or purchase 

equipment or products based on a case-by-case evaluation of comparative costs and 

other factors.

§ 220.45.20 Timing of Decision

(a) Upon receipt of the requirement from the requesting office, the CO will 

conduct appropriate market research. A decision to lease or purchase 

may be possible based solely upon the market research results. In that 

case, a written decision must be documented in the procurement file and 

the solicitation issued on the basis of that decision.

(b) If the market research is insufficient to determine whether a lease or a 

purchase is in the best interest of the judiciary, the solicitation or request 

for quotes should request offerors to offer both purchase and lease pricing 

options. In this case, the decision whether to lease or to purchase would 

then be made at the time of award.

(c) Whether before the issuance of the solicitation, or at the time of award, the 

CO and requesting office must deliberate the lease-versus-buy decision to 

determine which is more advantageous to the judiciary, and the CO’s 

written decision must be documented in the procurement file.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 28

§ 220.45.30 Factors to Consider

The CO should consider the following:

(a) estimated length of time the equipment is to be used and the estimated 

usage within that period;

(b) financial and operating advantages of alternative types and makes of 

equipment;

(c) cumulative rental payments for the estimated period of use, including 

option periods. Use an inflation factor for the subsequent year(s). A 

budget analyst will assist in obtaining this factor;

(d) net purchase price;

(e) any differences in transportation and installation costs;

(f) any maintenance and other service costs;

(g) potential obsolescence of the equipment because of imminent 

technological improvements;

(h) availability of purchase options;

(i) trade-in or salvage value;

(j) availability of a servicing capability, especially for highly complex 

equipment (i.e., if it is purchased, whether the equipment will be serviced 

by the judiciary or other sources). If it will be serviced by the lease 

contractor, then these costs must be considered;

(k) cost to terminate the lease if the judiciary no longer needs the equipment; 

and

(l) cost for any damage caused to the equipment.

§ 220.45.40 Purchase Method

(a) Generally, the purchase method is appropriate if the equipment will be 

used beyond the point when cumulative leasing costs exceed the 

purchase costs. The estimate for cumulative leasing costs will include any 

proposed option periods, calculated with their inflation factor and any other 

costs associated with leasing (i.e., cost for termination, maintenance, 

installation).
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 29

(b) COs should not rule out the purchase method of equipment in favor of 

leasing merely because of the possibility that future technological 

advances might make the selected equipment less desirable.

§ 220.45.50 Lease Method

(a) The lease method may be appropriate after considering the factors in 

§ 220.45.30 (Factors to Consider) and determining it is in the judiciary’s 

advantage under the circumstances. The lease method may also serve 

as an interim measure when the circumstances:

(1) require immediate use of equipment to meet program or system 

goals; and

(2) do not currently support purchase.

(b) If a lease is justified:

(1) a lease with option to purchase is preferable, unless the equipment 

is needed only temporarily (see: § 220.45.50(d), below);

(2) a lease may be structured as a base period with options. Option 

period(s) should be negotiated at the time of initial award for the 

subsequent year(s) to be exercised at the discretion of the judiciary;

(3) advance payment is not authorized for any lease period, except 

under § 220.55 (Contract Financing). Payment must be made in 

arrears consistent with a mutually agreed upon time period (e.g., 

monthly, quarterly, annually);

(4) the cost to terminate the lease must be negotiated and included in 

the contract.

(c) Generally, a lease with numerous option periods should be avoided, but 

may be appropriate if an option to purchase or other favorable terms are 

included.

(d) If a lease with option to purchase is used, the contract will state the 

purchase price or provide a formula that shows how the purchase price 

will be established at the time of purchase.

§ 220.45.60 Commercial Agreement

If the lease includes a commercial agreement, then the procedures in Guide, Vol. 14, 

§ 540 (Commercial Agreements) must be followed.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 30

§ 220.45.70 Clauses

Insert Clause 2-110, Option to Purchase Equipment in solicitations and contracts 

involving a lease with option to purchase.

§ 220.50 Funding Contract Awards

§ 220.50.10 Policy

All judiciary purchases must be supported by a written contract document that has been 

signed by a certified judiciary contracting officer, and funds sufficient to make required 

contractual payments must be obligated in the judiciary accounting system before the 

contractor begins contract performance. No officer or employee of the judiciary may 

create or authorize an obligation in excess of the funds available, or in advance of 

appropriations (Antideficiency Act, 31 U.S.C. § 1341), unless otherwise authorized by 

law. Before executing any contract, the contracting officer will:

(a) Ensure that adequate funds are available; or

(b) Expressly condition the contract on availability of funds, consistent with 

§ 220.50.90 (Clauses for Contracting in Advance of Appropriation of 

Funds).

(c) See also: Guide, Vol. 13, § 280.60 (Recording and Monitoring 

Commitments and Obligations).

§ 220.50.20 Contract Funding Requirements

The following funding guidance applies regardless of whether or not the funds for a 

contract are local funds or centrally managed funds. Questions regarding contract 

funding should be referred to the PE, who will consult with OGC as necessary.

(a) Firm-fixed-price contracts are generally required to be fully funded, which 

means obligating funds to cover the entire contract price, even if awarded 

during a period of a continuing resolution. This includes firm-fixed-price 

contracts for severable services that cross fiscal years (see:

§ 220.50.60(b) (Contracts Crossing Fiscal Years (Annual 

Appropriations))). For example, a firm-fixed-price contract for severable 

services awarded for the period 04/01/2019 through 03/31/2020 would 

normally be fully funded from FY19 funds for performance through 

03/31/2019.

(1) A firm-fixed-price contract may be incrementally funded only if the 

contract (excluding any options) or any exercised option is:

(A) For severable services;
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 31

(B) For a period of one year or less;

(C) Incrementally funded using funds available (unexpired) as of 

the date the funds are obligated; and

(D) Approved by PMD for a one-time delegation of procurement 

authority.

(2) An incrementally funded fixed-price contract should be fully funded 

as soon as funds are available.

(b) Contracts for non-severable services must be fully funded at the time of 

award, which means obligating funds based upon the established cost 

ceiling in a cost-reimbursement or labor-hour contract. The proper fiscal 

year’s funds for an increase to the cost ceiling for these types of contracts 

depends on the reason for the increase.

(c) Contracts for severable services awarded on a cost-reimbursement, laborhour, or time-and-materials basis may be funded up to twelve (12) months 

at a time, and the funding may cross the fiscal year (see: § 220.50.60(b) 

(Contracts Crossing Fiscal Years)). Alternatively, the award may be 

funded to cover only what is estimated to be required for performance 

from award through September 30th from the current fiscal year’s funds. 

The contract would then be modified to obligate funds of the next fiscal 

year to cover the remainder of the twelve month performance period, 

assuming there is still a bona fide need for the services. Funding for the 

award or for the exercise of any option period may not exceed the amount 

estimated for a twelve month period of performance.

(d) Multi-year contracts may be fully funded or funded annually. For 

information on minimum funding for multi-year contracts, see: Guide, 

Vol. 14, § 410.75.50(a)(1) (Funding and Payment).

(e) The amount obligated when funding a blanket delivery order (BDO) or an 

unpriced purchase order must be based upon the contracting officer’s 

reasonable best estimate of what services/products will actually be 

ordered during the period covered by the BDO or unpriced purchase 

order. The file must contain documentation of the basis of the estimate

(e.g., average previous annual expenditures over the last 3-5 years for the 

same or similar services/products). For additional guidance on using 

these two purchase methods, see: Guide, Vol. 14, § 325.50.40 (Ordering 

under BPAs) and § 325.45.25 (Use of Unpriced Purchase Orders). BDOs 

may also be used under indefinite quantity contracts. See: Guide, 

Vol. 14, § 410.30.60 (Delivery Orders or Task Orders).

Note: The period covered by a BDO may not cross fiscal years.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 32

§ 220.50.30 Fiscal Year Contracts

The contracting officer may initiate a contract action properly chargeable to funds of the 

new fiscal year before these funds are available, provided that the solicitation and 

resulting contract include Clause 7-115, Availability of Funds.

§ 220.50.40 Indefinite-Quantity Contracts

A one-year indefinite-quantity contract that is funded by annual appropriations may 

extend beyond the fiscal year in which it begins; provided, that any specified minimum 

quantities are certain to be ordered in the initial fiscal year.

§ 220.50.50 Liability Contingent Upon Obligation of Funds

The judiciary has no liability to pay for supplies or services under a contract conditioned 

upon the availability of funds until the CO has given the contractor notice that funds are 

available, which must be confirmed by a contract modification obligating the funds.

§ 220.50.60 Contracts Crossing Fiscal Years (Annual Appropriations)

(a) A contract that is funded by annual appropriations may not cross fiscal 

years, except consistent with statutory authorization (e.g., 28 U.S.C. 

§ 604(g)(4)(A) and (B)), or when the contract calls for non-severable 

services that cannot feasibly be subdivided for separate performance in 

each fiscal year.

(b) The Director is statutorily authorized to enter into a contract, exercise an 

option, or place an order under a contract for severable services (e.g., 

equipment maintenance services, court reporting services, interpreter 

services, etc.) for a period that begins in one fiscal year and ends in the 

next fiscal year using annual appropriations if the period of the contract 

awarded, option exercised, or order placed does not exceed one year 

(28 U.S.C. § 604(g)(4)(A)). Current year funds, available as of the date 

such an award is made, may be obligated for the total amount of the 

contract, option, or order entered into under this authority.

§ 220.50.70 Limitation of Cost or Funds

(a) When using cost-reimbursement contracts containing Clause 4-85, 

Limitation of Cost or Clause 4-90, Limitation of Funds, upon learning that 

the contractor is approaching the estimated cost of the contract or the limit 

of the funds obligated, the CO will promptly obtain programming and 

funding information pertinent to the contract’s continuation and notify the 

contractor in writing of one of the following:

(1) Additional funds have been obligated in a specified amount;
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 33

(2) The contract is not to be further funded and the contractor should 

submit a proposal for an adjustment of fee, if any, based on the 

percentage of work completed in relation to the total work called for 

under the contract;

(3) The contract is to be terminated; or

(4) The judiciary is considering whether to obligate additional funds. In 

this event, the CO’s notice must also include the statements that 

the contractor is entitled by the contract terms to stop work when 

the obligated funding is reached and that any work beyond the 

obligated funding will be at the contractor’s risk.

(b) Upon learning that a partially funded contract containing either of the 

clauses referenced in § 220.50.70(a) above will receive no further funds, 

the contracting officer must promptly give the contractor written notice of 

the decision not to provide funds.

§ 220.50.80 Funding for Changes

(a) Under a firm-fixed-price contract, the contracting officer must ensure that 

funds are available in the appropriate amount before authorizing changes.

(b) Under a cost-reimbursement or labor-hour contract, the contracting officer 

may issue a change order, a direction to replace or repair defective items 

or work, or a termination notice without immediately increasing the funds 

available. Since a contractor is not obligated to incur costs in excess of 

the obligated funds in the contract, the contracting officer must ensure 

availability of funds for directed actions.

(1) If, at the time the change is ordered, the contract has a projected 

underrun (i.e., projected costs for the remainder of the performance 

are less than the currently obligated funding), funds for the change 

may be available without any change to the existing funding.

(2) Otherwise, the contracting officer must ensure funds are available 

and obligated to cover the increased cost for the ordered changes. 

The contracting officer may direct that any increase in the funds 

obligated on a contract be used for the sole purpose of funding

termination or other specified expenses.

See also: Guide, Vol. 14, § 745.40.30 (Contractor’s Obligation to 

Perform).
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 34

§ 220.50.90 Clauses for Contracts Conditioned Upon Availability of Funds

(a) Insert Clause 7-115, Availability of Funds in solicitations and contracts if 

the contract will be chargeable to funds of the new fiscal year and the 

contract action will be awarded before the funds are available.

(b) Insert Clause 7-120, Availability of Funds for the Next Fiscal Year in laborhour, time-and-materials, or cost-type solicitations and contracts if:

(1) the contract is funded using annual appropriations;

(2) the performance period will cross fiscal years; and

(3) there are insufficient funds in the current year for the initial period of 

performance.

§ 220.55 Contract Financing

§ 220.55.10 Definition

“Contract financing payment” means an authorized judiciary disbursement of monies to 

a contractor before the judiciary’s acceptance of products or services.

(a) Contract financing payments include:

• commercial advance payments,

• performance based payments,

• progress payments based on cost,

• progress payments based on a percentage or stage of completion, 

and

• interim payments under a cost reimbursement contract.

(b) Contract financing payments do not include:

• routine invoice payments for products and services that have been 

received and accepted,

• payments for partial deliveries, or

• lease and rental payments paid in arrears.

§ 220.55.20 Authority

The Director has authority under 28 U.S.C. § 604(g)(4)(C) to enter into contracts 

containing contract financing terms. Of the various types of contract financing listed 

above in § 220.55.10(a) (Definition), only commercial advance payment is currently 

authorized for use by judiciary organization contracting officers. This section prescribes 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 35

procedures applicable to the inclusion of commercial advance payment terms in 

purchase orders and contracts.

Note: Payment in advance is permitted for publications, whether printed or electronic, 

under 31 U.S.C. § 3324(d)(2), which is a separate authority from this delegation, and is 

therefore not subject to any of the limitations of the commercial advance payment 

delegation described below.

§ 220.55.30 Delegation

(a) Subject to the following limitations, the Director has delegated to chief 

judges and other judiciary officials identified at § 120.20.10(b) (Delegation 

to Chief Judges and Other Judiciary Officials), the authority to use 

commercial advance payment, subject to the limitations of the bona fide 

needs rule, in the purchase of services that meet all of the following 

conditions:

(1) The purchase is for:

(A) telephone service purchased under a contract;

(B) commercial training for an individual employee or group of 

employees;

(C) maintenance support services for photocopy equipment, IT 

equipment, and/or software;

(Note: Prepaying “software maintenance as a 

product” at the time of contract award does not 

constitute an advance payment under 31 U.S.C. 

§ 3324. In contrast, “software maintenance as a 

service” is billed in arrears under 31 U.S.C. § 3324

(see: GAO B-256692) or the commercial advance 

payment authority in this section can be considered

for use, but subject to the other limitations noted 

further below (e.g., the 15% maximum rule in 

paragraph (a)(2)).)

(D) parking space (garage or lot) services, regardless of the 

source (e.g., private company, state/local government), 

where the advance payment is made the first of the month to 

cover only that month’s service; or

(Note: Advance payment for parking on any other interim

(e.g., quarterly, semi-annually) is not delegated. For further 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 36

guidance on parking services, see: Guide, Vol. 16, § 630 

(Parking).)

(E) emergency and transitional housing, child care, and job 

training related to Second Chance Act. See: Guide, Vol. 8L,

Ch. 2 (Second Chance Act Guidance).

(2) Under 28 U.S.C. § 604(g)(4)(C) and 41 U.S.C. § 4505(c), before

any performance of work under the contract, the aggregate of 

commercial advance payments may not exceed 15% of the 

contract price.

(3) The period of performance to be paid in advance does not exceed 

a 12-month period (not applicable to the purchase of extended 

warranties).

(4) No advance payment is made before the end of the first month of 

the period of performance (not applicable to the purchase of 

commercial training or extended warranties).

(b) PMD may approve the inclusion of commercial advance payment terms 

for transactions outside these limits as one-time delegations of authority 

for specific purchases, except payments exceeding the statutory 15% rule

referenced above in subparagraph (a)(2).

(c) The judiciary may make advance payments to state and local 

governments where these entities are furnishing non-commercial services 

under contract that are reasonably available only from the state or local 

government organization (e.g., state court fees).

(1) Contracts with state or local governments for advance payments for

such services are not subject to the conditions of this delegation, 

and do not require obtaining a one-time delegation of authority.

(2) However, advance payment for purchases of services from state or 

local governments are subject to the limitations of § 220.55.30(a)

(Delegation).

(d) The judiciary may make advance payment to other federal agencies 

without any special approvals or authorizations. See: Guide, Vol. 14, 

§ 550 (Interagency Agreements, MOAs, and MOUs).

§ 220.55.40 Policy

In approving the use of commercial advance payments, the CO must keep in mind that 

Congress intended this authority to be used sparingly since it poses certain risks to the 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 37

judiciary should the contractor declare bankruptcy or fail to perform, for example. The 

security obtained, the amounts and timing of commercial advance payments, and the 

anticipated savings to the judiciary must be analyzed as a whole to determine whether 

making advance payment will be in the best interest of the judiciary. For information on 

required determinations, see: § 220.55.60(e) (Determinations).

§ 220.55.50 Limitations

(a) Any proposed use of a commercial advance payment that does not meet 

all of the conditions in § 220.55.30 (Delegation) above, must be forwarded 

to PMD, for review before the award. If the request is approved, PMD will 

issue a one-time delegation of authority to enter into the contract. For 

information on required determinations, see: § 220.55.60(e) 

(Determinations).

(b) Performance is deemed to commence on the first day of the contract 

period of performance. While actual performance of services under 

maintenance support service agreements for photocopy equipment, IT 

equipment and/or software might not occur on the first day of the 

performance period, for advance payment purposes, performance is 

deemed to commence on the first day of the contract period of 

performance. Similarly, when the award is made in advance of the first 

day of the contract period of performance (e.g., contracts awarded in 

August or September, with performance starting in October), performance 

commences on the first day of the contract period of performance, not as 

of the date of award, except with regard to commercial training, where 

performance is deemed to commence on the date of the award.

(c) The contracting officer must obtain adequate security before authorizing a 

commercial advance payment. See: § 220.55.60(c) (Evaluating 

Adequacy of Security for Advance Pay).

§ 220.55.60 Procedures

(a) Solicitations

If an offeror proposes commercial advance payment terms in 

response to a competitive written solicitation, and the CO is willing 

to consider the request, the solicitation must be amended to add 

Clause 2-115, Terms for Commercial Advance Payment of 

Purchases to the solicitation to notify all offerors of the availability of 

advance pay, if the clause was not included in the original 

solicitation.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 38

(b) Evaluating Offers with Different Payment Terms

An offer stating that the commercial advance payment terms will 

not be used by the offeror does not alter the evaluation of the offer, 

nor does it render the offer nonresponsive or otherwise 

unacceptable. In the event of award to an offeror who declined the 

proposed advance payment, the advance payment clause(s) may 

not be included in the resulting contract. Acceptance or refusal of 

the commercial advance payment term may not be a basis for 

adjusting offerors’ proposed prices, because the effect is reflected 

in each offeror’s proposed prices.

(c) Evaluating Adequacy of Security for Advance Pay

(1) The CO will review the apparent successful offeror’s financial 

condition to determine whether it is acceptable as adequate 

security for the risk incurred by making advance payment. 

Assessment of the contractor’s financial condition will consider both 

net worth and liquidity. Other methods of verifying the contractor’s 

financial condition to make this determination include the following:

(A) Checking Dun and Bradstreet, if this service is available; 

and/or

(B) Requesting audited financial statements from the offeror

(2) If the CO finds the offeror’s financial condition to be adequate 

security, Clause 2-125, Security for Advance Payment must be 

included in the awarded contract as well as Clause 2-115, Terms 

for Commercial Advance Payment of Purchases.

(3) If the CO does not consider the offeror’s financial condition to be 

adequate security, the offeror must provide an irrevocable letter of 

credit from a federally insured financial institution as specified in 

Clause 2-115, Terms for Commercial Advance Payment of 

Purchases. The letter of credit must be at least equal to the 

amount of the advance payment requested. If the offeror refuses to 

provide the required letter of credit, the CO may request pricing 

based upon payment in arrears. If the revised proposal still is the 

apparent successful offer consistent with the solicitation’s 

evaluation procedures, the CO may make award upon the basis of 

payment in arrears. Any award made based upon payment in 

arrears should not include any advance payment clauses.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 39

(d) Contract Administration

(1) The CO is responsible for receiving, approving, and transmitting all 

commercial advance payment requests to the payment office. For 

open market awards involving advance payment, the CO is also 

responsible for determining that the security provided by the 

contractor continues to be adequate.

(2) If the contractor’s financial condition was accepted as adequate 

security, the CO will monitor the contractor’s financial condition at 

least quarterly.

(3) If information obtained during the CO’s periodic monitoring of the 

contractor’s financial condition causes the CO to determine that the 

contractor’s financial condition has become insufficient, the CO 

must request additional security under Clause 2-115, Terms for 

Commercial Advance Payment of Purchases. In this situation, in 

addition to an irrevocable letter of credit from a federally insured 

financial institution, the following alternative forms of security may 

be accepted:

(A) A lien paramount to all other liens without filing, notice, or 

other action by the judiciary. The contractor must identify 

what the lien is upon (e.g., the work in process, the 

contractor’s plant, or the contractor’s inventory), and the CO 

must issue a modification to the contract to reflect the lien 

and the asset(s) supporting it. The CO also must ensure the 

contract gives the judiciary a right to verify the existence and 

value of the asset. In addition, the contractor must certify 

that the assets subject to the lien are free from any earlier 

encumbrances that may result from such things as capital 

equipment loans, installment purchases, working capital 

loans, lines of credit and revolving credit arrangements.

(B) A bond guaranteeing repayment of the unliquidated advance 

payment from a corporate surety listed in Department of 

Treasury Circular 570 (Companies Holding Certificates of 

Authority as Acceptable Sureties on Federal Bonds and as 

Acceptable Reinsuring Companies).

(C) A guarantee of repayment from a person or corporation of 

demonstrated liquid net worth, connected by significant 

ownership to the contractor; or

(D) Title to identified contractor assets of adequate worth (e.g., 

U.S. Government securities, certificates of deposit, stocks 
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 40

and bonds actively traded on U.S. national stock exchange 

or real property).

(4) The additional security obtained must be at least equal to the 

maximum unliquidated amount of the advance payment already 

made to the contractor. The value of the security may be adjusted 

periodically during contract performance, as long as it is always 

equal to or greater than the amount of unliquidated advance 

payment.

(e) Determinations

The CO must include the following determinations in the contract 

file:

(1) A determination that it is appropriate or customary in the 

commercial marketplace to make commercial advance payments 

for the specific service being purchased. Note: For those types of 

purchases listed at § 220.55.30(a) (Delegation), this determination 

has been made and the CO will simply state that the purchase 

meets the conditions of § 220.55.30(a) (Delegation).

(2) A determination that authorizing commercial advance payment is in 

the best interest of the judiciary, which will include an analysis of 

the demonstrable savings expected to be realized through 

commercial advance payment. The best interest of the judiciary 

determination will address the following:

(A) A brief summary of the solicitation or contract requirements 

(e.g., description of services, period of performance, etc.);

(B) The contractor’s need for commercial advance payments 

and the potential benefits to the judiciary from providing 

commercial advance payments;

(C) Actions that the contracting officer will take to minimize the 

judiciary’s risk of loss from providing commercial advance 

payment;

(D) The proposed commercial advance payment contract terms; 

and

(E) If the CO accepts the contractor’s financial condition to be 

adequate security, the determination will also include the 

CO’s analysis supporting that decision.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 41

§ 220.55.70 Commercial Advance Payment Clauses

The CO will include the following clause(s) in solicitations and contracts offering 

commercial advance payment, as indicated below:

§ 220.55.70 Commercial Advance Payment Clauses

Clause is included in...

(a) Clause 2-115, Terms for 

Commercial Advance 

Payment of Purchases

all solicitations and contracts for products or services that

authorize commercial advance payment.

(b) Clause 2-115, Alternate I solicitations and contracts for photocopy equipment 

maintenance that authorize commercial advance payment.

(c) Clause 2-120, Submission of 

Invoice

solicitations and contracts that authorize commercial 

advance payment, except those for commercial training.

(d) Clause 2-125, Security for 

Advance Payment

all contracts authorizing commercial advance payment 

when the contractor’s financial condition is accepted as 

adequate security.

§ 220.60 Energy and Environmental Considerations

§ 220.60.10 Definitions

Energy-Efficient 

Product

A product that:

• Meets Department of Energy and Environmental Protection Agency 

criteria for use of the Energy Star trademark label; or

• Is in the upper 25% of efficiency for all similar products as designated 

by the Department of Energy’s Federal Energy Management 

Program (FEMP).

Energy-Efficient 

Standby Power 

Devices

Products that use:

• External standby power devices, or that contain an internal standby 

power function; and

• No more than one watt of electricity in their standby power 

consuming mode or meet recommended low standby levels as 

designated by the Department of Energy FEMP.

Environmentally 

Preferable

Products or services that have a lesser or reduced effect on human 

health and the environment when compared with competing products or 

services that serve the same purpose. This comparison may consider 

raw materials acquisition, production, manufacturing, packaging, 

distribution, reuse, operation, maintenance, or disposal of the product or 

service. This is applicable to FEMP-Designated products.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 42

§ 220.60.10 Definitions

Personal 

Computer 

Product

A notebook computer, a desktop computer, or a computer monitor, and 

any peripheral equipment that is integral to the operation of such items. 

For example, the desktop computer together with the keyboard, the 

mouse, and the power cord would be a personal computer product. 

Printers, copiers, and fax machines are not included in peripheral 

equipment, as used in this definition.

§ 220.60.20 Statutory Requirement

Under 42 U.S.C. § 8259B (Federal Procurement of Energy Efficient Products), judiciary 

purchases of energy-consuming products, including services involving the provision of 

energy-consuming products (e.g., courtroom technology projects) must specify products 

that comply with the requirements of this section. This requirement applies to all 

purchases of such products regardless of dollar amount, including purchases made 

using the judiciary purchase card.

§ 220.60.30 Statutory Exemption

The judiciary is not required to purchase an ENERGY STAR® or FEMP-designated 

product, if the chief judge or other judiciary official identified at § 120.20.10(b) 

(Delegation to Chief Judges and Other Judiciary Officials) (or Procurement Liaison 

Officer, if delegated), or PE determines:

(a) there is no ENERGY STAR® or FEMP-designated product reasonably 

available that meets the judiciary’s requirements; or

(b) no ENERGY STAR® or FEMP-designated product is cost-effective over 

the life of the product taking energy cost savings into account.

See also: Guide, Vol. 14, § 130.20.60 (Energy Efficiency).

§ 220.60.40 Procedure

When acquiring energy-consuming products listed in the ENERGY STAR® Program or 

FEMP:

(a) Judiciary COs must purchase ENERGY STAR® or FEMP-designated 

products; and

(b) For products that consume power in a standby mode and are listed on 

FEMP’s Low Standby Power Devices product listing, judiciary COs must:

(1) Purchase items that meet FEMP’s standby power wattage 

recommendation or document the reason for not purchasing such 

items; or
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 43

(2) If FEMP has listed a product without a corresponding wattage 

recommendation, purchase items that use no more than one watt in 

their standby power consuming mode. When it is impracticable to 

meet the one-watt requirement, judiciary COs must purchase items 

with the lowest standby wattage practicable.

§ 220.60.50 Purchasing Personal Computer Products

(a) The Institute of Electrical and Electronics Engineers (IEEE) 1680 standard 

for personal computer products is a voluntary consensus standard that

meets EPA-issued guidance on environmentally preferable products and 

services. The IEEE 1680 standard for personal computer products 

provides both required and optional criteria. An ENERGY STAR® rating is 

one of the minimum required criteria.

(b) The Electronic Product Environmental Assessment Tool (EPEAT) is a tool 

available to the judiciary to assist in the evaluation of personal computer 

products based upon environmental attributes. EPEAT “Bronze” 

registered products must meet all of the IEEE 1680 required criteria. 

EPEAT “Silver” registered products meet all IEEE 1680 required criteria 

and 50% of the optional criteria. EPEAT “Gold” registered products meet 

all IEEE 1680 required criteria and 75% of the optional criteria. For 

additional information on EPEAT, see: epeat.net. EPEAT registration is 

separate from ENERGY STAR® and FEMP.

(c) The purchase of EPEAT-registered products is encouraged when such 

products are reasonably available and are cost-effective over the life of 

the product. EPEAT Silver or Gold registration may be used as an 

evaluation factor in solicitations for personal computer products.

§ 220.60.60 Additional Resources

(a) ENERGY STAR®

(b) Federal Energy Management Program

§ 220.60.70 Clauses

The CO will include the following clause(s) in solicitations and contracts as indicated 

below:
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 44

§ 220.60.70 Clauses

Clause is included in ...

(a) Clause 2-130, Energy 

Efficiency in EnergyConsuming Products

solicitations and contracts when energy consuming products 

listed in the ENERGY STAR® program or FEMP will be

• purchased by the judiciary;

• purchased by the contractor for use in contractorperformed services within a judiciary facility;

• furnished by the contractor for use by the judiciary; or 

• specified in the design of a project or incorporated during 

implementation of a project (e.g., courtroom technology)

(b) Clause 2-135, Acquisition 

of EPEAT®-Registered 

Personal Computer 

Products

solicitations and contracts for personal computer products 

when soliciting for EPEAT-registered products.

Alternate 1 of the clause may be used when there are a 

sufficient number of EPEAT Silver registered products 

available to meet agency needs for meaningful competition

§ 230 Specifications, Statements of Work, and Product 

Descriptions

§ 230.10 Overview

§ 230.10.10 General Requirements

All procurement actions require a clear and concise description of the products or 

services to be procured that is devoid of generalizations, ambiguities, and omissions. 

For requirements processed under small purchase procedures, the description may be 

less detailed than for complex requirements processed under formal contracting 

procedures. However, the CO must ensure that products descriptions, specifications, 

statements of work (SOW), etc. are prepared in a way that promote competition. 

Unnecessarily restrictive SOWs or specifications may negatively impact competition. 

Restrictive product descriptions may require only one, or a limited number of offerors or 

product choices, when other highly similar products could also be considered if the

requirement is stated in less restrictive language.

§ 230.10.20 Avoidance of Ambiguity

Product descriptions, specifications and SOWs that are susceptible to more than one 

reasonable interpretation are ambiguous and objectionable. They impede full and open 

competition by failing to ensure that offerors are competing on a “common” or “equal” 

basis. The result may lead to contract administration problems or inadequate contractor 

performance.
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 45

§ 230.20 Specifications

§ 230.20.10 In General

Specifications are normally used when purchasing a product rather than a service. 

Specifications must fully and completely state the judiciary’s needs considering the 

nature of the products being purchased. Specifications may be stated in terms of:

(a) function, so that a variety of products may be considered as qualified;

(b) performance, including the range of acceptable characteristics or the 

minimum acceptable standards; or

(c) design requirements, providing exact dimensions, materials, or 

characteristics.

§ 230.30 Statements of Work

(a) Statements of Work (SOW) are most often used when purchasing 

services rather than end-products. However, a SOW may include 

specifications or product descriptions. The SOW must describe the work 

clearly and at a level of detail sufficient to ensure the judiciary obtains the 

services it requires. After award, the SOW is the standard for measuring 

performance and is used by both the judiciary and the contractor to 

determine rights and obligations under the contract.

(b) Two other methods of defining work in solicitations for services are the 

Performance Work Statement (PWS) and the Statement of Objectives 

(SOO). Both of these are structured around the results to be achieved 

rather than the manner in which the work is to be performed. These two 

methods are closely linked in that if the judiciary solicits using a SOO, the 

competing offerors propose the PWS for the contract, instead of the PWS 

being written by the judiciary.

(c) The PWS describes the required results in clear, specific and objective 

terms with measurable outcomes.

(d) The SOO states the overall performance objectives and is used when the 

judiciary intends to provide the maximum flexibility to each offeror to 

propose an innovative approach. The SOO must include the following, at 

a minimum:

• Purpose,

• Scope or mission statement,

• Period and place of performance,

• Background,
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 46

• Performance objectives (i.e., required results), and

• Operating constraints.

(e) Offerors use the SOO to develop a proposed PWS, which must then be 

evaluated to determine whether the proposed standards (i.e., measurable 

outcomes) meet judiciary needs. The final contract incorporates the 

successful offeror’s proposed PWS and not the SOO.

§ 230.40 Product Descriptions

§ 230.40.10 In General

Whenever standard or modified commercial products will meet judiciary requirements, 

product descriptions must be used instead of specifications. Product descriptions may 

be either the common generic identification of the item, which is the preferred 

description, or a brand name description, as follows:

(a) The common generic identification description must include the salient 

characteristics or function of the product. For example, for a printer, it will 

be described as having the capability to print a minimum of x pages per 

minute, in black ink or color, etc.

(b) The brand name description may include known acceptable brand-name 

products, identified by model or catalog number, and the commercial 

catalogs in which they appear. If a product with equal characteristics but a 

different brand name will also meet the requirements of the judiciary, then 

the brand name is followed by the phrase “or equal.” The CO must then 

consider other “or equal” products. However, if the brand name is 

specified without the phrase “or equal,” or is defined so as to require a 

particular “brand name,” product, or a feature of a product peculiar to one 

manufacturer, in a way that precludes consideration of a product 

manufactured by another company, then this is restricting competition to 

only those who can provide the specified brand name item and a 

justification for other than full and open competition is required. See also: 

Guide, Vol. 14, § 335.50 (Use of Brand Name Descriptions).

§ 230.40.20 Equivalent Product Considerations

If offers for equivalent (“or equal”) products will be considered:

(a) the product description must include a description of the item’s essential 

characteristics (e.g., material, size, capacity), the equipment with which 

the items will be used, and any restrictive operating environmental 

conditions; and
Guide to Judiciary Policy, Vol. 14, Ch. 2 Page 47

(b) space must be provided in the solicitation for offerors to identify the 

manufacturer’s brand names and models or catalog numbers of the 

“equal” product proposed.

§ 230.40.30 Provision

Include Provision 2-100, Brand Name or Equal in solicitations when the product 

description includes a specific brand name and an “equal” product is also acceptable.
Last revised (Transmittal 14-020) October 19, 2023

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 3: Purchasing Methods

§ 310 Procurement Sources

§ 310.10 Sources of Supply

§ 310.20 Workshop for People Who are Blind or Severely Disabled

§ 310.30 Randolph-Sheppard Act

§ 310.40 Judiciary-Wide Contracts and Blanket Purchase Agreements (BPAs)

§ 310.50 GSA Federal Supply Schedules

§ 310.60 Other Federal Agency Contracts

§ 310.70 Open Market

§ 310.80 Vendors Offering Services for Public Use

§ 315 Publicizing Open Market Procurement Actions

§ 315.10 Policy

§ 315.20 Methods of Publicizing Procurement Notices

§ 320 Contractor Qualifications

§ 320.10 Responsible Prospective Contractors

§ 320.20 Determining Responsibility or Non-Responsibility

§ 320.30 Debarment, Suspension, and Ineligibility

§ 320.40 Period of Debarment

§ 320.50 Procedural Requirements for Debarment

§ 320.60 Causes for Suspension

§ 325 Small Purchase Procedures

§ 325.10 Applicability

§ 325.15 Open Market Competition

§ 325.20 Competitive Small Purchase Procedures

§ 325.30 Soliciting Under Small Purchase Procedure

§ 325.35 Basis for Award

§ 325.40 Receipt and Evaluation of Quotations

§ 325.43 Ordering Methods Under Small Purchase Procedures

§ 325.45 Purchase Order

§ 325.50 Blanket Purchase Agreement

§ 325.55 Administration of Small Purchases

§ 330 Standard Competitive Contracting Procedures

§ 330.10 Applicability

§ 330.13 Pre-Offer Conference

§ 330.16 Amendment of Solicitations

§ 330.20 Cancellation of Solicitations

§ 330.23 Disclosure and Use of Information
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 2 

§ 330.26 Receipt of Offers

§ 330.30 Failure to Acknowledge Amendments

§ 330.33 Mistakes in Offers

§ 330.36 Evaluation of Offers

§ 330.40 Selection for Award

§ 330.43 Discussions with Offerors

§ 330.46 Rejection of All Offers

§ 330.50 Award Without Discussions

§ 330.53 Award with Discussions

§ 330.56 Conduct of Discussions

§ 330.60 Competitive Range

§ 330.63 Best and Final Offers

§ 330.66 Selection and Negotiation

§ 330.70 Award

§ 330.73 Award Debriefing

§ 332 Purchase of Services

§ 332.10 Service Contract Labor Standards

§ 332.20 Statutory Requirement

§ 332.30 Exemptions

§ 332.40 Obtaining Wage Determinations

§ 332.50 Required Clauses and Provisions

§ 335 Justifications and Approvals for Limiting Competition

§ 335.10 In General

§ 335.20 Procedures

§ 335.30 Limitations

§ 335.40 Justification Not Required

§ 335.50 Use of Brand Name Descriptions

§ 335.60 Limiting Competition – Open Market Purchases

§ 335.70 Process for Orders Against Established Multiple Award Contracts and 

BPAs – Open Market

§ 340 Unsolicited Offers

§ 340.10 Definition

§ 340.20 Judiciary Points of Contact

§ 340.30 Content of Unsolicited Offers

§ 340.40 Receipt and Initial Review

§ 340.50 Evaluation

§ 340.60 Criteria for Acceptance and Negotiation of an Unsolicited Offer

§ 340.70 Prohibitions

§ 340.80 Limited Use of Data

§ 345 Price Negotiations

§ 345.10 Establishing Negotiation Objectives

§ 345.20 Negotiation
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 3 

§ 345.30 Detailed Pricing Information

§ 345.40 Price Analysis

§ 345.50 Cost Analysis

§ 345.60 Negotiation Memorandum

§ 350 Judiciary Protest Procedures

§ 350.10 Policy

§ 350.20 Procedural Requirements

Appendices

Appx. 3A Sample Offering Letter to Randolph-Sheppard Agency

Appx. 3B Determination of Best Procurement Approach

Appx. 3C Determination and Findings for Time and Materials and Labor Hour GSA FSS 

Orders

§ 310 Procurement Sources

§ 310.10 Sources of Supply

§ 310.10.10 In General

When acquiring products and services, procuring officials must consider the following 

sources:

(a) Mandatory Sources

• Excess property available within the judiciary, or

• Workshops for people who are blind or severely disabled.

(b) Non-Mandatory Sources

• Existing judiciary contracts,

• GSA federal supply schedule contracts,

• Other federal agency contracts, or

• Open market.

§ 310.10.20 Market Research and Mandatory Sources

Once the judiciary has defined its requirement, it must perform market research to 

determine the sources capable of meeting its needs. When it is practicable, the 

judiciary must use excess property as the first source of supply. Any personal property 

under the control of the judiciary determined to no longer be required for its needs and 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 4

the discharge of its responsibilities is considered excess property. If excess property is 

not available, the judiciary must then check the procurement list maintained by the 

Committee for Purchase from People who are Blind or Severely Disabled. See: 

§ 310.20 (Workshop for People Who are Blind or Severely Disabled).

§ 310.10.30 Non-Mandatory Sources

If excess property and the Procurement List for People who are Blind or Severely 

Disabled cannot meet the requirement, non-mandatory sources should be reviewed, 

with potential cost to the judiciary as a primary consideration.

§ 310.10.40 Cost Factors to Consider

The following are some cost factors that should be considered when deciding which 

source will best meet the judiciary’s needs: transportation/shipping costs, administrative 

overhead for procurement, negotiated discounts, trade-in value, and extent of 

competition available. The source determination must be documented in the 

procurement file.

§ 310.10.50 Using Other Federal Agency Contracts

Other federal agency contracts (OFAC), which include government-wide agency 

contracts (GWACs), often impose a service charge on agencies to use the contract. 

This service charge covers the originating agency’s administrative expenses associated 

with awarding and administering the contract. It is commonly expressed as a 

percentage of the value of the order to be placed. The surcharge must be calculated 

into administrative overhead when selecting a source.

§ 310.20 Workshop for People Who are Blind or Severely Disabled

§ 310.20.10 Statutory Requirement

Under 41 U.S.C. §§ 8501–8506 and the implementing regulations (41 CFR chapter 51), 

federal government agencies, including the judiciary, must purchase certain products 

and services from qualified workshops employing people who are blind or severely 

disabled. The Committee for Purchase from People who are Blind or Severely Disabled

(Committee) determines what products and services are covered and the prices for 

those products and services. The program, previously called the Javits-Wagner O‘Day 

Program, has been renamed AbilityOne.

§ 310.20.20 Available Products or Services

The Committee maintains a procurement list of all products and services required to be 

purchased from participating nonprofit agencies. The procurement list is published and 

updated in the Federal Register. For the procurement list and further information on 

AbilityOne, see: AbilityOne website.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 5

Refer all questions on whether a product or service is on the procurement list to the 

Committee at info@abilityone.gov.

§ 310.20.30 Procedures

(a) The statute requires the judiciary to purchase products and services on 

the procurement list, at prices established by the Committee. Contracting 

Officers (COs) must obtain products and services from a participating 

nonprofit agency approved by a central nonprofit agency. The National 

Industries for the Blind (NIB) has been designated to represent nonprofit 

agencies for the blind. The National Institute for the Severely 

Handicapped (NISH) has been designated to represent participating 

nonprofit agencies employing persons with other severe disabilities.

(b) Central nonprofit agencies may authorize a CO to transmit orders for 

specific products or services, directly to a participating nonprofit agency. 

The written authorization remains valid until it is revoked by the central 

nonprofit agency or the Committee. The central nonprofit agency will 

specify the normal delivery or performance lead time required by the 

nonprofit agency. The purchasing office must reflect this lead time in its 

orders (but see: § 310.20.40(a)(1) (Purchase Exceptions)). COs should 

check GSA federal supply schedules and other commercial vendors’ 

catalogs for AbilityOne participating nonprofit agencies. A designation of 

AbilityOne for their products and services allows COs to order directly 

from these authorized distributors for those products and services.

§ 310.20.40 Purchase Exceptions

Only if the procurement is granted an exception by the designated central nonprofit 

agency may purchasing offices acquire products or services on the procurement list 

from commercial sources. Under AbilityOne Regulations (41 CFR chapter 51), the 

following purchase exceptions apply:

(a) A central nonprofit agency (NIB or NISH) will normally grant a purchase 

exception for products or services on the Procurement List when both of 

the following conditions are met:

(1) the central nonprofit agency or one of its nonprofit agencies cannot 

furnish a product or service within the period specified, and

(2) the product or service is available from commercial sources in the 

quantities needed and much sooner than it will be available from 

the nonprofit agency.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 6

(b) The central nonprofit agency may also grant a purchase exception when 

the quantity involved is not sufficient to be furnished economically by the 

nonprofit agency.

(c) The Committee may also grant a purchase exception for the reasons 

provided in paragraphs (a) and (b) of this section.

(d) The central nonprofit agency is required to obtain the approval of the 

Committee before granting a purchase exception when the value of the 

procurement exceeds their authority.

(e) When the central nonprofit agency grants a purchase exception under the 

above conditions, it is required to do so promptly, and the exception 

should specify the quantities and delivery period covered by the exception.

(f) When a purchase exception is granted under paragraph (a) of this section:

(1) the CO must initiate commercial purchase actions within 15 days 

following the date of the purchase exception. The deadline may be 

extended by the central nonprofit agency (with the concurrence of 

the Committee, in cases of a procurement exceeding the central 

nonprofit agency’s authority).

(2) the CO must furnish a copy of the solicitation to the appropriate 

central nonprofit agency at the time it is issued, and a copy of the 

annotated offer abstract upon award of the commercial contract.

(g) Any decision by a central nonprofit agency regarding a purchase 

exception may be appealed to the Committee by the CO.

§ 310.20.50 Quality Requirements

Under AbilityOne regulations (41 CFR 51-6.10 (Quality of Merchandise)), the following 

applies:

(a) Products furnished under government specification by nonprofit agencies 

employing persons who are blind or have other severe disabilities are 

required to be manufactured in strict compliance with such specifications. 

Where no specifications exist, products furnished are required to be of a 

quality equal to, or higher than, similar items available on the commercial 

market. Products are required to be inspected using nationally recognized 

test methods and procedures for sampling and inspection.

(b) Services furnished by nonprofit agencies employing persons who are blind 

or have other severe disabilities are required to be performed according to 

government specifications and standards. Where no government 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 7

specifications and standards exist, the services are required to be 

performed according to commercial practices.

§ 310.20.60 Quality and Other Noncompliance Complaints

Under AbilityOne regulations (41 CFR 51-6.11 (Quality Complaints)), the following 

applies:

(a) When the quality of a product received is not considered satisfactory by 

the requesting office, the CO must take the following actions as 

appropriate:

(1) For products received from General Services Administration (GSA) 

supply distribution facilities or a specifically authorized supply 

source, the CO must notify the supplying agency in writing 

according to that agency’s procedures. The supplying agency will, 

in turn, provide copies of the notice to the nonprofit agency involved 

and its central nonprofit agency.

(2) For products received directly from nonprofit agencies employing 

persons who are blind or have other severe disabilities, the CO 

must address complaints to the nonprofit agency involved, with a 

copy to the central nonprofit agency with which it is affiliated.

(b) When the quality of a service is not considered satisfactory by the 

purchasing office, the CO must address complaints to the nonprofit 

agency involved with a copy to the central nonprofit agency with which it is 

affiliated.

(c) When the central nonprofit agency or an individual nonprofit agency fails 

to comply with any of the terms of an order (e.g., quality, timeliness), the 

CO must make every effort to negotiate an adjustment before acting to 

cancel the order. When a CO cancels an order for failure to comply with its 

terms, the central nonprofit agency must be notified, and, if practicable, 

requested to reallocate the order. The central nonprofit agency will notify 

the Committee of any cancellation of an order and the reasons for that 

cancellation.

(d) Disputes between a nonprofit agency and a purchasing office arising out 

of matters covered in this paragraph, must be resolved, where possible, 

by the CO and the nonprofit agency, with assistance from the appropriate 

central nonprofit agency. Disputes that cannot be resolved by these 

parties must be referred to the Committee for resolution.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 8 

§ 310.20.70 Clauses

Solicitations and contracts that require the contractor to purchase products or services 

on the Procurement List for use in performance of their judiciary contract must include 

Clause 3-1, Contractor Use of Mandatory Sources of Products and Services. The CO 

must identify, in the contract, the products or services that must be purchased from any 

mandatory sources and the specific source to be used.

§ 310.30 Randolph-Sheppard Act

§ 310.30.10 Statutory Requirement

Under the Vending Facility program authorized by the Randolph-Sheppard Act 

(20 U.S.C. §§ 107, et seq) and the implementing regulations (34 CFR part 395), federal 

government agencies, including the judiciary, must give priority for the operation of 

vending facilities on federal property to blind persons licensed by a state agency.

§ 310.30.20 Procedures

A state licensing agency is charged with the responsibility for overseeing the RandolphSheppard program. Before initiating any action to obtain vending machines (such as 

coin-operated copiers and food vending operations), the judiciary organization must:

(a) obtain any required delegation from GSA, if the building is operated by 

GSA; and

(b) inform the state licensing agency of the court’s requirements.

§ 310.30.30 Records Maintenance

All procurement files for vending facilities must include a copy of the letter to the 

particular state licensing agency notifying it of the court’s requirements and the 

response received. If the state licensing agency declines the judiciary’s offer, their 

response must be maintained in the procurement file to substantiate a competitive 

solicitation. See: List of State Licensing Agencies. 

§ 310.30.40 Sample Offering Letter

See: Appx. 3A (Sample Offering Letter to Randolph-Sheppard Agency). 

§ 310.40 Judiciary-Wide Contracts and Blanket Purchase Agreements 

(BPAs)

§ 310.40.10 In General

The award of national contracts for use on a judiciary-wide basis offers advantages in:
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 9

• reduced administrative effort,

• simplified supply of common-use products, and

• obtaining discounts for buying in volume.

§ 310.40.20 National Contract and BPA Management

The Procurement Management Division (PMD), of the Administrative Office’s (AO) 

Finance and Procurement Office (FPO), is responsible for establishing national 

contracts and designating the activities authorized to place orders. For a list of the 

products and services available under national contracts, see: JNet’s Judiciary-Wide 

Contracts and Blanket Purchase Agreements (BPAs) page. Flexibility in purchasing 

arrangements is needed to meet judiciary customer service requirements through 

rapidly changing technologies. Therefore, use of national contracts is not mandatory.

§ 310.40.30 Contract and BPA Requirements

(a) When using national contracts, the delivery/task order must cite the 

applicable judiciary-wide contract for which the order is placed. The CO 

must follow the contract’s ordering procedures. The contract’s terms and 

conditions are applicable to the order. If conflicting terms or conditions are 

incorporated in an individual order, the terms of the contract will control.

(b) If the CO is required to solicit competitive quotes from more than one 

contractor before placing an order, the CO may use either technically 

acceptable/lowest price or best value as the basis of award. Note: 

Judiciary organizations, excluding the AO, are not delegated authority to 

conduct best value procurements and must obtain a one-time delegation 

from PMD before issuance of the solicitation and before award of the later 

contract.

§ 310.50 GSA Federal Supply Schedules

§ 310.50.10 In General

The Federal Supply Schedule (FSS) program is also known as the GSA Schedules 

Program or the Multiple Award Schedule (MAS) Program. The FSS program is directed 

and managed by GSA and provides federal agencies (including the judiciary) with a 

simplified process for obtaining commercial products and services at prices associated 

with volume buying. Indefinite-delivery contracts are awarded to provide products and 

services at stated prices for given periods of time.

§ 310.50.13 Schedule Pricelists

(a) GSA schedule contracts require all schedule contractors to publish an 

“Authorized Federal Supply Schedule Pricelist” (pricelist). The pricelist 

contains all the products and services offered by a schedule contractor. In 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 10

addition, each pricelist contains the pricing and the terms and conditions 

pertaining to each Special Item Number (SIN) that is on schedule.

(b) The GSA schedule contractor is required to provide one copy of its 

pricelist to any ordering activity (judiciary contracting officer) upon request. 

Also, a copy of the pricelist may be obtained from FSS via email, from 

GSAeLibrary.gov, or by telephone at 1-800-488-3111. This subsection 

and the pricelists contain necessary information for placing delivery orders 

(for products) or task orders (for services) with schedule contractors.

§ 310.50.20 GSA Advantage!

GSA offers an online shopping service called GSA Advantage! through which judiciary 

COs may place orders against schedules. GSA Advantage! enables judiciary COs to 

search specific information (i.e., national stock number, part number, common name), 

review delivery options, place orders directly with schedule contractors, and pay for 

orders using the judiciary purchase card.

§ 310.50.23 eBuy

eBuy is GSA’s electronic Request for Quotation (RFQ) system and is a part of a suite of 

online tools that complement GSA Advantage! eBuy allows judiciary COs to post 

requirements and obtain quotes electronically. Posting an RFQ on eBuy:

(a) is one medium for providing fair notice to all schedule contractors offering 

such supplies and services, as required by § 310.50.43(c) (Orders 

exceeding GSA’s simplified acquisition threshold ($250,000)) and 

§ 310.50.46(c) (Orders using “best value” evaluation method); and 

(b) is required when an order contains brand name specifications (see: 

§ 310.50.66(b) (Limiting Sources Based on Items Particular to One 

Manufacturer (Brand Name))).

§ 310.50.26 Further Guidance

For more information or assistance on either GSA Advantage! or eBuy, contact GSA at 

gsa.advantage@gsa.gov.

§ 310.50.30 Inclusion of Items Not on Schedule

For administrative convenience, judiciary COs may add items not on the FSS (also 

called “open market items”) to an FSS BPA, or an individual task or delivery order only 

if:

(a) All applicable acquisition regulations related to the purchase of the items 

not on the FSS have been followed, such as publicizing (see: § 315 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 11

(Publicizing Open Market Procurement Actions)) and competition 

requirements (see: § 325 (Small Purchase Procedures));

(b) The judiciary CO has determined the price for the item(s) not on the FSS 

is fair and reasonable;

(c) The items are clearly labeled on the order as items not on the FSS; and

(d) All clauses applicable to items not on the FSS are included in the order. 

This includes the use of Clause 3-3, Provisions, Clauses, Terms and 

Conditions – Small Purchases and any other judiciary clauses that may be 

required.

§ 310.50.33 Use of GSA Schedules

Judiciary COs will issue delivery orders or task orders directly to the schedule 

contractors for the required products and services. The delivery or task order must cite 

the applicable GSA contract number from which the order is placed. When placing 

orders or establishing a BPA under FSS contracts (see: § 310.50.53 (Blanket Purchase 

Agreements Under GSA Schedules), judiciary COs must not seek competition outside 

of the schedules or synopsize the requirement on SAM.gov.

(a) Requirements

(1) The judiciary is required to follow the GSA schedule ordering 

procedures as stated in this subsection when placing an order or 

establishing a BPA for products or services. The procedures in this 

section apply to all schedules.

(2) For orders that exceed $550,000, the requiring/ordering agency 

must make a determination that the use of the schedule is the best 

procurement approach, using Guide, Vol. 14, Appx. 3B 

(Determination of Best Procurement Approach).

(3) Orders that are not fixed price, i.e. time and materials or labor hour, 

require a determination and finding (D&F) detailing why a fixedprice order is not suitable, using Guide, Vol. 14, Appx. 3C 

(Determination and Findings for Time and Materials and Labor 

Hour GSA FSS Orders).

(b) Orders against GSA FSS cannot be competed with open market, judiciarywide contracts, or OFACs. Orders placed under GSA schedules must be 

consistent with the judiciary’s policies and procedures, and within the 

contracting officer’s delegation authority. See: Guide, Vol. 14, § 140 

(Contracting Officers Certification Program).
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 12

§ 310.50.36 Clauses/Provisions Applicable to FSS Order

(a) Orders placed by a judiciary CO under FSS contracts must be consistent 

with the judiciary’s procurement program requirements applicable to the 

procurement of the product or service.

(b) When ordering from GSA FSS, the judiciary is required to follow the GSA 

schedule ordering procedures (see: § 310.50 (GSA Federal Supply 

Schedules)), the GSA contract’s terms and conditions, and GSA’s 

competition threshold (see: § 310.50.43(a) (Orders at or Below the GSA's 

Competition Threshold)).

(c) The CO may determine that judiciary specific clauses also apply. The CO 

may then add those to the order. See: Guide, Vol. 14, Appx. 1B 

(Solicitation Provisions and Contract Clauses). However, the CO should 

not include provisions or clauses that:

(1) are already part of the GSA contract (except as directed in judiciary 

procurement guidance);

(2) conflict with the GSA contract provisions or clauses; or

(3) create ambiguities when added to GSA contract provisions or 

clauses.

§ 310.50.40 Determination of Fair and Reasonable Price

(a) Products offered on the schedule are listed at fixed prices. Services 

offered on the schedule are priced either at hourly rates, or at a fixed price 

for performance of a specific task (e.g., installation, maintenance, and 

repair).

(b) GSA has already determined the prices of products and fixed-price 

services, and rates for services offered at hourly rates, under schedule 

contracts to be fair and reasonable. Therefore, judiciary COs are not 

required to make a separate determination of fair and reasonable pricing, 

except for a price evaluation as required by services requiring a statement 

of work. See: § 310.50.46 (Ordering Procedures for Services Requiring a 

Statement of Work).

(c) Judiciary COs should seek additional discounts. However, COs must 

seek a price reduction when the order or BPA exceeds the GSA’s 

simplified acquisition threshold. Schedule contractors are not required to 

give price reductions that they extended to another ordering activity for a 

specific BPA or order. See: § 310.50.56 (Price Reductions).
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 13

§ 310.50.43 Ordering Procedures for Supplies and Services Not Requiring a Statement of 

Work

Judiciary COs must use the ordering procedures of this subsection when placing an 

order for supplies or services not requiring a statement of work (SOW). The procedures 

outlined in the following table apply to all schedules. Whenever a written Request for 

Quotation (RFQ) is used, the judiciary CO must provide the RFQ to any schedule 

contractor who requests a copy of it. Written RFQs may also be posted to GSA’s 

electronic RFQ system, eBuy. See: § 310.50.23 (eBuy).

§ 310.50.43 Ordering Procedures for Supplies and Services

Not Requiring a Statement of Work

Procedure Details

(a) Orders at or below 

the GSA’s 

competition 

threshold, which is 

$10,000, except for:

(1) procurement of 

construction 

subject to Wage 

Rate 

Requirements

(Construction) 

(i.e., $2,000); 

and

(2) procurement of 

services subject 

to the Service 

Contract Labor 

Standards 

(SCLS) (i.e., 

$2,500).

Judiciary COs may place orders at, or below, GSA’s competition 

threshold with any Federal Supply Schedule contractor that can 

meet the agency’s needs. Although not required to solicit a 

specific number of schedule contractors, judiciary COs should 

attempt to distribute orders among contractors.

(b) Orders exceeding 

GSA’s competition 

threshold, but not 

exceeding GSA’s 

simplified acquisition 

threshold 

($250,000).

(1) Judiciary COs must place orders with the contractor that can 

provide the technically acceptable lowest priced (or best 

value, when applicable) supply or service. Before placing an 

order, the judiciary CO must:

(A) Consider reasonably available information about the 

supply or service offered under Federal Supply Schedule 

contracts by surveying at least three schedule 

contractors through the GSA Advantage! online shopping 

service, by reviewing the catalogs or pricelists of at least 

three schedule contractors, or by requesting quotations 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 14

§ 310.50.43 Ordering Procedures for Supplies and Services

Not Requiring a Statement of Work

Procedure Details

from at least three schedule contractors; or

(B) Document the circumstances for restricting consideration 

to fewer than three schedule contractors based on one of 

the reasons listed in § 310.50.63 (Limiting Sources on 

Orders Placed Under Federal Supply Schedules).

(2) When the CO solicits pricing by sending an RFQ to at least 

three sources, receipt of at least one of the completed RFQs 

is considered adequate competition, since the pricing was 

prepared in a competitive environment.

(c) Orders exceeding 

GSA’s simplified 

acquisition threshold 

($250,000).

(1) Each order must be placed on a competitive basis unless this 

requirement is waived based on a justification that is 

prepared and approved according to § 310.50.63 (Limiting 

Sources on Orders Placed Under Federal Supply Schedules). 

The judiciary CO must:

(A) Provide an RFQ that includes a description of the 

supplies to be delivered or the services to be performed 

and the basis on which the selection will be made. See: 

§ 330.40 (Selection for Award); and

(B) Post the RFQ on eBuy to afford all schedule contractors 

offering the required supplies or services under the 

appropriate schedule(s) an opportunity to submit a quote;

or

(2) Provide the RFQ to as many schedule contractors as 

practicable, consistent with market research appropriate to 

the circumstances, to reasonably ensure that quotes will be 

received from at least three contractors that can fulfill the 

requirements. When fewer than three quotes are received 

from schedule contractors that can fulfill the requirement, the 

judiciary CO must prepare a written determination explaining 

that no additional contractors capable of fulfilling the 

requirement could be identified, despite reasonable efforts to 

do so. The determination must clearly explain efforts made 

to obtain quotes from at least three schedule contractors; 

as well as

(3) Ensure that all quotes received are fairly considered and 

award is made according to the selection basis stated in the 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 15

§ 310.50.43 Ordering Procedures for Supplies and Services

Not Requiring a Statement of Work

Procedure Details

RFQ; and

(4) When an order contains brand name specifications, the 

judiciary CO must post the RFQ on eBuy along with the 

justification or documentation, as required by § 310.50.66 

(Limiting Sources Based on Items Particular to One 

Manufacturer (Brand Name)). An RFQ is required when a 

purchase description specifies a brand name.

(d) Orders using “best 

value” evaluation 

method.

Orders using the best value methodology for evaluation must 

have a written RFQ and follow the procedures in § 310.50.46 

(Ordering Procedures for Services Requiring a Statement of 

Work) for the corresponding dollar threshold.

§ 310.50.46 Ordering Procedures for Services Requiring a Statement of Work

The following additional requirements apply when ordering services priced at hourly 

rates as established by the schedule contracts for services requiring an SOW. The 

applicable services will be identified in the FSS publications and the contractor’s 

pricelists. For services priced at hourly rates, the specific services required by the 

judiciary CO must be fully described in an SOW. All SOWs must include:

• the work to be performed,

• location of work,

• period of performance,

• deliverable schedule,

• applicable performance standards, and

• any special requirements (e.g., security clearances, travel, special 

knowledge, analysis of requirements, or system maintenance support).

§ 310.50.46 Ordering Procedures for Services Requiring a Statement of Work

Type of Order Details

(a) Orders 

exceeding 

GSA’s 

competition 

threshold 

(generally 

$10,000) but 

not 

exceeding 

GSA’s 

The judiciary CO must place orders with the contractor that can provide 

the technically acceptable lowest priced supply or service. Before 

placing an order, the judiciary CO must:

(1) Develop an SOW according to information above.

(2) Provide the RFQ (including the SOW and evaluation criteria) to at 

least three schedule contractors that offer services that will meet the 

judiciary’s needs or document the circumstances for restricting 

consideration to fewer than three schedule contractors, based on 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 16

§ 310.50.46 Ordering Procedures for Services Requiring a Statement of Work

Type of Order Details

simplified 

acquisition 

threshold 

($250,000).

one of the reasons in § 310.50.63 (Limiting Sources on Orders 

Placed Under Federal Supply Schedules).

(3) Specify the type of order (i.e., firm-fixed-price, labor-hour) for the 

services identified in the SOW. Orders should be awarded on a fixed 

price basis. Use of other contract types requires a delegation of 

procurement authority for some COCP Level contracting officers 

(see: Guide, Vol. 14, § 140 (Contracting Officers Certification 

Program)).

(b) Orders 

exceeding 

GSA’s 

simplified 

acquisition 

threshold 

($250,000).

Each order must be placed on a competitive basis unless this 

requirement is waived on the basis of a justification that is prepared and 

approved according to § 310.50.63 (Limiting Sources on Orders Placed 

Under Federal Supply Schedules). The judiciary CO must prepare an 

RFQ that includes an SOW and evaluation criteria. The CO must:

(1) Post the RFQ on eBuy to afford all schedule contractors offering the 

required services under the appropriate multiple-award schedule(s) 

an opportunity to submit a quote;

or

(2) Provide the RFQ to as many schedule contractors as practicable, 

consistent with market research appropriate to the circumstances, to 

reasonably ensure that quotes will be received from at least three 

contractors that can fulfill the requirements. When fewer than three 

quotes are received from schedule contractors that can fulfill the 

requirements, the contracting officer must prepare a written 

determination to explain that no additional contractors capable of 

fulfilling the requirements could be identified despite reasonable 

efforts to do so. The determination must clearly explain efforts made 

to obtain quotes from at least three schedule contractors;

as well as

(3) Ensure that all quotes received are fairly considered and award is 

made according to the evaluation criteria in the RFQ; and

(4) Provide the RFQ (including the SOW and evaluation criteria) to any 

schedule contractor who requests a copy.

(c) Orders using 

“best value” 

evaluation 

method.

(1) Requests for quotations that use “best value” evaluation method 

(price and other factors) must include a full description of the 

evaluation criteria. See: § 330.40.30 (Best Value Awards). This 

information must be disclosed with the solicitation to each potential 

offeror. See: Guide, Vol. 14, § 210.70.30(b)(5) (Source Selection 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 17

§ 310.50.46 Ordering Procedures for Services Requiring a Statement of Work

Type of Order Details

Processes).

(2) In addition to price, when determining best value, the judiciary CO 

may consider, among other factors, the following:

• past performance;

• special features of the product or service required for effective 

program performance;

• trade-in considerations;

• probable life of the item selected as compared with that of a 

comparable item;

• warranty considerations;

• maintenance availability;

• environmental and energy efficiency considerations; and

• delivery terms.

Note: Under the Contracting Officers’ Certification Program (COCP) 

(see: Guide, Vol. 14, § 140 (Contracting Officers Certification Program)), 

not all certification levels are authorized for “best value” procurements. 

The “best value” method of evaluation is more complex; therefore, only 

appropriately trained and certified COs may solicit for best value offers. 

For COs holding COCP certification levels not delegated this authority, 

the solicitation package using “best value” must be submitted to PMD for 

written approval before soliciting quotes.

(d) Services 

Priced at 

Hourly Rates

The judiciary CO is responsible for considering the level of effort and the 

mix of labor proposed to perform a specific task being ordered and for 

determining that the total price is reasonable.

§ 310.50.50 Evaluation and Award

(a) The judiciary CO must evaluate all responses received using the 

evaluation criteria provided to the schedule contractors in the RFQ.

(b) After the CO places an order, or establishes a BPA, with the schedule 

contractor, the CO must provide timely notification to unsuccessful 

offerors. If an unsuccessful offeror requests information on an award that 

was based on factors other than price alone, a brief explanation of the 

basis for the award decision must be provided.

§ 310.50.52 File Documentation

At a minimum, the judiciary CO must include the following documentation for each 

award:
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 18

(a) the schedule contracts considered, noting the contractor from which the 

service was purchased;

(b) a description of the service purchased;

(c) the amount paid;

(d) the evaluation methodology used in selecting the contractor to receive the 

order;

(e) the rationale for any trade-offs, if trade-off methodology is used, in making 

the selection (required only when a best value evaluation methodology is 

used) (see: § 330.40.30 (Best Value Awards) and § 330.40.40 (Selection 

Documentation));

(f) the price reasonableness determination, which includes an assessment of 

the level of effort and labor mix, § 310.50.46(d) (Services Priced at Hourly 

Rates) (required only when an SOW is involved);

(g) the rationale for using other than a firm-fixed price order; and

(h) when an order exceeds the simplified acquisition threshold, evidence of 

compliance with the ordering procedures at § 310.50.43(c) (Orders 

Exceeding GSA’s Simplified Acquisition Threshold ($250,000)) or 

§ 310.50.46(c) (Orders Using “Best Value” Evaluation Method), whichever 

is applicable.

§ 310.50.53 Blanket Purchase Agreements Under GSA Schedules

(a) Use this subsection only for BPAs established under a GSA schedule. 

Single or multiple award BPAs established under the GSA schedules must 

use the same procedures outlined in § 310.50.43 (Ordering Procedures 

for Supplies and Services Not Requiring a Statement of Work) and 

§ 310.50.46 (Ordering Procedures for Services Requiring a Statement of 

Work). For guidance on how to establish an open market BPA, see: 

§ 325.50 (Blanket Purchase Agreement).

(b) A BPA is an ordering agreement, not a contract. A BPA does not 

constitute a legally binding contract and may be established without an 

obligation of funds. Therefore, there is never an obligation of funds 

recorded based on a BPA award. Funds must be obligated at the time an 

order is placed under a BPA, unless the order is subject to the availability 

of funds and properly supported by Clause 7-115, Availability of Funds.

(1) BPAs against GSA Schedules are written agreements negotiated 

between a purchasing office and a GSA Schedule contractor that 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 19

contain agreed upon terms and conditions that will apply if and 

when an order is placed against the BPA for products or services.

(2) BPAs permit individuals that are designated in writing by name or 

title in the BPA, to place orders by telephone, over-the-counter, by 

email, or in writing. Regardless of how the order is placed, an 

obligation of funds must be recorded in the financial system at the 

time the order is placed, unless the order is subject to the 

availability of funds and properly supported by Clause 7-115, 

Availability of Funds.

(c) Use of GSA BPAs

Judiciary COs may establish BPAs under any schedule contract to fill 

repetitive needs for products or services.

(1) BPAs may be established under one or more schedule contractors’ 

GSA contract. The number of BPAs to be established is within the 

discretion of the judiciary CO establishing the BPAs and should be 

based on a strategy that is expected to maximize the effectiveness 

of the BPAs.

(2) BPAs must address the frequency of ordering, invoicing, discounts, 

requirements (e.g., estimated quantities, work to be performed), 

delivery locations, and time.

(d) Single Award BPA Under GSA

Judiciary COs should, to the maximum extent practicable, give preference 

to establishing multiple award BPAs, rather than establishing a single 

source BPA.

(1) No single award BPA with an estimated value exceeding $100 

million (including any options), may be awarded unless the 

Procurement Executive (PE) has determined in writing that:

(A) Orders under the BPA are so integrally related that only a 

single source can reasonably perform the work;

(B) The BPA provides for only firm-fixed priced orders for 

products with unit prices established in the BPA, or services 

with prices established in the BPA for specific tasks to be 

performed;

(C) Only one source is qualified and capable of performing the 

work at a reasonable price to the judiciary; or
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 20

(D) It is necessary in the public interest to award the BPA to a 

single source for exceptional circumstances.

(2) The requirement for determination for a single-award BPA greater 

than $100 million is in addition to any applicable requirement for a 

limited-sources justification at § 310.50.46 (Ordering Procedures for 

Services Requiring a Statement of Work). However, the two 

documents may be combined into one document.

(e) Multiple Award BPA Under GSA

A multiple award BPA involves awarding BPAs for the same class of 

products or services to more than one vendor.

(1) When establishing a multiple-award BPA, the judiciary CO must 

specify the procedures for placing orders under the BPAs according 

to § 310.50.43 (Ordering Procedures for Supplies and Services Not 

Requiring a Statement of Work) and § 310.50.46 (Ordering 

Procedures for Services Requiring a Statement of Work), 

whichever is applicable.

(2) In determining to award a multiple award BPA or a single award 

BPA, the judiciary CO should consider the following factors and 

document the decision in the BPA file:

(A) the scope and complexity of the requirement(s);

(B) the need to periodically compare multiple technical 

approaches or prices;

(C) the administrative costs of BPAs; and

(D) the technical qualifications of the schedule contractor(s).

(f) Minimum Documentation

The judiciary CO must include, at a minimum, the following documentation 

in the BPA file:

(1) Schedule contracts considered, noting the contractor to which the 

BPA was awarded.

(2) Description of the supply or service purchased.

(3) Price.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 21

(4) Required justification for a limited source BPA, if applicable. See:

§ 310.50.63 (Limiting Sources on Orders Placed Under Federal 

Supply Schedules).

(5) Determination for a single-award BPA exceeding $100 million, if 

applicable. See: § 310.50.53(d) (Single Award BPA Under GSA).

(6) Documentation supporting the decision to establish multiple award 

BPAs or a single-award BPA. See: § 310.50.53(d) (Single Award

BPA Under GSA) and § 310.50.53(e) (Multiple Award BPA Under 

GSA).

(7) Basis for the award decision. This should include the evaluation 

methodology used in selecting the contractor, the rationale for any 

trade-offs in making the selection (if “best value”), and a price 

reasonableness determination for services requiring an SOW.

§ 310.50.53(g) Ordering from BPAs under GSA Schedules

BPA Situation Procedures

(1) Single Award 

BPA

If the judiciary CO establishes one BPA, authorized users may place the 

order directly under the established BPA when the need for the product 

or service arises.

(2) Multiple 

Award BPAs

(A) Orders at or below the GSA competition threshold (generally 

$10,000). The judiciary CO may place orders at or below the GSA 

competition threshold with any BPA holder that can meet the 

agency’s needs. The ordering activity should attempt to distribute 

any such orders among the BPA holders.

(B) Orders exceeding the GSA’s competition threshold but not 

exceeding the GSA’s simplified acquisition threshold ($250,000).

(i) The judiciary CO must provide each multiple award BPA holder 

an opportunity to be considered for each order exceeding the 

GSA competition threshold, but not exceeding GSA’s simplified 

acquisition threshold unless one of the exceptions in § 310.50.63 

(Limiting Sources on Orders Placed Under Federal Supply 

Schedules).

(ii) The judiciary CO need not contact each of the multiple award 

BPA holders before placing an order if information is available to 

ensure that each BPA holder is provided an opportunity to be 

considered for each order.

(iii) The judiciary CO must document the circumstances when 

restricting consideration to less than all multiple award BPA 

holders offering the required supplies and services.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 22

§ 310.50.53(g) Ordering from BPAs under GSA Schedules

BPA Situation Procedures

(C) Orders exceeding GSA’s simplified acquisition threshold ($250,000)

unless one of the exceptions in § 310.50.63 (Limiting Sources on 

Orders Placed Under Federal Supply Schedules).

(i) Provide an RFQ to all BPA holders offering the required supplies 

or services under the multiple award BPA, to include, a 

description of the supplies to be delivered or the services to be 

performed and the basis on which the selection will be made;

(ii) Afford all BPA holders responding to the RFQ an opportunity to 

submit a quote; and

(iii) Fairly consider all responses received and make award 

according to the selection procedures.

(D) The judiciary CO must document evidence of compliance with these 

procedures and the basis for the award decision.

(3) BPAs for 

Hourly Rate 

Services

(A) If the BPA is for hourly rate services, the judiciary CO must develop 

an SOW for each order covered by the BPA. Ordering activities 

should place these orders on a firm-fixed price basis to the maximum 

extent practicable.

(B) For time-and-materials and labor-hour orders, the contracting officer 

must follow the procedures in § 310.50.46(b) (Orders Exceeding 

GSA's Simplified Acquisition Threshold ($250,000)) and 

§ 310.50.46(c) (Orders Using "Best Value" Evaluation Method). All 

orders under the BPA must specify a price for the performance of the 

tasks identified in the SOW.

(C) The ordering activity, specifically the CO, is responsible for 

considering the level of effort and the mix of labor proposed to 

perform a specific task being ordered, determining that the total price 

is reasonable through appropriate analysis techniques, and 

documenting this in the file.

(h) Duration of BPAs

(1) Multiple award BPAs generally should not exceed five years but 

may do so to meet program requirements.

(2) A single-award BPA must not exceed one year. It may have up to 

four one-year options.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 23

(3) Contractors may be awarded BPAs that extend beyond the current 

term of their GSA Schedule contract, so long as there are option 

periods in their GSA Schedule contract that, if exercised, will cover 

the BPA’s period of performance.

(i) Review of BPAs

(1) The judiciary CO must review the BPA at least once a year (e.g., at 

option exercise) and determine in writing whether:

(A) the schedule contract on which the BPA was established is 

still in effect;

(B) the BPA is still needed to fulfill the judiciary’s needs; and 

(C) estimated quantities/amounts have been exceeded and 

additional price reductions can be obtained.

(2) The determination must be included in the BPA file documentation.

§ 310.50.56 Price Reductions

Judiciary COs may request a price reduction at any time before placing an order, 

establishing a BPA, or in conjunction with the annual BPA review. However, the

judiciary CO must seek a price reduction when the order or BPA exceeds the GSA’s 

simplified acquisition threshold. Schedule contractors are not required to give price 

reductions that they extended to another ordering activity for a specific BPA or order.

§ 310.50.60 Authorized Resellers

If provided by the schedule, quotes may be solicited from and later awards may be 

made to any FSS contract holders or the schedule holder’s designated agents or 

authorized resellers. The designated agents or authorized resellers must be identified 

in the FSS contract. It is the CO’s responsibility to review the FSS schedule.

§ 310.50.63 Limiting Sources on Orders Placed under Federal Supply Schedules

Judiciary COs must justify an order or BPA that exceeds GSA’s competition threshold 

where the competition requirements outlined in § 310.50.43 (Ordering Procedures for 

Supplies and Services Not Requiring a Statement of Work) and § 310.50.46 (Ordering 

Procedures for Services Requiring a Statement of Work) are not met.

(a) For a proposed order or BPA with an estimated value exceeding GSA’s 

competition threshold (generally $10,000) not placed or established 

according to § 310.50.43 (Ordering Procedures for Supplies and Services 

Not Requiring a Statement of Work), § 310.50.46 (Ordering Procedures 

for Services Requiring a Statement of Work), or § 310.50.53(g) (Ordering 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 24

From BPAs Under GSA Schedules), the only circumstances that may 

justify the action are:

(1) An urgent and compelling need exists, and following the 

procedures would result in unacceptable delays;

(2) Only one source is capable of providing the supplies or services 

required at the level of quality required because the supplies or 

services are unique or highly specialized; or

(3) In the interest of economy and efficiency, the new work is a logical 

follow-on to an original FSS order provided that the original order 

was placed according to the applicable FSS ordering procedures. 

The original order or BPA must not have been previously issued 

under sole-source or limited-sources procedures.

(b) For proposed orders or BPAs with an estimated value exceeding GSA’s 

micro-purchase threshold (generally $10,000), the judiciary CO must 

document the basis for limiting sources using Form AO 370C (Limited 

Sources Justification (LSJ)).

(c) Posting Requirement

(1) Within 14 days after placing an order or establishing a BPA

exceeding the GSA’s simplified acquisition threshold ($250,000) 

that is supported by a limited-sources justification permitted under 

any of the circumstances under paragraph (a) of this section, the 

judiciary CO must post the justification at SAM.gov, as well as post 

a link to the justification on the public web site of the judiciary 

organization or AO. For justifications citing subparagraph (a)(1) of 

this section, the justification must be posted within 30 days after 

award.

(2) Justifications must be posted for a minimum 30 calendar days.

(3) Contracting officers must carefully screen all justifications for 

contractor proprietary data and remove all such data, and such 

references and citations as are necessary to protect the proprietary 

data, before making the justifications available for public inspection. 

Judiciary COs should contact PMD for assistance with determining 

what information might be considered proprietary.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 25

§ 310.50.66 Limiting Sources Based on Items Particular to One Manufacturer (Brand 

Name)

An item that is particular to one manufacturer can be a particular brand name, product, 

or feature of a product that is particular to one manufacturer. A brand name item, 

whether available on one or more schedule contracts, is an item peculiar to one 

manufacturer.

(a) Brand name specifications must not be used unless the particular brand 

name, product, or feature is essential to the Government’s requirements, 

and market research indicates other companies’ similar products, or 

products lacking the particular feature, do not meet, or cannot be modified 

to meet, the judiciary’s needs.

(b) For proposed orders or BPAs with an estimated value between GSA’s 

competition threshold and simplified acquisition threshold, $10,000 and 

$250,000, respectively, the judiciary CO must document the basis for 

restricting consideration to an item peculiar to one manufacturer. The 

judiciary CO must document the basis for limiting sources using Form AO 

370C (Limited Sources Justification (LSJ). If the estimated value is 

between $25,000 and $250,000, the documentation and the RFQ must be 

posted to eBuy.

(c) For proposed orders or BPAs with an estimated value exceeding GSA’s 

simplified acquisition threshold, $250,000, the judiciary CO must 

document the basis for restricting consideration to an item peculiar to one 

manufacturer using Form AO 370C. The justification must be completed 

and approved at the time the requirement for a brand name item is 

determined and must be posted with the RFQ to eBuy for the duration of 

the RFQ. Additionally, a justification for a brand name item is required at 

the order level for orders placed against previously awarded BPA’s when 

a justification for the brand name item was not completed for the BPA or 

does not adequately cover the requirements in the order.

§ 310.50.73 Payment

The judiciary may make payment for oral or written orders by any authorized means, 

including the judiciary’s purchase card.

§ 310.50.76 Order Placement

(a) To order products or services from schedule contractors, judiciary COs 

may place orders orally (except for services requiring an SOW or orders 

containing brand name specifications over $25,000), or use GSA Form 

OF 347 (Order for Supplies and Services) to order supplies or services 

from schedule contracts.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 26

(b) The judiciary CO must place an order directly with the contractor 

according to the terms and conditions of the pricelists.

(c) Before placing the order, the judiciary CO must ensure that the judiciary 

procurement program requirements have been complied with.

(d) Orders must include the following information in addition to any 

information required by the schedule contract:

(1) complete shipping and billing addresses;

(2) GSA contract number;

(3) judiciary order number and date;

(4) F.O.B. delivery point (i.e., origin or destination);

(5) discount terms;

(6) delivery time or period of performance;

(7) special item number (SIN) or national stock number (NSN);

(8) line item or subline item;

(9) an SOW for services, when required, or a brief, complete 

description of each item (when ordering by model number, features, 

and options, such as color, finish, and electrical characteristics, if 

available, must be specified);

(10) quantity and any variation in quantity;

(11) unit price;

(12) total price of order;

(13) where inspection and acceptance will take place;

(14) other relevant data (e.g., delivery instructions or receiving hours 

and size-or-truck limitations);

(15) marking requirements; and

(16) level of preservation, packaging, and packing.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 27

§ 310.50.80 Administration of GSA Schedule Orders

GSA is responsible for administering FSS contracts, and the judiciary may not change, 

terminate, or otherwise undertake administration of an FSS contract. However, judiciary 

COs are responsible for administration of individual orders placed against FSS 

contracts, according to the terms and conditions of the GSA schedule contract, and 

must deal directly with the contractor. Such functions include:

(a) inspecting and accepting products and services;

(b) making or arranging for payment;

(c) modifying orders;

(d) terminating orders for default and charging contractors with resulting 

excess costs; and

(e) terminating orders for the convenience of the judiciary.

§ 310.50.83 Inspection and Acceptance

(a) Supplies

(1) Receiving offices must inspect supplies at destination except when:

(A) the schedule contract indicates that mandatory source 

inspection is required to be performed by GSA; or

(B) a schedule item is covered by a product description, and the 

judiciary CO determines that GSA’s inspection assistance is 

needed (based on the ordering volume, the complexity of the 

supplies, or the past performance of the supplier).

(2) When GSA performs the inspection, the judiciary CO will provide 

two copies of the order specifying source inspection to the GSA 

contracting officer for that specific schedule contract. The GSA 

contracting officer will notify the judiciary CO of acceptance or 

rejection of the products.

(3) Material inspected at source by GSA and determined to conform 

with the product description of the schedule, must not be 

reinspected for the same purpose. The judiciary receiving office 

must limit inspection to kind, count, and condition on receipt.

(4) Unless otherwise provided in the schedule contract, acceptance is 

conclusive, except as regards latent defects, fraud, or such gross 

mistakes as amount to fraud.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 28

(b) Services

The judiciary CO has the right to inspect all services according to 

the contract requirements and as called for by the order. The 

judiciary CO must perform any inspections and tests specified in 

the order in a manner that will not unduly delay the work.

§ 310.50.86 Remedies for Nonconformance

(a) If a GSA schedule contractor delivers a product or service, but it does not 

conform to the order requirements, the judiciary CO must take appropriate 

action according to the inspection and acceptance clause of the GSA 

schedule contract, as supplemented by the order.

(b) If the contractor fails to perform an order, or take appropriate corrective 

action, the judiciary CO may terminate the order for cause or modify the 

order to establish a new delivery date (after obtaining consideration, as 

appropriate). Judiciary COs must comply with § 310.50.90 (Termination 

for Cause) when terminating an order for cause.

§ 310.50.90 Termination for Cause

(a) A judiciary CO may terminate individual orders for cause. Termination for 

cause must comply with the GSA regulations for commercial items and 

may include charging the contractor with excess costs resulting from 

repurchase. The PE must review and approve, in writing, all proposed 

terminations of GSA schedule orders whether for cause or convenience.

(b) The GSA schedule contracting officer must be notified of all instances 

where a judiciary CO has terminated for cause an individual order to an 

FSS contractor, or if fraud is suspected.

(c) If the contractor asserts that the failure to perform was excusable, the 

judiciary CO must follow the procedures at § 310.50.96 (Disputes with 

GSA Schedule Contractors).

(d) If the contractor is charged excess costs, the following apply:

(1) Any repurchase must be made at as low a price as reasonable, 

considering the quality required by the government, delivery 

requirements, and administrative expenses. Copies of all 

repurchase orders, except the copy furnished to the repurchase 

contractor or any other commercial concern must include the 

notation:
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 29

Repurchase against the account of _________________ (insert 

contractor’s name) under Order _______________ (insert number)

under Contract ________________ (insert number).

(2) When excess costs are anticipated, the judiciary CO may withhold 

funds due the terminated contractor as offset security. Judiciary 

COs must minimize excess costs to be charged against the 

terminated contractor and collect or set-off any excess costs owed.

(3) If a judiciary CO is unable to collect excess repurchase costs, it 

must notify the GSA schedule contracting office after final payment 

to the repurchase contractor.

(A) The notice must include the following information about the 

terminated order:

• name and address of the contractor;

• schedule, contract, and order number;

• national stock number (NSN) or special item number(s) 

(SIN), and a brief description of the item(s);

• cost of schedule items involved;

• excess costs to be collected; and

• other relevant data.

(B) The notice must also include the following information about 

the repurchase contract:

• name and address of the contractor;

• item repurchase cost;

• repurchase order number and date of payment;

• contract number, if any; and

• other relevant data.

(e) Only the GSA schedule contracting officer may modify the schedule 

contract to terminate for cause any, or all, products or services covered by 

the schedule contract. If the GSA schedule contracting officer has 

terminated any products or services covered by the schedule contract, no 

further orders may be placed for those items. Orders placed before 

termination for cause must be fulfilled by the contractor, unless terminated 

for the convenience of the government by the judiciary CO.

§ 310.50.93 Termination for the Judiciary’s Convenience

(a) A judiciary CO may terminate individual orders for the government’s 

convenience. Terminations for the government’s convenience must 

comply with GSA’s regulations for commercial items included in the FSS 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 30

contract. The PE must review and approve, in writing, all proposed 

terminations whether for cause or convenience.

(b) Before terminating orders for the government’s convenience, the judiciary 

CO must endeavor to enter into a “no cost” settlement agreement with the 

contractor.

(c) Only the GSA schedule contracting officer may modify the schedule 

contract to terminate any, or all, products or services covered by the 

schedule contract for the government’s convenience.

§ 310.50.96 Disputes with GSA Schedule Contractors

Whenever possible, any disputes arising under orders placed by judiciary COs will be 

settled by the judiciary COs, within their COCP delegation authority. Above their 

delegation authority, the CO must refer the dispute to the PE. The following table 

outlines procedures for handling disputes with GSA schedule contractors.

§ 310.50.96 Disputes with GSA Schedule Contractors

Type of Dispute Details

(a) Disputes related to 

the performance of 

orders under a 

schedule contract

(1) Under GSA’s standard Disputes clause included in all 

schedule contracts, the judiciary CO may either:

(A) issue final decisions on disputes arising from performance 

of the order (but see: (b) below regarding disputes not 

relating to performance); or

(B) refer the dispute to the GSA schedule contracting officer 

for a decision.

(2) The judiciary CO must notify the GSA schedule contracting 

officer promptly of any final decision issued under (a)(1).

(b) Disputes related to 

the terms and 

conditions of 

schedule contracts

The judiciary CO must refer all disputes that relate to the schedule 

contract terms and conditions to the GSA schedule contracting 

officer for resolution under the “Disputes” clause of the schedule 

contract and notify the schedule contractor of the referral.

(c) Appeals Contractors may appeal final decisions pertaining to disputes 

arising under the schedule contract, as well as orders placed 

thereunder, according to the applicable “Disputes” clause.

(d) Judiciary disputes 

clause

Judiciary COs should include Clause 7-235 – Disputes in GSA 

RFQs, BPAs, and Orders.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 31

§ 310.60 Other Federal Agency Contracts

§ 310.60.10 In General

(a) The judiciary may use OFACs (also referred to as multi-agency contracts 

or Government-Wide Acquisition Contracts (GWACs)). OFACs are 

delivery or task order contracts, established by one agency, that authorize 

use by other government agencies to obtain products and services.

(b) For guidance on how to use the GSA federal supply schedules, do not use 

the guidance in this section, but instead see: § 310.50 (GSA Federal 

Supply Schedules).

§ 310.60.20 Ordering Scenarios

(a) Various federal agencies have awarded contracts that may be used by 

other agencies. There are three basic ordering methods for these 

contracts, as follows:

(1) In most cases, the judiciary may place orders directly against the 

other agency’s contract with no other administrative action required.

(2) In a minority of cases, the judiciary must enter into a Memorandum 

of Understanding (MOU) or Interagency Agreement (IA) to be 

granted ordering authority, but orders may be placed directly with 

the vendor once the MOU or IA has been signed.

(3) In a smaller number of instances, the awarding agency reserves all 

ordering authority to itself, and the judiciary must transfer funds to 

that agency via an Interagency Agreement and authorize that 

agency to place the order on its behalf to use the contract.

(b) The judiciary CO must ascertain which of these three ordering methods is 

applicable before issuing any order. For further guidance on interagency 

agreements (IA) and memoranda of understanding (MOU), which are 

subject to the Economy Act (31 U.S.C. § 1535), see: Guide, Vol. 14, 

§ 550 (Interagency Agreements, MOAs, and MOUs).

(c) When ordering from OFACs under any of the above scenarios, the 

judiciary is required to follow the contract’s ordering procedures, 

competition threshold and the other federal agency contract’s terms and 

conditions. For example, NASA SEWP’s procedures for providing for fair 

opportunity requires that all contractors be given an opportunity to provide 

a quote for all requirements that exceed $10,000.

(d) If authorized to place orders directly with the vendor, the CO may 

determine that judiciary-specific provisions or clauses (see: Guide, 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 32

Vol. 14, Appx. 1C (Matrix of Solicitation Provisions and Clauses), OFAC 

column) are also applicable to the procurement. These may be added, if 

they do not duplicate or conflict with the other agency’s existing terms and 

conditions. The delivery/task order must cite the other agency’s contract 

number under which the order is placed.

§ 310.60.30 Ordering Procedures

The following procedures must be followed when obtaining products and services 

through another federal agency contract:

(a) Determine if another federal agency contract is in the best interests of the 

government by:

(1) ensuring the products and services required are within the scope of 

the other federal agency contract;

(2) analyzing the total cost of obtaining the products or services from 

the other federal agency contract, including applicable service or 

processing fees imposed by the other federal agency;

(3) determining if there are any pricing advantages of using the other 

federal agency contract;

(4) considering intangibles, such as ease of use, time savings;

(5) comparing the expenditure of effort and associated costs with 

placing an order or procuring under other procedures; and

(6) identifying other restrictions, such as length of time during which 

the other federal agency contract will remain in force and effect, or 

in the procedures imposed by the other federal agency as a 

condition to using the contract.

(b) If, after considering the factors described above, the CO decides to obtain 

the products or services through another federal agency contract under 

the Economy Act, the CO must place a written determination in the official 

procurement file; including supporting rationale as to how or why:

(1) use of another federal agency contract under the Economy Act, 

31 U.S.C. § 1535, is in the best interest of the government; and

(2) the products or services cannot be obtained as conveniently or 

economically by procurement directly with a private source.

See: Guide, Vol. 14, § 550 (Interagency Agreements, MOAs, and MOUs) 

and Appx. 5A (Economy Act Determination and Finding), which provides a 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 33

cover page for the additional accompanying supporting factual statement 

required above.

(c) If the other federal agency’s ordering procedures require that orders be 

competed/provide fair opportunity among the multiple contractors (see:

Guide, Vol. 14, § 410.30.65 (Fair Opportunity Process for Delivery Orders 

or Task Orders – OFAC)), the CO must provide a fair opportunity to each 

indefinite-delivery/indefinite-quantity (IDIQ) contract holder according to 

the other federal agency’s procedures.

(1) If fair opportunity is not provided, it must be supported by a written 

determination that one of the circumstances described in Guide, 

Vol. 14, § 410.30.70 (Exceptions to Fair Opportunity Requirement)

applies to the order, and the requirement is waived based on the 

justification that is prepared according to Guide, Vol. 14, 

§ 410.30.73 (Documenting Exceptions to Fair Opportunity 

Requirement). The CO may use either technically 

acceptable/lowest price or best value as the basis for award.

(2) Judiciary organizations, excluding the AO, are not delegated 

authority to conduct best value procurements and must obtain a 

one-time delegation from PMD before issuance of the solicitation 

and before award of the later contract.

§ 310.70 Open Market

Open market purchases are those made directly from commercial sources using 

competitive procedures where applicable, without reference to any other existing federal 

contract. For open market procurement procedures, see: § 315 (Publicizing Open 

Market Procurement Actions) through § 340 (Unsolicited Offers).

§ 310.80 Vendors Offering Services for Public Use

§ 310.80.10 In General

The following procedures apply to vendors who propose to provide a service within a 

courthouse to attorneys and/or other court customers at little or no expense to the 

judiciary. Such vendors usually charge a fee to the user and are, essentially, proposing 

that the court grant them a license or privilege to do so, a privilege not granted to the 

public at large.

§ 310.80.20 Determination Required

The court organization must determine whether the service is necessary to the business 

or mission of the judiciary. Examples of such services might include electronic case 

filing systems or evidence presentation technology in the courtroom. Services 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 34

determined to be necessary to the judiciary’s mission must be paid for with appropriated 

funds. Using other sources of funds for such services could constitute an improper 

augmentation of funds.

§ 310.80.30 Competition

(a) If the service is not necessary to the business of mission of the judiciary 

but, it is a service deemed beneficial to the public, and the service 

requires access to or use of any judiciary property, facilities, records or 

data in a manner not permitted to the public at large, then the opportunity 

to provide the service must be competed. Examples might include a 

conference telephone system offered by a vendor to attorneys for a fee 

that will facilitate attorneys’ participation in court hearings from a remote 

location or high-speed internet access at counsel tables or wireless 

access for attorneys waiting in the courthouse.

(b) The level of competitive procurement procedures to be followed will be 

based on a reasonable estimate of the income the vendor expects to 

derive from payments by the public users over a stated period (such as 

one year) and any cost to the court.

(1) A minimum of three quotes must be solicited if the estimate is more 

than $10,000 for open market services, but not more than $25,000.

(2) If the open market value is estimated at more than $25,000, the 

service being procured must be advertised and fully competed.

(3) If the open market value is estimated at more than $100,000, a 

one-time delegation of authority from PMD is required.

§ 315 Publicizing Open Market Procurement Actions

§ 315.10 Policy

Generally, open market procurements for products or services for the judiciary in excess 

of $25,000 may be made or entered into only after advertising a sufficient time (usually 

a minimum of 10 days) before receipt of offers. See: Guide, Vol. 14, § 130.20.15 

(Advertising Requirements). For exceptions to this general rule, see: § 315.10.30 

(Exceptions). There may also be exceptions for certain delegated programs, in 

appropriation law, or in other law applicable to the procurement.

§ 315.10.20 Publicizing Time Requirements

The publicizing information must include a clear and concise description of the products 

or services that is not unnecessarily restrictive of competition and will allow a 

prospective offeror to make an informed business judgment as to whether to request a 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 35

copy of the solicitation. Other elements are the point of contact name and phone 

number, the solicitation number, and due date for offers. Electronic access to the 

solicitation may be provided to potential offerors. Estimated cost data must not normally 

be included. However, estimated levels of effort must be furnished when purchasing 

labor hours.

§ 315.10.30 Exceptions

Exceptions to the advertising requirements are as follows:

(a) when the independent government cost estimate (see: Guide, Vol. 14, 

§ 210.30(d) (Requesting Office Responsibilities)) is less than $25,000;

(b) when public exigencies require the immediate delivery of the articles or 

performance of the service;

(Note: A PE written concurrence is required to use this exception.)

(c) when only one source of supply is available, and the CO executes the 

appropriate determination required under § 335 (Justifications and 

Approvals for Limiting Competition); or

(Note: Written concurrence by the purchasing office’s official, as identified 

in Guide, Vol. 14, § 120.20.10(b) (Delegation to Chief Judges and Certain 

Judiciary Officials), is required within their delegation authority. 

Advertising exceptions above the judiciary organization’s delegation 

authority, as well as all exceptions at any dollar level within PMD, require 

the PE’s written concurrence.)

(d) when the services are required to be performed by the contractor in 

person and are:

(1) of a technical and professional nature (see: Guide, Vol. 14, § 520 

(Expert and Consultant Nonpersonal Services Contracts)); or

(2) under judiciary direct supervision and paid for on a time basis (see: 

Guide, Vol. 14, § 510 (Personal Services Contracts)).

(Note: When the exception listed above in subparagraph (d)(1) is for a 

procurement exceeding $25,000 and when the exception in subparagraph 

(d)(2) applies, regardless of dollar value, the CO must submit justification 

to the PE for written approval before solicitation.)

§ 315.20 Methods of Publicizing Procurement Notices

Procurement notices are intended to increase meaningful competition by disseminating 

and explaining the judiciary’s requirements.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 36

(a) COs must advertise each proposed open market procurement that is 

expected to exceed $25,000. For exceptions, see: § 315.10.30 

(Exceptions).

(b) Judiciary organizations have authority to meet the publicizing requirement 

by advertising within the local trade area for open market solicitations over 

$25,000, but less than $100,000. However, national advertisement is 

encouraged whenever feasible. Open market procurements exceeding 

$100,000 must be advertised nationally.

(c) There are several ways to disseminate information concerning the 

judiciary’s needs:

§ 315.20(c) Methods of Publicizing Procurement Notices

Publication Method Description

(1) National Posting 

on SAM.gov

SAM.gov is the official U.S. government website for people who 

make, receive, and manage federal awards. This is a GSA-run 

website available to all government agencies for publicly advertising 

federal solicitations and contract awards.

(2) Local Posting When required or desired to increase competition, local posting of 

solicitations must be prominently displayed in a public area. 

Depending on the location, solicitations may be posted in the public 

area of the purchasing activity, courthouse, or other visible area 

easily accessible by the public.

(3) Local 

Announcements 

and 

Advertisements

Announcements of proposed purchases may be placed in 

newspapers, trade journals, and magazines for publication. Paid 

commercial advertisements may be used when determined by the CO 

to be in the judiciary’s interest.

(4) Electronically Any appropriate public electronic means may also satisfy the local 

posting requirement.

§ 320 Contractor Qualifications

§ 320.10 Responsible Prospective Contractors

§ 320.10.10 Importance of Responsibility

Before award, COs must determine that the prospective contractor is responsible. If a 

contractor who is not responsible, later defaults, provides late delivery, or other 

unsatisfactory performance, the award could eventually cost the judiciary more money 

or a loss of time. To qualify for award, a prospective contractor must affirmatively 

demonstrate its responsibility, including, when necessary, the responsibility of its 

proposed subcontractors.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 37

§ 320.10.20 General Standards

Certain key areas must be considered when determining an offeror’s responsibility. At 

times the same areas may be used as evaluation factors. In such instances, the factors 

must be clearly stated in the solicitation and evaluated according to the evaluation 

provisions of the solicitation. To be determined responsible, a contractor must:

(a) have financial resources adequate to perform the contract;

(b) be able to comply with the delivery or performance schedule, taking into 

consideration all existing commitments (including awards pending);

(c) have a good performance record;

(d) have a sound record of integrity and business ethics;

(e) have a quality control program that complies with solicitation requirements 

or the demonstrated ability to obtain one;

(f) have the necessary organization, experience, accounting, and operational 

controls, technical skills, and production and property controls, or the 

demonstrated ability to obtain them;

(g) have the necessary equipment and facilities, or the demonstrated ability to 

obtain them; and

(h) be otherwise qualified and eligible to receive an award under applicable 

laws and regulations.

§ 320.10.30 Subcontractor Responsibility

Generally, prospective prime contractors are responsible for determining the 

responsibility of their prospective subcontractors. For information on debarred, 

suspended, or ineligible contractors, see: § 320.30 (Debarment, Suspension, and 

Ineligibility). Matters of prospective subcontractor responsibility may affect the 

determination of the prospective prime contractor’s responsibility. A prospective 

contractor may be required to provide written evidence of a proposed subcontractor’s 

responsibility.

§ 320.10.40 Determination of Subcontractor Responsibility

When it is in the judiciary’s interest to do so, the CO may directly determine a 

prospective subcontractor’s responsibility, using the same standards as used to 

determine a prime contractor’s responsibility. This may be particularly appropriate if a 

subcontractor is considered critical to the contractor’s successful performance or if the 

proposed subcontracted effort is a substantial portion of the overall work to be 

performed.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 38

§ 320.20 Determining Responsibility or Non-Responsibility

§ 320.20.10 Determination

The CO must make an affirmative determination of responsibility according to § 320.10 

(Responsible Prospective Contractors) before awarding any contract.

§ 320.20.20 Required Documentation

A written determination is required if a prospective contractor is found to be nonresponsible. All documents and reports related to such a determination, including any 

pre-award survey reports (see: § 320.20.50 (Pre-Award Surveys)) must be included in 

the procurement file.

§ 320.20.30 Obtaining Information

Before making a determination of responsibility, the CO must possess or obtain 

information sufficient to be satisfied that the prospective contractor currently meets 

applicable standards of responsibility.

(a) At a minimum, for open market and sole source awards, the CO must 

check GSA’s SAM.gov exclusions page. See: § 320.30 (Debarment, 

Suspension, and Ineligibility). Note: When ordering against another 

agency’s contract, such as GSA schedule orders, orders under the NASA 

SEWP contracts, etc., the CO may rely on the other agency’s 

determination of responsibility in awarding the contract.

(b) Other sources of responsibility information include:

(1) records and experience data, including verifiable knowledge from 

judiciary personnel in purchasing offices, audit offices, and from 

other agency’s contracting offices;

(2) the prospective contractor, including offer information, 

questionnaire replies, financial data, information on production 

equipment, and personnel information; and

(3) publications, suppliers, subcontractors, and customers of the 

prospective contractor, financial institutions, government agencies, 

and business and trade associations.

§ 320.20.40 Discussion

Communication with a prospective offeror for the purpose of obtaining or clarifying 

information needed to determine responsibility is not “discussion,” as defined in 

§ 330.43 (Discussions with Offerors). Clarification with offerors regarding responsibility 

issues does not require that discussions be held with all those in the competitive range.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 39

§ 320.20.50 Pre-Award Surveys

(a) If available information does not provide an adequate basis for 

determining the responsibility or non-responsibility of a prospective 

contractor, the CO must perform a pre-award survey, by obtaining the 

assistance and participation of specialists as needed. The extent of the 

survey must be commensurate with the dollar value and complexity of the 

purchase, and may include any or all of the following:

(1) data on hand or from other government agencies or commercial 

sources;

(2) examination of financial statements and records; or

(3) on-site inspection of plant and facilities to be used for contract 

performance.

(b) Each participant in the survey must make a written report of findings to the 

CO, which must be retained with the CO’s responsibility determination. 

The CO may require a consolidated survey report if there would otherwise 

be numerous individual reports.

(c) The CO may discuss pre-award survey information with the prospective 

contractor being surveyed.

§ 320.30 Debarment, Suspension, and Ineligibility

§ 320.30.10 In General

Purchasing offices must procure from responsible contractors only. Therefore, 

purchasing offices must not solicit offers from, award contracts to, or consent to 

subcontracts with debarred, suspended, or ineligible contractors or affiliates thereof, 

unless the PE determines in writing that there is a compelling reason for such action in 

the interest of the judiciary.

§ 320.30.15 Exclusions – System for Award Management (SAM)

(a) GSA:

(1) compiles and maintains a list of all parties debarred, suspended, 

proposed for debarment, or declared ineligible by federal agencies 

and the Government Accountability Office (GAO);

(2) includes in the list codes indicating the reason the party is excluded 

and the name and telephone number of the agency official 

responsible for inquiries regarding each excluded party; and
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 40

(3) updates the list daily and publishes it on online.

(b) The Exclusions list on the SAM website contains the following information:

(1) the names and addresses of all contractors debarred, suspended, 

proposed for debarment, or declared ineligible, in alphabetical 

order, with cross-references when more than one name is involved 

in a single action;

(2) name of the federal agency or other authority taking the action;

(3) cause for the action or other statutory or regulatory authority;

(4) effect of the action;

(5) termination date for each listing;

(6) Unique Entity Identifier (UEI) number; and

(7) name and telephone number of the debarring agency’s point of 

contact for the action.

§ 320.30.25 Procurement Executive Notification to GSA

Any judiciary recommendation for debarment must be submitted to the PE for action 

according to § 320.50 (Procedural Requirements for Debarment) or § 320.60 (Causes 

for Suspension). After a debarment or suspension determination is made, the PE will 

furnish GSA notice of the determination made by the judiciary for inclusion on 

Exclusions – System for Award Management (SAM). The PE will:

(a) provide GSA with the information required by § 320.30.15 (Exclusions –

System for Award Management (SAM)) after the action becomes effective;

(b) notify GSA after modifying or rescinding an action;

(c) maintain records relating to each debarment, suspension, or proposed 

debarment taken by the judiciary; and

(Note: For record retention requirements, see: Guide, Vol. 10, § 620 

(Records Disposition Schedules).)

(d) respond to inquiries from other federal agencies about contractors 

debarred or suspended by the judiciary.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 41

§ 320.30.30 Effect of Listing

(a) Contractors debarred, suspended, or proposed for debarment are 

excluded from receiving contracts, and COs must not solicit offers from, 

award contracts to, or consent to subcontracts with these contractors, 

unless the PE determines that there is a compelling reason for such 

action.

(b) Contractors debarred, suspended, or proposed for debarment are also 

excluded from conducting business with the government as agents or 

representatives of other contractors.

(c) Contractors listed 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 provided in the statute or regulation. COs may not solicit offers or 

quotations from, award contracts to, or consent to subcontracts with such 

contractors under those conditions and for that period.

(d) Contractors debarred, suspended, or proposed for debarment are 

excluded from acting as individual sureties.

(e) After the opening of offers, the CO must review Exclusions – SAM.gov.

(1) Offers received from any listed contractor in response to a 

solicitation must be rejected unless the PE determines in writing 

that there is a compelling reason to consider the offer.

(2) Offers or quotations received from any listed contractor will not be 

evaluated for award or included in the competitive range, nor will 

discussions be conducted with a listed offeror during a period of 

ineligibility, unless the PE determines, in writing, that there is a 

compelling reason to do so.

(3) If the period of ineligibility expires or is terminated before award, the 

CO may, but is not required to, consider such offers or quotations.

(f) Immediately before award, the CO must again review the Exclusions –

SAM.gov to ensure that no award is made to a listed contractor, unless 

the PE determines, in writing, that there is a compelling reason to do so.

§ 320.30.35 Continuation of Current Contracts

(a) Notwithstanding the debarment, suspension, proposed debarment or 

ineligibility of a contractor, COs may continue contracts or subcontracts in 

existence at the time the contractor was debarred, suspended, or 

proposed for debarment, unless the PE directs otherwise. A decision as 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 42

to the type of termination action, if any, to be taken should be made only 

after review by contracting and technical personnel and in consultation 

with the PE, who will coordinate with the AO’s Office of the General 

Counsel (OGC), to ensure the propriety of the proposed action.

(b) If approved by the PE in consultation with OGC, purchasing offices may 

continue to place orders against existing contracts, including indefinitedelivery contracts, unless the contract is terminated.

(c) COs may not renew or otherwise extend the duration of current contracts, 

or consent to subcontracts, with contractors debarred, suspended, or 

proposed for debarment, unless the PE states, in writing, the compelling 

reasons for renewal or extension.

§ 320.30.40 Causes for Debarment

The PE is authorized, after conferring with OGC, to debar a contractor according to the 

procedures in this section for the following causes:

(a) the PE may debar a contractor for a conviction of or civil judgment for:

(1) commission of fraud or a criminal offense in connection with 

obtaining, attempting to obtain, or 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, tax evasion, or 

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 PE may debar a contractor, based on a preponderance of the 

evidence, for violations of a judiciary contract or subcontract so serious as 

to justify debarment action, such as:

(1) willful failure to perform according to the terms of one or more 

contracts; or

(2) a history of failure to perform or of unsatisfactory performance of 

one or more contracts or subcontracts.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 43

(3) any other cause of so serious or compelling a nature that it affects 

the present responsibility of a government contractor or 

subcontractor.

§ 320.30.45 Conditions for Debarment

The existence of any of the causes in § 320.30.40 (Causes for Debarment) does not 

necessarily require that a contractor be debarred. The decision to debar is within the 

discretion of the PE and must be made in the judiciary’s best interest. All mitigating 

factors must be considered in determining the seriousness of the offense, failure, or 

inadequacy of performance, and in deciding whether debarment is warranted.

§ 320.30.50 Removal of Debarment

The existence of any of the first two causes in § 320.30.40(a) (Causes for Debarment)

must be established by criminal conviction in a court of competent jurisdiction. If appeal 

taken from such conviction results in a reversal of the conviction, the debarment must 

be removed on the request of the contractor, unless other causes for debarment exist.

§ 320.30.55 Evidence Required

The existence of any of the causes in § 320.30.40(a) (Causes for Debarment) must be 

established by evidence that the judiciary determines to be clear and convincing.

§ 320.30.60 Individual Accountability

The criminal, fraudulent, or seriously improper conduct of an individual, acting on behalf 

of or associated with a firm, may be imputed to the firm if the action was accomplished 

within the course of the individual’s official duty, or was done by the individual with the 

knowledge, approval, or acquiescence of the firm. Likewise, when a firm is involved in 

criminal, fraudulent, or seriously improper conduct, any person involved in, or who 

acquiesced in, the commission of the conduct may be debarred.

§ 320.40 Period of Debarment

§ 320.40.10 Guidelines

When other agencies provide a specific period of debarment, applicable statutes, 

executive orders, or controlling regulations govern. In other cases, debarment by the 

judiciary must be for a reasonable, definite, stated period of time, commensurate with 

the seriousness of the offense or the failure or inadequacy of performance. Generally, a 

period of debarment may not exceed three years.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 44

§ 320.40.20 Debarment Removal or Reduction of Debarment Period

(a) Except as precluded by statute, debarment may be removed, or the period 

may be reduced by the PE, upon submission of an application by the 

debarred contractor.

(b) The application must be supported by documentary evidence providing 

appropriate grounds for the granting of relief, such as:

• newly discovered material evidence,

• reversal of a conviction,

• bona fide change of ownership or management, or

• the elimination of the causes for which debarment was imposed.

(c) The PE may, as a matter of discretion, deny any application for removal of 

debarment or for reduction of its period.

(d) In any case in which a debarment is removed or the debarment period is 

reduced, the PE must transmit to OGC a notice and statement for the 

record of the reasons for the removal of the debarment or the reduction of 

the period of debarment.

§ 320.50 Procedural Requirements for Debarment

§ 320.50.10 Notice of Proposal to Debar

The PE, after conferring with OGC, must initiate a debarment proceeding by sending to 

the contractor a written notice of proposed debarment. The notice must be served by 

sending it to the last known address of the contractor by certified mail, return receipt 

requested. The notice must state:

(a) that debarment is being considered;

(b) the reasons for the proposed debarment in terms sufficient to put the 

contractor on notice of the conduct or transaction(s) on which it is based;

(c) the cause(s) relied on under § 320.30.40 (Causes for Debarment) for 

proposing debarment;

(d) 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;

(e) the judiciary’s procedures governing debarment decision making;
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 45

(f) the effect of the issuance of the notice of proposed debarment; and

(g) the potential effect of an actual debarment, including the period of 

debarment and the proposed effective date.

§ 320.50.20 Hearing Request

A contractor served with a notice of proposed debarment may request a hearing by 

addressing a request to OGC through the PE.

§ 320.50.30 Concurrent Debarment

When the PE proposes to debar a contractor already debarred by another government 

agency for a term concurrent with such debarment, the debarment proceedings before 

the judiciary may be based entirely on the record of facts obtained from the other 

federal agency or on such facts and additional facts. In such cases the facts obtained 

from the other federal agency must be considered as established, but the party to be 

debarred must have an opportunity to present information to the PE and to explain why 

debarment by the judiciary must not be imposed.

§ 320.60 Causes for Suspension

§ 320.60.10 Contractor Suspension

The PE may, when required by the judiciary’s interest, and after conferring with OGC, 

suspend any contractor on adequate evidence of or indictment for:

(a) commission of fraud or a criminal offense incidental to obtaining, 

attempting to obtain, or performing a judiciary contract or subcontract;

(b) violation of federal or state antitrust statutes relating to the submission of 

offers. Indictment for any of these causes constitutes adequate evidence 

for suspension;

(c) commission of embezzlement, theft, forgery, bribery, falsification or 

destruction of records, making false statements, tax evasion, or receiving 

stolen property; or any other offense indicating a lack of business integrity 

or business honesty that seriously and directly affects present 

responsibility as a contractor or subcontractor; or

(d) other cause(s) of so serious and compelling a nature, affecting the present 

responsibility as a contractor or subcontractor, as may be determined by 

the PE to warrant suspension. A pending hearing for debarment may be 

such a cause.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 46

§ 320.60.20 Concurrent Suspension

A suspension invoked by another government agency may be the basis for the 

imposition of a concurrent suspension by the PE, on behalf of the judiciary.

§ 320.60.30 Notice of Suspension

(a) The PE must send a notice of the suspension to be served on the 

contractor and any specifically named affiliates to be suspended.

(b) The notice must be sent by certified mail, return receipt requested.

(c) The notice of suspension must be coordinated through OGC before 

issuance.

(d) The notice must state:

(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:

(A) of a serious nature in business dealings with the 

government; or

(B) seriously reflecting on the propriety of further judiciary 

dealings with the contractor. Any such irregularities must be 

described in terms sufficient to place the contractor on notice 

without disclosing the judiciary’s evidence;

(2) that the suspension is for a temporary period pending the 

completion of an investigation and such legal proceedings as may 

ensue;

(3) the cause(s) relied on under § 320.60.10 (Contractor Suspension)

for imposing suspension;

(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 suspension, including 

any additional specific information that raises a genuine dispute 

over the material facts; and

(5) that additional proceedings to determine disputed material facts will 

be conducted unless:

(A) the action is based on an indictment; or
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 47

(B) a determination is made that the substantial interests of the 

judiciary in pending or contemplated legal proceedings 

based on the same facts as the suspension would be 

prejudiced.

§ 320.60.40 Period of Suspension

(a) Suspension must be for a temporary period pending the completion of 

investigation and any ensuing legal proceedings, unless sooner 

terminated by the PE or as provided in this section.

(b) If legal proceedings are not initiated within 12 months after the date of the 

suspension notice, the suspension will be terminated, unless the PE 

requests its extension.

(c) Suspension Extension

A suspension, while in effect, may be extended for an additional period of 

six months on written determination of the reasons and necessity for the 

extension.

(1) Notice of any extension of suspension must be served on the 

contractor in the manner described in § 320.60.30 (Notice of 

Suspension).

(2) A suspension plus its extensions may not exceed, in the aggregate, 

18 months, unless legal proceedings have been initiated within that 

period. In that case, successive additional periods of suspension 

may be imposed until the proceeding in question has been 

completed.

(3) The termination of a suspension, however, may not prejudice a 

debarment proceeding that was pending or that may be brought for 

the same reasons that led to the suspension.

§ 325 Small Purchase Procedures

§ 325.10 Applicability

The small purchase procedures are for use in making open market fixed-price 

purchases up to $100,000, as well as Not-To-Exceed purchase orders under $100,000 

for services such as equipment repairs, which are customarily priced on the basis of 

parts plus labor. This dollar limitation is referred to as the judiciary’s small purchase 

threshold.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 48

Note: This section does not apply to GSA FSS orders (see: § 310.50 (GSA Federal 

Supply Schedules)) or orders from other federal agency contracts (see: § 310.60 

(Other Federal Agency Contracts)).

§ 325.10.10 Limitations

A procurement estimated to total more than the judiciary’s small purchase threshold 

may not be split into two or more purchases to use small purchase procedures. Nor 

may a known requirement for goods or services be split, parceled, divided, or 

purchased over a period of time, solely to avoid the dollar limitations for small purchase 

procedures.

§ 325.15 Open Market Competition

§ 325.15.10 Competition Threshold

In the judiciary, open market purchases for $10,000 ($25,000 for training products and 

services) or less may be made without obtaining competitive quotations, provided that 

the CO determines the price to be reasonable.

§ 325.15.20 Verifying Price Reasonableness

The administrative cost of verifying the reasonableness of the price for purchases under 

the $10,000 ($25,000 for training products and services) competition threshold may 

more than offset potential savings from detecting instances of overpricing. Therefore, 

action to verify price reasonableness need only be taken if:

(a) the CO suspects or has information to indicate that the price may not be 

reasonable, such as comparison to the previous price paid or personal 

knowledge of the product or service involved; or

(b) purchasing a product or service for which no comparable pricing 

information is readily available, such as a product or service that is not the 

same as, or is not similar to, other products or services that have been 

recently purchased on a competitive basis.

§ 325.15.30 Vendor Rotation

Where practicable, noncompetitive purchases under the $10,000 ($25,000 for training 

products and services) competition threshold must be distributed and rotated equitably 

among qualified suppliers. A quotation must be obtained from other than the previous 

supplier before placing a repeat order.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 49

§ 325.20 Competitive Small Purchase Procedures

§ 325.20.10 Competition Guidelines

(a) Purchases must be made on the basis of adequate competition whenever 

feasible. Adequate competition means the solicitation of and participation 

by a sufficient number of capable sources to ensure that the required 

quality and quantity of products and services is obtained when needed, 

and that the price is fair and reasonable.

(1) COs must make a determination that adequate competition has 

been obtained and posting requirements have been met in any 

instance in which it is required. In making that determination, COs 

must act with reasoned discretion, taking into account the business 

requirements of the particular procurement, as well as the 

judiciary’s general interest in identifying new suppliers and 

providing opportunities for its supplier base.

(2) Competition must be sought to the extent practicable for purchases 

estimated to be more than the judiciary’s open market competition 

threshold (see: § 325.15.10 (Competition Threshold)), but less 

than the judiciary’s advertising threshold, $25,000. See also: 

§ 335 (Justifications and Approvals for Limiting Competition).

(b) For open market purchases in this range, offers or quotations must be 

solicited from a sufficient number of qualified sources (normally at least 

three) to ensure that the price is fair and reasonable. Notwithstanding the 

minimum number of qualified sources that must be solicited to ensure 

adequate competition, the CO is encouraged to solicit as many potential 

sources as time will permit, commensurate with the scope of the 

procurement.

(c) For any open market purchases over $25,000, the requirement must be 

advertised. See: § 315.20 (Methods for Publicizing Procurement 

Notices).

(d) For any open market purchases over the judiciary’s small purchase 

threshold (see: § 325.10 (Applicability)), use the standard competitive 

contracting procedures for formal contracts. See: § 330 (Standard 

Competitive Contracting Procedures).

§ 325.20.20 Soliciting Competitive Quotes

When determining how many quotations to solicit, the CO may consider the following 

factors:
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 50

(a) the nature of the product or service to be purchased and whether it is 

highly competitive and readily available in several makes or brands or if 

relatively few suppliers provide the product or service;

(b) information obtained in making recent purchases of the same or similar 

item;

(c) the urgency of the proposed purchase; and

(d) past experience concerning specific vendors’ prices.

§ 325.30 Soliciting Under Small Purchase Procedure

§ 325.30.10 In General

(a) For procurements less than the judiciary’s small purchase threshold (see: 

§ 325.10 (Applicability)), soliciting quotations under small purchase 

procedures may be done either in writing or orally.

(b) Whether the solicitation is oral or written, the CO must request the 

vendor’s UEI number (or Tax ID number).

(c) When determining responsibility (see: § 320.20 (Determining 

Responsibility or Non-Responsibility)) and checking SAM (see: § 320.30 

(Debarment, Suspension, and Ineligibility)), the UEI number will assist in 

obtaining information about the vendor.

§ 325.30.20 Written Solicitations

(a) Under small purchase procedures, a written solicitation is referred to as a 

Request for Quotation (RFQ). Written solicitations provide a clearer 

understanding of the requirement and must be used in the following 

circumstances:

(1) when a large number of line items is included in a single proposed 

procurement;

(2) when obtaining oral quotations is not considered economical or 

practical;

(3) when a SCLS determination is applicable;

(4) when extensive specifications are involved; or

(5) when purchasing services, unless the services are generally predefined and would normally be priced in a catalog.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 51

(b) In addition to describing the judiciary requirement, a written RFQ must 

include Clause 3-3, Terms and Conditions – Small Purchases and 

Provision 3-5, Taxpayer Identification and Other Offeror Information. This 

provision must be included in full text to enable the vendor to provide the 

information requested. For additional clauses and provisions related to 

solicitations for services and when to include them, see: § 332.50 

(Required Clauses and Provisions).

§ 325.30.25 Oral Solicitations

An oral solicitation may be used when a written solicitation would be impracticable, as 

when processing a written solicitation would cause a delay detrimental to the judiciary. 

Records of oral solicitations (e.g., vendors contacted and prices offered) must be in the 

purchasing file. See: Guide, Vol. 14, § 710.10 (Procurement Files 

(Purchase/Delivery/Task Order or Contract Files)).

§ 325.30.30 Amending Written Solicitations

An amendment to an RFQ must be issued on Form SF-30 (Amendment of 

Solicitation/Modification of Contract). For issuing amendments to solicitations, see: 

§ 330.16 (Amendment of Solicitations).

§ 325.35 Basis for Award

§ 325.35.10 Policy

(a) The basis for award must be determined before issuance of the solicitation 

and must not change once quotes have been received.

(b) Small purchases may be awarded on the basis of:

(1) technically acceptable/lowest price, or

(2) best value, which involves an evaluation and comparison of cost or 

price and other factors.

(c) For small purchases, technically acceptable/lowest price is the preferred 

basis for award. See: § 325.35.20 (Technically Acceptable/Lowest 

Price). If appropriate, best value may be used, but the circumstances 

requiring its use must be documented and maintained in the procurement 

file. See: § 325.35.30 (Best Value).

§ 325.35.20 Technically Acceptable/Lowest Price

Quotes are evaluated based on price. Awards are made to the lowest priced quotation 

or the quote that meets the judiciary’s stated minimum technical requirements and is 

made by a responsible quoter. This method is normally used for standard commercial 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 52

off-the-shelf products or services of acceptable quality for which there is adequate 

competition. See also: Guide, Vol. 14, § 210.70.30(a) (Source Selection Processes).

§ 325.35.30 Best Value

(a) Small purchase open market awards may be made based on best value to 

the responsible quoter who submits the most advantageous quotation 

taking into account price and other evaluation factors specifically stated in 

the solicitation.

(b) Small purchases do not generally warrant evaluation based on best value; 

technically acceptable/lowest price is generally used for small purchases. 

See: § 325.35.20 (Technically Acceptable/Lowest Price). Use of best 

value as an evaluation method is usually highly complex and will require 

lengthy or detailed submissions by the quoters. See also: § 330.40.30 

(Best Value Awards) and § 330.40.40 (Selection Documentation).

Note: Judiciary organizations, excluding the AO, are not delegated 

authority to conduct best value procurements and must obtain a one-time 

delegation from PMD before issuance of the solicitation and before award 

of the later contract.

§ 325.40 Receipt and Evaluation of Quotations

§ 325.40.10 Recording Quotes

Responses to written and oral quotations must be clearly recorded in a format 

permitting ready comparison of prices and other details. The CO must place this record 

in the procurement file.

§ 325.40.20 Late Quotations

Late quotations in response to written or oral RFQ solicitations may be considered when 

an award has not yet been made, provided that the CO determines that doing so is in 

the judiciary’s best interest. This determination must be documented in the 

procurement file.

§ 325.40.30 Evaluation

Evaluation must be made on the basis of price, or price and other factors as provided in 

the RFQ. Regardless of the basis of award (best value or lowest price/technically 

acceptable), the CO must make a price reasonableness determination and document it 

in the procurement file.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 53

§ 325.43 Ordering Methods Under Small Purchase Procedures

Ordering methods under small purchase procedures include use of the purchase card, 

award of purchase order, and award of orders under BPAs or existing contract (e.g., 

IDIQ or GWAC).

§ 325.45 Purchase Order

A purchase order is used to place open market orders when quotations have been 

obtained in response to an oral or written RFQ. Because a quotation is not a legal offer 

subject to acceptance by the judiciary, a purchase order issued in response to a 

quotation does not become a binding contract until the contractor either signifies 

acceptance by:

(a) commencing delivery or performance of the work; or

(b) accepts the purchase order in writing.

§ 325.45.10 Contents of a Purchase Order

The following items must be included on each purchase order:

(a) purchase order number and date;

(b) technical point of contact;

(c) vendor’s name, address, UEI or Tax ID Number (TIN);

(d) description of product(s)/service(s) — an SOW for services, when 

required, or a brief, complete description of each item (when ordering by 

model number, features and options, such as color, finish, and electrical 

characteristics, if available, must be specified);

(e) quantity/unit of measure and extended prices/total;

(f) billing address;

(g) payment provisions;

(h) contract number if order is placed against an existing contract (for FSS, 

GWAC, Judiciary-Wide, etc., see: § 310.50 (GSA Federal Supply 

Schedules) or § 310.60 (Other Federal Agency Contracts));

(i) delivery requirements:

• delivery time and/or period of performance,

• quantity,
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 54

• form,

• F.O.B. delivery point (i.e., origin or destination), and

• inspection and acceptance provisions;

(j) appropriation(s) data; and

(k) CO’s signature.

§ 325.45.15 Purchase Order Terms and Conditions 

(a) To protect the judiciary’s rights when acquiring products and/or services, it 

is important that basic terms and conditions be made a part of any 

purchase order issued.

(b) COs must include Clause 3-3, Terms and Conditions – Small Purchases, 

in open market RFQs and purchase orders. It lists the basic terms and 

conditions required on any open market purchase order estimated to be 

less than the judiciary’s small purchase threshold. The CO must also 

consult the clause matrix and include any other clauses that may be 

applicable to the specific purchase order.

§ 325.45.20 Modification of Purchase Orders

Modification of Purchase Orders must be processed on an SF-30 (Amendment of 

Solicitation/Modification of Contract) (or equivalent form), must identify the order it 

modifies, and must contain an appropriate modification number. If written acceptance is 

determined to be necessary to ensure the contractor’s compliance, the CO must obtain 

a contractor’s written acceptance of a purchase order modification. See also: Guide, 

Vol. 14, § 745 (Contract Modifications).

§ 325.45.25 Use of Unpriced Purchase Orders 

Unpriced purchase orders, in which the end price is not established at the time the 

purchase order is issued, may be used only when:

(a) it is impractical to obtain firm pricing in advance of issuing the purchase 

order;

(b) the purchase is for:

(1) repairs to equipment requiring disassembly to determine the nature 

and extent of repairs; or

(2) products or services for which there is a repetitive need within a 

single fiscal year and for which prices are known to be competitive 

(e.g., overnight delivery services, or office supplies), and a not-toexceed amount is stated on the purchase order.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 55

(c) Unpriced purchase orders must be thoroughly documented to support that 

the obligated/not-to-exceed amount is reasonable and monitored 

periodically to ensure that excess funds are deobligated in a timely 

manner. See: Guide, Vol. 14, § 220.50.20(e) (Contract Funding 

Requirements).

§ 325.45.30 Termination and Cancellation of Purchase Orders 

If an order needs to be ended before its completion then either a termination or 

cancellation needs to be processed, as described below.

(a) Termination. If a purchase order has been accepted in writing by the 

contractor or the contractor has commenced performance, then a 

termination must be processed. The CO must process the termination 

according to Guide, Vol. 14, § 755 (Contract Termination).

(b) Cancellation. If a purchase order has not been accepted in writing by the 

contractor or the contractor has not commenced performance, then a 

cancellation must be processed. The CO may cancel by notifying the 

contractor in writing that the purchase order is being canceled and 

requesting the contractor’s written acceptance of the cancellation.

(1) Acceptance of Cancellation. If the contractor accepts the 

cancellation and does not claim that costs were incurred as a result 

of beginning performance under the purchase order, the purchase 

order may be canceled. The CO must process a modification to 

cancel the purchase order and deobligate any funds.

(2) Rejection of Cancellation. If the contractor does not accept the 

cancellation or claims that costs were incurred as a result of 

beginning performance under the purchase order, the CO must 

treat the action as a termination according to Clause 3-3, 

Provisions, Clauses, Terms and Conditions – Small Purchases and 

Guide, Vol. 14, § 755 (Contract Termination).

§ 325.50 Blanket Purchase Agreement

(a) A BPA is an ordering agreement, not a contract. A BPA does not 

constitute a legally binding contract and may be established without an 

obligation of funds. Therefore, there is never an obligation of funds 

recorded based on the award of a BPA. Funds must be obligated at the 

time an order is placed against a BPA, unless the order is subject to the 

availability of funds and properly supported by Clause 7-115, Availability of 

Funds.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 56

(b) BPAs are written agreements negotiated between a purchasing office and 

a contractor that contain agreed upon terms and conditions that will apply

if and when an order is placed against the BPA for products or services.

(c) BPAs permit individuals that are designated in writing by name or title in 

the BPA, to place orders by telephone, over-the-counter, by email, or in 

writing. Regardless of how the order is placed, an obligation of funds 

must be recorded in the financial system at the time the order is placed.

§ 325.50.10 Limitations

(a) Mandatory source(s) (see: § 310 (Procurement Sources)),must be 

considered before establishing a BPA for products or services. If one of 

the mandatory sources offers the products of services that are required, 

the BPA must be established with the mandatory source(s).

(b) A BPA may not state or imply any obligation or agreement by the judiciary 

to place future orders.

(c) A BPA may be changed only by modifying the BPA itself and not by 

individual orders issued under it. Modifying a BPA does not retroactively 

affect orders previously issued under it.

(d) A BPA extending for more than one year must be reviewed annually to 

determine:

(1) whether there is a continuing need for the products or services 

covered by the agreement, 

(2) that the products or services being purchased under the agreement 

still represent the best price, and

(3) whether any revisions to the agreement are necessary.

§ 325.50.15 Use of BPAs

BPAs may be established with suppliers when numerous individual purchases will likely 

be made in a given period. It would be advantageous to establish BPAs with 

dependable suppliers that are consistently lower in price than other suppliers and when 

numerous small purchases are expected to be made from them. BPAs may be 

established with GSA FSS schedule holders (see: § 310.50.53 (Blanket Purchase 

Agreements Under GSA Schedules)) or on the open market (see: § 325.50.30 (Open 

Market Single Award BPA) and § 325.50.35 (Open Market Multiple Award BPA)). BPAs 

are used when:
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 57

(a) a wide variety of items in a broad class of products or services may be 

available from suppliers, but quantities and delivery requirements are not 

known in advance and may vary considerably;

(b) there is a desire to reduce preparation of numerous written orders and 

processing of invoices through issuance of a blanket delivery order since 

billing under a blanket delivery order is done collectively over an 

established time period (usually monthly) (see: Guide, Vol. 14, 

§ 410.30.60(d) (Blanket Delivery Orders)); or

(c) there is a need to provide commercial sources of supply for ordering by 

offices that do not have other purchasing authority.

§ 325.50.20 BPA Sources 

There are two sources for BPAs: open market and GSA. (If competing, see: 

§ 325.20.10 (Competition Guidelines). The competition must be conducted among the 

same sources: either all GSA or all open market.)

(a) An open market BPA is established with commercial vendors using 

competitive procedures, where applicable, without reference to any other 

existing federal contract.

(b) A GSA FSS BPA is a BPA established under any GSA federal supply 

schedule contract. GSA BPAs must follow the policies detailed in 

§ 310.50.53 (Blanket Purchase Agreements Under GSA Schedules).

§ 325.50.25 BPA Types

There are two types of BPAs: priced and unpriced.

(a) A priced BPA has a price list, approved in writing by the CO. The price list 

establishes prices for the order of products or services during the term of 

the BPA.

(1) A priced BPA is appropriate when prices are available for 

commercial products, such as office supplies, or for a flat-rate 

repair service.

(2) Pricing changes may be made infrequently with the CO’s approval 

of a new price list. The CO will determine and document that the 

new pricing is still fair and reasonable and competitive in the 

current market.

(b) An unpriced BPA does not contain a price list but may contain labor hour 

rates. An unpriced BPA is appropriate when the order will require an 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 58

SOW or when prices cannot otherwise be established before establishing 

the BPA.

(1) Prices are competed and established when an individual order is 

placed against the BPA.

(2) Ordinarily, the CO may not authorize the contractor to begin work 

on an order under a BPA until prices have been established. 

However, if urgency precludes advance pricing and the order 

establishes a ceiling price limiting the judiciary’s obligation, the CO 

may place an unpriced order after getting a one-time delegation of 

authority from PMD. Pricing must be established as soon as 

possible after issuance of an unpriced order.

§ 325.50.30 Open Market Single Award BPA

(a) A single award BPA is a BPA with only one vendor. While the Judiciary’s 

preference is to establish multiple award BPAs, rather than single award 

BPAs, the CO has the discretion to determine which is needed, using the 

following factors:

(1) the scope and complexity of the requirement(s);

(2) the technical qualifications of the contractor(s);

(3) the administrative costs of BPAs;

(4) the need to periodically compare multiple technical approaches or 

prices; and

(5) the need to have backup sources for the products and/or services, 

since BPA holders are not required to accept all orders.

(b) The CO must document the file describing the decision for a single award 

BPA before the solicitation is issued and the BPA is established.

(c) There are three scenarios that could yield a single award BPA.

(1) Need based. A CO has assessed the needs of the court and made 

a determination that, based on the level of need for the products or 

services, only one source is needed for the BPA. The CO must 

document the file describing the anticipated need and the CO’s 

determination to have a single award BPA.

(2) Only one quote received. If the CO solicits a sufficient number of 

qualified contractors (normally at least three) or advertises if the 

estimated value exceeds $25,000 and only receives one quote, the 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 59

CO has fulfilled the competition requirement. The CO should 

document the file showing the attempt to solicit three or more 

sources.

(3) Only one source. If the contracting officer decides not to compete 

the requirement for the BPA or that only one source is available to 

provide the goods and services and therefore a sole source BPA is 

required, an approved written justification for limiting competition is 

required. See: § 335.60.30 (Justification for Limiting Open Market 

Competition).

(d) Orders against a single award BPA need not be competed or advertised. 

Single award BPAs must be priced.

§ 325.50.35 Open Market Multiple Award BPA

A Multiple Award BPA involves awarding BPAs for the same class of products or 

services to more than one vendor.

(a) Orders against a multiple award BPA with an estimated price not expected 

to exceed the judiciary’s competition threshold need not be competed or 

advertised. Authorized users may place the order directly under any of 

the established BPAs when the need for the product or service arises. 

The CO may exercise broad discretion in developing appropriate order 

placement procedures. However, the CO must:

(1) keep vendor submission requirements to a minimum and use 

streamlined procedures whenever possible;

(2) develop ordering procedures that will provide each awardee an 

opportunity to be considered for orders that exceed the judiciary’s 

competition threshold;

(3) include the ordering procedures in the solicitation and the BPA; the 

BPA solicitation must specify that quote requests may be by oral or 

written solicitation, and is limited to firms holding BPAs for the same 

products or services;

(4) not use any method (such as allocation or designation of any 

preferred awardee) that would not result in fair consideration being 

given to all awardees before placing each order;

(5) tailor the procedures to each acquisition; and

(6) consider price or cost under each order as one of the factors in the 

selection decision.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 60

(b) Orders against multiple award BPAs with an estimated price exceeding 

the judiciary’s competition threshold need not be advertised, but the CO 

must compete each call among all BPA holders unless supported by a 

written determination that:

• one of the circumstances described in § 335 (Justifications and 

Approvals for Limiting Competition) applies to the order, and

• the requirement is waived on the basis of a justification prepared 

according to § 335.60.30 (Justification for Limiting Open Market 

Competition).

(c) When a call is competed among the BPA holders, the CO must, at a 

minimum:

(1) provide a fair notice of the intent to make a purchase, including a 

clear description of the products to be delivered or the services to 

be performed and the basis on which the selection will be made, to 

all contractors offering the required supplies or services under the 

multiple award contract; and

(2) afford all contractors responding to the notice an opportunity to 

submit a quote and have that quote fairly considered.

§ 325.50.40 Ordering Under BPAs

(a) A CO or an authorized ordering officer that has been identified in the BPA 

may issue orders for products and services covered by that agreement. 

Orders issued under the BPA are subject to the terms and conditions of 

the associated BPA. The orders should be documented in the BPA file.

(b) When frequent orders are anticipated against a priced single award BPA, 

the CO may utilize a blanket delivery order (BDO), obligating funds and 

tracking the open balance according to Guide, Vol. 14, § 220.50.20(c) 

(Contract Funding Requirements). BDOs may not cross fiscal years; they 

may only be used to pay for orders placed within a single fiscal year.

§ 325.50.50 Content of BPA Orders

A BPA Order must include the same information that is included in a purchase order, 

(see: § 325.45.10 (Contents of a Purchase Order)), as well as the following:

(a) Pricing for the products or services, or a description of the method for 

determining prices to be paid to the vendor for the products or services.

(b) A list of the ordering officers authorized to issue orders under the 

agreement.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 61

(c) The point at which each order becomes a binding contract (e.g., issuance 

of the order, acceptance of the order in a specified manner, or failure to 

reject the order within a specified number of days).

(d) The appropriate contract type clauses for the orders to be placed (i.e., 

fixed-price, labor-hour, or time-and-materials). For clauses prescribed by 

dollar amount, the aggregate value of orders expected to be placed under 

the agreement over its full life must be estimated.

§ 325.50.55 Review of BPAs

(a) The BPA’s CO must conduct monthly random reviews of the orders placed 

by authorized ordering officers to determine that the orders were placed 

appropriately according the agreement and within applicable procurement 

guidance.

(b) The BPA’s CO must review BPA files at least annually to ensure that 

authorized procedures are being followed, pricing is still competitive, and 

that continued use is justified.

§ 325.55 Administration of Small Purchases

(a) Purchases must be administered according to the terms and conditions of 

the order or agreement.

(b) After the order is placed, the requesting office awaits delivery or 

performance, inspects the products or services, and accepts or rejects the 

delivery. If there is a problem in the delivery or performance, the 

requesting office informs the CO. The CO determines the best course of 

action, depending on the circumstances and the terms and conditions of 

the order.

(c) Modifications are made as necessary to clarify, correct, terminate, cancel 

the order, or make appropriation data changes or corrections. 

Modifications can only be issued by a CO. See: Guide, Vol. 14, § 745 

(Contract Modifications).

(d) The last administration action is to close out the small purchases, which 

includes BPAs, purchase orders, and orders against existing contracts 

that do not exceed the judiciary’s small purchase threshold. See: Guide, 

Vol. 14, § 760 (Contract Closeout).
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 62

§ 330 Standard Competitive Contracting Procedures

§ 330.10 Applicability

This section describes procedures for the competitive procurement of products and 

services whose cost is estimated to exceed the small purchase threshold stated in 

§ 325.10 (Applicability). These procedures do not apply to orders or contracts placed 

under GSA FSS (see: § 310.50 (GSA Federal Supply Schedules)) or orders against 

other federal agency contracts (see: § 310.60 (Other Federal Agency Contracts)).

§ 330.10.10 Format and Contents of Contract

A contract is used when offers have been obtained in response to a written Request for 

Proposal (RFP) and follows the uniform contract format (UCF). See: Guide, Vol. 14, 

Appx. 1A (Uniform Contract Format). Because an offer is subject to acceptance by the 

judiciary, a contract issued based on a proposal in response to an RFP is signed by 

both the contractor and the CO. The contractor’s UEI or Tax ID number (TIN) is

included in the name and address block of the award document.

(a) Face Page of a Contract

The following items must be included on the face page of each contract:

(1) date and contract number;

(2) contractor’s signature; and

(3) CO’s signature.

(b) Contract Terms and Conditions

To protect the judiciary’s rights when acquiring products and/or services, it 

is important that basic terms and conditions be made a part of any 

contract.

§ 330.10.20 Soliciting under Standard Competitive Contracting Procedures

(a) Preparation of Solicitations

Solicitations must be prepared according to Guide, Vol. 14, Appx. 1A 

(Uniform Contract Format).

(b) Recommended Time Frames for Offers

Consistent with specific purchase requirements, all solicitations must allow 

sufficient time for offerors to prepare and submit offers. The following 

table outlines the recommended time frames.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 63

§ 330.10.20(b) Recommended Time Frames for Offers

Type of Product and Service Offer Time 

(1) Nonstandard, 

Noncommercial Products 

and Services

The CO must allow at least thirty days for submission of 

proposals, unless there is written approved justification 

from the PLO for requiring an earlier submission.

(2) Standard Commercial 

Products and Services 

The CO will make a decision as to the sufficient length of 

solicitation time by taking into consideration the availability 

of competition, complexity of the purchase, delivery time 

required, etc. This length of time is usually a small number 

of days.

(c) Method of Solicitation

(1) The CO will determine the method by which the solicitation is 

delivered to potential offerors. This determination will consider 

such choices as:

• regular US Postal Service mail,

• electronic mail, or

• posting on a website.

(2) Choices are dependent on:

• the size of the solicitation package,

• the number of vendors being solicited,

• the time required for the responses to be returned, and/or

• other relevant considerations.

(d) Posting and Synopsis

The CO must comply with the publicizing method requirements in 

§ 315.20 (Methods of Publicizing Procurement Notices).

(e) Availability of Solicitations

The purchasing office must maintain a reasonable number of copies of 

solicitations to be provided to prospective offerors upon request. If the 

solicitation is advertised as being available on an electronic site, the 

solicitation must remain available to prospective offerors until the posted 

closing time for receipt of proposals.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 64

§ 330.10.30 Provisions and Clauses

The CO will include the following clauses and provisions in all solicitations exceeding 

the judiciary’s small purchase threshold (see: § 325.10 (Applicability)) unless the 

prescription indicates otherwise.

(a) Provision 3-5, Taxpayer Identification and Other Offeror Information.

(b) Provision 3-15, Place of Performance.

(c) Provision 3-20, Certification Regarding Debarment, Suspension, Proposed 

Debarment, and Other Responsibility Matters. The offeror will 

appropriately fill in the provision’s blank spaces.

(d) Clause 3-25, Protecting the Judiciary’s Interests when Subcontracting with 

Contractors Debarred, Suspended, or Proposed for Debarment.

(e) Provision 3-30, Certificate of Independent Price Determination is included 

in all solicitations for firm-fixed price contracts or fixed-price with economic 

price adjustment, which are expected to exceed the judiciary’s small 

purchase threshold. See: § 325.10 (Applicability). The offeror will 

appropriately fill in the provision’s blank spaces.

(f) Clause 3-35, Covenant Against Contingent Fees.

(g) Clause 3-40, Restrictions on Subcontractor Sales to the Judiciary.

(h) Clause 3-45, Anti-Kickback Procedures.

(i) Clause 3-50, Cancellation, Rescission, and Recovery of Funds for Illegal 

or Improper Activity.

(j) Clause 3-55, Price or Fee Adjustment for Illegal or Improper Activity.

(k) Provision 3-70, Determination of Responsibility.

(l) Clause 7-20, Security Requirements, is included whenever unescorted 

access to judiciary buildings or access to the judiciary IT network is 

required. For further information on the types of background checks, 

procedures for obtaining background checks, and appropriate forms to 

use, see: Guide, Vol. 12, § 570 (Background Checks and Investigations).

(m) Provision 3-85, Explanation to Prospective Offerors.

(n) Provision 3-95, Preparation of Offers.

(o) Provision 3-100, Instructions to Offerors is included in all solicitations.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 65

(1) Alternate I is included if the judiciary intends to make award after 

discussions with offerors within the competitive range.

(2) Alternate II is included if the judiciary would be willing to accept 

alternate offers.

(3) Alternate III is included if the judiciary would be willing to consider 

offers which do not include all items solicited and make multiple 

awards.

(p) Clause 3-105, Audit and Records.

(q) Provision 3-115, Facsimile Offers is included in solicitations if facsimile 

offers are authorized.

(r) Clause 3-120, Order of Precedence.

(s) Provision 3-130, Authorized Negotiators. The offeror will appropriately fill 

in the provision’s blank spaces.

(t) Provision 3-135, Single or Multiple Awards is included in solicitations for 

indefinite-quantity contracts that may result in multiple contract awards.

(u) Clause 3-140, Notice to the Judiciary of Labor Disputes is included in 

solicitations and contracts that involve programs or requirements for which 

it is necessary that contractors be required to notify the judiciary of actual 

or potential labor disputes that are delaying or threaten to delay timely 

performance.

(v) Clause 3-145, Payment for Overtime Premiums is included in solicitations 

and contracts when a cost-reimbursement contract is contemplated. The 

CO will appropriately fill in the clause’s blank spaces.

(w) Clause 3-150, Contract Work Hours and Safety Standards Act – Overtime 

Compensation is included when the resulting contract may involve the 

employment of laborers or mechanics. See: Glossary.

(x) Clause 3-155, Walsh-Healy Public Contracts Act is included in solicitations 

and contracts if the procurement is for the manufacturing or furnishing of 

products and expected to be in excess of $15,000.

(y) For applicable SCLS provisions and clauses, see: § 332.50 (Required 

Clauses and Provisions).

(z) Provision 3-185, Evaluation of Compensation for Professional Employees

is included in solicitations for service contracts when the contract amount 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 66

is expected to exceed $500,000 and the service to be provided will require 

meaningful numbers of professional employees.

(aa) Clause 3-205, Protest After Award is included in all solicitations and 

contracts.

(bb) Provision 3-210, Protests is included in all solicitations exceeding the 

judiciary’s small purchase threshold. See: § 325.10 (Applicability). The 

CO will appropriately fill in the provision’s blank spaces.

(cc) Clause 5-30, Authorization and Consent is included in all solicitations and 

contracts. Use the clause with Alternate I if the solicitation or contract is 

for communication services with a common carrier and the services are 

unregulated and not priced by a tariff schedule set by a regulatory body.

(dd) Court organizations that can make payment by electronic funds transfer 

(EFT) will incorporate the following clauses as indicated:

(1) Clause 3-300, Registration in the System for Award Management 

(SAM) is included in solicitations and contracts except when:

(A) the contract is awarded under circumstances of urgent and 

compelling need;

(B) the contractor is a foreign vendor; or

(C) awards under $10,000 ($25,000 for training products and 

services) that do not use EFT for payment.

(2) Clause 3-305, Payment by Electronic Funds Transfer – System for 

Award Management (SAM) Registration is included in solicitations 

and contracts that include Clause 3-300.

(3) Clause 3-310, Payment by Electronic Funds Transfer – Other Than 

System for Award Management (SAM) Registration is included in 

contracts when a critical sole source provider of goods or services 

refuses to register in SAM, but has provided Electronic Funds 

Transfer information for payment directly to the judiciary.

(4) Provision 3-315, Submission of Electronic Funds Transfer 

Information with Offer is included in solicitations when urgent and 

compelling circumstances require award to be made without regard 

to whether or not the awardee is registered in SAM. The resulting 

contract must include Clause 3-305, Payment by Electronic Funds 

Transfer – System for Award Management (SAM) Registration if 

the awardee is registered in SAM, or Clause 3-310, Payment by 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 67

Electronic Funds Transfer – Other Than System for Award 

Management (SAM) Registration if the awardee is not.

See also: Guide, Vol. 14, § 170.70 (Clause); § 715.55 

(Clauses/Provisions); and § 755.20.60 (Clauses).

§ 330.13 Pre-Offer Conference

§ 330.13.10 In General

Whenever circumstances warrant, such as when a solicitation has complicated 

specifications or requirements, a pre-offer conference may be held to brief prospective 

offerors and respond to questions.

§ 330.13.20 Notification Requirements

If the need for a pre-offer conference is foreseen, notice of the conference must be 

given in the solicitation. Otherwise, all offerors that received the solicitation must be 

given written notice of the time, place, nature, and scope of the conference. If time 

allows, prospective offerors must be instructed to submit written questions in advance, 

so that prepared answers can be distributed at the conference.

§ 330.13.30 Conducting the Conference

The CO or a designated representative must conduct the conference, with the 

assistance and participation of program officials, technical personnel or others as 

appropriate.

§ 330.13.40 Records

A record of the conference must be furnished to all prospective offerors that received 

the solicitation. Conferees must be informed that statements and explanations at the 

conference do not change any terms, specifications, or other requirements of the 

solicitation. These may only be changed if the CO issues a written amendment.

§ 330.16 Amendment of Solicitations

§ 330.16.10 In General

If it becomes necessary to make changes in a solicitation, a solicitation amendment 

must be issued. The procurement file must be documented to show the reason for any 

amendment. An amendment may make the following types of changes:

• quantity,

• specifications,

• delivery schedule, or

• other corrections as needed.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 68

§ 330.16.20 Time Frame

An amendment must be issued in sufficient time to permit offerors to consider it in 

submitting or modifying their offers. COs issuing amendments near the due date for 

submission of proposals should consider whether an extension of the due date is 

necessary, based on the extent of the changes made by the amendment.

§ 330.16.30 Notification

When the CO believes it is necessary to give notification of a change by telephone or 

email, a written amendment confirming the change must be processed and distributed 

to the offerors.

§ 330.16.40 Amendment Distribution

When deciding which offerors are affected by a change, the CO must consider the 

stage of the procurement as follows:

(a) if offers are not yet due, the amendment must be sent to all prospective 

offerors that received the solicitation and it must be posted in the same 

place as the solicitation;

(b) if the time for receipt of offers has passed, but offers have not yet been 

evaluated, the amendment must be sent to all the responding offerors; 

and

(c) if the competitive range (see: § 330.60 (Competitive Range)) has been 

established and the amendment would have no effect on the basis for 

establishing the competitive range, only those offerors within the 

competitive range must be sent the amendment.

§ 330.20 Cancellation of Solicitations

§ 330.20.10 In General

Solicitations must not be canceled unless circumstances make cancellation necessary. 

Examples of circumstances are when there is no longer a requirement for the products 

or services, or the solicitation requires amendments of such magnitude that a new 

solicitation is needed.

§ 330.20.20 Notification

Written notice of the cancellation must explain the reason for cancellation. It must be 

sent to all prospective offerors that received the solicitation and posted in the same 

place as the solicitation.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 69

§ 330.20.30 Time Frame

If the solicitation is canceled before the date for receipt of offers, any offers received 

must be returned unopened to the offerors. If the solicitation is canceled after the date 

for receipt of offers, any offers received must be kept unopened for five years after 

cancellation.

§ 330.23 Disclosure and Use of Information

§ 330.23.10 Before Release of the Solicitation

Information concerning proposed purchases must not be released outside the judiciary 

before solicitation of offers, except for information publicized through briefings, market 

research, announcements, or notices. This information must be restricted to those 

having a legitimate interest.

§ 330.23.20 After Release of the Solicitation

(a) After issuance of a solicitation, only the CO, or others specifically 

authorized by the CO, may communicate or transmit information 

concerning the solicitation.

(b) When the information is needed for the preparation of offers or if lack of it 

would be prejudicial to uninformed prospective offerors, any information 

given to one prospective offeror must be furnished promptly to all other 

prospective offerors as an amendment to the solicitation.

(c) General information that would not give a prospective offeror an 

advantage may be furnished upon request, such as an explanation of a 

clause, a procedural requirement, or a provision of the solicitation. If it 

becomes apparent that an ambiguity must be clarified, or an error 

corrected, the solicitation must be formally amended.

§ 330.23.30 After Receipt of Offers

(a) The content of offers, the number or identity of offerors, and source 

selection information must be protected. This information is restricted to 

those having a legitimate role in the offer evaluation and award processes 

and is disclosed only to the extent needed to evaluate the offers. See 

also: Guide, Vol. 14, § 150.20.25(a) (Prohibition on Disclosing 

Procurement Information).

(b) During the preaward period, only the CO, and others specifically 

authorized by the CO, may transmit technical or other information and 

conduct discussions with offerors. Information must not be furnished to 

any offeror that — either by itself or together with other information —

would possibly give one offeror an advantage over others. However, 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 70

general information that is not prejudicial to others may be furnished upon 

request.

§ 330.26 Receipt of Offers

§ 330.26.10 Handling

Offers must be marked with the date and time of receipt and kept secure at all times. It 

is equally important to keep them secure before and after opening as well as during the 

recording and evaluation processes.

§ 330.26.20 Opening and Recording

After the time established for receipt, the CO will open and record the offers.

§ 330.26.30 Modification and Withdrawal

Offers may be modified or withdrawn in the same manner they were submitted. Written 

offers must be modified or withdrawn in writing and oral offers made in response to oral 

solicitations may be withdrawn orally. An offer modification must be received by the 

date and time set for receipt of offers. Notice of withdrawal of an offer must be received 

before award.

§ 330.26.40 Late Offers

(a) Any offer received at the office designated in the solicitation after the exact 

date and time specified for receipt of offers is late and will not be 

considered, unless:

(1) it is received before award is made,

(2) the contracting officer determines that accepting the late offer is in 

the judiciary’s best interest,

(3) the contracting officer determines that accepting the late offer 

would not unduly delay the procurement, and

(4) one of the following situations applies:

(A) there is acceptable evidence to establish that it was received 

at the judiciary office designated for receipt of offers before 

the time set for receipt; or

(B) it is the only offer received.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 71

(b) However, a late modification of an otherwise successful offer that makes 

its terms more favorable to the judiciary, will be considered at any time it is 

received and may be accepted.

(c) Acceptable evidence to establish the time of receipt at the judiciary office 

includes the time/date stamp of that office on the offer wrapper, other 

documentary evidence of receipt maintained by the office, or oral 

testimony or statements of judiciary personnel.

(d) If an emergency or unanticipated event interrupts normal judiciary 

processes so that offers cannot be received at the office designated for 

receipt of offers by the exact time specified in the solicitation, and urgent 

judiciary requirements preclude amendment of the solicitation, the time 

specified for receipt of offers will be deemed to be extended to the same 

time of day specified in the solicitation on the first work day on which 

normal judiciary processes resume.

§ 330.26.50 Late Proposal Documentation

Each late offer and modification must be retained in the solicitation file with a statement 

as to whether it was considered, with the reasons.

§ 330.26.60 Facsimile Offers

If facsimile offers are authorized, Provision 3-115, Facsimile Offers is included as 

prescribed in § 330.10.30(q) (Provisions and Clauses).

§ 330.30 Failure to Acknowledge Amendments

§ 330.30.10 Awards Made Without Discussions

Offers lacking acknowledgment of an amendment, or clear indication in the offer that the 

amendment had been received, must be disregarded when the amendment affects 

price, quantity, quality, or delivery.

§ 330.30.20 Awards Made After Discussions

If the CO conducts discussions for an award, uncertainties regarding the contractor’s 

receipt of an amendment may be resolved during discussions.

§ 330.33 Mistakes in Offers

COs must examine all offers for mistakes. Communication with an offeror concerning 

potential mistakes is clarification, not discussion. See: § 330.50.40 (Resolving 

Mistakes in Offers). However, if the correction of a mistake requires reference to any 

document (such as worksheets or other data) not included with the offer, the mistake 

may be corrected only through discussions. See: § 330.53 (Award with Discussions).
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 72

§ 330.36 Evaluation of Offers

§ 330.36.10 In General

(a) Offer evaluation is an assessment of both the offer itself and the offeror’s 

technical capability (as demonstrated by the offer) to perform the 

proposed contract successfully. The judiciary must evaluate competitive 

offers and then assess their relative qualities solely on the evaluation 

factors and subfactors specified in the solicitation. Evaluations may be 

conducted using any rating method or combination of methods, including:

• pass/fail; or

• adjectival ratings (e.g., fair, satisfactory, good, excellent).

(b) The relative strengths, deficiencies, and significant weaknesses 

supporting the offer evaluation must be documented in the procurement 

file.

§ 330.36.20 Price or Cost Evaluation

Prices or estimated costs must be evaluated according to Guide, Vol. 14, § 440 (Price 

Analysis) or § 450 (Cost Analysis). Price or cost analysis is necessary to determine the 

reasonableness and validity of a proposed price or cost estimate, and to assist in 

determining an offeror’s understanding of the work and ability to perform the contract.

§ 330.36.30 Evaluation of Other Factors

Each offer must be examined to determine whether it meets the requirements of the 

solicitation. The specific purchase requirements, the evaluation factors, and the source 

selection plan determine the extent of the required analysis. The evaluation must be 

documented to include:

(a) the basis for evaluation;

(b) an analysis of each offer, including an assessment of each offeror’s ability 

to accomplish the solicitation requirements, and why the offer is 

determined to be acceptable or unacceptable;

(c) a narrative statement of the major strengths and weaknesses of the 

various offers;

(d) a summary, matrix, or quantitative ranking of each offer in relation to the 

best rating possible; and

(e) a narrative statement summarizing the evaluation team’s finding.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 73

§ 330.36.40 Only One Offer

If only one offer is received in response to a competitive solicitation, it may be evaluated 

and considered for award. The offer is considered competitive if more than one source 

was solicited and there was a reasonable expectation of more than one offer. A 

determination of price reasonableness must be included in the procurement file based 

on:

(a) market research;

(b) previous purchases of the same or similar product or service;

(c) current price lists, catalogs, or advertisements;

(d) a comparison with similar items in a related industry;

(e) the CO’s personal knowledge of the item being purchased;

(f) comparison to an independent government estimate; or

(g) any other reasonable basis.

§ 330.40 Selection for Award

§ 330.40.10 In General

The award will be made to the offeror whose offer receives the highest evaluation 

and/or lowest price according to the evaluation factors identified in the solicitation. See:

§ 330.36.30 (Evaluation of Other Factors).

§ 330.40.20 Technically Acceptable/Lowest Price Awards

Awards under solicitations that specify technically acceptable/lowest price evaluation 

are made to the responsible offeror submitting the lowest priced offer that meets the 

technical requirements stated in the solicitation. This method is normally used for small 

purchases and standard commercial products or services for which there is adequate 

competition. See also: § 325.35.20 (Technically Acceptable/Lowest Price).

§ 330.40.30 Best Value Awards

(a) For awards under solicitations that specify best value evaluation, the 

source selection authority (usually the CO) is ultimately responsible for 

making the selection decision and is responsible for trade-off judgments 

involving price and other evaluation factors. Selection must be made 

according to the solicitation’s stated evaluation factors and must be 

documented. The documentation will include a determination by the 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 74

source selection authority that the price is fair and reasonable and the 

basis for determination. See also: § 325.35.30 (Best Value).

(b) Under the Contracting Officers’ Certification Program (COCP) (see: 

Guide, Vol. 14, § 140 (Contracting Officers Certification Program)), not all 

certification levels are authorized for “best value” procurements. The “best 

value” method of evaluation is more complex; therefore, only appropriately 

trained and certified COs may solicit for best value offers. For COs 

holding COCP certification levels not delegated this authority, the 

solicitation package using “best value” must be submitted to PMD for 

written approval before soliciting offers/proposals.

§ 330.40.30(c) Best Value

Procedure Details

(1) Evaluation 

Factors

Evaluation factors that are of value or concern to the requiring organization 

vary depending on the product or service, and may include, but are not 

limited to:

• quality;

• experience;

• delivery schedule;

• maintainability;

• ease of operation;

• size or weight, etc.;

• past performance; or

• qualifications of key personnel.

(2) Evaluation 

Strategy

The use of evaluation factors other than price requires the development of 

an evaluation strategy. The evaluation strategy must be developed by the 

CO with information from the requesting office. The evaluation strategy 

must identify:

• the need to use evaluation factors other than price;

• the evaluation factors to be used and their relative weight or order of 

importance;

• the overall importance of the other evaluation factors relative to price 

(i.e., greater than, equal to, less than); and

• the individual or individuals who will perform the evaluation (see: 

Guide, Vol. 14, § 210.70.40 (Evaluation Panels)).

(3) Award Award is made after evaluating each offer using the evaluation factors and 

the relative weight of the factors. The decision is then made by determining 

the proposal that offers the best value offered for the evaluated price. The 

CO will prepare a justification, which documents the trade-off of technical 

value to price.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 75

§ 330.40.40 Selection Documentation

(a) The source selection authority’s selection memorandum must specify any 

rankings/ratings and recommendations prepared by technical and/or price 

evaluation teams or pre-award survey teams.

(b) However, the findings of these teams are only guides for the source 

selection authority’s final selection decision and must be presented in 

sufficient depth to permit the intelligent weighing of alternatives and the 

making of trade-off judgments.

(c) The offers may not be compared to each other; they are compared to the 

evaluation criteria.

(d) The source selection memorandum must show the relative differences 

among the offerors, demonstrating their strengths and weaknesses as 

compared to the solicitation’s evaluation factors.

(e) The supporting documentation must include the basis and reason for the 

source selection decision.

§ 330.40.50 Responsibility Determination

The CO must make a favorable responsibility determination of the selected offeror 

before award. See: § 320.20 (Determining Responsibility or Non-Responsibility). The 

responsibility determination must be included as part of the source selection 

memorandum.

§ 330.43 Discussions with Offerors

§ 330.43.10 In General

A contractor may be selected, and award made, with or without discussing offers with 

the offerors. The need for discussion of offers depends on the circumstances of the 

purchase, such as the complexity of the requirement, the extent of competition, and the 

quality of the offers received.

§ 330.43.20 Discussions of Price

Whenever price is the most important (or the only) evaluation factor, award will normally 

be made without discussions. If adequate competition exists, offerors should be 

encouraged to submit their most favorable offers at the outset. However, even when 

award will be based on price alone, the CO may determine that discussions are 

necessary to determine that the price is fair and reasonable.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 76

§ 330.46 Rejection of All Offers

All offers received may be rejected if the CO determines that:

(a) prices proposed are unreasonable and discussions have not resulted in a 

reasonable price or prices;

(b) all offers are technically unacceptable; or

(c) offers were not independently arrived at in open competition, were 

collusive, or were submitted in bad faith.

§ 330.50 Award Without Discussions

§ 330.50.10 In General

(a) Verification, withdrawal, or resolving mistakes (see: § 330.50.40 

(Resolving Mistakes in Offers)) under this procedure does not constitute 

discussion.

(b) Award may be made without discussion whenever adequate competition 

or price analysis make it clear that acceptance of the most favorable initial 

offer will result in a reasonable price.

(c) Provision 3-100, Instructions to Offerors, prescribed at § 330.10.30(o) 

(Provisions and Clauses) for inclusion in all solicitations above the 

judiciary’s small purchase threshold, states that:

(1) the CO intends to award without discussions; and

(2) the judiciary reserves the right to conduct discussions, if the CO 

later determines them to be necessary.

(d) The provision with Alternate I is used if the judiciary intends to make 

award after discussions with offerors within the competitive range; or the 

provision is used with Alternate II if the judiciary would be willing to accept 

alternate offers.

§ 330.50.20 Resolving Uncertainties in Offers

Whenever there is uncertainty as to the pricing, technical, or other aspects of the most 

favorable initial offer, award may be made without discussions only when the 

uncertainty can be resolved by seeking a clarification. If the limited communications 

involved in seeking a clarification cannot resolve the uncertainty, discussions must be 

held with all offerors in the competitive range. For further guidance on the difference 

between discussions and clarifications, see: § 330.43 (Discussions with Offerors) and 

Glossary.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 77

§ 330.50.30 Equal Low Price

If equal low prices are proposed, and the solicitation contains no other evaluation 

factors, selection of the offer for award may be based on factors such as performance 

record, experience, or other factors in the judiciary’s interest. Award may be 

determined by drawing lots only if there is no other basis for selection.

§ 330.50.40 Resolving Mistakes in Offers

The following procedure will be used to resolve mistakes without discussions, if the CO 

informs the offeror of the suspected mistake, identifies the mistake, and requests 

verification. The CO must point out the circumstances giving rise to the suspicion of 

mistake (such as duplications, omissions or errors in computations, obvious 

misplacement of a decimal point, obviously incorrect discount). This must be done 

without disclosing other offers or the judiciary estimate. If a mistake is confirmed, the 

offeror may withdraw its offer or seek its correction.

(a) If the offeror verifies its offer, then the offer is evaluated as submitted.

(b) If the offeror requests correction of a mistake, the CO, with the approval of 

the PE and concurrence of OGC, may permit the correction without 

discussion if both the existence of the mistake, and the offer actually 

intended, are clearly ascertainable from the solicitation and the offer. If 

there is insufficient evidence to permit the correction without discussions 

and discussions will not be held, the offeror will be given a final 

opportunity to withdraw its offer. If not withdrawn, the offer is evaluated as 

submitted.

§ 330.53 Award with Discussions

(a) When appropriate, written or oral discussions may be held with offerors to 

resolve uncertainties in their offers, to give them an opportunity to correct 

deficiencies, and to revise their offers.

(b) Before conducting discussions, the CO must establish written 

prenegotiation objectives commensurate with the dollar value and 

complexity of the negotiation by writing a Memorandum of Negotiation 

Objectives.

(c) Discussions must not favor one offeror over another; reveal another 

offeror’s technical solution or any information that would compromise an 

offeror’s intellectual property; nor reveal another offeror’s price.

(d) If discussions are held with one offeror, all offerors in the competitive 

range must be afforded the opportunity to have discussions and submit 

revised offers, if appropriate.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 78

§ 330.56 Conduct of Discussions

(a) The CO is responsible for conducting discussions with the offeror’s 

authorized negotiators identified in the offer in Provision 3-130, Authorized 

Negotiators. The CO will use the assistance or participation of program 

officials, technical personnel, or others as appropriate.

(b) The content, form, and extent of the discussions is a matter of the CO’s 

judgment. Discussions are conducted to:

(1) advise each offeror of deficiencies in its offer in terms of the 

judiciary’s requirements, but not deficiencies relative to other offers, 

nor deficiencies resulting from the offeror’s lack of diligence or 

competence;

(2) attempt to resolve uncertainties concerning aspects of the offer;

(3) resolve any suspected mistakes by calling them to the offeror’s 

attention as specifically as possible without disclosing information 

concerning other offers or the evaluation process; and

(4) provide the offeror a reasonable opportunity to submit any cost or 

price, technical, or other revisions to its offer that may result from 

the discussions.

§ 330.60 Competitive Range

§ 330.60.10 In General

The competitive range must be determined on the basis of cost or price and other 

factors stated in the solicitation and include all offers that have a significant chance of 

being selected for award. When there is doubt as to whether an offer is in the 

competitive range, the offer must be included.

§ 330.60.20 Establishment of Competitive Range

The competitive range may not be established on the basis of an arbitrary standard. It 

must reflect the fair evaluation of the competing offers. The competitive range may 

include offers with the potential for improving their competitive position, after appropriate 

discussions and revision. Even if an offer has a potential for significant improvement, it 

may be excluded from the competitive range if, relative to other offers, it has no 

significant chance of selection for award.

§ 330.60.30 Elimination of Offers

(a) If the CO determines that the number of offerors that would otherwise be 

included in the competitive range exceeds the number at which an 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 79

efficient competition can be conducted, the CO may limit the number of 

offerors in the competitive range. This will include the greatest number 

that will permit efficient competition among the offerors with the highest 

evaluation criteria ratings.

(b) However, elimination of such offers must be done very cautiously. When 

negotiations are not anticipated to be complex or time-consuming, a 

relatively large number of offerors might not result in inefficiency.

(c) In contrast, a complex procurement may anticipate substantial 

negotiations and offer revisions. Then limiting the competitive range could 

be desirable.

§ 330.60.40 Notification

The CO must send prompt written notification to those offerors not in the competitive 

range and to those eliminated from the competitive range as a result of discussions.

§ 330.63 Best and Final Offers

§ 330.63.10 In General

After a completion of discussions, the CO will issue a request for best and final offers to 

all offerors in the competitive range. The request must include:

(a) notice that discussions are concluded;

(b) notice of the opportunity to submit best and final offers in the form of 

revisions to any aspect of the offer; and

(c) a common cutoff date and time that allows a reasonable opportunity for 

submission of written best and final offers.

§ 330.63.20 Reopening Discussions

After receipt of best and final offers, the CO must not reopen discussions unless it is 

clearly necessary and in the judiciary’s interest to do so, such as when information 

available does not provide adequate basis for contractor selection and award. If 

discussions are reopened, the CO must issue an additional request for best and final 

offers to all offerors still within the competitive range.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 80

§ 330.66 Selection and Negotiation

§ 330.66.10 Selection of an Awardee

Following evaluation of offers, the source selection authority (usually the CO) must 

select for award the offer or best and final offer demonstrating the best value to the 

judiciary on the basis of the evaluation factors stated in the solicitation.

§ 330.66.20 Negotiations after Selection

Any uncertainties or deficiencies remaining in the offer selected must be clarified or 

corrected through clarifications or discussions with the offeror, as appropriate, leading to 

a definitive contract. Negotiations must include the disclosure and resolution of all 

deficiencies and all unsubstantiated areas of cost and price. No changes may be made 

in the judiciary’s requirements or in the offer that, if made before contractor selection, 

would have affected the basis for selection.

§ 330.70 Award

§ 330.70.10 In General

(a) Award may be made by written acceptance of a signed offer or by 

execution of the award document by both parties. Where there have been 

no changes to the original proposal submitted by the selected offeror as a 

result of negotiations, etc., award may be effected by inserting a contract 

number in Block 2 and completing Blocks 19 through 28 of the Form 

SF 33 (Solicitation, Offer, and Award) that was part of the solicitation and 

was signed and submitted by the offeror with their proposal.

(b) Where discussions and negotiations have resulted in changes to the 

original proposal and/or to the terms of the solicitation, award should be 

effected on a Form SF 26 (Award/Contract). The entire contract package, 

including the Form SF 26, should be sent to the selected offeror for 

signature before the CO signature. This ensures that both parties have 

the opportunity to review the document to ensure that it reflects all 

changes agreed on during the course of negotiations.

(c) Regardless of which form is used, performance may not commence until 

both parties have executed the contract document.

§ 330.70.20 Approval Requirements

(a) Single Award

If a proposed award requires higher-level written approval or delegation of 

contracting authority, award may not be made until the written approval or 

delegation has been obtained.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 81

(b) Multiple Awards

When more than one award results from any single solicitation, separate 

award documents must be executed, each suitably numbered, according 

to Provision 3-135, Single or Multiple Awards. When an award is made to 

an offeror for fewer than all items that may be awarded to that offeror and 

additional items are being withheld for later award, the first award to that 

offeror must state that the judiciary may make later awards on additional 

items within the offer acceptance period.

§ 330.70.30 Award Notification

Promptly after award, the CO must send all offerors a written notice including:

(a) the name and address of each offeror receiving an award;

(b) total award amount(s);

(c) a statement that award was made without discussions, if applicable; and

(d) a brief statement of the basis for the selection decision that addresses the 

selection in general terms and does not reveal another offeror’s trade 

secrets or other proprietary information.

§ 330.73 Award Debriefing

§ 330.73.10 In General

An unsuccessful offeror must request a debriefing in writing. Unsuccessful offerors, 

who request a debriefing, must be debriefed and told the basis for selection decision 

and award. Debriefings must be scheduled promptly.

§ 330.73.20 Conducting the Debriefing

The CO or a designated representative must conduct the debriefing with the assistance 

and participation of program officials, technical personnel, or others including OGC, as 

appropriate.

§ 330.73.30 Debriefing Information

Debriefing information must include the judiciary’s evaluation of the significant weak or 

deficient factors in the offer as compared to the evaluation criteria, and not point-bypoint comparison with other offers.

§ 330.73.40 Restricted Debriefing Information

Information must not be disclosed to any offeror as to:
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 82

(a) trade secrets;

(b) privileged or confidential manufacturing processes and techniques;

(c) business and financial information that is privileged or confidential, 

including cost breakdowns, profit, indirect cost rates, and similar 

information; or

(d) unique or innovative concepts contained in an offer.

§ 330.73.50 Records

The CO must include a summary of each debriefing in the procurement file.

§ 332 Purchase of Services

§ 332.10 Service Contract Labor Standards

The SCLS, 41 U.S.C. §§ 6701–6707, formerly known as the Service Contract Act, 

applies to contracts over $2,500, including purchase orders, the principal purpose of 

which is to furnish services through the use of service employees for work to be 

performed in the United States, Puerto Rico, Guam, or the U.S. Virgin Islands. See: 

Guide, Vol. 14, § 130.20.55 (Labor Statutes Governing Contractor Wages and Benefits).

(a) The SCLS does not apply to the following, as defined in 29 CFR part 541:

(1) employees employed in bona fide executive, administrative, or 

professional capacities, or

(2) computer systems analysts, computer programmers, software 

engineers, and other similarly skilled computer employees.

(b) Some examples of service employees include:

• stenographic reporting services;

• equipment repair services;

• clerical services;

• janitorial services;

• copy center services;

• mail related services; and

• data collection, processing and analysis services.

(c) SCLS applies regardless of:

(1) the beneficiary of the services (judiciary or public);
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 83

(2) the source of funding (judiciary or the public); or

(3) the place of performance (judiciary or contractor’s premises).

§ 332.20 Statutory Requirement

(a) SCLS requires that service contracts over $2,500 contain mandatory 

provisions regarding minimum wages and fringe benefits. It requires 

contractors to pay their service employees at least the wages and fringe 

benefits prevailing in that locality and in no event may service employees 

be paid less than the minimum wages specified in the Fair Labor 

Standards Act (see: 29 U.S.C. 206(a)(1)).

(b) In addition to including a provision in the solicitation and resulting contract 

notifying contractors that the SCLS applies, a wage determination issued 

by the Department of Labor (DOL) must be included as an attachment and 

made part of the solicitation and resulting contract if the services are 

subject to the SCLS.

§ 332.30 Exemptions

(a) DOL’s implementing regulations allow contractors for certain types of 

services to be exempt. The two categories of exemptions include:

(1) maintenance, calibration, or repair of information technology 

equipment, office/business machines, and certain scientific or 

medical equipment for which micro-electronic circuitry or similarly 

sophisticated technology is essential; and

(2) the following additional services:

(A) automobile or other types of vehicle maintenance;

(B) financial services involving issuance of cards (e.g., purchase 

cards);

(C) hotel/motel services for conferences, including lodging 

and/or meals, that are part of the contract or subcontract for 

the conference (but excluding ongoing contracts for lodging 

on an as-needed or continuing basis);

(D) maintenance, calibration, repair and/or installation for all 

types of equipment where the service is obtained from the 

manufacturer or supplier of the equipment on a sole source 

basis;
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 84

(E) transportation of persons by common carrier on regularly 

scheduled routes or via standard commercial services (e.g., 

commuter trains, buses, commercial airlines, shuttle vans) 

(Note: excludes charter services); and

(F) relocation services, including the services of real estate 

brokers or appraisers to assist judiciary employees in buying 

and selling homes (excludes actual moving and/or storage of 

household goods and related services).

(b) Exemption is not automatic. The offeror must affirmatively certify in either 

Provision 3-195, Exemption from Application of the Service Contract Labor 

Standards to Contracts for Maintenance, Calibration, or Repair of Certain 

Equipment – Certification; or Provision 3-220, Exemption from Application 

of the Service Contract Labor Standards to Contracts for Certain Services 

– Certification, that it meets the conditions required by the DOL 

regulations to qualify for exemption. If the offeror does not certify 

affirmatively, the CO must include the appropriate wage determination in 

any resulting contract, as well as Clause 3-160, Service Contract Labor 

Standards.

§ 332.40 Obtaining Wage Determinations

(a) Most prevailing wage determinations may be obtained using the DOL’s 

Wage Determinations OnLine link at SAM.gov. The website contains a 

User Guide and FAQs for its use, and an email link to request assistance. 

The website asks questions specific to the proposed procurement (e.g., 

performance location, type of service) to determine the appropriate 

prevailing wage determination. If a wage determination is available, the 

website will provide a printer friendly version. The CO must print out the 

wage determination, include it in the solicitation and in the resulting award, 

and maintain it as file documentation.

(b) If the Wage Determination database does not contain an applicable 

prevailing wage determination for a contract action, the contracting officer 

must use the e98 process, an electronic version of SF-98 (Notice of 

Intention to Make a Service Contract and Response to Notice), to request 

a wage determination. To complete the e98, the CO may need to review 

the DOL publication, Service Contract Act Directory of Occupations, found 

on SAM.gov Wage Determination Learning Center to determine the 

appropriate classes of service employees needed to perform the work.

(c) In using the e98 process, COs must provide as complete and accurate 

information on the e98 as possible, ensuring that the email address 

submitted on an e98 request is accurate.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 85

(d) The CO must anticipate the amount of time required to gather the 

information necessary to obtain a wage determination, including sufficient 

time, if necessary, to contact DOL to request wage determinations that are 

not available using SAM.gov.

(e) Although the SAM.gov website provides assistance to select the correct 

wage determination, the CO is responsible for the wage determination 

selected. If the CO uses the e98 process, DOL will respond to the CO 

based on the information provided on the e98, and the CO may rely on 

that response as the correct wage determination for the contract.

(f) To obtain the applicable wage determination for each contract action, the 

CO must determine the following information concerning the service 

employees expected to be employed in performing the contract:

(1) the classes of service employees to be employed in performance of 

the contract using the Service Contract Act Directory of 

Occupations, found on SAM.gov;

(2) the locality where the services will be performed; and

(3) whether there is an existing collective bargaining agreement (CBA)

for an incumbent contractor.

(g) If the CO requests a wage determination using the e98 process and has 

not received a response within 10 days, the CO should contact the DOL’s 

Wage and Hour Division to determine when the wage determination can 

be expected. The e98 website provides a telephone number for this 

purpose.

(h) If the CO requests a wage determination using the e98 process and the 

start of work is delayed, for whatever reason, more than 60 days from the 

date indicated on the submitted e98, the CO must submit a new e98. Any 

revision to the wage determination received as a result of the new e98 

supersedes the earlier response and must be incorporated in the contract.

§ 332.40.10 Impact of a Revised Wage Determination

(a) DOL’s Wage and Hour Division periodically issues revisions to prevailing 

wage determinations. The requirement to include a revised wage 

determination in a solicitation or contract is determined by the date of 

receipt of the revised wage determination by the CO.

(1) If the original wage determination was obtained using the wage 

determination at SAM.gov, the time of receipt is deemed as the first 

day of publication of the revised determination on the website.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 86

(2) If the original wage determination was obtained using the e98

process, the time of receipt is deemed to be the date the CO 

receives actual notice of a new or revised prevailing wage 

determination from DOL.

(b) Once a wage determination has been selected from the WDOL website for 

a solicitation or contract, the CO is responsible for monitoring the website 

for revisions.

(c) Whether or not the CO must incorporate a revised wage determination 

depends on when the revision is published on SAM.gov and when 

contract performance is required to start.

(1) If the revised prevailing wage determination is published after 

award of a contract that requires performance to start within 30 

days after award, the revision need not be incorporated in the 

contract.

(2) If the contract performance period does not start within 30 days 

after the award, any wage determination revision received by the 

CO 10 or more days before the contract’s specified start of 

performance must be incorporated in the contract.

§ 332.40.20 Incorporation of Wage Determinations

Upon award of a contract or a modification that incorporates a new wage determination, 

the CO must provide the contractor with a copy of DOL Publication WH-1313 

(Employee Rights on Government Contracts) along with a copy of the executed contract 

or modification. The WH-1313 SCA Poster may be printed in color or black and white. 

The contractor is required to post the WH-1313, with the wage determination attached 

to it, in a prominent and accessible location at the worksite where it may be seen by all 

employees performing the contract.

(a) In no case may a service contract be awarded without a wage 

determination if the SCLS applies. A copy of the wage determination 

should be provided to offerors when requesting quotes for services that 

are subject to SCLS to ensure that the pricing provided reflects 

compliance with the wage determination.

(b) If DOL determines, whether before or after award of a contract, that a CO 

made an erroneous determination that the SCLS did not apply to a 

particular procurement or failed to include an appropriate wage 

determination in a covered contract, the CO, within 30 days of notification 

by DOL, must modify the contract to include Clause 3-160, Service 

Contract Labor Standards, plus any applicable wage determination issued 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 87

by DOL. In certain cases, DOL may require retroactive application of the 

wage determination.

(c) If the contract is funded by fiscal year appropriations and the term of the 

contract is extended, such as by exercising an option, a new wage 

determination must be obtained and incorporated in the contract by 

modification.

(d) If the contract is not subject to annual appropriations, such as the copy 

center agreements (funded by the public) or contracts funded by the 

Judiciary Information Technology Fund, a new wage determination must 

be obtained every two years during the contract and incorporated in the 

contract by modification.

(e) The CO must equitably adjust the contract price to reflect any changed 

cost of performance resulting from incorporating a wage determination or 

a revised wage determination.

§ 332.50 Required Clauses and Provisions

Clause or Provision Include in ...

(a) Clause 3-160, Service Contract 

Labor Standards

solicitations and contracts over $2,500 principally for 

services covered by SCLS and performed in the 

United States, Puerto Rico, Guam, or the U.S. Virgin 

Islands, or any such award modified to exceed $2,500, 

including indefinite-delivery contracts and ordering 

agreements when orders are expected to aggregate 

more than $2,500; except if the award includes:

(1) Clause 3-215, Exemption from Application of the 

Service Contract Labor Standards to Contracts for 

Maintenance, Calibration, or Repair of Certain 

Equipment-Requirements; or

(2) Clause 3-225, Exemption from Application of the 

Service Contract Labor Standards to Contracts for 

Certain Services – Requirements

(b) Clause 3-175, Fair Labor 

Standards Act and Service 

Contract Labor Standards –

Price Adjustment (Multi-Year 

And Option Contracts)

solicitations and contracts for fixed price services that:

(1) include Clause 3-160, Service Contract Labor 

Standards;

(2) exceed the judiciary’s small purchase threshold; 

and

(3) include options to extend the period of 

performance or solicit a multi-year proposal.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 88

§ 332.50 Required Clauses and Provisions

Clause or Provision Include in ...

(c) Clause 3-180, Fair Labor 

Standards Act and Service 

Contract Labor Standards –

Price Adjustment

solicitations and contracts for fixed price services that:

(1) include Clause 3-160, Service Contract Labor 

Standards;

(2) exceed the judiciary’s small purchase threshold; 

and

(3) do not include options to extend the period of 

performance or solicit multi-year proposals.

(d) Provision 3-195, Exemption 

from Application of the Service 

Contract Labor Standards to 

Contracts for Maintenance, 

Calibration, or Repair of Certain 

Equipment – Certification

solicitations for the types of services listed in 

§ 332.30(a) (Exemptions) when the resultant award 

may be exempt from Service Contract Labor 

Standards coverage.

(e) Clause 3-200, Service Contract 

Labor Standards – Place of 

Performance Unknown

solicitations and contracts when the place of 

performance is unknown at the time the solicitation is 

issued. When the procurement is subject to the SCLS 

statute and publicizing is required (see: § 315.10 

(Policy)), the CO will include a statement in the notice 

to the effect that:

(1) the place of performance is unknown at the time 

the solicitation was issued;

(2) the CO has requested wage determinations for 

the possible places or areas of performance; and

(3) the CO will request wage determinations for 

additional possible places of performance if asked 

to do so in writing.

(f) Clause 3-215, Exemption from 

Application of the Service 

Contract Labor Standards to 

Contracts for Maintenance, 

Calibration, or Repair of Certain 

Equipment – Requirements

solicitations for the types of services listed in 

§ 332.30(a) (Exemptions) when the resultant award 

may be exempt from SCLS coverage;

resulting contracts when the successful offeror has 

affirmatively certified that it qualifies for exemption.

(g) Provision 3-220, Exemption 

from Application of the Service 

Contract Labor Standards to 

Contracts for Certain Services –

Certification

solicitations for the types of services listed in 

§ 332.30(b) (Exemptions) when the resultant award 

may be exempt from SCLS statute coverage.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 89

§ 332.50 Required Clauses and Provisions

Clause or Provision Include in ...

(h) Clause 3-225, Exemption from 

Application of the Service 

Contract Labor Standards to 

Contracts for Certain Services –

Requirements

solicitations for the types of services listed in 

§ 332.30(b) (Exemptions) when the resultant award 

may be exempt from SCLS statute coverage;

in resulting contracts when the successful offeror has 

affirmatively certified that it qualifies for exemption.

§ 335 Justifications and Approvals for Limiting Competition

§ 335.10 In General

COs must take all reasonable steps to avoid contracting without providing for 

competition. However, there are valid circumstances when it is both necessary and in 

the judiciary’s best interest to award a sole source contract or to limit competition.

§ 335.20 Procedures

(a) A written justification is required when a requirement exceeds the 

applicable threshold (see: § 325.15 (Open Market Competition), 

§ 310.50.53(g)(2)(A) (Ordering from BPAs under GSA Schedules), and 

§ 310.60.20(c) (Ordering Scenarios)), and the CO limits competition by not 

competing or providing fair opportunity among contractors (see: Guide, 

Vol. 14, § 410.30.65 (Fair Opportunity Process for Delivery Orders or Task 

Orders – OFAC)).

(b) When limiting competition, the CO must:

(1) prepare a written justification specifically demonstrating the basis 

for limiting competition; and

(2) ensure that any required approval of the justification is obtained 

before issuance of the solicitation.

§ 335.30 Limitations

Limiting competition cannot be justified on the basis of insufficient time to conduct a 

competitive procurement because of:

(a) a lack of advance planning by the requesting office; or

(b) concerns related to the amount of, or expiration of, funds available to the 

requesting office.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 90

§ 335.40 Justification Not Required

§ 335.20 (Procedures) does not apply to the following:

(a) Purchases of products and services from qualified workshops, as 

determined by the Committee for Purchase from People who are Blind or 

Severely Disabled. See: § 310.20 (Workshop for People Who are Blind 

or Severely Disabled).

(b) Orders placed against single-award national judiciary contracts or BPAs. 

See: § 310.40 (Judiciary-Wide Contracts and Blanket Purchase 

Agreements (BPAs)).

(c) Orders placed against other agency single-award contracts. See: 

§ 310.60 (Other Federal Agency Contracts). See also: Guide, Vol. 14, 

§ 410.30.65 (Fair Opportunity Process for Delivery Orders or Task Orders 

– OFAC).

(d) Purchases not expected to exceed the applicable competition threshold. 

See: § 325.15.10 (Competition Threshold).

(e) Purchases under GSA schedule contract not expected to exceed the GSA 

competition threshold. See: § 310.50.43(a) (Orders At or Below the 

GSA's Competition Threshold). For procedures when limiting 

consideration of sources when placing orders or establishing BPAs under 

GSA schedule contracts. See: § 310.50.63 (Limiting Sources on Orders 

Placed Under Federal Supply Schedules).

(f) Orders placed under single-award indefinite-delivery contracts. See: 

Guide, Vol. 14, § 410.30.63 (Competition Process for Delivery Orders and 

Task Orders – Open Market).

(g) Purchases made by COCP Level 2 COs according to the policies and 

procedures applicable to the special program delegation being used. See: 

Guide Vol. 14, § 140.25 (Level 2 Certification: Special Program 

Delegation).

(h) Purchases made with a “brand name or equal” description. (Note: When 

such descriptions are used, the product’s salient characteristics must also 

be listed with the “brand name or equal” description in the solicitation.)

(i) Modifications within the scope of a contract or the exercise of priced

options (those priced and evaluated at the time of contract award).
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 91

(j) Purchases from utilities. (Note: “Utilities” does not include local and longdistance voice and data services, but includes services such as water, 

sewer, gas, and electric.)

§ 335.50 Use of Brand Name Descriptions

(a) A procurement that uses a brand name description or other purchase 

description to specify a particular brand name, product, or feature of a 

product that is peculiar to one manufacturer, limits competition regardless 

of the number of sources solicited. Use of such a description must be 

justified and approved using the AO Form that is applicable to the award. 

For appropriate forms, see:

• § 335.60.30 (Justification for Limiting Open Market Competition), for 

open market purchases;

• § 310.50.66 (Limiting Sources Based on Items Particular to One 

Manufacturer (Brand Name)), for orders against GSA Schedule 

contracts/BPAs; and

• Guide, Vol. 14, § 410.30.73 (Documenting Exceptions to Fair 

Opportunity Requirement), for orders under another agency’s multiaward IDIQ contract.

(b) The justification should indicate that the use of such descriptions in the 

procurement is essential to the judiciary’s requirements, thereby 

precluding consideration of a product manufactured by another company.

(c) “Brand name or equal” descriptions, and other purchase descriptions that 

permit prospective contractors to offer products other than those 

specifically referenced by brand name, do not limit competition and 

therefore do not require justification and approval to support their use. 

See: § 335.40(h) (Justification Not Required).

§ 335.60 Limiting Competition – Open Market Purchases

§ 335.60.10 Adequate Competition

(a) Adequate competition must be sought for any open market purchase 

expected to exceed the judiciary competition threshold (see: § 325.15.10 

(Competition Threshold)), except when:

(1) public exigency requires the immediate delivery of the products or 

performance of the services due to unusual and compelling 

urgency;
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 92

(2) the CO certifies that only one responsible source of supply is 

available, and no other products or services will satisfy judiciary 

requirements; or

(3) the services are required to be performed by the contractor in 

person and are:

(A) of a technical and professional nature (see: Guide, Vol. 14, 

§ 520 (Experts and Consultants)); or

(B) under the judiciary supervision and paid for on a time basis 

(see: Guide, Vol. 14, § 510 (Personal Services Contracts)).

(b) A one-time delegation of authority from PMD is required for a COCP Level 

3 CO to use exception in subparagraph (a)(1) above, regardless of dollar 

value of the purchase. When using the exceptions in subparagraph (a)(2) 

or (a)(3), a one-time delegation of procurement authority by PMD is only 

required when the purchase exceeds the dollar value specified in Guide, 

Vol. 14, § 140.30.30(g) (Level 3 Delegation).

§ 335.60.20 Establishing Adequate Competition 

(a) The CO must not award any open market contract above the judiciary 

competition threshold without providing for adequate competition, unless 

the CO justifies the limitation of competition in writing.

(b) For open market purchases above the competition threshold but not 

exceeding the judiciary small purchase threshold, adequate competition is 

provided by complying with § 325.20.10 (Competition Guidelines).

(c) For open market purchases above the judiciary small purchase threshold, 

adequate competition is provided by complying with § 330.10.20 

(Soliciting Under Standard Competitive Contracting Procedures).

§ 335.60.30 Justification for Limiting Open Market Competition 

(a) Judiciary COs must justify an award that exceeds the judiciary competition 

threshold where the competition requirements in § 325.20 (Competitive 

Small Purchase Procedures) are not met. Justification must be completed 

using Form AO 370A (Justification for Limiting Open Market Competition 

(JLOC)) (formerly the JOFOC).

(b) The JLOC is not used when limiting competition under GSA FSS and 

OFACs, such as NASA SEWP. See: § 310.50.63 (Limiting Sources on 

Orders Placed Under Federal Supply Schedules) and Guide, Vol. 14, 

§ 410.30.73 (Documenting Exceptions to Fair Opportunity Requirement).
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 93

(c) Each JLOC must be signed by a CO with delegated procurement authority 

at or exceeding COCP Level 3, and must include the CO’s certification 

that, to the best of his or her knowledge and belief, the justification is 

accurate and complete. The CO may require that technical or 

requirements personnel provide signed certification on the Form AO 370A 

that the technical information provided is, to the best of the personnel’s 

knowledge and belief, accurate and complete.

(d) Each JLOC signed by a CO holding COCP Level 3 authority must be 

approved in writing by the judiciary official holding the judiciary 

organization’s delegated procurement authority, as identified in Guide, 

Vol. 14, § 120.20.10(b) (Delegation to Chief Judges and Certain Judiciary 

Officials), or the PLO, if delegated. Justifications for Limiting Competition 

for purchases exceeding $25,000 may only be signed by COCP Level 3 

COs and delegated official after obtaining a one-time delegation of 

procurement authority from PMD.

(e) Each JLOC signed by a CO holding delegated procurement authority at 

COCP Level 4 or above must be approved according to internal PMD 

approval procedures.

(f) Each justification must contain sufficient facts and rationale to justify the 

use of the specific authority cited.

§ 335.70 Process for Orders Against Established Multiple Award Contracts 

and BPAs – Open Market

(a) Orders against single award BPAs established under § 325.50.30 (Open 

Market Single Award BPA) or single award IDIQ contracts need not be 

competed or advertised.

(b) Orders against judiciary-wide contracts and BPAs are subject to the 

ordering procedures associated with that contract or BPA.

(c) Orders against multiple award BPAs or IDIQ contracts with an estimated 

price not exceeding the judiciary competition threshold (see: § 325.15 

(Open Market Competition)) need not be competed or advertised. 

Authorized users may place the order directly under any of the established 

BPAs or IDIQ contracts when the need for the product or service arises. 

However, COs are encouraged to rotate such orders among holders of 

multiple award BPAs or IDIQ contracts.

(d) Orders against multiple award BPAs or IDIQ contracts with an estimated 

price exceeding the judiciary competition threshold (see: § 325.15 (Open 

Market Competition)) need not be advertised, but must be competed 

unless supported by a written justification that one of the circumstances 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 94

described in § 335.60.10 (Adequate Competition) applies to the call or 

order. The justification must be prepared and approved according to 

§ 335.60.30 (Justification for Limiting Open Market Competition).

§ 340 Unsolicited Offers

§ 340.10 Definition

Unsolicited offers allow unique and innovative ideas or approaches that have been 

developed outside the government to be made available to the judiciary for use in 

accomplishing its mission. Unsolicited offers are initiated by a potential contractor with 

the intent that the judiciary will enter into a contract with the offeror for efforts supporting 

the judiciary mission. They often represent a substantial investment of time and effort 

by the offeror.

§ 340.10.10 Exclusions

Unsolicited offers are not advertising material, commercial item offers, contributions 

(see: Glossary), or routine correspondence on technical issues.

§ 340.10.20 Requirement for Valid Offer

A valid unsolicited offer must:

(a) be innovative and unique;

(b) be independently originated and developed by the offeror;

(c) be prepared without judiciary supervision, endorsement, direction, or 

direct judiciary involvement;

(d) include sufficient detail to permit a determination that judiciary support 

could be worthwhile, and the proposed work could benefit the judiciary’s 

mission responsibilities; and

(e) not be an advance offer for a known judiciary requirement that can be 

acquired by competitive methods.

Note: Unsolicited offers in response to a publicized general statement of judiciary 

needs are considered independently originated.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 95

§ 340.20 Judiciary Points of Contact

§ 340.20.10 In General

Only the CO has the authority to bind the judiciary regarding unsolicited offers. The CO 

will be the primary point of contact to receive any unsolicited offers and to manage the 

evaluation process.

§ 340.20.20 Preliminary Contact

Preliminary contact with a judiciary CO before preparing a detailed unsolicited offer or 

submitting proprietary information to the judiciary may save considerable time and effort 

for both parties. The CO will provide information about the preliminary contact to the 

applicable judiciary program or other appropriate judiciary personnel. The CO will make 

available to potential offerors of unsolicited offers at least the following information:

(a) procedures for submission and evaluation of unsolicited offers; and

(b) instructions for identifying and marking proprietary information so that it is 

protected.

§ 340.30 Content of Unsolicited Offers

Unsolicited offers must contain the following information to permit consideration in an 

objective and timely manner:

§ 340.30 Content of Unsolicited Offers

Information Type Contents

(a) Basic (1) offeror’s name, address and type of organization (e.g., profit, 

nonprofit, educational);

(2) names and telephone numbers of technical and business personnel 

to be contacted for evaluation or negotiation purposes;

(3) identification of proprietary data to be used only for evaluation 

purposes;

(4) names of other federal, state or local agencies or parties receiving 

the offer or funding the proposed effort;

(5) date of submission; and

(6) signature of a person authorized to represent and contractually 

obligate the offeror.

(b) Technical (1) concise title and abstract of the proposed effort (approximately 200 

words);
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 96

§ 340.30 Content of Unsolicited Offers

Information Type Contents

(2) a reasonably complete discussion stating:

• the objectives of the effort or activity,

• the method or approach,

• extent of effort to be employed,

• the nature and extent of the anticipated results, and

• the manner in which the work will help to support 

accomplishment of the judiciary’s mission;

(3) names and biographical information on the offeror’s key personnel 

who would be involved, including alternates; and

(4) type of support needed from the judiciary (e.g., facilities, equipment, 

materials, or personnel resources).

(c) Supporting (1) proposed price or total estimated cost for the effort in sufficient 

detail for meaningful evaluation;

(2) period of time for which the offer is valid (a six-month minimum is 

suggested);

(3) type of contract preferred;

(4) proposed duration of effort;

(5) brief description of the offeror’s organization, previous experience, 

relevant past performance, and facilities to be used;

(6) other statements, if applicable, about organizational conflicts of 

interest, security clearance requirements, and environmental 

impacts; and

(7) the names and telephone numbers of judiciary personnel already 

contacted regarding the offer.

§ 340.40 Receipt and Initial Review

§ 340.40.10 Initial Review

Before initiating a comprehensive evaluation, the judiciary contact point will determine if 

the offer:

(a) is a valid unsolicited offer, meeting the requirements of § 340.10.20 

(Requirement for Valid Offer);

(b) is suitable for submission in response to an existing judiciary requirement;
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 97

(c) is related to the judiciary’s mission;

(d) contains sufficient technical and cost information for evaluation;

(e) has been approved in writing by a responsible official or other 

representative, who is authorized to bind the offeror contractually; and

(f) complies with the marking requirements of § 340.80 (Limited Use of Data).

§ 340.40.20 Acknowledgment of Receipt

If the offer meets these requirements, the contact point must promptly acknowledge its 

receipt, include a copy to the appropriate judiciary CO, and process the offer.

§ 340.40.30 Rejection

If an unsolicited offer is rejected, the judiciary contact point will promptly return the 

unsolicited offer and inform the offeror, in writing, of the rejection and the reasons for 

rejection, with a copy to the appropriate judiciary CO.

§ 340.50 Evaluation

§ 340.50.10 In General

Comprehensive evaluations must be coordinated by the judiciary contact point, who will 

attach or imprint on each unsolicited offer, circulated for evaluation, the legend required 

by § 340.80.40 (Cover Sheet).

§ 340.50.20 Evaluation Factors

When performing a comprehensive evaluation of an unsolicited offer, evaluators must 

consider the following factors, in addition to any other factors appropriate for the 

particular offer:

(a) unique, innovative, and meritorious methods, approaches, or concepts 

demonstrated by the offer;

(b) potential contribution of the effort to the judiciary’s specific mission;

(c) the offeror’s capabilities, related experience, facilities, techniques, or 

unique combinations of these that are integral factors for achieving the 

offer objectives;

(d) the qualifications, capabilities, and experience of the proposed principal 

investigator, team leader, or key personnel critical to achieving the offer 

objectives; and
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 98

(e) the realism of the proposed cost/price.

§ 340.50.30 Notification

The evaluators must notify the judiciary point of contact of their recommendations when 

the evaluation is completed.

§ 340.60 Criteria for Acceptance and Negotiation of an Unsolicited Offer

§ 340.60.10 In General

A favorable comprehensive evaluation of an unsolicited offer does not justify awarding a 

contract without providing for full and open competition. The judiciary point of contact 

must reject and return an unsolicited offer to the offeror, citing reasons, when its 

substance:

(a) is available to the judiciary without restriction from another source;

(b) closely resembles a pending competitive procurement requirement;

(c) does not relate to the judiciary’s mission;

(d) does not demonstrate an innovative and unique method, approach, or 

concept; or

(e) is otherwise not deemed a meritorious offer.

§ 340.60.20 Conditions for Acceptance

The CO may commence negotiations on a sole source basis only when:

(a) the judiciary requesting office sponsoring the procurement furnishes the 

necessary funds;

(b) an unsolicited offer has received a favorable comprehensive evaluation;

(c) a valid sole source justification has been documented and approved in 

writing (see: § 335.30 (Limitations)); and

(1) the source has submitted an unsolicited offer that demonstrates a 

unique capability to provide the particular products or services 

proposed;

(2) the unsolicited proposal offers a product, concept, or services not 

otherwise available to the judiciary; and

(3) the unsolicited proposal does not resemble the substance of a 

pending competitive procurement.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 99

§ 340.70 Prohibitions

§ 340.70.10 In General

Judiciary personnel will not use any data, concept, idea, or other part of an unsolicited 

offer as the basis, or part of the basis, for a solicitation or in negotiations with any other 

firm unless the offeror is notified of and agrees to the intended use. However, this 

prohibition does not preclude using any data, concept, idea or other part in the offer that 

also is available from another source without restriction.

§ 340.70.20 Non-Disclosure of Restricted Information

Judiciary personnel will not disclose restrictively marked information included in an 

unsolicited offer. The disclosure of such information concerning trade secrets, 

processes, operations, style of work, apparatus, and other matters, except as 

authorized by law, may result in criminal penalties under 18 U.S.C. § 1905.

§ 340.80 Limited Use of Data

§ 340.80.10 Restrictive Markings

An unsolicited offer may include data that the offeror does not want disclosed to the 

public for any purpose or used by the judiciary except for evaluation purposes. An 

offeror wanting the data restricted must mark the title page with the following legend:

Use and Disclosure of Data

This offer includes data that must not be disclosed outside the judiciary and must not be 

duplicated, used, or disclosed, in whole or in part, for any purpose other than to evaluate this 

offer. However, if a contract is awarded to this offeror, as a result of, or in connection with, 

the submission of the data, the judiciary has the right to duplicate, use, or disclose the data to 

the extent provided in the resulting contract. This restriction does not limit the judiciary’s right 

to use information contained in the offer if obtainable from another source without restriction. 

The data subject to this restriction are contained in sheets [insert numbers or other 

identification of sheets/page numbers].

§ 340.80.20 Page Markings

The offeror must also mark each sheet of data it wants restricted with the following 

legend:

Use or disclosure of data contained on this sheet is subject to the 

restriction on the title page of this offer.
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 100

§ 340.80.30 Use of Different Legend

The judiciary point of contact must reject and return to the offeror any unsolicited offer 

marked with a legend different from that provided in § 340.80.10 (Restrictive Markings). 

The return letter must state that the offer cannot be considered because it is 

impracticable for the judiciary to comply with the legend. It must further state that the 

judiciary will consider the offer if it is resubmitted with the proper legend.

§ 340.80.40 Cover Sheet

The judiciary point of contact must place a cover sheet on the offer or clearly mark it as 

follows, unless the offeror clearly states in writing that no restrictions are imposed on the 

disclosure or use of the data contained in the offer:

Unsolicited Offer – Use of Data Limited

All personnel must exercise extreme care to ensure that (1) the information in this offer is not 

disclosed to an individual who has not been authorized access to such data according to the 

Guide, Vol. 14, § 150 (Procurement Integrity and Ethics), and (2) this offer is not duplicated, 

used, or disclosed in whole or in part for any purpose other than evaluation of the offer, 

without the written permission of the offeror. If a contract is awarded on the basis of this offer, 

the terms of the contract must control disclosure and use. This notice does not limit the 

judiciary’s right to use information contained in the offer if it is obtainable from another source 

without restriction. This notice must not by itself be construed to impose any liability upon the 

judiciary’s evaluation personnel for disclosure or use of data contained in this offer.

§ 340.80.50 Cover Sheet and Offeror’s Restrictive Markings

Use of the cover sheet is solely a matter of handling unsolicited offers. It does not 

relieve an offeror of its responsibility to identify trade secrets, commercial or financial 

information, and privileged or confidential information to the judiciary. See: § 340.80.10 

(Restrictive Markings).

§ 340.80.60 Use of Outside Evaluators

If the offer is received with the restrictive legend (see: § 340.80.10 (Restrictive 

Markings)), the cover sheet (see: § 340.80.40 (Cover Sheet)) must also be used and 

written permission must be obtained from the offeror before release of the offer for 

evaluation by non-judiciary personnel. For further guidance on the use of outside 

consultants as evaluators, see: Guide, Vol. 14, § 210.70.40(d) (Evaluation Panels).
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 101

§ 345 Price Negotiations

§ 345.10 Establishing Negotiation Objectives

(a) Negotiations are generally held to reach agreement on price, profit or fee, 

and contract terms and conditions, whether for an initial award or for a 

contract modification.

(1) Before conducting negotiations, the CO must establish written 

negotiation objectives commensurate with the dollar value and 

complexity of the contract action. The process of determining 

negotiation objectives helps the CO judge the overall 

reasonableness of the offer and to negotiate a fair and reasonable 

price or cost.

(2) In setting the negotiation objectives, the CO must analyze the offer, 

and consider any advisory reports received, and other relevant data 

(such as independent cost estimates and price histories).

(b) The scope and depth of the analysis needed to support the negotiation 

objectives is directly related to the dollar value, importance, and 

complexity of the pricing action. The relevant issues to be negotiated 

must always be identified and objectives established for each issue. 

When the negotiation requires cost analysis, the negotiation objectives 

must also include both the cost objectives and a profit or fee objective.

§ 345.20 Negotiation

§ 345.20.10 In General

(a) Price negotiation does not require that agreement be reached on every 

element of cost. Reasonable compromises may be necessary.

(b) The recommendations of auditors and other specialists are advisory only. 

It may not be possible to negotiate a price that is in accord with all 

advisory opinions or with the CO’s negotiation objectives.

(c) The CO is responsible for exercising the necessary judgment and is solely 

responsible for the final negotiated agreement. However, the CO must 

include explanatory comment in the memorandum of negotiation when 

advisory recommendations on pricing are not adopted.

§ 345.20.20 Cost and Contract Type Factors

(a) The negotiation of contract type and price are related. They must be 

considered together with the issues of risks and uncertainty to the 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 102

contractor and the judiciary. Therefore, the CO must not become 

preoccupied with any single element.

(b) The contract type must be balanced with the risks, cost, and profit or fee 

negotiated. This will achieve a total result of a price fair and reasonable to 

both the judiciary and the contractor.

(c) Because profit or fee, is only one of several interrelated variables, the CO 

must not agree on profit or fee without concurrent agreement on cost and 

type of contract. See also: Guide, Vol. 14, § 410 (Contract Types).

§ 345.30 Detailed Pricing Information

(a) The CO should use every means available to ascertain whether a fair and 

reasonable price can be determined before requesting detailed pricing 

information (i.e., a detailed breakdown of all cost elements included in the 

proposed price, such as labor, material costs, overhead, G&A, and profit).

(b) Requiring the submission of detailed pricing information leads to increased 

proposal preparation costs, can cause extended procurement lead time, 

and consumes additional judiciary and contractor resources. The CO 

should request only sufficient pricing information necessary to make a 

determination that the negotiated price is fair and reasonable.

§ 345.40 Price Analysis

§ 345.40.10 In General

Before award, the CO must select and use whatever price analysis techniques will 

reveal whether the judiciary is receiving a fair and reasonable price. If none of the price 

analysis techniques are sufficient to determine the proposed price to be fair and 

reasonable, the CO must conduct a cost analysis.

§ 345.40.20 Techniques

One or more of the following techniques may be used to perform price analysis:

(a) comparison of proposed prices received in response to a competitive 

solicitation;

(b) comparison of prior proposed prices and/or contract prices under judiciary 

or other federal agency contracts with current proposed prices for the 

same or similar end items in comparable quantities;

(c) application of estimating metrics (such as dollars per pound or per 

horsepower, or other units) to highlight significant inconsistencies that 

warrant additional pricing inquiry;
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 103

(d) comparison with competitive published catalogs or price lists, published 

market prices or commodities, similar indexes, and discount or rebate 

arrangements;

(e) comparison of proposed prices with independent judiciary cost estimates; 

or

(f) ascertaining that the price is set by law or regulation.

§ 345.50 Cost Analysis

Cost analysis is normally appropriate only when there is not adequate price competition 

and no method of price analysis will reveal whether the judiciary is receiving a fair and 

reasonable price. If it is anticipated that cost analysis will be necessary, the solicitation 

should require that the offeror provide a complete detailed breakout of all cost elements 

as a part of the price proposal. See: Guide, Vol. 14, § 450 (Cost Analysis).

§ 345.60 Negotiation Memorandum

(a) Following any negotiation, the CO must promptly prepare a memorandum 

summarizing the principal elements of the negotiation. The memo would 

include the negotiation objectives referenced in § 345.10 (Establishing 

Negotiation Objectives), and must be approved in writing by the PLO.

(b) The memorandum must be included in the procurement file and must 

contain at least the following information:

(1) the purpose of the negotiation;

(2) a description of the purchase, or modification, with identifying 

number;

(3) a summary of the technical and price negotiation results;

(4) the name, position, and organization of each person representing 

the offeror or the judiciary in the negotiation;

(5) if detailed pricing information was obtained, an analysis of the 

various elements of cost;

(6) a summary of the offer, any advisory report recommendations, and 

the reasons for any significant variances between them and the 

negotiated amount;

(7) the most significant facts or considerations controlling the 

establishment of the negotiation objectives and the negotiated 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 104

price, including an explanation of any significant differences 

between the two positions;

(8) the basis for determining the profit or fee negotiation objective and 

the profit or fee negotiated, if applicable; and

(9) documentation of fair and reasonable pricing.

§ 350 Judiciary Protest Procedures

§ 350.10 Policy

(a) Any judiciary procurement organization receiving a protest must 

immediately forward it to PMD without taking any action.

(b) It is the policy of the judiciary to encourage parties to seek resolution of 

disputes with the AO.

(c) A mere disagreement with the decision of the CO does not constitute a 

protest. A “protest” for purposes of these procedures is a written objection 

by an interested party to any of the following:

(1) a solicitation or other request for offers for the procurement of 

products or services;

(2) an award or proposed award of a contract; and

(3) a cancellation of the solicitation or other request.

§ 350.20 Procedural Requirements

§ 350.20.10 Interested Parties

For purposes of filing a judiciary level protest, an interested party 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.

§ 350.20.15 Election of Forum

The protestor has a choice of protest forums. However, if the same party files a protest 

with an external forum on the same solicitation as a pending judiciary protest, the 

judiciary protest will be dismissed.

§ 350.20.20 Filing a Judiciary Protest

A judiciary level protest must be filed in writing with the CO designated in the solicitation 

for resolution of the protest, who will promptly provide copies to the PE. It must identify 
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 105

the solicitation or contract protested and provide a complete statement of the grounds 

for protest. A statement of intent to file a protest is not a protest.

§ 350.20.25 Protest Decision Authority

The PE is the deciding official for any judiciary level protest. In reaching a decision on 

the protest, the PE will confer with OGC. The PE’s decision will constitute the 

judiciary’s final decision.

§ 350.20.30 Time Frame for Filing a Protest

(a) A judiciary protest must be filed not later than 10 calendar days after the 

basis of the protest is known or should have been known.

(b) Any protest based on alleged improprieties in a solicitation that are 

apparent before the closing date for receipt of offers, must be filed before 

the closing date for receipt of offers.

(c) The judiciary has the discretion to consider the merits of any untimely filed 

protest.

(d) The AO office hours are 8:30 a.m. to 5:00 p.m., Eastern time. Time for 

filing a document expires at 5:00 p.m., Eastern time, on the last day on 

which such filing may be made.

§ 350.20.35 Form of Protest

A judiciary protest must include the following information:

(a) the protester’s name, address, and telephone number, including fax 

number and email address;

(b) the solicitation or contract number;

(c) identity of the contracting activity and the CO’s name;

(d) a detailed statement of all legal and factual grounds for the protest, to 

include a description of the alleged prejudice to the protester;

(e) copies of relevant documents;

(f) a request for a ruling by the judiciary;

(g) a request for relief and the protester’s suggested form of relief;

(h) all information establishing that the protester is an interested party for the 

purpose of filing a protest;
Guide to Judiciary Policy, Vol. 14, Ch. 3 Page 106

(i) all information establishing the protest’s timeliness; and

(j) a signature by an authorized representative of the protester.

§ 350.20.40 Processing of Judiciary Protest

The CO will immediately forward the protest to PMD, including a copy of the contract, 

any relevant documentation, and the CO’s explanation and recommendation. The PE 

will issue a written decision on the protest within 35 calendar days after the filing of the 

protest. The written decision will be binding on the cognizant contracting office.

§ 350.20.45 Protest Filed Before and After Award

(a) Protest Before Award

(1) When a timely protest has been filed with the CO before award, 

award may not be made until the matter has been resolved, unless 

the CO, after consulting with the PE, and with the concurrence of 

OGC, determines in writing that urgent and compelling 

circumstances significantly affecting the judiciary’s interests will not 

permit delay of the award until the protest has been resolved.

(2) When authorized to make an award before a protest is resolved, 

the CO must inform the protester, in writing, of the judiciary’s 

determination to proceed with the award.

(b) Protest After Award

(1) When a protest is filed within 10 days after award, the CO must 

immediately suspend performance pending resolution of the protest 

by the judiciary.

(2) Performance need not be suspended in those instances where the 

CO determines, in writing, that urgent and compelling 

circumstances exist or that it is otherwise in the judiciary’s best 

interests to allow the contractor to proceed. Before making such a 

determination, the CO must consult with the PE, who will 

coordinate with OGC.

§ 350.20.50 Resolution

After conferring with OGC, the PE will prepare a decision that sufficiently explains its 

reasoning. It must also advise the protester that the decision constitutes the final 

determination of the judiciary on the protested matter. A copy of the protest decision 

must be furnished to the protester and to the CO.
 

 

 

 

Guide to Judiciary Policy 

Vol 14: Procurement 

Ch 3: Purchasing Methods 

Appx 3A: Sample Offering Letter to Randolph-Sheppard Agency 

[Date] 

(Point of Contact Name)
 

State Agency Rehabilitation Services
 

(Street address)
 

(City, State and Zip Code)
 

Dear M : 


We need ___ vending machine(s) at our location, which is:
 

United States xxxxxx Court
 

xxxxxxx District of xxxxxxx
 

(Suite, Floor, Street Address, etc.)
 

(City, State and Zip Code)
 

This request is made according to the provisions of the Randolph Sheppard Act of 1974. We
 

have enclosed our request for proposal with our specific requirements. Please review the
 

documents and provide us a determination if a blind licensee can meet our needs. Please
 

indicate your interest by completing the information below and returning a copy to the attention
 

of (name) via fax at xxx-xxx-xxxx. If you have any questions, or need additional information,
 

please contact (name) at xxx-xxx-xxxx.
 

Sincerely, 

Procurement Liaison Officer 

Enclosure 

(Name)
 

State Agency Rehabilitation Services
 

[ ] We have identified a licensed Randolph Sheppard vendor interested in providing copy center
 

services at your location. We will contact you shortly.
 

[ ] We are unable to provide a licensed Randolph Sheppard vendor to provide copy center
 

services at your location.
 

Signature:___________________________ 

Last revised June 29, 2010 
Guide to Judiciary Policy, Vol. 14, Appx. 3A Page 2 

Printed Name:________________________ 

Title:_______________________________ 

Phone:______________________________ 

FAX:_______________________________ 
Last revised (Transmittal 14-013) March 18, 2019 

Guide to Judiciary Policy 

Vol. 14: Procurement 

Ch. 3: Purchasing Methods 

Appx. 3B: Determination of Best Procurement Approach 

Title of Effort: ________ [Title of the statement of work or requirement] 

Contract Vehicle: _______________ [Contract number and the name of the servicing 

agency that administers the contract] 

Requesting Agency: _______________ [Name of the requirements office]

Requirements POC: __________ [Name, position title, email, and telephone number]

Description of Effort: ___________ [Brief description of the type of supplies/services 

to be acquired]

Total Estimated Cost: _______________ [Estimated dollar amount and type of funds] 

Using _________________ [Agency name]’s contract for the acquisition of 

_____________ [title of acquisition] represents the best procurement approach for, and 

is in the judiciary’s best interest based on the following: 

1. The suitability of the contract vehicle. [Explain how either the tasks to be 

accomplished or the supplies to be provided are within the scope of the contract to 

be used. Indicate whether or not the requiring activities schedule, performance, and 

delivery requirements will be met.] 

2. The value of using the contract vehicle. [Explain why the use of the contract vehicle 

is cost effective, taking into account administrative cost savings from using an 

already existing contract; lower prices and/or discounts; greater number of vendors; 

and reasonableness of the acquisition vehicle access fee.]
Guide to Judiciary Policy, Vol. 14, Appx. 3B Page 2 

3. The expertise of the requesting agency to place orders and administer them against 

the selected contract vehicle. [Document the expertise of the contracting 

office/officer placing orders against the contract and administering them throughout 

the acquisition lifecycle.] 

4. Terms, conditions, and/or requirements unique to judiciary will be incorporated into 

the order to comply with agency policy and procedures. 

Determination of Best Procurement Approach Direct Acquisition 

Based upon the foregoing findings, I determine that the use of the contract of ________ 

[Agency name] for the acquisition of _____________________________ [requirement] 

represents the best procurement approach for the judiciary and is in its best interest. 

I reviewed the determination of Best Procurement Approach and find it adequate for 

approval. 

Signature: ________________________________ Date: ____________________ 

Typed name: __________________________________________________________ 

Contracting Specialist/Officer______________________________________________ 

I reviewed the determination of Best Procurement Approach and find it legally sufficient. 

Signature _______________________________ Date: _____________________ 

Typed name: __________________________ Branch Chief: ____________________ 
Last revised (Transmittal 14-013) March 18, 2019 

Guide to Judiciary Policy 

Vol. 14: Procurement 

Ch. 3: Purchasing Methods 

Appx. 3C: Determination and Findings for Time and Materials and 

Labor Hour GSA FSS Orders 

Title of Effort: ________ [Title of the statement of work or requirement] 

GSA FSS Contract Number: _______________ [GSA FSS contract number] 

Agency Order Number: _______________ [Judiciary order number]

Contracting Officer Information: __________ [Name, position title]

Description of Effort: ___________ [Brief description of the type of supplies/services 

to be acquired]

Total Estimated Cost: _______________ [Estimated dollar amount and type of funds] 

1. A fixed price order is not suitable for this order because it is not possible, at the time 

of award of this order, to accurately estimate the extent or duration of the work or 

anticipated costs with any reasonable degree of confidence. 

2. The following market research methods were used to make this determination. 

3. The current requirement has been structured to maximize the use of fixed-price 

orders by [limiting the value or length of the time-and-materials/labor-hour order; and/or 

establishing fixed prices for portions of the requirement].
Guide to Judiciary Policy, Vol. 14, Appx. 3C Page 2 

4. On future acquisitions for the same or similar requirements, the judiciary CO plans to 

maximize the use of fixed-price orders by [limiting the value or length of the time-andmaterials or labor-hour order; and/or establishing fixed prices for portions of the 

requirement). 

5. Prior to an increase in the ceiling price of a time-and-materials or labor-hour order, 

the judiciary CO must: 

 Conduct an analysis of pricing and other relevant factors to determine if the 

action is in the best interest of the Government and document the order file; 

 Follow the procedures in Guide to Judiciary Policy, Volume 14, § 310.50.63 

(Limiting Sources on Orders Placed under Federal Supply Schedules) for a 

change that modifies the general scope of the order; and 

 Comply with the requirements in Guide, Volume 14, § 310.50.30 (Inclusion of 

Items Not on Schedule) when modifying an order to add open market items. 

Determination and Findings for 

Time and Materials and Labor Hour GSA FSS Orders 

Based upon the findings above, I determine that the use of __________ [time-andmaterials; or labor-hour] contract type for this order is in the judiciary’s best interest. 

I prepared the determination and find it adequate for approval. 

Signature: ________________________________ Date: ____________________ 

Typed name: __________________________________________________________ 

Contracting Specialist/Officer______________________________________________ 

I reviewed the determination and find it adequate for approval. 

Signature _______________________________ Date: _____________________ 

Typed name: __________________________ Branch Chief: ____________________ 
Last revised (Transmittal 14-021) December 1, 2023

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 4: Types of Contracts and Analysis of Offers

§ 410 Contract Types

§ 410.10 In General

§ 410.15 Selecting Contract Type

§ 410.20 Limitations

§ 410.25 Firm-Fixed-Price Contracts

§ 410.30 Indefinite-Delivery Contracts

§ 410.40 Labor-Hour Contracts

§ 410.45 Time-and-Materials Contracts

§ 410.50 Letter Contracts

§ 410.55 Fixed-Price Award Fee Contracts

§ 410.60 Fixed-Price Incentive Contracts

§ 410.65 Fixed-Price Contracts with Economic Price Adjustment

§ 410.70 Cost-Reimbursement Contracts

§ 410.75 Multi-Year Contracts

§ 420 Technical Analysis

§ 430 Price Evaluation

§ 430.20 Offer Analysis

§ 430.30 Adequate Price Competition

§ 440 Price Analysis

§ 440.20 Price Analysis Techniques

§ 450 Cost Analysis

§ 450.20 Cost Analysis Techniques

§ 450.30 Detailed Cost Information

§ 450.40 Profit

§ 460 Cost Principles

§ 460.20 Contract Costs

§ 470 Cost Allowability

§ 470.10 Determining Cost Allowability

§ 470.20 Determining Reasonableness

§ 470.30 Determining Allocability

§ 470.40 Selected Costs

§ 470.50 Accounting for Unallowable Costs
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 2

§ 410 Contract Types

§ 410.10 In General

(a) The terms "contract type" and "type of contract" refer to the contract 

compensation arrangement (i.e., the method of determining the amount 

that the judiciary must pay to the contractor under the contract). There is 

no single contract type that is right for every contracting situation.

(b) The choice of contract type should be based on the allocation of risks and 

responsibility between the judiciary and the contractor. Under a firm-fixedprice contract, the contractor assumes full cost and performance 

responsibility. The contractor undertakes less cost and performance risk 

from uncertainties under cost-reimbursement, labor-hour and time-andmaterial contracts. Where the contractor does not take on the cost and 

performance risk, it must be assumed by the judiciary (i.e., the contractor 

may be legally entitled to payment exceeding the original contract 

amount).

(c) The profit or fee calculations will also reflect the cost and performance 

cost responsibilities resulting from the contract type selected. Generally, a 

contractor may realize greater profit as it assumes increased cost risks 

and performance risks. For example, in a firm-fixed-price contract, the 

contractor usually realizes an additional dollar of profit for every dollar 

reduction in the cost of performance. At the opposite end of the risk 

spectrum, in a cost-plus-fixed-fee contract, the contractor does not realize 

any increase in profit if the actual cost of performance is less than 

estimated at the time of contract award.

§ 410.10.20 Required Documentation

The use of firm-fixed-price contracts requires no documentation explaining why that 

contract type was chosen. The use of any other contract type requires that the 

procurement file include a written determination, signed by the contracting officer (CO), 

explaining why a different contract type was chosen. The determination of contract type 

is one of the first steps in the procurement process, since most solicitations are required 

to notify prospective offerors of the planned contract type. See: § 410.15.20 

(Solicitation Requirements).

§ 410.10.30 Authorized Contract Types and Blanket Purchase Agreement

This chapter describes different contract types that are authorized for use in the 

judiciary. Contract types requiring pre-approval by the Procurement Management 

Division (PMD) of the AO’s Finance and Procurement Office (FPO) are listed in 

§ 410.20.10 (Written Approval). Any contract type not described in this chapter is not 

authorized for use in the judiciary. The most commonly used contract types include:
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 3

(a) firm-fixed-price (see: § 410.25 (Firm-Fixed-Price Contracts));

(b) indefinite-delivery (see: § 410.30 (Indefinite-Delivery Contracts));

(c) labor-hour (see: § 410.40 (Labor-Hour Contracts));

(d) time-and-materials (see: § 410.45 (Time-And-Materials Contracts)); and

(e) blanket purchase agreement (see: Guide, Vol 14, § 325.50 (Blanket 

Purchase Agreements) and § 310.50.53 (Blanket Purchase Agreements 

Under GSA Schedules)).

§ 410.10.35 Prohibited Contract Type

A cost-plus-a-percentage-of-cost contract may never be used. A cost-plus-apercentage-of-cost contract is a contract that contains some element that obligates the 

government to pay the contractor an amount (in the form of either profit or cost) 

undetermined at the time the contract was made and to be incurred in the future, based 

on a percentage of future costs.

§ 410.15 Selecting Contract Type

§ 410.15.10 Responsibility

The CO is responsible for selecting the contract type appropriate to the circumstances 

of the procurement.

§ 410.15.20 Solicitation Requirements

(a) Provision 4-1, Type of Contract, with the appropriate contract type inserted 

as indicated, must be included in all solicitations except:

(1) firm-fixed-price procurements that do not exceed the judiciary’s 

small purchase threshold (see: Guide, Vol. 14, § 140 (Contracting 

Officers Certification Program) and § 325.10 (Applicability)), and

(2) solicitations for information or planning purposes.

(b) For indefinite-delivery/indefinite-quantity and blanket purchase agreement 

(BPA) solicitations, indicate within this provision the contract types that will 

be allowed for the associated orders.

§ 410.15.30 Firm-Fixed-Price Contract Preference

A firm-fixed-price contract is generally preferred because it makes the contractor fully 

responsible for cost control and performance and minimizes the need for judiciary 

monitoring of cost performance. However, when there is no reasonable basis for firm-
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 4

fixed pricing, a solicitation requiring a firm-fixed-price contract may reduce competition. 

It may also lead to higher prices because offerors will include greater allowances for 

contingencies in their fixed price to protect themselves from real or perceived cost risks. 

Whenever the probable cost of performance cannot be reasonably estimated, a firmfixed-price contract should not be used.

Note: For example, where it is difficult to completely identify requirements before award 

of a contract, such as in developing a large information technology system like the Case 

Management/Electronic Case Files (CM/ECF) system, the labor to perform the work 

cannot be predicted with a sufficient degree of certainty for contractors to be willing to 

accept the risk of a firm-fixed-price contract. In these circumstances, other contract 

types should be considered.

§ 410.15.50 Factors in Selecting Contract Type

Factors to be considered include the following:

(a) reliability of cost estimate;

(b) extent of expected competition;

(c) nature of the required product or service (e.g., commercial or 

developmental);

(d) performance risks and uncertainties;

(e) complexity of the requirement;

(f) adequacy and firmness of specifications;

(g) likelihood of changes;

(h) previous experience (pricing and production);

(i) extent of subcontracting;

(j) adequacy of contractor's cost estimating and accounting system; and

(k) urgency of the requirement.

§ 410.20 Limitations

§ 410.20.10 Written Approval

COs must obtain the Procurement Executive’s (PE) written approval before using any of 

the following contract types:
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 5

(a) indefinite-delivery (see: § 410.30 (Indefinite-Delivery Contracts));

(b) labor-hour (for exceptions to the requirement for PE written approval, see: 

§ 410.40.30 (Limitations));

(c) time-and-materials (see: § 410.45 (Time-and-Materials Contracts));

(d) letter contract (see: § 410.50 (Letter Contracts));

(e) fixed-price award fee (see: § 410.55 (Fixed-Price Award Fee Contracts));

(f) fixed-price incentive contract (see: § 410.60 (Fixed-Price Incentive 

Contracts));

(g) fixed-price contract with economic price adjustment (see: § 410.65 

(Fixed-Price Contracts with Economic Price Adjustment)); and

(h) all cost reimbursement contracts (see: § 410.70 (Cost-Reimbursement 

Contracts)).

§ 410.20.20 Requesting Approval

If a situation develops where the CO determines that one of the contract types listed 

above would benefit a particular procurement, a justification for the use of the specific 

contract type, along with a statement of work for the proposed procurement must be 

forwarded to the PE for review and written approval.

§ 410.20.30 Exceptions

The PE approval requirement does not apply to CO Certification Program (COCP) Level 

6 or COCP Level 7 appointees. (See: Guide, Vol. 14, § 140 (Contracting Officers 

Certification Program).)

§ 410.25 Firm-Fixed-Price Contracts

§ 410.25.10 Description

(a) A firm-fixed-price (FFP) contract is one in which the price is not subject to 

change or adjustment based on the contractor’s actual cost of 

performance, provided the specified requirements are not changed during 

performance, and both parties fulfill their obligations under the contract. 

The contractor assumes full responsibility for all costs and resulting profits 

or losses, maximizing the motive to control costs and perform effectively, 

economically, and efficiently. It is the least burdensome type of contract 

for the judiciary to administer when requirements are stable. However, if 

frequent changes are likely, administration will be difficult.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 6

(b) The obligation amount to be recorded is usually the full amount of the 

contract, delivery order, and/or task order price using funds available in 

the period awarded, regardless of whether performance will continue into 

future fiscal years. Incrementally funded FFP contracts must specifically 

authorize incremental funding by incorporation of Clause 4-170, Limitation 

of Judiciary's Obligation. For further guidance on the use of incrementally 

funded FFP contracts, and approval requirements, see: Guide, Vol. 14, 

§ 220.50.20 (Contract Funding Requirements).

§ 410.25.20 Application

An FFP contract is suitable for:

(a) commercial products or services;

(b) modified commercial products or services;

(c) products or services having reasonably definitive specifications or 

statements of work; and

(d) whenever fair and reasonable prices can be reasonably estimated at the 

procurement outset, such as when:

(1) adequate price competition is anticipated;

(2) there are reasonable price comparisons with previous purchases of 

the same or similar products or services made on a competitive 

basis;

(3) in noncompetitive procurement situations, it is anticipated that 

submission of detailed cost information will be adequate to permit 

realistic and reasonable estimates of the costs of performance; or

(4) the cost impact of performance uncertainties can be estimated 

closely enough to reach agreement on a reasonable price 

representing appropriate assumption of the risks involved.

§ 410.30 Indefinite-Delivery Contracts

§ 410.30.10 Description

(a) An indefinite-delivery contract is used for the procurement of supplies 

and/or services when the exact times and/or exact quantities of future 

requirements are not known at the time of award. It permits great 

flexibility in quantities, delivery scheduling and delivery points as well as 

the ability to order supplies and/or services only after specific 

requirements materialize.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 7

(b) The judiciary uses two types of open market indefinite-delivery contracts:

• indefinite-delivery/indefinite-quantity (IDIQ) contracts, and

• requirements contracts.

(c) The judiciary also uses other agency’s indefinite-delivery contracts:

• General Services Administration Federal Supply Schedule (GSA FSS) 

and

• Other Federal Agency Contracts (OFAC) (e.g., NASA SEWP).

§ 410.30.20 Application

An IDIQ contract may be used when it is known or anticipated that there will be a 

recurring need for products or services over a period of time, but specific quantities, 

times, and/or places of delivery are not known at the time of contract award.

§ 410.30.25 Limitation

Indefinite-delivery contracts may be used only when approved in writing by the PE. For 

exceptions, see: § 410.20.30 (Exceptions).

§ 410.30.30 Indefinite-Delivery/Indefinite-Quantity Contracts

(a) An IDIQ contract provides for an indefinite quantity of specific products or 

services, within contract specified minimum and maximum limits, to be 

delivered during the contract period to designated locations when ordered. 

The judiciary must order the stated minimum, whether stated as a quantity 

or a dollar amount. However, the total estimated quantity or dollar amount 

is not guaranteed. This type is for use when precise quantities for 

products or services during the contract period, above known minimum 

requirements, cannot be determined before contract award.

(b) Funding for the guaranteed minimum quantity or amount must be 

obligated at contract award and must satisfy a bona fide need at the time 

of the obligation. As additional quantities are needed — up to the stated 

contract maximum — funds are obligated on individual delivery orders or 

task orders. Fixed-price orders must be obligated to the full amount of the 

order at the time it is issued, unless incremental funding is approved as 

appropriate and necessary under Guide, Vol. 14, § 220.50.20(b) (Contract 

Funding Requirements). Labor-hour or time-and-materials orders may be 

incrementally funded. For further guidance on incremental funding, see: 

Guide, Vol. 14, § 220.50.20(b) (Contract Funding Requirements).
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 8

(c) Maximum contract limits may be stated on an individual order basis or for 

the contract as a whole, or both. Minimums and maximums may be stated 

in terms of quantities or in terms of dollars.

(d) The contract must require the judiciary to order, and the contractor to 

deliver, at least a stated minimum quantity or minimum dollar value of 

products or services during the contract period and require the contractor 

to deliver any additional quantities ordered, not to exceed a stated 

maximum quantity or dollar value. If the judiciary does not order the 

guaranteed minimum as stated in the terms of the contract, the contractor 

is entitled to payment of the guaranteed amount regardless of the 

circumstances.

(e) Therefore, the established minimum quantity or dollar value must not 

exceed known requirements and the maximum quantity or dollar value 

must be realistic. The contract may specify minimums or maximums for 

individual delivery orders and a maximum that may be ordered during a 

specified time. The contractor is not legally obligated to deliver or perform 

beyond the stated maximum amounts.

§ 410.30.40 Requirements Contracts

(a) A requirements contract is one in which the contractor agrees to provide 

all the requirements for a specific product or service and the judiciary 

agrees to purchase the specific product or service exclusively from the 

one contractor. It is for use when recurring requirements are anticipated 

during the contract period, but precise quantities cannot be determined 

before contract award. Note: This contract type must be used cautiously, 

as it obligates the designated judiciary office to place all their orders for 

the specific products or services during the life of the contract with the 

contractor.

(b) The solicitation and contract must state an estimated total quantity or 

dollar value, and, if feasible, the maximum quantity or dollar amount the 

contractor is obligated to deliver. The total quantity or dollar estimate 

must be as realistic as possible, based on records of previous 

requirements and current information. The contract may specify 

minimums or maximums for individual delivery orders and a maximum that 

may be ordered during a specified period. The estimates of a 

requirements contract are not a commitment that the estimated quantity or 

dollar value will be ordered, and there is no minimum order requirement.

(c) When a requirements contract is for repair, modification, or overhaul of 

items of judiciary property, the solicitation must state that failure of the 

judiciary to furnish such items in the amounts described as "estimated" or 
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 9

"maximum" will not entitle the contractor to any price adjustment under 

any “Property” clause of the contract.

§ 410.30.50 Contract Terms

(a) Both IDIQ contracts and requirements contracts must identify the period 

during which orders may be issued and who is authorized to issue orders. 

The contract may restrict all ordering to a single contracting office or allow 

placement of orders by any judiciary CO with appropriate delegated 

authority. The contract must also state estimated quantities and describe 

the scope of the products or services to be provided. In addition to the 

clauses required by § 410.30.64 (Clauses), the contract must include all 

other appropriate terms and conditions (e.g., those listed in Guide, Vol. 14, 

§ 330.10.30 (Provisions and Clauses)). Where an indefinite-delivery

contract authorizes individual orders to be issued on either an FFP basis 

or a labor-hour basis, terms applicable to both contract types must be 

included and the order must identify which contract type applies to the 

individual order.

(b) IDIQ solicitations must state whether a single award or multiple awards 

are anticipated. In the case of multiple awards, the solicitation and 

resulting contracts must state the basis for competing task orders for an 

open market purchase (see: § 410.30.63 Competition Process for 

Delivery Orders and Task Orders – Open Market) and ensuring fair 

opportunity when using other federal agency contracts (OFACs), such as 

NASA SEWP, (see: § 410.30.65 (Fair Opportunity Process for Delivery 

Orders or Task Orders – OFAC)). For guidance on using Provision 3-135, 

Single or Multiple Awards, see: Guide, Vol. 14, § 330.10.30(t) (Provisions 

and Clauses).

§ 410.30.60 Delivery Orders or Task Orders

(a) Orders placed under indefinite-delivery contracts are generally referred to 

as delivery orders (for products) or task orders (for services). In either 

case, orders are generally placed using Form OF 347 (Order for Supplies 

and Services) or an equivalent form.

(b) Each order must be within the scope of the contract and issued within an 

authorized ordering period.

(c) When necessary, orders may be placed orally if they are promptly 

confirmed in writing. Orders must contain the following information:

(1) Date of order, contract number of the indefinite-delivery contract, 

and order number.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 10

(2) Item number and description, unit price, and total price. Task 

orders for services may include a Statement of Work, rather than 

an item number and description. The price may be established 

either by the contract itself or through competition and negotiation 

where there are multiple awards, such as the courtroom technology 

multiple award design IDIQ contracts.

(3) Place and date of delivery or performance.

(4) Packaging, packing, and shipping instructions (if these are not 

already defined in the indefinite-delivery contract).

(5) Accounting and fiscal data.

(6) A ceiling price limiting the judiciary’s obligation if the unit and total 

price in subparagraph (2) above cannot be negotiated before 

issuance of the order. The definitive price must be negotiated as 

soon as practicable.

(7) Any other relevant information.

(d) Blanket Delivery Orders

A blanket delivery order (BDO) may be used when an office 

anticipates there will be repetitive fixed price requirements within a 

single fiscal year, with little variation in the orders. BDOs may only 

be used with judiciary IDIQs. The contract establishes the 

applicable prices and the BDO obligates funds on a not-to-exceed 

basis to cover all orders placed within a specified period. BDOs 

must include the following information: 

(1) Date of order, contract number of the indefinite-delivery contract, 

and order number.

(2) The period of time covered by the BDO. (Note: BDOs may not 

cross fiscal years due to the bona fide need rule.)

(3) A high-level description of the products or services covered by the 

BDO.

(4) The named individuals who are authorized to order the delivery of 

products or services covered by the BDO.

(5) The applicable not-to-exceed ceiling amount and related 

accounting and fiscal data.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 11

§ 410.30.63 Competition Process for Delivery Orders and Task Orders – Open Market

(a) Delivery orders and task orders under a single award IDIQ contract need 

not be competed or advertised.

(b) Delivery orders and task orders under a multiple award IDIQ contract must 

follow the competition procedures in Guide, Vol. 14, § 325.20 (Competitive 

Small Purchase Procedures).

(c) Judiciary COs must justify a delivery order or task order in which the 

competition requirements of Guide, Vol. 14, § 325.20 (Competitive Small 

Purchase Procedures) are not met. See: Guide, Vol. 14, § 335.60.30 

(Justification for Limiting Open Market Competition).

(d) The judiciary-wide BPA or contract’s ordering procedures may differ. The 

CO should follow the directions detailed in the ordering procedures.

§ 410.30.64 Clauses

Clause Include in ...

(a) Clause 4-5, Ordering Requirements and IDIQ solicitations and contracts

(b) Clause 4-10, Order Limitations Requirements and IDIQ solicitations and contracts

(c) Clause 4-20, Requirements Requirements solicitations and contracts

(d) Clause 4-25, Indefinite Quantity IDIQ solicitations and contracts

§ 410.30.65 Fair Opportunity Process for Delivery Orders or Task Orders – OFAC

(a) Orders under a single award IDIQ contract need not be competed or 

advertised.

(b) Orders against a multiple award IDIQ contract (e.g., NASA SEWP), with 

an estimated price not exceeding the fair opportunity threshold of $10,000, 

need not provide fair opportunity or be advertised. However, COs are 

encouraged to rotate such orders among holders of multiple award IDIQ 

contracts.

(c) Orders against multiple award IDIQ contracts, with an estimated price 

exceeding the fair opportunity threshold of $10,000 are subject to fair 

opportunity as identified in the base contract. The CO must provide each 

awardee a fair opportunity to be considered for each order that exceeds 

the threshold.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 12

(d) Orders against multiple award IDIQ contracts with an estimated price 

exceeding the fair opportunity threshold (in paragraph (b) above) need not

be advertised. However, unless supported by a written determination that 

one of the circumstances described in § 410.30.70 (Exceptions to Fair 

Opportunity Requirement) applies to the order, the CO must provide a fair 

opportunity to each IDIQ contract holder to be awarded the order or 

prepare a justification according to § 410.30.73 (Documenting Exceptions 

to the Fair Opportunity Requirement).

(e) Sole sourced or limited competition orders against multiple award IDIQ 

contracts that exceed the fair opportunity threshold (in paragraph (b) 

above) must be justified and approved using a written determination that 

one of the circumstances described in § 410.30.70 (Exceptions to Fair 

Opportunity Requirement) exists. The justification must be prepared 

according to § 410.30.73 (Documenting Exceptions to the Fair Opportunity 

Requirement).

§ 410.30.70 Exceptions to Fair Opportunity Requirement 

Every contractor of a multi-award BPA or IDIQ contract must be given a fair opportunity 

to be considered for each order expected to exceed the fair opportunity threshold (see: 

§ 410.30.65(b)), except when:

(a) the agency need for the supplies or services is so urgent that providing a 

fair opportunity would result in unacceptable delays;

(b) only one awardee is capable of providing the supplies or services required 

at the level of quality required because the supplies or services ordered 

are unique or highly specialized;

(c) the order must be issued on a sole-source basis in the interest of 

economy and efficiency because it is a logical follow-on to an order 

already issued under the BPA or contract, provided that all awardees were 

given a fair opportunity to be considered for the original order; or

(d) it is necessary to place an order to satisfy a minimum guarantee under an 

IDIQ contract.

§ 410.30.73 Documenting Exceptions to Fair Opportunity Requirement 

The CO must justify when the requirements of § 410.30.65(c) (Fair Opportunity Process 

for Delivery Orders or Task Orders – OFAC) are not met, using Form AO 370B 

(Justification for Exception to Fair Opportunity (JEFO)).

(a) Each JEFO must be prepared in writing using Form AO 370B.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 13

(b) Each Form AO 370B must include a certification by the CO that, to the 

best of the CO’s knowledge and belief, the justification is accurate and 

complete. The CO may require a signed certification on Form AO 370B 

by technical or requirements personnel that the technical information 

provided is, to the best of that person’s knowledge and belief, accurate 

and complete.

(c) Each JEFO must be signed by a CO holding COCP Level 3 authority and 

must be approved in writing by the judiciary official holding the court unit’s 

delegated procurement authority as identified in Guide, Vol. 14, 

§ 120.20.10(b) (Delegation to Chief Judges and Certain Judiciary 

Officials), or the PLO (if delegated). JEFOs for purchases exceeding 

$25,000 may only be signed by COCP Level 3 COs after obtaining a onetime delegation of procurement authority from PMD.

(d) Each JEFO signed by a CO holding delegated procurement authority at 

COCP Level 4 or above must be approved according to internal PMD 

approval procedures.

(e) Each JEFO must contain sufficient facts and rationale to justify the use of 

the specific authority cited.

§ 410.40 Labor-Hour Contracts

§ 410.40.10 Description

(a) A labor-hour contract provides for skill categories at fixed hourly rates that 

include actual wages plus overhead, general and administrative expense, 

and profit in the fixed rate. It purchases labor hours only and is used 

when the requirement does not involve any materials to be provided by 

the contractor.

(b) Labor-hour contracts include a description of services ordered and a notto-exceed ceiling amount, which may be fully funded at the time of award 

or may be incrementally funded, provided that:

(1) the funding balance is always at least equal to the cumulative value 

of the services ordered, and

(2) a clause reserving the right to fund incrementally is contained in the 

contract.

For further guidance on incremental funding, see: Guide, Vol. 14, 

§ 220.50.20(b) (Contract Funding Requirements).
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 14

§ 410.40.20 Application

A labor-hour contract is for use only when it is not possible to estimate in advance the 

extent or duration of the work required or to anticipate costs with any reasonable degree 

of confidence. This contract type does not encourage effective contractor management 

or control of costs. Therefore, it may be used only when provision is made for adequate 

monitoring by judiciary personnel during performance, to give reasonable assurance 

that efficient methods and effective cost controls are being used. Examples of 

situations in which this type of contract might be appropriate include:

(a) work to be done in emergency situations;

(b) development of custom computer software;

(c) development of specialized training programs;

(d) contracts for personal services or for expert or consultant services (see: 

Guide, Vol. 14, § 520 (Expert and Consultant Nonpersonal Services 

Contracts)); or

(e) contracts for temporary help support services (see: Guide, Vol. 12, § 560 

(Temporary Help Service Firms)).

§ 410.40.30 Limitations

(a) This type of contract may be used only if no other type of contract will 

meet the judiciary’s needs.

(b) Use of this contract type requires a one-time delegation of authority from 

PMD before issuance of the solicitation, unless:

(1) the contract is for temporary help support services;

(2) the contract is for expert services where the solicitation and 

contract are based upon approved templates (e.g., FPD caserelated expert services, employee dispute resolution services); or

(3) the contracting officer is appointed at COCP Level 6 or COCP 

Level 7.

(c) The contract must include a stated ceiling price, which the contractor 

exceeds at its own risk.

(d) Any contract modification to increase the ceiling amount must be 

supported by file documentation showing the reason for the change and 

how the new ceiling amount was determined.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 15

§ 410.40.35 Solicitation Considerations

(a) To ensure that fair and reasonable prices are being paid under labor-hour 

and time-and-materials contracts, the CO must determine at the time of 

solicitation the extent of price competition, since this will determine the 

proposal instructions with respect to hourly rates. The use of “blended” 

rates for the specified labor categories (i.e., a single rate per category 

without distinction as to whether the labor is performed by the prime 

contractor or a subcontractor) is not authorized when the contract is 

expected to be awarded without adequate price competition. Solicitations 

for labor-hour or time-and-materials contracts when there is not adequate 

price competition must require submission of separate hourly rates for 

each labor category for labor to be performed by:

• the contractor;

• each subcontractor; and

• each division, subsidiary, or affiliate of the contractor under a common 

control.

(Note: The fixed hourly rates for services transferred between divisions, 

subsidiaries, or affiliates of the contractor under a common control may

not include profit for the transferring organizations but may include profit 

for the prime contractor.)

(b) For clauses and provisions applicable to labor-hour contracts, see: 

§ 410.45.50 (Provisions and Clauses – Labor-Hour and Time-andMaterials Contracts).

§ 410.45 Time-and-Materials Contracts

§ 410.45.10 Description

(a) Time-and-materials contracts provide for payment to the contractor for 

labor at fixed hourly rates and for materials at cost. The contract must 

contain a not-to-exceed ceiling amount. It may be fully funded at the time 

of award or incrementally funded provided that:

(1) the funding balance is always at least equal to the cumulative value 

of the services and materials ordered, and

(2) a clause reserving the right to fund incrementally is contained in the 

contract.

For further guidance on incremental funding, see: Guide, Vol. 14, 

§ 220.50.20(b) (Contract Funding Requirements).
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 16

(b) A time-and-materials contract is similar to a labor-hour contract, except 

that it includes reimbursement at cost for materials. It provides for the 

purchase of:

(1) labor hours at fixed hourly rates, which include wages plus 

overhead, general and administrative expense, and profit; and

(2) materials at actual cost.

(Note: No profit is allowed on the material component of a time-andmaterials contract. When appropriate, material-handling costs are 

reimbursed as a part of material costs. Material-handling costs may 

include all indirect costs, including general and administrative expenses, 

allocated to direct materials according to the contractor's usual accounting 

practices. Such material-handling costs may only include costs clearly not 

included in the fully-burdened hourly labor rate.)

§ 410.45.20 Application

A time-and-materials contract is for use only when it is not possible to estimate in 

advance the extent or duration of the work required or to anticipate costs with any 

reasonable degree of confidence. Because it does not encourage effective 

management control of costs by the contractor, this contract type may be used only 

when there will be adequate monitoring by judiciary personnel during performance to 

give reasonable assurance that efficient methods and effective cost controls are being 

used. Examples of situations in which this type of contract might be appropriate are:

(a) repair, maintenance, and overhaul work in which the extent of the labor 

required and parts needed cannot be determined in advance; and

(b) work to be done in emergency situations.

§ 410.45.30 Limitations

(a) This type of contract may be used only if no other type of contract will 

meet the judiciary’s needs. Use of this contract type for situations outside 

of the two examples above requires a one-time delegation of authority 

from PMD before the solicitation is issued. For exceptions, see:

§ 410.20.30 (Exceptions).

(b) The contract must include a stated ceiling price that the contractor 

exceeds at its own risk. Any contract modification to increase the ceiling 

amount must be supported by file documentation showing the reason for 

the change and how the new ceiling amount was determined.

(c) The additional requirements at § 410.40.35 (Solicitation Considerations)

also apply to time-and-materials contracts.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 17

§ 410.45.40 Optional Method of Pricing Material

When the work to be performed requires the contractor to furnish material that is 

regularly sold to the public in the normal course of business by the contractor, the 

contract may authorize charging and reimbursement of material on a basis other than at 

cost if:

(a) the total estimated contract price does not exceed $25,000 or the 

estimated price of material so charged does not exceed 20 percent of the 

estimated contract price;

(b) the material to be so charged is identified in the contract;

(c) no element of profit on the material so charged is included in the fixed 

hourly labor rates; and

(d) the contract requires that the price to be paid for such material is, or is 

based on, an established catalog or list price in effect when the material is 

furnished, minus all applicable discounts, and not exceeding the lower of:

• the contractor's price to its most favored customer for the same item in 

like quantity, or

• the current market price.

§ 410.45.50 Provisions and Clauses –

Labor-Hour and Time-and-Materials Contracts

Provision or Clause Include in ...

(a) Provision 4-27, Timeand-Materials/LaborHour Proposal 

Requirements –

Competitive Pricing

solicitations for labor-hour or time-and-materials contracts 

when the award is expected to be based on competitive 

quotes or proposals. The contracting officer may amend 

this provision to make one of the three approaches in 

paragraph (c) of the provision mandatory, and/or to require 

the identification of all subcontractors, divisions, 

subsidiaries, or affiliates included in a blended labor rate.

(b) Provision 4-28, Timeand-Materials/LaborHour Proposal 

Requirements – NonCompetitive Pricing

solicitations for labor-hour or time-and-materials contracts 

when the award is not expected to be based on competitive 

quotes or proposals. This provision requires the offeror to 

establish separate individual labor-hour rates for prime 

contractor employees, employees of each subcontractor and 

employees from affiliates of the offeror. Use of a “blended” 

rate is not permissible.

(c) Clause 4-30, Payment 

(Time-and-Materials and 

Labor-Hour Contracts)

all time-and-materials solicitations and contracts (base 

clause) and all labor-hour solicitations and contracts (with 

Alternate I).
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 18

§ 410.50 Letter Contracts

§ 410.50.10 Description

A letter contract is a written preliminary contractual instrument that authorizes the 

contractor to begin work immediately, before negotiation of definitive contract terms 

(e.g., contract price and schedule). It generally includes a Statement of Work or 

specifications and an initial set of clauses and specifies the type of contract the parties 

anticipate (fixed-price, labor-hour, etc.). It obligates an initial funding amount pending 

final negotiation of the price and schedule.

§ 410.50.20 Application

A letter contract is for use when:

(a) the requirement demands that the contractor be given a binding 

commitment so that work can commence immediately; and

(b) it is not possible to negotiate all the terms and conditions necessary for a 

definitive contract in sufficient time to meet the requirement.

For example, a letter contract may be appropriate in an emergency, such as a natural 

disaster, when the urgency of the work required does not allow time for the normal 

solicitation process.

§ 410.50.30 In General

Each letter contract must be as complete and definitive as possible under the 

circumstances.

§ 410.50.40 Definitization Schedule

Definitizing a letter contract means negotiating each of the unsettled terms. Usually, at 

least the contract price — and often other terms, such as the schedule — may require 

negotiation. Each letter contract must contain a definitization schedule, negotiated with 

the contractor at the time of award, including all of the following information:

(a) Date for submission of the contractor's priced offer.

(b) Date for the start of negotiation.

(c) Target date for definitization, which must be the earliest practicable date.

(1) The target date for definitization must be within 180 days after the 

date of the letter contract or before completion of 40 percent of the 

work to be performed, whichever occurs first.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 19

(2) The PE may, in extreme cases, authorize an additional period if, 

after exhausting all reasonable efforts, the CO and the contractor 

cannot negotiate a definitive contract agreement because of failure 

to agree on price or fee. In this case, Clause 4-45, Contract 

Definitization requires the contractor to proceed with the work and 

provides that the CO may unilaterally determine a reasonable price 

or fee, subject to appeal as provided in Clause 7-235, Disputes.

§ 410.50.50 Maximum Liability

Each letter contract must state the judiciary’s maximum liability. This is the estimated 

amount needed to cover performance before contract definitization. This amount may 

not exceed 50 percent of the total estimated cost of the contract.

§ 410.50.60 Definitization of the Contract

Upon completion of negotiations of all the terms of the contract, a letter contract is 

definitized by issuance of a contract modification, using the Standard Form (SF) 30 

(Amendment of Solicitation/Modification of Contract).

§ 410.50.70 Limitations

A letter contract:

(a) may be used only if no other type of contract is suitable and if written preapproval is given by the PE;

(b) may not commit the judiciary to a definitive contract for more than the 

funds available at the time the letter contract is executed; and

(c) may not be modified to add new work unless the work added is 

inseparable from the work being performed under the letter contract.

§ 410.50.80 Clauses

A letter contract must include all clauses required for the type of definitive contract 

contemplated (e.g., firm-fixed-price, cost-reimbursement) and any clauses required by 

Guide, Vol. 14, § 330.10.30 (Provisions and Clauses). In addition, all letter contracts 

must also include the following clauses:

§ 410.50.80 Clauses

Clause Notes

(a) Clause 4-35, Execution 

and Commencement of 

Work (Letter Contract)

The CO will appropriately fill in the clause’s blank spaces.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 20

§ 410.50.80 Clauses

Clause Notes

(b) Clause 4-40, Limitation of 

Judiciary Liability (Letter 

Contract)

The maximum liability in the clause is the amount necessary 

to cover the contractor’s performance before definitization. 

The CO will appropriately fill in the clause’s blank spaces.

(c) Clause 4-45, Contract 

Definitization

The CO must enter the contract type and definitization 

schedule established according to § 410.50.40 

(Definitization Schedule).

(d) Clause 4-50, Payment of 

Allowable Costs Before 

Definitization

Include when the letter contract is expected to result in a 

definitive cost-reimbursement contract.

§ 410.55 Fixed-Price Award Fee Contracts

§ 410.55.10 Application

A fixed-price award fee contract is used in fixed-price contracts when the judiciary 

wishes to motivate a contractor and another incentive cannot be used because 

contractor performance cannot be measured objectively. Such contracts must:

(a) establish a fixed price (including normal profit) for the effort upon 

satisfactory contract performance; and

(Note: The award fee earned (if any) will be paid in addition to the fixed 

price.)

(b) provide for periodic evaluation of the contractor’s performance against an 

award-fee plan.

§ 410.55.20 Limitations

A fixed-price award fee contract type may be used only when:

(a) the administrative costs of conducting award-fee evaluations are not 

expected to exceed the expected benefits;

(b) procedures have been established for conducting the award-fee 

evaluation;

(c) the award-fee board has been established; and

(d) no other type of contract is suitable, and PMD has issued a one-time 

delegation of procurement authority. (Note: For exceptions to the onetime delegation requirement, see: § 410.20.30 (Exceptions).)
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 21

§ 410.60 Fixed-Price Incentive Contracts

§ 410.60.10 Description

(a) A fixed-price incentive (FPI) contract is a fixed-price contract that provides 

for adjusting profit and establishing the final contract price by application 

of a formula based on the relationship of total final negotiated cost to total 

target cost.

(b) The profit adjustment formula may be applied either at a pre-determined 

mid-point of performance (successive targets) or upon completion of 

performance to establish the final contract price (firm target). For each 

item subject to incentive price revision, the contract must specify a target 

cost, a target profit, a target price, a price ceiling, and a profit adjustment 

formula. The price ceiling is the maximum that may be paid to the 

contractor, except for adjustments specially provided for under other 

contract clauses (e.g., Clause 3-160, Service Contract Labor Standards).

§ 410.60.20 Application

An FPI contract is appropriate when the parties can negotiate at the outset an initial 

target cost, target profit, and profit adjustment formula that will provide a fair and 

reasonable incentive and a ceiling that provides for the contractor to assume an 

appropriate share of the risk. When the contractor assumes a considerable or major 

share of the cost responsibility under the adjustment formula, the target profit must 

reflect this responsibility.

§ 410.60.30 Limitations

This contract type may be used only when:

(a) the nature of the products or services being procured and other 

circumstances of the procurement make it advantageous for the judiciary 

to offer the contractor an economic incentive to establish effective cost 

control and efficient performance;

(b) the performance requirements offer a reasonable opportunity for the 

incentives to have a meaningful impact on the contractor’s management of 

the work where the contract also includes incentives on technical 

performance or delivery;

(c) the contractor’s accounting system is adequate for providing data for 

negotiating firm targets and a realistic profit adjustment formula, and later 

negotiation of final costs;

(d) adequate cost or pricing information for establishing a firm target is 

reasonably expected to be available for contract negotiations;
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 22

(e) the CO determines that this type of contract would be less costly than 

another type or that it is impractical to obtain products or services of the 

kind or quality required without the use of this contract type; and

(f) no other type of contract is suitable, and PMD has issued a one-time 

delegation of procurement authority. (Note: For exceptions to the onetime delegation requirement, see: § 410.20.30 (Exceptions).)

§ 410.60.40 Fixed-Price Incentive – Firm Target

An FPI contract with a firm target must, at the outset of the contract, specify these 

negotiated elements:

(a) a target cost;

(b) a target profit;

(c) a price ceiling (but not a profit ceiling or floor);

(d) a profit adjustment formula that results in the following:

(1) when the final cost is less than the target cost, application of the 

formula will result in a final profit greater than the target profit;

(2) when the final cost is more than the target cost, application of the 

formula will result in a final profit less than the target profit or net 

loss; and

(3) if the final negotiated cost exceeds the price ceiling, the contractor 

will absorb the difference as a loss.

(e) the price ceiling must be the maximum that may be paid to the contractor, 

except for any adjustment under other contract clauses; and

(f) when the contractor completes contract performance, the CO and the 

contractor must negotiate the contractor’s final cost and establish the final 

price by applying the profit adjustment formula.

§ 410.60.50 Fixed-Price Incentive – Successive Targets

(a) An FPI contract with successive targets must, at the outset of the contract, 

specify these negotiated elements:

(1) an initial target cost;

(2) an initial target profit;
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 23

(3) an initial profit adjustment formula to be used for establishing the 

firm target profit, including a ceiling and floor for the firm target 

profit;

(4) the production point at which the firm target cost and firm target 

profit will be negotiated;

(5) a ceiling price that is the maximum that may be paid to the 

contractor, except for any adjustment under any other contract 

clauses providing for equitable adjustment or other revision of the 

contract price under stated conditions.

(b) When the production point specified in the contract is reached, the parties 

negotiate the firm target cost, giving consideration to cost experience 

under the contract and other relevant factors. The firm target profit is 

established by the formula.

§ 410.65 Fixed-Price Contracts with Economic Price Adjustment

§ 410.65.10 Description

A fixed-price contract with economic price adjustment (EPA) provides for the upward 

and downward revision of the contract price based upon the occurrence of 

contingencies that are defined in the contract.

§ 410.65.15 Application

This type of contract is appropriate when there is serious doubt as to the stability of

market and labor conditions that will exist during an extended period of contract 

performance and contingencies that would otherwise be included in a firm-fixed-price 

contract are identifiable and can be covered separately. Its usefulness is limited by the 

difficulties of its administration.

§ 410.65.20 Limitation

This contract type may be used only when:

(a) the CO determines that it is necessary to protect the contractor and the 

judiciary against significant fluctuations in labor or material costs or to

provide for contract price adjustment in the event of changes in the 

contractor’s established prices;

(b) there is no major element of design engineering or development work 

involved;

(c) there are identifiable labor or material cost factors subject to change;
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 24

(d) no other type of contract is suitable; and

(e) PMD has issued a one-time delegation of procurement authority. (For 

exceptions to this requirement, see: § 410.20.30 (Exceptions).)

§ 410.65.25 Types of Adjustments

An EPA may authorize contract price adjustments, upward or downward, based upon 

one of the following:

(a) increases or decreases from an agreed-upon level in published or 

otherwise established prices of specific items (e.g., the price of crude oil);

(b) increases or decreases in specified costs of labor or material that the 

contractor actually experiences during contract performance; or

(c) increases or decreases in labor or material cost standards or indices that 

are specifically identified in the contract (e.g., Consumer Price Index).

§ 410.65.30 Price Adjustments Based on Published Prices

Price adjustments based on published or otherwise established prices must be 

restricted to industry-wide contingencies. Industry-wide contingencies must be those 

affecting a particular industry as a whole and not be dependent on circumstances within 

the contractor’s control.

§ 410.65.35 Price Adjustments Based on Costs

Price adjustments based on labor and material costs must be limited to contingencies 

beyond the contractor’s control.

§ 410.65.40 Base Level Establishment

When establishing the base level from which price adjustments may be made, the CO 

must ensure that contingency allowances are not duplicated by inclusion in both the 

base price and the adjustment requested by the contractor. In contracts that do not 

require submission of detailed cost information, the CO must obtain adequate 

information to establish the base level from which adjustments will be made and may 

require verification of data submitted.

§ 410.65.50 Clauses

A solicitation for a fixed-price contract with EPA for standard products that have an 

established catalog or market price must include Clause 4-55, Economic Price 

Adjustment – Standard Products. The offeror must appropriately fill in the blank in 

paragraph (a) of the clause.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 25

§ 410.70 Cost-Reimbursement Contracts

§ 410.70.10 Description

(a) Cost-reimbursement contracts may be incrementally funded, if the amount 

obligated is always more than the cumulative cost that it is anticipated the 

contractor will accrue during the following voucher period. Costreimbursement contracts for non-severable services must be fully funded 

at the time of award. For further guidance on incremental funding, see: 

Guide, Vol. 14, § 220.50.20(b) (Contract Funding Requirements).

(b) These contracts establish an estimate of the total cost for the purpose of 

obligating funds. They also establish a total estimated reimbursement 

cost. The contractor may not exceed the total funded amount of the 

contract, except at its own risk, without the CO’s written pre-approval.

(c) Cost-reimbursement contracts are suitable for use only when uncertainties 

involved in contract performance do not permit the establishment of fixed 

prices. There are several types of cost-reimbursement contracts as 

described below. A cost-plus-percentage-of-cost contract type is not an 

authorized contract type under any circumstances.

§ 410.70.20 Limitations

Any of the cost-reimbursement contracts described below may be used only when:

(a) the contractor's accounting system is adequate for recording and 

segregating costs applicable to the contract;

(b) appropriate judiciary monitoring during performance will provide 

reasonable assurance that efficient methods and effective cost controls 

are used;

(c) the CO determines in writing, that:

(1) the use of a cost-reimbursement type contract is likely to be less 

costly than any other type; or

(2) it is impractical to obtain products or services of the kind or quality 

required without the use of this contract type;

(d) no other type of contract is suitable; and 

(e) PMD has issued a one-time delegation of procurement authority. (Note: 

For exceptions to this requirement, see: § 410.20.30 (Exceptions).)
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 26

§ 410.70.30 Cost Contract

A cost contract is a cost-reimbursement contract under which the contractor receives no 

fee (profit).

§ 410.70.40 Cost-Sharing Contract

A cost-sharing contract is a cost-reimbursement type contract under which the 

contractor does not receive a fee and is reimbursed only for an agreed upon portion of 

its allowable costs. It is suitable for use where there is a high probability that the 

contractor will receive substantial commercial benefits from contract performance.

§ 410.70.50 Cost-Plus-Incentive-Fee Contract

(a) Description

A cost-plus-incentive-fee contract is a cost-reimbursement contract that 

provides for the initially negotiated fee to be adjusted later by application 

of a formula based on the relationship of total allowable performance costs 

to target costs. This contract type specifies a target cost, a target fee, 

minimum and maximum fees, and a fee adjustment formula.

(b) Application

A cost-plus-incentive-fee contract is suitable when a cost-reimbursement 

contract is appropriate and a target cost and fee adjustment formula likely 

to motivate the contractor to manage the contract effectively can be 

negotiated. The fee adjustment formula must provide an incentive 

effective over the full range of reasonably foreseeable variations from 

target cost. If a high maximum fee is negotiated, the contract must 

provide for a low minimum fee, or even a zero or negative fee.

§ 410.70.60 Cost-Plus-Fixed-Fee Contract

(a) Description

A cost-plus-fixed-fee contract is a cost-reimbursement contract that 

provides for payment to the contractor of a negotiated fee in a fixed 

amount. The fixed fee amount does not vary with actual performance 

costs incurred but may be adjusted as a result of changes made in 

contract requirements. This contract type gives the contractor only a 

minimum incentive to control costs.

(b) Application

The CO may use a cost-plus-fixed-fee contract when contracting for 

efforts that might otherwise present too great a risk to the contractor, such 
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 27

as when the contract is for a study and the level of effort cannot be 

reasonably estimated.

(c) Completion or Term Form

A cost-plus-fixed-fee contract must be in one of two basic forms: the 

completion form, or the level-of-effort or term form.

(1) Completion Form

The completion contract form describes the scope of work by 

stating a definite goal or target and specifying an end product 

deliverable. This form of contract normally requires the contractor 

to complete and deliver the specified end product within the 

estimated cost, if possible, as a condition for payment of the entire 

fixed fee. If the work cannot be completed within the estimated 

cost, the judiciary may require more effort with an appropriate 

increase in the estimated cost and associated funding, but without 

any increase in fee.

(2) Term Form

The term form describes the scope of work in general terms and 

obligates the contractor to devote a specified level of effort for a 

stated time period. Under this form, if performance is satisfactory, 

the fixed fee is payable at the expiration of the agreed upon period, 

upon contractor certification that the level of effort specified in the 

contract has been expended in performing the contract work. It 

does not require a deliverable end product. Renewal for further 

periods of performance requires new cost and fee arrangements 

and is treated as a new purchase.

(d) Preference

Because of the greater risks and obligation assumed by the contractor, the 

completion form is preferred over the term form whenever the work can be 

defined well enough to permit a reasonable cost estimate within which the 

contractor can be expected to complete the work.

§ 410.70.70 Cost-Plus-Award-Fee Contract

(a) Description

A cost-plus-award-fee contract is a cost-reimbursement contract that 

provides for a fee consisting of:
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 28

(1) a base fee amount (which may be zero) fixed at inception of the 

contract; and

(2) an award fee amount that the contractor may earn in whole or in 

part during performance and that is sufficient to provide motivation 

for excellence in such areas as quality, timeliness, technical 

ingenuity, and cost-effective management. 

(Note: The amount of the award fee to be paid is determined by 

the judiciary’s judgmental evaluation of the contractor’s 

performance based on the contract’s stated criteria. This 

determination and the methodology for determining the award fee 

are unilateral decisions made solely at the judiciary’s discretion.)

(b) Application

(1) The cost-plus-award-fee contract is suitable for use when:

(A) the work to be performed is such that it is neither feasible 

nor effective to devise predetermined, objective incentive 

targets applicable to cost, technical performance, or 

schedule;

(B) the likelihood of meeting procurement objectives will be 

enhanced by using a contract that effectively motivates the 

contractor toward exceptional performance and provides the 

judiciary with the flexibility to evaluate both actual 

performance and the conditions under which it was 

achieved; and

(C) any additional administrative effort and cost required to 

monitor and evaluate performance are justified by the 

expected benefits.

(2) The number of award-fee evaluation criteria and the requirements 

they represent will differ widely among contracts. The criteria and 

rating plan must motivate the contractor to improve performance in 

the areas rated, but not at the expense of at least minimum 

acceptable performance in all other areas.

(3) Cost-plus-award-fee contracts must provide for evaluation at stated 

intervals during performance, so that the contractor will periodically 

be informed of the quality of its performance and the areas in which 

improvement is expected. Partial payment of fee must generally 

correspond to the evaluation periods. Payment of the fee in this 
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 29

manner can induce the contractor to improve poor performance or 

to continue good performance.

(c) Additional Limitation

In addition to the general limitations on cost-reimbursement contracts in 

§ 410.70.20 (Limitations), when using cost-plus-award-fee contracts, the 

contract amount, performance period, and expected benefits must be 

sufficient to warrant the additional administrative effort and cost involved.

§ 410.70.80 Cost Contract Clauses

Clause Include in ...

(a) Clause 4-60, Allowable Cost and 

Payment

All cost reimbursement solicitations and contracts. 

(b) Clause 4-65, Fixed Fee Solicitations and contracts when a cost-plus-fixedfee contract is contemplated.

(c) Clause 4-70, Incentive Fee Solicitations and contracts when a cost-plusincentive-fee contract is contemplated. The CO will 

appropriately fill in the clause’s blank spaces.

(d) Clause 4-75, Cost Contract – No 

Fee

Solicitations and contracts when a cost contract with 

no fee is contemplated.

(e) Clause 4-80, Cost-Sharing 

Contract – No Fee

Solicitations and contracts when a cost-sharing 

contract is contemplated.

(f) Clause 4-85, Limitation of Cost Solicitations and contracts when a fully funded cost 

reimbursable contract is contemplated, whether or 

not the contract provides for payment of a fee.

(g) Clause 4-90, Limitation of Funds Solicitations and contracts when an incrementally 

funded cost reimbursable contract is contemplated.

§ 410.75 Multi-Year Contracts

§ 410.75.10 Definition

(a) A multi-year contract is defined as one that, at the time of award, 

purchases more than one year’s requirement of a product or service, 

without having to exercise an option for each year after the first. Multiyear contracts may be awarded for known requirements for a period of up 

to five years. Multi-year contracts are considered an exception to the 

bona fide needs rule. Use of this contract type by the judiciary is 

authorized by 28 U.S.C. § 604(g)(4)(B) and 28 U.S.C. § 612(e)(2).

(b) A multi-year contract is not:
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 30

• an indefinite-quantity or requirements contract (see: § 410.30 

(Indefinite-Delivery Contracts: Indefinite-Quantity and 

Requirements)); 

• a contract for a non-severable requirement that will take more than

one year to complete (e.g., construction of a new courthouse); 

• a contract for 12 months (or less) that includes one or more options 

to extend the period of performance for additional periods of up to 

12 months each (see: Guide, Vol. 14, § 220.40 (Options)); or

• a contract for less than 12 months that starts in one fiscal year and 

is completed in the following fiscal year.

§ 410.75.20 Terminology Unique to Multi-Year Contracts

(a) Cancellation

Cancellation results when the contracting officer notifies the contractor 

that funds will not be made available for contract performance for a 

subsequent contract year. A cancellation of any one year results in 

cancellation of all remaining contract years.

(b) Cancellation Ceiling

The maximum cancellation charge that the contractor can receive in the 

event of cancellation. The cancellation ceiling must be established and 

fully funded at the time of contract award.

§ 410.75.30 Limitations on Use of Multi-Year Contracts

(a) One-Time Delegation of Procurement Authority

With the exception of awards meeting the criteria stated at § 410.75.30(c) 

(Exception to One-Time Delegation), all multi-year contract awards require 

a one-time delegation of procurement authority from PMD. Obtaining this 

delegation is a two-step process and only after both steps are completed 

will the one-time delegation of procurement authority be issued.

(1) Before issuing the solicitation, the CO must request PMD approval 

of the solicitation document.

(2) Upon receipt and evaluation of offers, the CO must provide the 

evaluation and the determination and finding required by 

§ 410.75.30(b) (Determination and Finding) for PMD approval.

(b) Determination and Finding
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 31

All multi-year contracts, including those meeting the criteria stated below 

in paragraph (c), must be supported by a determination and finding signed 

by the CO confirming:

(1) funds are available and obligated for the contract for:

(A) the full period of the contract or the first fiscal year in which 

the contract is in effect, and

(B) the estimated costs associated with a necessary termination 

of the contract;

(2) the need for the products or services is reasonably firm and is 

expected to continue over the entire period of the contract; and

(3) a multiyear contract will best serve the judiciary organization’s 

interests by encouraging full and open competition or promoting 

economy in the organization’s administration, performance, and 

operations.

(c) Exception to One-Time Delegation

(1) A one-time delegation is not required for a multi-year award for 

services where:

(A) the award will be funded with no-year funds (e.g., the 

Judiciary Information Technology Fund (JITF)); and

(B) either:

(i) the award is an order under a Judiciary-Wide BPA or 

contract, a GSA schedule, or a contract awarded 

under another agency’s multi-award authority (e.g., 

SEWP, NITAAC); or

(ii) the total amount for all years is less than the 

judiciary’s competition threshold (see: Guide, Vol. 14, 

§ 325.15.10 (Competition Threshold)).

(2) The above exception does not apply to multi-year awards for 

products, which are always subject to the one-time delegation 

requirement.

(3) Procurement files for awards made under the exceptions to the 

one-time delegation requirement must include the contracting 

officer’s determination and finding required by § 410.75.30(b) 

(Determination and Finding).
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 32

(d) Congressional Notification

A multi-year contract that includes a cancellation ceiling over $10.0 million 

may not be awarded until the AO Director provides written notification to 

Congress of the proposed contract and the proposed cancellation ceiling 

for that contract. The contract may not be awarded until the 31st day after 

the date of Congressional notification.

§ 410.75.40 Competitive Multi-Year Solicitation Requirements

(a) Competitive multi-year solicitations must require dual price proposals from 

all offerors, one price proposal based upon a multi-year award and one 

based on pricing for award of a base year and options for each 

subsequent year. The sole exception is the purchase of commercial 

services where published catalog prices clearly show lower pricing for a 

multi-year term versus contracting on an annual basis. In this case, the 

solicitation may require only multi-year pricing.

(b) Competitive multi-year solicitations must identify all the evaluation factors 

to be used in selecting offer(s) for award. Price must always be included 

as an evaluation factor. The cancellation ceiling must not be used as an 

evaluation factor.

§ 410.75.50 Multi-Year Contract Administration

(a) Funding and Payment

(1) Multi-year contracts may either be fully funded for the entire multiyear period at the time of award or may be funded annually. When

the contract is funded annually, the funding must include the 

maximum liability incurred by the judiciary each year. This means 

fully funding the cancellation ceiling amount that would apply under 

Clause 4-160, Cancellation Ceilings, if the contract were cancelled 

during the year being funded.

(2) Authority to award a multi-year contract requirement and fully fund 

it at the time of award does not automatically include authority to 

pay the contractor in advance. For limitations on advance 

payment, see: Guide, Vol. 14, § 220.55.50 (Limitations).

(b) Cancellation Procedures

All contract years except the first are subject to cancellation. The contract 

award must state a cancellation ceiling for each contract year subject to 

cancellation in Clause 4-160, Cancellation Ceilings.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 33

(c) Payment of Cancellation Charges

If a multi-year contract is cancelled, the judiciary’s liability will be 

determined under Clause 4-150, Cancellation Under Multi-Year Contracts, 

but may in no case exceed the cancellation ceiling established at the time 

of contract award in Clause 4-160, Cancellation Ceilings. Final agreement 

on a cancellation settlement must be reviewed and approved by the PE.

(d) Termination for Convenience or Default

Multi-year contracts are subject to termination for convenience or default. 

Unlike cancellation, which can only be effective at the end of a contract 

year, termination for convenience or default may be done at any time 

during the life of the contract. In addition, a termination for convenience 

may be issued for less than the entire remainder of the contract, while

cancellation must be for the entirety of all subsequent contract years. PE 

review and approval is required for any termination. See: Guide, Vol. 14, 

§ 755.10.40 (Review and Approval).

§ 410.75.60 Contract Clauses and Provisions

Include the following clauses in solicitations and contracts for multi-year contracts 

unless the prescription indicates otherwise:

§ 410.75.60 Contract Clauses and Provisions

Provision or Clause Include in ...

(a) Clause 4-150, Cancellation 

Under Multi-Year Contracts

All multi-year solicitations and contracts.

(b) Clause 4-55, Economic Price

Adjustment – Standard 

Products

Fixed-price multi-year solicitations and contracts when 

the CO considers inclusion appropriate under § 410.65 

(Fixed-price Contract with Economic Price Adjustment).

(c) Clause 3-175, Fair Labor 

Standards Act and Service 

Contract Labor Standards –

Price Adjustment (Multi-Year 

and Option Contracts)

Multi-year solicitations and contracts when contracting for 

services on a fixed-price, labor-hour or time-andmaterials basis and the contract includes Clause 3-160 

(Service Contract Labor Standards).

(d) Provision 4-155, Alternate 

Awards

All multi-year solicitations.

(e) Clause 4-160, Cancellation 

Ceilings

All multi-year solicitations and contracts. The clause may

be tailored as appropriate to fit the actual number of 

years of a specific multi-year award. The ceilings must

be incorporated at the time of award based upon 

information provided in the offeror’s proposal.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 34

§ 410.75.60 Contract Clauses and Provisions

Provision or Clause Include in ...

(f) Provision 4-165, Price 

Proposal Instruction – MultiYear Contract

All multi-year solicitations.

§ 420 Technical Analysis

(a) A technical analysis may be necessary to assist in price and/or cost 

analysis. The CO will rely on the technical expertise of the requesting 

activity’s designated expert(s) or other appropriate advisors.

(b) Technical analysis of offers may range from evaluating technical offers 

according to evaluation factors specified in the solicitation (competitive 

offers) to extensive analysis of materials, number of labor hours and the 

proposed mix of labor categories, special tooling and facilities, and other 

factors.

(1) At a minimum, the technical analysis should examine the types and 

quantities of material proposed and the need for the types and 

quantities of labor hours and the proposed mix of labor categories.

(2) Any other data that may be relevant to an assessment of the 

offeror’s ability to accomplish the technical requirements or to the 

cost or price analysis of the service or product being proposed 

should also be included in the analysis.

§ 430 Price Evaluation

This section describes procedures for evaluating initial prices, subcontract prices, and 

pricing modifications. COs are responsible for ensuring that prices are fair and 

reasonable. To carry out this responsibility, COs must:

(a) evaluate proposed prices using the methods of price or cost analysis 

described in this chapter; and

(b) evaluate the proposed price of each contract separately and 

independently without considering:

(1) proposed price reductions under other contracts held by the same 

contractor; or

(2) losses or profits on other contracts held by the same contractor.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 35

§ 430.20 Offer Analysis

(a) The CO exercises sole responsibility for the final pricing decision with 

advice and assistance appropriately obtained according to the complexity 

and dollar value of the offer to be analyzed. As circumstances warrant, 

the CO must obtain and evaluate the advice of specialists in areas such 

as contracting, finance, law, audit, quality assurance, engineering, and 

pricing.

(b) The CO must coordinate the team effort involved in the analysis. When 

complex problems involving significant matters will be addressed, the CO 

must have appropriate specialists in attendance for advice during the 

negotiations. The CO may assign responsibility to a negotiator or price 

analyst for:

(1) determining the necessary extent of specialists' advice;

(2) evaluating the specialists’ advice;

(3) coordinating a team of experts;

(4) consolidating pricing data;

(5) developing a pre-negotiation objective; and

(6) conducting negotiations.

§ 430.30 Adequate Price Competition

§ 430.30.10 General

Price competition exists when:

(a) at least three offers are solicited;

(b) two or more independent and responsible offerors submit priced offers 

meeting the solicitation's requirements; and

(c) the solicitation identifies price as an evaluation factor for award.

§ 430.30.20 Presumption of Adequacy

If price competition exists, it is presumed as adequate unless:

(a) the solicitation is made under conditions that unreasonably deny one or 

more known and qualified offerors an opportunity to compete;
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 36

(b) the low offeror has such a decided advantage that it is practically immune 

from competition; or

(c) the CO determines that the lowest price is not fair and reasonable.

§ 440 Price Analysis

(a) Price analysis (see: Guide, Vol. 14, § 345.40 (Price Analysis)), rather 

than cost analysis (see: § 345.50 (Cost Analysis)), is the preferred 

method of evaluating and negotiating pricing for the following:

(1) firm-fixed-price contracts;

(2) the unit prices of many indefinite-delivery contracts;

(3) the burdened hourly rates contained in labor-hour and time-andmaterial contracts; and

(4) other contract instruments where prices can be compared to prices 

for the same or similar products or services sold in substantial 

quantities in the same time frame elsewhere in the market place.

(b) Price analysis is a method of determining that the overall price is fair and 

reasonable without a detailed analysis of its cost and profit components.

§ 440.20 Price Analysis Techniques

(a) The CO is responsible for selecting and using appropriate price analysis 

techniques to ensure a fair and reasonable price.

(b) One or more of the following techniques may be used to perform price 

analysis:

(1) comparison of proposed prices received from two or more offerors 

in response to the solicitation;

(2) comparison of previous proposed prices with current proposed 

prices for the same or similar end items in comparable quantities;

(3) comparison with similar products or services purchased previously;

(4) comparison with similar products or services purchased at other 

federal agencies;
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 37

(5) application of estimating metrics (such as dollars per pound or per 

horsepower, or other units) to highlight significant inconsistencies 

that may warrant additional pricing inquiry;

(6) comparison with competitive published catalogs or price lists, 

published market prices or commodities, similar indices, and 

discount or rebate arrangements;

(7) comparison of proposed prices with independent judiciary 

estimates (see: Guide, Vol. 14, § 210.30(d) (Requesting Office 

Responsibilities)); or

(8) ascertaining that the price is set by law or regulation.

(c) Comparison of competed prices will ordinarily suffice to meet price 

analysis requirements.

(d) If a determination of fair and reasonable price is based solely upon 

subparagraph (b)(7) above, significant differences between the price 

awarded and the independent judiciary estimate must be explained in the 

negotiation memorandum.

§ 450 Cost Analysis

Cost analysis must be performed when it is necessary to examine individual cost 

elements, such as labor or material prices and indirect cost rates and profit, to 

determine the reasonableness of price. Cost analysis and requests for supporting data 

must be limited only to those cost elements that the CO decides need analysis.

§ 450.20 Cost Analysis Techniques

Cost analysis involves the following techniques and procedures as appropriate:

(a) Verifying and evaluating of individual cost elements, including:

(1) the necessity for, and reasonableness of, proposed costs, including 

allowances for contingencies;

(2) projection of the offeror's cost trends based on current and 

historical detailed cost information;

(3) a technical appraisal of the estimated labor, material, tooling, and 

facilities requirements and of the reasonableness of scrap and 

spoilage factors; and
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 38

(4) the application of audited or negotiated indirect cost rates and labor 

rates.

(b) Evaluating the effect of the offeror's current practices on future costs. In 

conducting this evaluation, the CO must ensure that the effects of 

inefficient or uneconomical past practices are not projected into the future. 

In pricing the production of recently developed, complex equipment, the 

CO must make a trend analysis of basic labor and materials even in 

periods of relative price stability.

(c) Comparing costs proposed by the offeror for individual cost elements with:

(1) actual costs previously incurred by the same offeror;

(2) previous cost estimates from the offeror or from other offerors for 

the same or similar items;

(3) independent judiciary cost estimates; and

(4) forecasts of planned expenditures.

(d) Analyzing contractor make-or-buy decisions in evaluating subcontract 

costs.

(e) Verifying that the offeror's cost submissions comply with the cost 

principles in this section.

(f) Reviewing the offer to determine if the contractor has neglected to submit 

or identify in writing any detailed cost information necessary to make the 

offer accurate, complete, and current. If the contractor has omitted such 

data, the CO must attempt to obtain it. If the CO cannot obtain it, 

satisfactory allowance for the incomplete information must be made in 

negotiations.

§ 450.30 Detailed Cost Information

§ 450.30.10 Exceptions

The CO may determine that detailed cost information is not required if:

(a) the price reasonableness can be determined by adequate competitive 

offers;

(b) prices are set by law or regulation;

(c) the prices are based on established catalog or market prices; or
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 39

(d) a waiver is granted by the CO.

§ 450.30.20 In General

(a) The CO may obtain detailed cost information before the award of any 

competitive contract or contract modification if required for the analysis 

and determination of price reasonableness. Only the detailed information 

needed to make that determination will be obtained. Requesting detailed 

cost information is not necessary if the price reasonableness can be 

determined by one of the following factors:

(1) adequate price competition;

(2) prices are set by law or regulation; or

(3) a commercial item is being acquired.

(b) When warranted, and before an agreement on price can be reached, the 

CO must require the contractor to update the cost information as of the 

latest dates for which information is reasonably available.

§ 450.30.30 Subcontracts

The CO must require offerors or contractors to obtain detailed cost information for 

proposed subcontracts or subcontract modifications only when necessary to determine 

the reasonableness of the proposed subcontract price, including negotiated final pricing 

actions (e.g., termination settlements and total final price agreements for fixed-price 

incentive contracts).

§ 450.30.40 Subcontract Offer Analysis

As part of its detailed cost information, the offeror or contractor is responsible for 

submitting to the CO its price analysis or cost analysis on subcontract offers, including 

the results of its subcontract price reviews and analysis. In unusual circumstances, to 

ensure that adequate analysis is performed, the CO may require the offeror or 

contractor to submit, along with its own detailed cost information, detailed cost 

information obtained from its subcontractor(s). This in no way diminishes the offeror's 

or contractor's responsibility to perform subcontract cost or price analysis and negotiate 

fair and reasonable subcontract prices.

§ 450.30.50 Refusal to Provide Data

If the offeror or contractor refuses to provide detailed cost information despite repeated 

requests, the CO must withhold the award or contract modification and refer the matter 

to the PE. The CO must document the ultimate disposition of the matter.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 40

§ 450.40 Profit

§ 450.40.10 In General

(a) Except for architect-engineer contracts (see: Guide, Vol. 14, § 530 

(Architect-Engineer Contracts)), predetermined percentages or limitations 

on profit or fee must not be used. However, for cost-plus-fixed-fee 

contracts, the fee must not exceed 10 percent of the contract’s estimated 

cost, excluding fee.

(b) When adequate price competition is obtained or price analysis techniques 

are sufficient to ensure a fair and reasonable price, then analysis of profit 

is not appropriate.

§ 450.40.20 Including Profit in Cost Analysis

When cost analysis is required for price negotiations, profit must also be analyzed. 

Profit must be analyzed with the objective of rewarding contractors for:

(a) financial and other risks they assume;

(b) resources they use; and

(c) organization, performance, and management capabilities they employ.

§ 450.40.30 Profit Considerations

Due consideration must be given to:

(a) the complexity of materials requirements;

(b) the extent of subcontracting;

(c) the ratio of indirect costs to direct costs;

(d) the contribution of capital investments to contract performance; and

(e) profit analysis.

§ 450.40.40 Contract Changes

The profit or fee may be established on the basis of the basic contract's profit or fee rate

if the pricing action:

(a) involves a contract change or modification that requires essentially the 

same type and mix of work as the basic contract, and

(b) is of relatively small dollar value compared to the total contract amount.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 41

§ 460 Cost Principles

This section contains the principles for determining or negotiating the allowability of 

costs. When the CO determines that price analysis is not sufficient, then the CO will 

request detailed cost information and analyze all cost elements to determine the 

allowability of each proposed element of cost. These principles apply to the:

(a) determination of allowable costs under cost-reimbursement contracts and 

subcontracts;

(b) determination or negotiation of cost or price when required by a contract 

clause;

(c) pricing or estimation of costs in change orders or contract modifications; 

and

(d) settlement of contract costs for contracts that have been terminated.

§ 460.20 Contract Costs

The total cost of a contract is the sum of the allowable direct and indirect costs allocable 

to the contract, incurred or to be incurred, less any allowable credits. Total cost does 

not include profit, or fee.

§ 460.20.20 Cost Estimating Methodology

A contractor may use any consistently applied, generally accepted method of 

determining or estimating costs that is equitable under the circumstances.

§ 460.20.30 Pricing or Cost Estimating Requirements

Whenever a contractor is required by the judiciary to submit a detailed cost proposal, 

the contractor must:

(a) estimate costs in a manner consistent with generally accepted cost 

accounting principles;

(b) consistently apply the cost accounting principles to its pricing;

(c) follow its Defense Contract Audit Agency (DCAA) audited rates; and

(d) comply with the provisions of this chapter.

§ 460.20.40 Direct Cost

(a) A direct cost is any cost that can be specifically identified directly with 

delivery or performance of a specific contract.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 42

(b) Direct costs are segregated from other costs, recorded into separate 

accounts, and are identified as costs for a particular contract. They are 

not mingled with costs associated with other contracts, nor with indirect, 

administrative or management costs of the business.

§ 460.20.50 Indirect Costs

(a) Indirect costs are those costs that, because of their incurrence for 

common or joint contractor objectives, are neither readily segregable nor 

subject to treatment as direct costs. Indirect costs are generally allocated 

to contracts as a percentage of direct cost and are allowable based on 

necessity to the overall operation of the contractor's business.

(b) An indirect cost must not be allocated to a judiciary contract if:

(1) other costs incurred for the same purpose, in like circumstances, 

have been included as a direct cost of that contract or any other 

contract; or

(2) the costs have been included as any final cost objective not related 

to the judiciary contract.

(c) Indirect costs must be accumulated into logical groupings known as 

“indirect cost pools.”

(d) The contractor’s method of allocating indirect costs must comply with 

generally accepted accounting principles that are consistently applied 

according to the provisions of this chapter.

(e) The CO must examine the contractor’s method of allocating indirect costs 

when any of the following apply:

(1) A substantial difference exists between the cost patterns of work 

performed under the contract and the contractor’s other work.

(2) A significant change occurs in:

• the nature of the contractor’s business;

• extent of subcontracting;

• fixed asset improvement programs;

• inventories;

• volume of sales and production;

• manufacturing processes;

• products; or

• other relevant circumstances.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 43

(3) Indirect cost groups developed for a contractor’s primary location 

are applied to off-site locations. Then separate cost groups for 

costs allocable to off-site locations may be necessary to distribute 

the contractor’s costs based on the benefits accruing to the 

appropriate cost objective.

(f) The CO must consider the base period for indirect cost allocation as the 

one in which the costs are incurred and accumulated for distribution to 

work performed in that period.

§ 460.20.60 Credits

A credit is the applicable portion of any income, rebate, allowance, or other credit 

relating to any allowable cost and received by or accruing to the contractor.

§ 470 Cost Allowability

§ 470.10 Determining Cost Allowability

(a) Allowability Factors

When determining whether an incurred cost is allowable, the CO must 

consider the following factors:

• reasonableness;

• allocability;

• consistency with generally accepted accounting principles and 

practices appropriate to the particular circumstances;

• consistency with the requirements and terms of the contract; and

• consistency with the limitations provided in this chapter.

(b) Inconsistent Practices

If a contractor’s accounting practices are inconsistent with this chapter, the 

CO must not allow costs resulting from those practices over the amount 

that would have resulted from using practices consistent with this chapter.

§ 470.20 Determining Reasonableness

§ 470.20.10 Definition

A cost is reasonable if, in its nature and amount, it does not exceed what would be 

incurred by a prudent person in the conduct of competitive business.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 44

§ 470.20.20 Reviewing Specific Costs

In determining the reasonableness of a specific cost, matters to consider include the 

following:

(a) Whether it is the type of cost generally recognized as ordinary and 

necessary for the conduct of the contractor's business or contract 

performance.

(b) The restraints or requirements imposed by such factors as:

• generally accepted sound business practices,

• arm's-length bargaining, or

• federal and state laws and regulations.

(c) The action that a prudent business person would take under the 

circumstances considering responsibilities to:

• the owners of the business,

• employees,

• customers,

• the judiciary, or

• the public at large.

(d) Any deviations from the established practices of the contractor that may 

unjustifiably increase the contract costs.

(e) Any other relevant factors.

§ 470.30 Determining Allocability

§ 470.30.10 In General

An incurred cost is allocable to a contract if it:

(a) is incurred specifically for performance of the contract;

(b) benefits both the contract and other work, and can be distributed to them 

in reasonable proportion to the benefits received; or

(c) is necessary to the overall operation of the business, even though a direct 

relationship to the contract cannot be shown.

§ 470.30.20 Advance Agreements

(a) Because the reasonableness or allocability of costs may be difficult to 

determine in some cases, the contracting parties must reach advance 
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 45

agreement on the treatment of special or unusual costs to avoid later 

disputes and disallowances.

(b) Advance agreements may be negotiated before or during a contract but 

must be negotiated before contractor incurrence of the costs involved. 

The agreements must be in writing, signed by both parties, and 

incorporated into applicable current and future contracts. An advance 

agreement must contain a statement of its applicability and duration.

(c) Advance agreements may be negotiated with a particular contractor for a 

single contract, a group of contracts, or all the contracts of one or more 

purchasing activities.

(d) Advance agreements may not provide for treatment of costs inconsistent 

with this chapter.

(e) The absence of an advance agreement on any cost will not, in itself, affect 

the reasonableness or allocability of that cost.

(f) Examples of costs for which advance agreements may be particularly 

important are:

(1) compensation for personal service (e.g., allowances for off-site pay, 

incentive pay, relocation allowances, hardship pay, and cost-ofliving differentials);

(2) use charges for fully depreciated assets;

(3) deferred maintenance costs;

(4) pre-contract costs;

(5) independent research and development and bid and proposal 

costs;

(6) royalties and other costs for use of patents;

(7) selling and distribution costs;

(8) travel and relocation costs;

(9) costs of idle facilities and idle capacity;

(10) costs of information technology;

(11) severance pay to employees on support services contracts;
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 46

(12) professional services (e.g., legal, accounting, engineering);

(13) general administrative costs (e.g., corporate, division, or branch 

allocations attributable to the general management, supervision, 

and conduct of the contractor's business as a whole, particularly in 

construction, job-site, architect-engineer, and facilities contracts);

(14) costs of construction plant and equipment; and

(15) costs of public relations and advertising.

§ 470.40 Selected Costs

This section discusses certain types of costs and whether or not they are allowable. It 

does not cover every element of cost, nor does the omission of a specific type of cost 

from this section imply that it is either allowable or unallowable. A determination of 

allowability must be based upon the principles and standards of this chapter and 

treatment of similar or related items.

§ 470.40.10 Public Relations and Advertising Costs

Incurred public relations and advertising costs are unallowable, except costs of:

(a) responding to inquiries concerning company policies and activities;

(b) essential communication with the public, press, stockholders, creditors, 

and customers, including communication on matters of public concern;

(c) participation in community service activities such as blood bank drives, 

charity drives, and disaster assistance (but not contribution to civil defense 

funds and projects);

(d) recruitment of personnel needed for contract performance;

(e) acquiring scarce items for contract performance; and

(f) disposing of scrap or surplus materials acquired for contract performance.

§ 470.40.15 Bad Debt

Bad debt costs, including actual or estimated losses arising from uncollectible accounts 

receivable due from customers and other claims, and any directly associated costs such 

as collection costs and legal costs are not allowable.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 47

§ 470.40.20 Contributions or Donations

Contractor contributions or donations (e.g., cash, property, services) are not allowable, 

except as provided in § 470.40.10(c) (Public Relations and Advertising Costs).

§ 470.40.25 Dividends

Dividend provisions or payments and distribution of profits are not allowable when part 

of an employee’s compensation if that compensation is based on changes in stock 

prices or corporate ownership.

§ 470.40.30 Entertainment Costs

(a) Contractor costs of amusement, diversion, social activities, and directly 

associated costs such as tickets to shows or sports events, meals, 

lodging, rentals, transportation, and gratuities are not allowable.

(b) Costs of membership in social, dining, or country clubs or other 

organizations having the same purposes are not allowable, regardless of 

whether or not the cost is reported as taxable income to the employees.

§ 470.40.35 Fines and Penalties

Contractor costs of fines and penalties resulting from violations of, or failure of, the 

contractor to comply with, federal, state, local, or foreign laws and regulations are not 

allowable, unless incurred because of compliance with specific terms and conditions of 

the contract or written instructions from the CO.

§ 470.40.40 Life Insurance

Contractor costs for insurance on the lives of officers, partners, or proprietors are not 

allowable, unless the insurance represents additional compensation.

§ 470.40.45 Interest and Other Financial Costs

Contractor interest costs on borrowings (however represented), bond discounts, costs 

of financing and refinancing capital, and the costs of preparing and issuing 

prospectuses and stock rights, are not allowable.

§ 470.40.50 Lobbying Costs

(a) Contractor costs associated with attempts to influence the outcome of any 

federal, state, or local election, referendum, initiative, or similar procedure 

through contributions, endorsements, publicity, or similar activities are not 

allowable.

(b) Costs associated with establishing, administering, contributing to, or 

paying the expenses of a political party, campaign, political action 
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 48

committee, or other organization established to influence the outcomes of 

elections are not allowable.

(c) Costs are not allowable if associated with any attempt to influence:

(1) the introduction of federal or state legislation, or

(2) the enactment or modification of any pending federal or state 

legislation through communication with:

(A) any member or employee of the Congress or state 

legislature (including efforts to influence state or local 

officials to engage in similar lobbying activity), or

(B) any government official or employee about a decision to sign 

or veto enrolled legislation.

(d) Costs associated with any attempt to influence the introduction of federal 

or state legislation, or the enactment or modification of pending federal or 

state legislation by preparing, distributing, or using publicity or 

propaganda, or by urging members of the public to contribute to or 

participate in any mass demonstration, march, rally, fund-raising drive, 

lobbying campaign, or letter-writing or telephone campaigns are not 

allowable.

(e) Costs associated with legislation liaison activities, including attendance at 

legislative sessions or committee hearings, gathering information 

regarding legislation, and analyzing the effect of legislation, when such 

activities are carried on in support of, or knowledge of preparation, for an 

effort to engage in activities for which the unallowable costs are not 

allowable.

(f) The costs of providing a technical and factual presentation of information 

on a topic directly related to the performance of a contract through hearing 

testimony, statements, or letters to the Congress or a state legislature, or 

its subdivision, member, or cognizant staff member, in response to a 

documented request (including a Congressional Record notice requesting 

testimony or statements for the record at a regularly scheduled hearing) 

made by the recipient member, legislative body or subdivision, or its

cognizant staff member are allowable.

(g) The costs for transportation, lodging or meals related to the activities 

authorized under § 470.40.50 (Lobbying Costs) are not allowable unless 

incurred offering testimony at a regularly scheduled congressional hearing 

in response to a written request for such presentation made by the chair or 
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 49

ranking minority member of the committee or subcommittee conducting 

such hearing.

(h) The costs of lobbying to influence state legislation to directly reduce 

contract cost, or to avoid material impairment of the contractor's authority 

to perform the contract are allowable.

(i) The costs of any activity specifically authorized by statute to be 

undertaken with funds from the contract are allowable.

§ 470.40.55 Losses on Other Contracts

An excess of costs over income under any other contract (including the contractor's 

contributed portion under cost-sharing contracts) are not allowable.

§ 470.40.60 Taxes

The following costs are not allowable:

(a) federal income and excess-profits taxes;

(b) taxes in connection with financing, refinancing, refunding operations, or 

reorganizations;

(c) taxes from which exemptions are available to the contractor directly, or 

available to the contractor based on an exemption afforded the judiciary, 

except when the CO determines that the administrative burden incident to 

obtaining the exemption outweighs the corresponding benefits accruing to 

the judiciary;

(Note: The term "exemption" means freedom from taxation in whole or in 

part and includes a tax abatement or reduction resulting from mode of 

assessment, method of calculation, or otherwise.)

(d) special assessments on land that represent capital improvements;

(e) taxes (including excises) on real or personal property or its value, use, 

possession, or sale, which is used solely in connection with work other 

than on judiciary contracts;

(f) taxes on accumulated funding deficiencies of, or prohibited transactions 

involving, employee deferred compensation plans; and

(g) income tax accruals designed to account for the tax effect of differences 

between taxable income and pretax income as reflected by the books of 

account and financial statements.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 50

§ 470.40.65 Defense of Fraud Proceedings

Contractor costs incurred in connection with defense of any of the following are not 

allowable:

(a) criminal or civil investigation, grand jury proceeding, or prosecution;

(b) civil litigation; or

(c) administrative proceedings such as suspension or debarment, or any 

combination of the foregoing, brought by the judiciary against a contractor, 

its agents or employees, are unallowable when the charges that are the 

subject of the investigation, proceedings, or prosecution:

(1) involve fraud or similar criminal offenses (including filing of a false 

certification) on the part of the contractor or its agents or 

employees, and

(2) result in conviction (including conviction entered on a plea of nolo 

contendere), judgment against the contractor, its agents or 

employees, or decision to debar or suspend, or are resolved by 

consent or compromise. (Note: When the charges of fraud are 

resolved by consent or compromise, the parties may agree on the 

extent of allowability of such costs as a part of such resolution.)

§ 470.40.70 Termination Costs

(a) General

Contract terminations generally give rise to the occurrence of costs or the 

need for special treatment of costs that would not have arisen if the 

contract had not been terminated. This part describes the cost principles 

peculiar to termination situations to be used in conjunction with the other 

cost principles.

(b) Common Items

The costs of items reasonably usable on the contractor's other work are 

not allowable unless the contractor submits evidence that the items could 

not be retained at cost without sustaining a loss. The CO must consider 

the contractor's plans and orders for current and planned production when 

determining if items can reasonably be used on other work of the 

contractor.
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 51

(c) Costs Continuing after Termination

Costs that cannot be discontinued immediately after the effective date of 

termination are generally allowable. However, any costs continuing after 

the effective date of the termination because of the negligent or willful 

failure of the contractor to discontinue them are unallowable.

(d) Start-Up Costs

Reasonable start-up and preparatory costs are generally allowable. When 

included in the settlement offer as a direct charge, they must not also be 

included in overhead. Start-up costs for one contract must not be 

allocated to others.

(e) Loss of Useful Value

Loss of useful value of special tooling and special machinery and 

equipment is generally allowable provided the:

(1) special tooling or special machinery and equipment is not 

reasonably capable of use in the other work of the contractor;

(2) judiciary’s interest is protected by transfer of title or by other means 

deemed appropriate by the CO; and

(3) loss of useful value for any one terminated contract is limited to that 

portion of the equipment cost that bears the same ratio to the total 

cost as the terminated portion of the contract bears to the entire 

terminated contract and to other judiciary contracts for which the 

special tooling or special machinery and equipment were acquired.

(f) Rental Costs Under Unexpired Leases

Rental costs under unexpired leases, less the residual value of such 

leases, are generally allowable when shown to have been reasonably 

necessary for the performance of the terminated contract when:

(1) the amount of rental claimed does not exceed the reasonable use 

value of the property leased for the period of the contract and such 

further period as may be reasonable; and

(2) the contractor makes all reasonable efforts to terminate, assign, 

settle, or otherwise reduce the cost of such lease.

(g) Alterations of Leased Property
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 52

The cost of alterations and reasonable restorations required by the lease 

may be allowed when the alterations are necessary for performing the 

contract.

(h) Settlement Expenses

Settlement expenses such as the following are generally allowable:

(1) Accounting, legal, clerical, and similar costs reasonably necessary 

for the:

• preparation and presentation, including supporting data, of 

settlement claims to the CO; and

• termination and settlement of subcontracts.

(2) Reasonable costs for storage, transportation, protection and 

disposition of property acquired or produced for the contract.

(3) Indirect costs related to salary and wages incurred as settlement 

expenses under subparagraphs (1) and (2) above. Normally, such 

indirect costs must be limited to payroll taxes, fringe benefits, 

occupancy costs, and immediate supervision costs.

Note: If settlement expenses are significant, a cost account or work order 

must be established to identify and accumulate them separately.

(i) Subcontractor Claims

Subcontractor claims, including the allocable portion of the claims 

common to the contract and to other work of the contractor are generally 

allowable. An appropriate share of the contractor's indirect expenses may 

be allocated to the amount of settlements with subcontractors, provided 

that the amount allocated is reasonably proportionate to the relative 

benefits received and is otherwise consistent with the principles of this 

chapter. The indirect expense so allocated must exclude the same and 

similar costs claimed directly or indirectly as settlement expenses.

§ 470.40.75 Self-Insurance Costs

(a) Programs of self-insurance covering a contractor’s insurable risks, 

including the deductible portion of purchased insurance, may be approved 

and the costs considered allowable when examination of a program 

indicates that its application is in the judiciary’s interest.

(b) However, programs of self-insurance for catastrophic risks or to protect a 

contractor against the costs of correcting its own defects in materials or 
Guide to Judiciary Policy, Vol. 14, Ch. 4 Page 53

workmanship are not allowable. Should performance of a judiciary 

contract create the risk of catastrophic losses, the judiciary may, to the 

extent authorized by law, agree to indemnify the contractor or recognize 

an appropriate share of premiums for purchased insurance, or both.

§ 470.50 Accounting for Unallowable Costs

The CO must identify and exclude from each billing, claim, and offer those costs that 

are expressly unallowable under this chapter or as mutually agreed to be unallowable 

under an advance cost agreement. See: § 470.30.20 (Advance Agreements).

(a) When costs are identified as unallowable or mutually agreed to be 

unallowable, all directly associated costs are also unallowable.

(b) Costs and directly associated costs specifically designated as unallowable 

as a result of a written decision by a CO must be identified when included 

in or used in computing any billing, claim, or offer applicable to a judiciary 

contract.

(c) For those costs that have been identified as unallowable, the CO must 

require records as support for claims, billings, and offers. These must be 

adequate to establish and maintain visibility of those costs and directly 

associated costs.

(d) The CO must identify unallowable costs involved in determining rates 

used for standard costs, indirect cost offers, or billings at the time rates 

are proposed, established, revised, or adjusted.
Last revised (Transmittal 14-014) December 18, 2019

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 5: Special Categories of Procurements

§ 510 Personal Services Contracts

§ 510.20 General Prohibition

§ 510.30 Judiciary’s Statutory Authority

§ 510.40 Personal Services Indicators

§ 510.50 Clause

§ 520 Expert and Consultant Nonpersonal Services Contracts

§ 520.10 Authority

§ 520.20 Competition and Advertising Exceptions

§ 520.25 Contract and Procurement File Requirements

§ 520.30 Statutory Qualification

§ 520.40 Applicability

§ 520.45 Restrictions

§ 520.50 Award and Administration Requirements

§ 520.55 Services Exceeding One Year

§ 520.60 Former Government Employees

§ 520.65 Travel Reimbursement

§ 520.70 Professional Licenses

§ 520.75 Provisions and Clauses

§ 520.80 Contract Type

§ 520.85 Experts or Consultants Supporting Judicial Conference Committees

§ 530 Architect-Engineer Contracts

§ 530.10 Architect-Engineer Services

§ 530.20 Architect-Engineer Evaluation Board

§ 530.30 Architect-Engineer Evaluation Board Functions

§ 530.40 Architect-Engineer Selection

§ 530.50 Short Selection Process for Small Purchases

§ 530.60 Cost Estimate for Architect-Engineer Contracts

§ 530.70 Negotiations of Architect-Engineer Contracts

§ 540 Commercial Agreements

§ 540.10 In General

§ 540.20 Negotiating Commercial Agreement Terms and Conditions

§ 540.30 Procedures

§ 550 Interagency Agreements, MOAs, and MOUs

§ 550.10 In General

§ 550.20 Types of IAs

§ 550.40 IA Requirements
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 2

§ 550.45 IA Management

§ 550.50 Payment of IAs

§ 550.55 MOAs and MOUs

§ 510 Personal Services Contracts

§ 510.10 [Reserved]

§ 510.20 General Prohibition

(a) Personal service contracts are strictly prohibited without specific statutory

authority. Unless a statutory exception applies, the judiciary is required to 

obtain employees by direct hire under competitive appointment or other 

personnel procedures.

(b) Brief or intermittent services furnished by private-sector temporary help 

firms may not be regarded or treated as personal services. These 

services may not be used instead of regular recruitment under civil service 

laws or to displace a federal employee. For further guidance and 

restrictions on the use of temporary help support services, see: Guide, 

Vol. 12, § 560 (Temporary Help Service Firms).

§ 510.30 Judiciary’s Statutory Authority

(a) The judiciary’s only statutory authority to contract for personal services is 

28 U.S.C. § 612(a), which authorizes the AO Director to contract for 

personal services for the effective management, coordination, operation, 

and use of information technology equipment, purchased by the Judiciary 

Information Technology fund (JITF). Contracts issued under this authority

are subject to the judiciary competition requirements but exempt from the 

advertising requirement of 41 U.S.C. § 6101. See: Guide, Vol. 14, 

§ 130.20.15 (Advertising Requirements).

(b) Under 28 U.S.C. § 602(c), the AO Director is statutorily authorized to 

obtain the personal services of experts or consultants as authorized by 

5 U.S.C. § 3109 at rates not to exceed the highest rate of pay established 

under 5 U.S.C. § 5332. Obtaining personal services of experts or 

consultants under this authority, however, must be through a personnel 

appointment rather than through an independent contract and is outside 

the scope of this volume of the Guide. For guidance on obtaining expert 
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 3

or consultant services through award of a contract, see: § 520 (Expert 

and Consultant Nonpersonal Services Contracts).

(c) Only the Procurement Executive (PE) has been delegated the authority to 

contract for personal services. See: Guide, Vol. 14, § 120.20.10 (Director 

Delegations).

§ 510.40 Personal Services Indicators

(a) The personal services determination is largely based on the degree of 

government supervision over the individual’s work. The fact that the 

individual may work independently does not in itself satisfy the 

independent contractor test. The essence of the test is whether judiciary 

employees, on a close and continuous basis, control what is done and 

how the individual performs the work.

(b) There is no “acid test” that determines that personal services exist. 

Instead, this is necessarily a subjective judgment that the CO makes 

based on the individual circumstances. If there is a reasonable question 

as to whether a specific contract involves the performance of personal 

services, the CO should provide file documentation on the analysis 

performed to reach a determination.

(c) The following questions are useful indicators in determining whether a 

service contract is an improper personal services contract, either in how 

the contract is written or in how it is administered on a day-to-day basis. A 

“yes” answer to any of the following questions may indicate that the 

proposed procurement is “personal” in nature. The existence of any of 

these elements may indicate the likelihood that supervision exists. 

However, the existence of any one indicator alone does not necessarily 

require the CO to conclude that the services are “personal.”

• Will the individual(s) require frequent direction and supervision?

• Will the services be performed on the judiciary site?

• Will the principal tools and equipment necessary for performance of 

the services be provided by the judiciary?

• Will the services be applied directly to the integral effort of the judicial 

organization, and are they in direct furtherance of its assigned function 

or mission?

• Will comparable services, meeting comparable needs, be performed 

elsewhere in the judiciary using judiciary employees?
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 4

• Will the need for the type of provided services be reasonably expected 

to last beyond one year?

• Will the inherent nature of the service, or how it is provided, reasonably 

require direct or indirect judiciary supervision of contractor employees 

to adequately protect the judiciary’s interest, retain control of the 

function involved, or retain full personal responsibility for the function 

supported in a duly authorized judiciary officer or employee?

§ 510.50 Clause

Include Clause 5-1, Payments under Personal and Professional Services Contracts in 

solicitations and contracts for personal services permitted under § 510.30(a) (Judiciary’s 

Statutory Authority).

§ 520 Expert and Consultant Nonpersonal Services Contracts

§ 520.10 Authority

The judiciary is authorized to contract for expert and consultant services on a 

nonpersonal services basis under 5 U.S.C. § 3109. For the definition of expert or

consultant, see: Guide, Vol. 14, Glossary of Procurement Terms.

§ 520.15 [Reserved]

§ 520.20 Competition and Advertising Exceptions

(a) These services do not need to be competed or advertised. When 

contracting for the services of a consultant or expert under 5 U.S.C. 

§ 3109, the CO does not need to prepare a sole source justification, since 

there is no competition requirement. However, the file documentation 

must reflect that these services are acquired under the authority of 

5 U.S.C. § 3109, so that anyone reviewing the contract file will understand 

why the requirement was not competed or advertised.

(b) Expert or consultant contracts may not be used as a “pass through” for 

services of individuals other than the named expert, or to acquire goods or 

services that would otherwise be subject to the judiciary’s competition 

requirements.

§ 520.25 Contract and Procurement File Requirements

A purchase, delivery, or task order may not be used for expert and consultant services. 

A formal written contract must be used. The contract must contain all the requisite 
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 5

terms and conditions of a formal government contract. The procurement file must 

document the price or cost analysis performed, indicating that the compensation is fair 

and reasonable. This may require an informal market survey (see: Guide, Vol. 14, 

§ 210.60 (Market Research)) or other objective facts, which demonstrate the price’s 

reasonableness (see: Guide, Vol. 14, § 470.20 (Determining Reasonableness)).

§ 520.30 Statutory Qualification

Before contracting for the services of an individual or business entity as an expert or 

consultant, the CO must determine that the individual or business entity qualifies as an 

“expert” or “consultant” under 5 U.S.C. § 3109, and must document this determination in 

the file.

§ 520.40 Applicability

Advice to the government from experts or consultants must include the alternatives 

considered and the rationale for the chosen recommendations. The recommendations 

may include suggestions for a decision or course of action, but judiciary personnel make 

the ultimate decision. Procuring expert and consulting services is appropriate for 

purposes such as obtaining:

(a) specialized opinions, professional or technical advice not available within 

the judiciary or from another federal agency;

(b) outside viewpoints, to avoid too limited a judgment on critical 

administrative or technical issues;

(c) advice on developments in industry;

(d) the opinions of experts whose national or international prestige can 

contribute to the success of an important project; or

(e) specialized skills that are not needed continuously.

§ 520.45 Restrictions

(a) The services of consultants or experts under 5 U.S.C. § 3109 may be 

obtained by contract only if:

(1) the work is temporary or intermittent, defined as follows:

(A) Temporary

Continuous performance (i.e., full time) over a period not 

exceeding one year. Because of the period limitation, it is 
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 6

not appropriate to include options to extend the period of 

performance beyond one year in contracts for temporary 

expert or consultant services. This authority may not be 

used to procure the services of experts or consultants under 

a succession of short-term contracts where the resulting 

continuous performance would exceed one year.

(B) Intermittent

Occasional or irregular work on cases, programs, projects, 

and problems requiring intermittent services as distinguished 

from continuous. A contract for intermittent services may not 

exceed 130 days of work within a 12-month period but may 

be renewed from year to year.

(2) the position does not involve policy, management of judiciary staff 

or projects, or the operating duties of judiciary employees; and

(3) the individual or business entity possesses the necessary skills and 

expertise to qualify as an expert or consultant.

(b) A CO may not contract for expert or consulting services to bypass, 

circumvent, or undermine personnel ceilings, pay limitations, or 

competitive employment procedures.

(c) A contract for expert or consulting services may not establish by its terms 

or by how it is administered:

(1) an employer-employee relationship between the judiciary and the 

contractor, including detailed control or supervision by judiciary 

personnel of the contractor or its employees with respect to the 

day-to-day operations of the contractor or the methods of 

accomplishment of the services; or

(2) supervision of judiciary employees, or of employees of other 

contractors, by the contractor.

§ 520.50 Award and Administration Requirements

Before processing any award or solicitation for expert or consulting services, the CO 

must ensure that the applicable provisions of this chapter have been complied with and 

that the following required documentation is complete and included in the contract file:

(a) each requirement is appropriate and fully justified in writing;
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 7

(Note: The justification must include a statement of need and the 

requesting official must certify that the services do not unnecessarily 

duplicate any previously performed work or services.)

(b) each work statement is specific and complete, and states a fixed period of 

performance within which the services are to be provided; and

(c) appropriate disclosure is required of, and warning is given to, contractor 

personnel to avoid conflicts of interest.

After the award of a contract for expert or consultant services, the CO must ensure that 

the contract is properly administered and monitored to ensure that performance meets 

the requirements of the contract.

§ 520.55 Services Exceeding One Year

Contracts for intermittent expert or consultant services may include options to extend 

the period of performance for additional years. See: Guide, Vol. 14, § 220.40 

(Options). However, since temporary services, by definition, are not to exceed one 

year, a contract for temporary expert or consulting services may not include an option to 

extend the period of performance beyond one year and may not be extended by 

modification. When additional services are required, a new contract must be awarded 

subject to the requirements and limitations of this section (i.e., § 520 (Expert and 

Consultant Nonpersonal Services Contracts)).

§ 520.60 Former Government Employees

(a) There is no per se prohibition on awarding an expert or consultant contract 

to a former government employee, and it can, in fact, be appropriate, 

depending upon the circumstances. The individual must meet the 

definition of an “expert” or “consultant.” However, the definition prohibits 

procuring services that are to be performed by full-time government 

employees. Simply because the individual has expertise in a particular 

matter, which they obtained because of their work on that matter as a 

government employee, does not mean that they automatically meet the 

definition of an “expert” or “consultant” under 5 U.S.C. § 3109.

(b) An abuse of this situation would be procuring the services of former 

government employees to perform the operating duties of the government 

workforce or to continue with work the individual was involved in as a 

regular government employee. Then, the requesting office could consider 

other alternatives instead of contracting with the individual, such as reemployment on a full-time, temporary, or intermittent basis as appropriate.
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 8

(c) Although former government employees may satisfy the 5 U.S.C. § 3109

criteria as an “expert” or “consultant,” the CO must guard against 

contracting with such individuals when it will result in a personal services 

contract (i.e., an employer-employee relationship). See: § 510.30(b) 

(Judiciary's Statutory Authority).

§ 520.65 Travel Reimbursement

Any travel required for contract performance that cannot be defined at the time of award 

must be approved in advance by the contracting officer’s representative (COR), and the 

contract must incorporate Clause 7-45, Travel, limiting reimbursement to that allowed 

under the judiciary staff travel regulations. For guidance on contractor eligibility for 

government travel discounts, see: Guide, Vol. 19, § 410.20(c) (Applicability).

§ 520.70 Professional Licenses

When obtaining expert or consulting services for which individuals are normally required 

to be professionally licensed (e.g., medical, legal, accounting, architecture), the 

solicitation must require proof of the license as a prerequisite to award (e.g., copy of the 

membership card issued by the bar association showing that membership is current for 

an attorney, or similar credentials for other professionals). The solicitation may also 

require the individual to be licensed in a particular state or by a particular entity.

§ 520.75 Provisions and Clauses

Include the following clauses, in addition to those listed in Guide, Vol. 14, § 330.10.30 

(Provisions and Clauses), unless otherwise indicated:

§ 520.75 Provisions and Clauses

Clause or Provision Include in:

(a) Clause 1-5, Conflict of 

Interest

All solicitations and contracts for experts and consultant 

services.

(b) Clause 2-65, Key Personnel Solicitations and contracts for professional services when 

the contractor is a corporate entity rather than an individual 

(e.g., awards to law firms). Professional services are those 

provided by an individual whose position requires a license 

or certification (e.g., attorney, certified public accountant). 

The clause requires use of the key personnel identified in 

the contractor's offer, unless the CO approves substitution. 

It provides for contract termination for failure to comply. 

The CO will appropriately fill in the clause’s blank spaces.
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 9

§ 520.75 Provisions and Clauses

Clause or Provision Include in:

(c) Clause 5-1, Payments under 

Personal and Professional 

Services Contract

All solicitations and contracts for personal services as well 

as expert and consultant services.

(d) Clause 5-5, Nondisclosure 

(Professional Services)

All solicitations and contracts for experts and consultant 

services.

(e) Clause 5-10, Inspection of 

Professional Services

All solicitations and contracts for experts and consultant 

services. Provides for inspection of the professional's work 

product and acceptance of only those products that meet 

reasonable professional standards.

(f) Clause 7-125, Invoices, 

Alternate I

All non-fixed-price contracts for professional services. The 

clause requires presentation of invoices showing:

• who performed the services;

• the hours and partial hours of service provided each 

day; and

• the services provided each hour or partial hour.

(Note: Contractors may be allowed to set minimum 

charges for partial hours or days.)

(g) Clause 5-20, Records 

Ownership

Solicitations and contracts when judiciary ownership of all 

contractor work papers relating to the services provided is 

desired.

(h) Provision 5-25, Identification 

of Uncompensated 

Overtime

All solicitations valued above the judiciary’s small purchase 

threshold (see: Guide, Vol. 14, § 325.10 (Applicability)) for 

professional or technical services to be acquired on a:

• labor-hour,

• time and materials, or

• cost-reimbursement basis.

(i) Clause 6-65, Rights in Data 

– Special Works

Solicitations and contracts for professional services when 

the CO determines that there is a need to limit distribution 

and use of the data to be produced under the contract. See

also: Guide, Vol. 14, § 650.55.20 (License Terms).

(j) Clause 6-35, Errors and 

Omissions

Solicitations and contracts when errors and omissions 

insurance is required. See: Guide, Vol. 14, § 630.40 

(Errors and Omissions Insurance).
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 10

§ 520.80 Contract Type

Firm-fixed-price contracts are preferred. When a firm-fixed-price contract is not 

suitable, the CO must first document the reasons. A labor-hour contract may be used,

subject to the limitations in Guide, Vol. 14, § 410.40.30 (Limitations). For further 

guidance on this contract type, see: Guide, Vol. 14, § 410.40 (Labor-Hour Contracts).

§ 520.85 Experts or Consultants Supporting Judicial Conference 

Committees

The use of reporters or consultants to directly support committees of the Judicial 

Conference of the United States (JCUS) requires prior approval. (Note: In this context, 

a "reporter" is a consultant who provides expert or specialized research, analytical, and 

drafting support directly for a JCUS committee.)

(a) Any contract for expert or consulting services for a JCUS committee for a 

discrete, short-term project or activity must have prior approval from the 

AO Director and be issued by the Procurement Management Division

(PMD) of the AO’s Finance and Procurement Office. The COR appointed 

to oversee the work must be a member of the AO staff.

(b) Any contract with a reporter or other consultant who may be expected to 

support a JCUS committee for a longer term or indefinitely must be 

approved through the AO Director by the Chief Justice, who makes all 

appointments to these positions.

§ 530 Architect-Engineer Contracts

§ 530.10 Architect-Engineer Services

§ 530.10.10 Delegation

Authority to award Architect-Engineer contracts under this section is delegated only to 

COCP Levels 5, 6, and 7. If the CO holds a COCP Level 2 delegation for a specific 

building location for which there is a GSA Real Property Operations and Maintenance 

Delegation (GSA Building Delegation), the CO must follow the Federal Acquisition 

Regulation instead of this volume of the Guide. See: Guide, Vol. 14, Appx. 1E 

(Contracting Officers Certification Program (Level 2: Special Delegated Procurement 

Programs)) and § 120.40.55 (GSA Building Delegations).

§ 530.10.20 In General

The following are considered architect-engineer services for the purpose of this section:
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 11

(a) Professional services of an architectural or engineering nature, as defined 

by applicable state law, which the state law requires to be performed or 

approved in writing by a registered architect or engineer.

(b) Professional services of an architectural or engineering nature associated 

with design or construction of real property.

(c) Other professional services of an architectural or engineering nature or 

services incidental thereto that logically or justifiably require performance 

by registered architects or engineers or their employees, including:

• studies,

• investigations,

• tests,

• evaluations,

• consultations,

• comprehensive planning,

• program management,

• conceptual designs,

• plans and specifications,

• value engineering,

• construction phase services,

• soils engineering,

• drawing reviews,

• preparation of operating and maintenance manuals, and

• other related services;

(d) Professional surveying and mapping services of an architectural or 

engineering nature.

(1) Surveying

Must be procured from registered surveyors or architects and 

engineers.

(2) Mapping

(A) Mapping is considered an architectural and engineering 

service if it is associated with the research, planning, 

development, design, construction, or alteration of real 

property.

(B) Mapping services may not be procured under this section if 

they:
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 12

(i) are not connected to traditionally understood or 

accepted architectural and engineering activities;

(ii) are not incidental to such architectural and 

engineering activities, or

(iii) have not themselves traditionally been considered 

architectural and engineering services.

§ 530.10.30 Source Selection

The award of contracts for architect-engineer services is subject to the requirements of 

the Brooks Act. See: Guide, Vol. 14, § 130.20.50 (Procurement of Certain Professional 

Services). The procedures in this chapter must be followed when contracting for these 

services rather than solicitation or source selection procedures prescribed elsewhere in 

this volume. The selection authority for architect-engineer services must be designated 

by the PE, and may also be, but is not required to be, the CO.

§ 530.10.40 Publicizing and Response

(a) The judiciary must publicly announce all requirements for contracts of 

architect-engineer services and negotiate contracts for these services 

based on the demonstrated competence and qualifications of prospective 

contractors to perform the services at fair and reasonable prices. The 

announcement must state that all architect-engineer firms wishing to be 

considered must submit their qualifications using Form SF 330 (ArchitectEngineer Qualifications). For further guidance on methods of publicizing 

procurements, see: Guide, Vol. 14, § 315 (Publicizing Open Market 

Procurement Actions).

(b) The architect-engineer evaluation board and selection authority must 

evaluate each potential contractor based on the following criteria:

(1) professional qualifications necessary for satisfactory performance 

of the required services;

(2) specialized experience and technical competence in the type of 

work required;

(3) capacity to accomplish the work in the required time;

(4) past performance on contracts with the judiciary, other 

governmental entities, and/or private industry concerning:

• cost control,

• quality of work, and
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 13

• compliance with performance schedules;

(5) acceptability under other appropriate evaluation criteria.

§ 530.20 Architect-Engineer Evaluation Board

§ 530.20.10 Composition of Board

When procuring architect-engineer services, the Procurement Liaison Officer (PLO) or 

equivalent in the judiciary organization or the PE, must establish an architect-engineer 

evaluation board, composed of at least three members. One member of the board must 

be designated as the chairperson. All three members must be individuals who are 

highly qualified professionals who, collectively, have experience in architecture, 

engineering, construction, and related matters. Board members are not required to be 

judiciary employees and may be outside consultants. For further guidance on outside 

consultants serving as evaluators, see: Guide, Vol. 14, § 210.70.40 (Evaluation 

Panels).

§ 530.20.20 Evaluation Board Exclusions

Neither the CO nor anyone delegated to conduct architect-engineer contract 

negotiations for a given project may be a member of that project’s evaluation board.

§ 530.20.30 Conflict of Interest Exclusion

No firm can be eligible for award of an architect-engineer contract during the period in 

which any of its principals or associates are participating as members of the awarding 

evaluation board.

§ 530.30 Architect-Engineer Evaluation Board Functions

The evaluation board must perform the following functions under the general direction of 

the PE (or delegatee if a one-time delegation has been made):

(a) review the firms’ qualification statements furnished in response to any 

notice publicizing the contemplated project, as well as any information 

available within the judiciary’s current data existing files on eligible firms;

(b) evaluate the firms according to the criteria in § 530.10.40(b) (Publicizing 

and Response);

(c) hold discussions with at least three of the most highly qualified firms about 

concepts and the relative utility of alternative methods of furnishing the 

required services;
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 14

(d) prepare for the selection authority a report recommending, in order of 

preference, at least three firms that are evaluated to be the most highly 

qualified to perform the required services.

(Note: The selection report must include a description of the board’s 

discussions and evaluation. This report will allow the selection authority to 

review the considerations upon which the recommendations are based.)

§ 530.40 Architect-Engineer Selection

§ 530.40.10 In General

The selection authority must:

(a) review the recommendations of the evaluation board, and

(b) with the advice of appropriate technical and staff representatives, approve 

the final selection report.

§ 530.40.20 List of Most Highly Qualified Firms

The final selection report must be a listing, in order of preference, of the firms 

considered most highly qualified to perform the work.

§ 530.40.30 File Documentation

If the firm listed as the most preferred is not recommended as the most highly qualified 

by the evaluation board, the contract file must include a written explanation of the 

reason for the preference. All firms on the final selection report list must be considered 

“selected firms” with which the CO may negotiate.

§ 530.40.40 Revisions to the Report

The selection authority may not add firms to the selection report. If the firms 

recommended in the report are not deemed to be qualified, or the report is considered 

inadequate for any reason, the selection authority must record the reasons and return 

the report to the evaluation board for appropriate revision.

§ 530.50 Short Selection Process for Small Purchases

§ 530.50.10 Conditions to Use the Short Process

When authorized by the delegated CO (see: § 530.10.10 (Delegation)), the process 

below in § 530.50.20 (Short Process) may be used as an alternative to those identified 

in § 530.30 (Architect-Engineer Evaluation Board Functions) and § 530.40 (Architect-
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 15

Engineer Selection) to select firms for contracts not estimated to exceed the judiciary’s 

small purchase threshold (see: Guide, Vol. 14, § 325.10 (Applicability)).

§ 530.50.20 Short Process

When the CO decides that formal action by the board is not necessary in connection 

with a particular selection, the following procedures must be used:

(a) The chairperson of the board must perform the functions of the board 

provided in § 530.30 (Architect-Engineer Evaluation Board Functions).

(b) The CO must review the report and approve it or return it to the 

chairperson for appropriate revision.

(c) Upon receipt of a written report approved and signed by the board’s 

chairperson, the CO is authorized to begin negotiations.

§ 530.60 Cost Estimate for Architect-Engineer Contracts

Before the CO can negotiate any proposed contract or begin a contract modification 

requiring funding, an independent cost estimate for the required Architect-Engineer 

services must be developed based on a detailed analysis of the costs expected to be 

generated by the work. The estimate must be prepared by the requiring organization 

and be sent to the CO with the request for services. Access to information concerning 

the cost estimate must be limited to judiciary personnel and agents whose official duties 

require knowledge of the estimate.

§ 530.70 Negotiations of Architect-Engineer Contracts

§ 530.70.10 Initiation of Negotiations

(a) The CO must first attempt to negotiate a contract with the first firm on the 

selection report list (see: § 530.40 (Architect-Engineer Selection)) for the 

required services at a price that the CO determines in writing to be fair and 

reasonable. Negotiations must be conducted according to Guide, Vol. 14, 

§ 345 (Price Negotiations).

(b) The CO must request an offer from the firm, ensuring that the solicitation 

does not inadvertently preclude the firm from proposing the use of modern 

design methods.

(c) The CO must:

(1) ensure that the firm has a clear understanding of the scope of work, 

specifically the essential requirements involved in providing the 

required services, and determine whether the firm will make 
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 16

available the necessary personnel and facilities to perform the 

services within the required time; and

(2) limit the firm’s subcontracting to firms agreed upon during 

negotiations or through a formal contract modification.

§ 530.70.20 Termination of Negotiations

If a mutually satisfactory contract cannot be negotiated, the CO must notify the firm that 

negotiations are terminated. The CO must then begin negotiations with the next 

qualified firm rated on the list. This procedure must continue until a mutually 

satisfactory contract has been negotiated.

§ 530.70.30 Requesting Additional Firms

If unable to negotiate a satisfactory contract with any of the selected firms, the CO must 

request a listing of additional firms from the evaluation board and continue negotiations 

according to this section until an agreement is reached.

§ 530.70.40 Notification of the Final Selection

The CO must promptly inform the evaluation board of the final selection once a mutually 

satisfactory contract has been negotiated.

§ 530.70.50 Contract Type

Architect-engineer contracts are normally firm-fixed-price. If an indefinite-delivery 

contract is used, the task orders are normally firm-fixed-price.

§ 530.70.60 Clauses

The following clauses are inserted in solicitations and contracts for architect/engineer 

services as indicated:

§ 530.70.60 Clauses

Clause Include in:

(a) Clause 5-30, Authorization and 

Consent

All architect-engineer solicitations and contracts.

(b) Clause 5-35, Payments under FixedPrice Architect-Engineer ContractsFixed price architect-engineer solicitations and 

contracts.

(c) Clause 5-45, Design Within Funding 

Limitations

Solicitations and contracts when the project must 

be designed so that construction costs do not 

exceed a contractually specified dollar limit 

(funding limitation).
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 17

§ 530.70.60 Clauses

Clause Include in:

(d) Clause 5-50, Responsibility of the 

Architect-Engineer Contractor

Fixed price architect-engineer solicitations and 

contracts.

(e) Clause 5-55, Work Oversight in 

Architect-Engineer Contracts

All architect-engineer solicitations and contracts.

(f) Clause 5-60, Requirements for 

Registration of Designers

All architect-engineer solicitations and contracts.

(g) Clause 5-65, Subcontractors and 

Outside Associates and Consultants 

(Architect-Engineer Services)

All architect-engineer solicitations and contracts.

(h) Clause 5-70, Termination (Fixed-Price 

Architect-Engineer)

Fixed price architect-engineer solicitations and 

contracts.

(i) Clause 5-75, Suspensions and Delays All architect-engineer solicitations and contracts.

§ 540 Commercial Agreements

§ 540.10 In General

Commercial agreements, license agreements (including software licenses), and special 

use agreements are often requested by contractors as conditions to entering into 

contracts with the judiciary for the purchase of products, services, and commercial 

meeting or conference facilities. These agreements are usually written for commercial 

entities rather than federal agencies and contain terms and conditions that must be 

modified or removed.

§ 540.20 Negotiating Commercial Agreement Terms and Conditions

In general, COs should not sign commercial agreements. Instead, the CO should issue 

a judiciary contract containing the appropriate judiciary terms and conditions. If this is 

not possible, then the following steps must be taken before the CO signs the 

commercial agreement:

(a) Prohibited Terms and Conditions

The CO will review the commercial agreement and negotiate with a 

representative from the company to delete any of the following terms and 

conditions if they are proposed as part of the commercial agreement:
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 18

§ 540.20(a) Prohibited Terms and Conditions

Term or Condition Deletion Mandatory

(1) Credit Application/Master 

Account

Credit provisions are not applicable to the judiciary.

(2) Attorney Fees Any clause regarding payment of attorney fees.

(3) Automatic Renewals of 

Agreements

Provisions that automatically renew the commercial 

agreement from year-to-year. 

(4) Payments in Advance Unless the agreement is authorized for advance payment 

under Guide, Vol. 14, § 220.55 (Contract Financing).

(5) Insurance The judiciary is self-insured.

(6) Damage Deposits Any damage deposit. For Indemnification and/or Hold 

Harmless terms, see: paragraph (8) below.

(7) Arbitration Clause Any clause agreeing to arbitration.

(8) Indemnification or Hold 

Harmless

Delete any commercial term or provision stating that the 

judiciary will indemnify the contractor, and replace with the 

following: “Notwithstanding any other term or provision of 

this agreement, the judiciary’s liability related to any claim for 

personal injury, death, property loss, or damage under this 

agreement, is limited by and subject to the procedures and 

terms of the Federal Tort Claims Act, the Antideficiency Act,

and all other applicable federal laws and regulations.”

(9) Clause making State Court 

Jurisdiction or State Law 

applicable

Replace with “Federal law applies.” See: Boyle v. United 

Technologies Corp., 487 U.S. 500, 504 (1988) (noting 

“obligations to and rights of the United States under its 

contracts are governed exclusively by federal law.”)

(b) Terms or Conditions Recommended for Deletion or Modification

In addition, it is strongly recommended as being in the best interests of the 

judiciary that the CO attempt to delete or modify the following commonly 

used commercial agreement terms or conditions:

§ 540.20(b) Terms and Conditions Recommended for Deletion or Modification 

Term or Condition Recommended Action

(1) Interest Any interest charges should be negotiated out because the government 

is not liable for interest in the absence of express provisions in statutes 

or a lawful contract. If the requirement to pay interest remains in the 

agreement, then sufficient funds must be available to pay any such 

interest charges to avoid violation of the Antideficiency Act, 31 U.S.C 
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 19

§ 540.20(b) Terms and Conditions Recommended for Deletion or Modification 

Term or Condition Recommended Action

§ 1341(a)(1), and the agreement should stipulate that the interest rate 

may not exceed that allowed under the Prompt Payment Act.

(2) Subject to 

Change Without 

Notice

Any language that indicates that the terms of the agreement are subject 

to change by the vendor without notice to the judiciary should be 

negotiated out.

(3) Taxes Generally, the judiciary is immune from paying taxes imposed by state 

and local governments. However, for further guidance on taxes on 

telecommunications services, see: Guide, Vol. 15, § 555 (Taxes and 

Fees for Communication Services and Computers).

(4) Cancellation Any schedule or fixed rate of liquidated damages or fees associated with 

the cancellation or reduction of the service should be negotiated out. 

Regarding cancellation charges on multi-year contracts, see: Guide, 

Vol. 14, § 410.75 (Multi-Year Contracts). Note: For cancellation terms 

in agreements with hotels or other conference or meeting facilities, see: 

paragraph (5)(E) (Cancellation), below.

(5) Provisions Specific to Commercial Meeting or Conference Facilities:

(A) Early 

Departure Fee

Any fees for changing departure dates to an earlier date after check-in 

should be negotiated out.

(B) Food and 

Beverage 

Policy

Restrictions that require all food and beverages consumed at the facility 

to be purchased at the facility should be negotiated out.

(C) Group 

Commitment 

Charges based upon actual number of attendees rather than an 

estimated number should be negotiated out.

(D) Deposit The judiciary can provide a “reasonable” deposit in exchange for the 

hotel or facility to reserve or guarantee a space.

Note: The deposit amount must be obligated on a purchase order prior 

to paying any deposit.

(E) Cancellation If the contractor insists on damages for cancellation of a hotel booking, 

replace any schedule of damages with language similar to the following:

(i) “Cancellation or reduction” refers to either a complete cancellation of 

the room block or a reduction of more than 20% of the original room 

block. No penalty will apply to a cancellation or reduction when the 

judiciary gives written notice of such cancellation or reduction, via 

email, facsimile, or hard copy, at least 60 days prior to the date of 

the event, or if the event is cancelled as a result of catastrophic 

events (e.g., airport closure, major snow storm, hurricane, tornado, 

flood).
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 20

§ 540.20(b) Terms and Conditions Recommended for Deletion or Modification 

Term or Condition Recommended Action

If a cancellation or reduction occurs less than 60 days before the 

date of the event, the contractor agrees to make every effort to 

resell the cancelled room block. If the contractor is unable to resell 

all the cancelled or reduced products or services, the judiciary will

be responsible for such amounts that reflect the actual losses 

sustained by the contractor.

(ii) If the judiciary agrees to reschedule the same event within six 

months from the date of the cancelled event, any cancellation fee 

will be waived.

(iii) If the hotel cancels the booking, without limiting the judiciary’s rights 

and remedies under law or in equity, the hotel must be held 

responsible for excess costs incurred by the judiciary to arrange 

equivalent accommodations for the event.

(c) In addition to the above mandatory and recommended changes to 

proposed commercial terms and conditions, when the contract is being 

awarded in the current fiscal year to be delivered or performed in a future 

fiscal year, the CO must incorporate a statement that the agreement is 

subject to the availability of funds and incorporate Clause 7-115, 

Availability of Funds by reference.

§ 540.30 Procedures

(a) The CO must ensure that either:

(1) a new commercial agreement is generated that incorporates all the 

negotiated changes; or

(2) both parties have initialed all modifications made to the original 

commercial agreement.

(b) If the contractor and the CO cannot agree to the terms, the CO must:

(1) identify and recommend options that may be available to the 

judiciary (Note: Options could include a recommendation that the 

product or service be procured elsewhere.); or

(2) contact PMD for assistance if the provisions at issue are those 

specified in § 540.20(a) (Prohibited Terms and Conditions).
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 21

(c) If the CO is unable to negotiate the provisions in § 540.20(b) (Terms and 

Conditions Recommended for Deletion or Modification) as recommended 

and proceeds with the agreement, then the CO must calculate any 

potential costs that may be incurred to obtain or use the products,

services, commercial meeting, or conference facility under such terms that 

may not be favorable to the judiciary. The cost must be calculated using a 

“worst-case” scenario.

Note: Sufficient funds must be obligated to cover the costs of the worstcase scenario when the purchase order is awarded.

§ 550 Interagency Agreements, MOAs, and MOUs

§ 550.10 In General

(a) Under some circumstances, judiciary units may wish to acquire goods or 

services from or through other federal entities. The AO Director has 

authority to enter into interagency agreements (IAs) for this purpose and 

has delegated this authority as described at Guide, Vol. 14, § 120.20.10(a) 

(Delegation to the Procurement Executive) and § 120.20.10(b) (Delegation 

to Chief Judges and Certain Judiciary Officials). See: 28 U.S.C. 

§ 604(a)(10)(C); 31 U.S.C. § 1535; and Guide, Vol. 14, § 140.30.30(h) 

(Level 3 Delegation).

(b) While MOAs and MOUs are not procurement vehicles (when used by 

themselves), these types of agreements are covered in this section for 

informational purposes. See: § 550.55 (MOAs and MOUs).

(c) This section does not apply to:

• agreements for personnel detail assignments (see: Guide, Vol. 12, 

§ 510.70 (Interagency Agreements and Memoranda of Understanding 

(MOU)));

• the purchase of duplication or printing services (see: Guide, Vol. 23, 

Ch. 2 (Printing)); or

• the placement and administration of Reimbursable Work 

Authorizations (RWAs) (see: Guide, Vol. 16, Ch. 3 (Tenant Alterations 

and Cyclical Facilities Maintenance)).

§ 550.20 Types of IAs

The judiciary may enter into the following types of IAs with other federal agencies:
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 22

(a) IAs under which another federal agency (referred to as the providing 

agency) will perform work for, or provide services to, the judiciary. In 

these IAs, the judiciary is the receiving agency and reimburses the other 

agency for such work.

(1) Under this type of agreement, the other federal agency may either 

perform the work itself or award a contract for the work to be 

performed.

(2) Regardless of how the work is performed, the payment is to the 

providing agency, not to a contractor.

(b) IAs under which the judiciary is authorized to issue a separate task or 

delivery order directly to a providing agency’s contract following the 

procedures in Guide, Vol. 14, § 310.60 (Other Federal Agency Contracts). 

Not all agencies offering direct acquisitions require an IA.

(1) Where IAs are required, funds are obligated on a task or delivery 

order and payment is made directly to the other agency’s 

contractor. The task or delivery order must be issued by an 

employee with at least COCP Level 3 delegated procurement 

authority. See: Guide, Vol. 14, § 140.30.30(h) (Level 3 

Delegation).

(2) An IA is not required to order from the GSA Federal Supply 

Schedule (FSS). See: Guide, Vol. 14, § 310.50 (GSA Federal 

Supply Schedules). Orders placed under GSA schedules must be 

within the CO’s delegation authority.

§ 550.20.10 Restrictions and Requirements

IAs with other federal agencies:

(a) Must comply with the bona fide needs rule (unless obligating no-year 

funds);

(b) May not be used to circumvent conditions or limitations on the use of 

appropriated funds; and

(c) May not be used to make prohibited purchases, whether prohibited by the 

judiciary or by the other agency.

§ 550.20.20 IA Content

(a) An IA must be in writing and should be executed before any services are 

performed or goods are requested. The agreed upon written terms 
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 23

establish the scope of the undertaking and the rights and obligations of the

parties. When developing an IA, if the other agency does not provide an 

agreement, the CO must ensure proper information is reported on FMS 

Forms 7600A or 7600B (Note: Open in Firefox or IE) or a similar form. 

Note: Form 7600A/B is meant for use only with an IA, not with an MOU or 

MOA. See: § 550.55.30 (MOA or MOU Content).

(b) An IA must specify at least the following:

(1) a citation of the statute or authority authorizing the IA;

(2) period of duration;

(3) responsibilities of the providing agency and the judiciary;

(4) description of services to be provided or products to be furnished;

(5) the cost of performance, including appropriate ceilings when cost is 

based on estimates;

(6) mode of payment — advance or reimbursement (see: § 550.50 

(Payment of IAs));

(7) any applicable special requirements or procedures for assuring 

compliance (e.g., in appropriate circumstances, it may be 

appropriate to request the providing agency add relevant judiciary 

clauses into a new solicitation or new task or delivery order, if 

issued on the judiciary’s behalf (see: Guide, Vol. 14, Appx. 1C 

(OFAC column)); 

(8) mutual termination provisions;

(9) procedures for the resolution of disagreements that may arise 

under an IA, including resolution by the PE;

(10) approvals and signatures by authorized officials (see: § 550.20.30 

(Approval Requirements)); and

(11) IA point of contact.

§ 550.20.30 Approval Requirements

(a) AO-issued IAs are subject to AO internal approval procedures. The use of 

IAs by other judiciary organizations to obtain products or services from 

another federal agency is subject to approval by the chief judge or other 

judiciary official identified in Guide, Vol. 14, § 120.20.10(b) (Delegation to 
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 24

Chief Judges and Certain Judiciary Officials), or the PLO, if appointed as a 

CO, subject to the following limitations:

(1) A CO must be certified at the appropriate COCP level.

(2) The chief judge or other judiciary official identified in Guide, Vol. 14, 

§ 120.20.10(b) (Delegation to Chief Judges and Certain Judiciary 

Officials), or the PLO, may not approve an IA that exceeds their

delegated procurement authority. See: Guide, Vol. 14, 

§ 140.30.30(h) (Level 3 Delegation). If the IA is expected to exceed 

the delegation, see: § 550.20.40 (Exceeding Delegation Authority).

(b) All judiciary IAs must adhere to applicable statutory and/or regulatory 

requirements, including appropriations law. The IA may include yearly 

option periods that, if the CO exercises the option, will require the 

obligation of fiscal year funds available for the option period through the 

execution of a new order with the providing agency. Similar to Guide, 

Vol. 14, § 220.55.60 (Procedures), an IA for severable services could 

cross a fiscal year.

§ 550.20.40 Exceeding Delegation Authority

Proposed IAs that exceed the general delegation authority amount, or for which

authority is specifically not delegated, must be forwarded to PMD for review and 

coordination with other AO offices, such as the AO’s Human Resources Office (HRO) or 

Office of the General Counsel (OGC). As appropriate, PMD will issue a one-time 

delegation of procurement authority.

§ 550.30 [Reserved]

§ 550.40 IA Requirements

§ 550.40.10 Statutory Authority

IAs are authorized under either the Economy Act (31 U.S.C. § 1535) or specific 

statutory authority for the purchase.

(a) The Economy Act applies when a more specific statutory authority does 

not exist.

(1) The Act does not provide authority to enter into IAs with state or 

local agencies to obtain goods or services.

(2) All IAs under the Act must be supported by a Determination and 

Finding (D&F) (see: § 550.40.20 (Economy Act Determination and 
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 25

Finding) and Appx. 5A (Economy Act Determination and Finding)), 

which must be maintained in the IA file.

Note: Appx. 5A (Economy Act Determination and Finding)

provides only the initial signature page of the required D&F. It must 

be accompanied by a statement of facts regarding the specific IA 

that supports the D&F.

(b) IAs supported by a more specific statutory authority than the Economy Act

do not require a D&F. Instead, the proposed IA must cite the specific 

statutory authority, and the PE, in coordination with OGC, must review and 

validate the lawful use of the authority other than the Economy Act.

§ 550.40.20 Economy Act Determination and Finding

(a) Before entering into an IA under the Act, the CO must prepare and sign a 

D&F. If the providing agency requires a copy of the judiciary’s D&F, the 

judiciary organization must provide it with the IA. The D&F must 

determine that:

(1) amounts are available to meet the proposed cost;

(2) it is in the judiciary’s best interest to use an IA to obtain products or 

services under the Economy Act (31 U.S.C. § 1535);

(3) the products or services cannot be provided by contract as 

conveniently or cheaply by contracting with a commercial 

enterprise; and

(4) the agency filling the order is able to provide, or get by contract, the 

ordered products and services.

(b) To support the determinations required in paragraph (a) above, the 

judiciary organization must consider the following, and include supporting 

documentation in the D&F and IA file:

(1) Total cost analysis of obtaining the products or services from the 

providing agency;

(2) Factual supporting information describing any pricing advantages in 

using an IA for obtaining products or services;

(3) Consideration of intangibles, such as ease of use, time savings;

(4) Comparison of the expenditure of effort and associated costs with 

placing an order or contract under other procedures; and
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 26

(5) Identification of other restrictions (e.g., length of time during which 

the IA will remain in force and effect; specified procedures imposed 

by the providing agency as a condition of the agreement).

(c) For IAs within the judiciary organization’s delegated procurement authority

(see: Guide, Vol. 14, § 140.30.30(h) (Level 3 Delegation)), excluding the

AO, the D&F must be approved by the chief judge or other judiciary official 

identified in Guide, Vol. 14, § 120.20.10(b) (Delegation to Chief Judges 

and Certain Judiciary Officials) (or PLO, if appointed as a CO).

(d) For IAs above judiciary organization’s delegated procurement authority,

the D&F must be approved by the PE before a one-time delegation of 

procurement authority will be issued.

§ 550.40.30 Economy Act Costs

(a) Payment under the Act — whether in advance, with subsequent 

adjustment, or by reimbursement — must be based on the actual costs of 

products or services provided (including a minimal administrative fee) to 

avoid unauthorized augmentation of an agency’s appropriations. It may 

not include “profit” to the providing agency.

(b) The Government Accountability Office (GAO) has indicated that, as a rare 

exception, agencies may waive the recovery of small amounts of costs 

incurred where processing reimbursement would be uneconomical. The 

judiciary CO must document the IA file when making such a 

determination.

(c) Actual costs include:

(1) all direct costs attributable to:

(A) the performance of a service, or

(B) the furnishing of products; and

(2) only indirect costs that:

(A) are funded out of the providing agency’s currently available 

appropriations, and

(B) bear a significant relationship to the service or work 

performed or materials furnished.
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 27

§ 550.40.40 Transfer of Funds

(a) Federal agencies require that payment be made by transferring funds via 

the Department of Treasury’s Intra-Governmental Payment and Collection 

(IPAC) system.

(b) The purchasing CO must provide the agency location code and other 

required information on FMS Forms 7600A or 7600B (Note: Open in 

Firefox or IE) or a similar form provided by the other federal agency. This 

form will provide the accounting information for both the providing and 

purchasing agencies in addition to other relevant agreement details.

(c) Because IPAC transfers can only be accomplished at the AO, the CO 

must seek assistance from the AO’s Finance and Accounting Division

(FAD) to accomplish the payment. For signature and approval 

requirements, see: § 550.20.30 (Approval Requirements).

§ 550.45 IA Management

IAs require management by the IA point of contact POC and the CO throughout the 

period of performance. Such management should not, however, include “supervising”

the providing agency’s contractor personnel. See: § 510 (Personal Services 

Contracts).

(a) The POC must manage the IA by:

(1) Monitoring performance, reimbursements, and funding;

(2) Notifying the judiciary CO overseeing the IA of any performance 

disputes;

(3) Approving invoices; and

(4) Notifying the judiciary CO in writing when the IA period of 

performance ends.

(b) The judiciary CO must manage the IA by:

(1) Approving any IA changes that will impact the budget (e.g., 

modification, deobligating, billing, advance payment before 

invoicing);

(2) Approving any necessary renewal that is accomplished before the 

expiration date; and
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 28

(3) Resolving any performance disputes that may arise (which may 

need to be coordinated with the providing agency CO in an assisted 

acquisition-type IA). See: § 550.20.20(b)(9) (IA Content).

§ 550.50 Payment of IAs

§ 550.50.10 Advance Versus Reimbursement

Payments to federal agencies may be made in advance or upon receipt of the products 

or services. See: Guide, Vol. 14, § 220.55.30(d) (Delegation).

(a) Advance

If payment is made in advance, then any adjustments based on actual 

costs must be made as agreed to by the providing agency and judiciary. 

Amounts over actual costs must be returned to the judiciary. Bills 

rendered or requests for payment are not subject to audit or certification in 

advance of payment.

(b) Reimbursement

If approved by the providing agency, the judiciary may reimburse the 

providing agency for actual costs after the products or services have been 

furnished.

§ 550.50.20 Recording IA Obligations

(a) In most instances, an IA obligates the judiciary’s appropriations and is 

recorded as an obligation at the time the IA is executed. See: 31 U.S.C. 

§ 1501(a); Guide, Vol. 13, § 280.60.10 (Statutory Authorities Permitting 

Obligations).

(b) For Economy Act IAs, the statute requires that the original amount 

obligated must be reduced (i.e., deobligated) at the end of the fiscal year 

to the extent that the providing agency has not incurred costs or made 

expenditures, before the end of the period of the appropriation’s 

availability, in:

(1) providing products or services; or

(2) making an authorized contract with another person or entity to 

provide the requested products or services.
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 29

§ 550.55 MOAs and MOUs

§ 550.55.10 In General

Memoranda of Agreement or Understanding (MOAs or MOUs) are not procurement 

vehicles when used exclusively by themselves. However, guidance on MOAs or MOUs 

is provided in this subsection to differentiate them from funded procurement vehicles 

(e.g., IAs, contracts, delivery or task orders used to obtain goods or services), as well as

certain other transactions.

§ 550.55.20 Delegation

(a) AO-issued MOAs or MOUs are subject to the AO internal delegation

policy.

(b) Other judiciary organizations do not require a delegation of authority from

the AO Director to use an MOA or MOU, neither of which may obligate

funds.

§ 550.55.30 MOA or MOU Content

(a) All MOAs or MOUs must be consistent with applicable federal laws and 

regulations, judiciary policies, and are subject to approval by the chief 

judge or other judiciary official identified at Guide, Vol. 14, § 120.20.10(b) 

(Delegation to Chief Judges and Certain Judiciary Officials), or the PLO, if 

delegated, subject to described limitations.

(b) An MOA or MOU must be in writing and must specify the following:

(1) Parties

The parties to the agreement.

(2) Purpose

The purpose or reason for entering into the agreement.

(3) Responsibilities

The duties and responsibilities of the parties subject to the 

agreement.

(4) Applicable Special Requirements
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 30

(Note: Similar to contracts, an MOA or MOU may not include any 

provision stating that the judiciary will indemnify other parties. See:

§ 540.20(a)(8) (Prohibited Terms and Conditions).)

(5) Modification

How the MOA or MOU may or may not be modified, whether formal 

(written) or informal (oral), along with who can do the modification 

(i.e., signatories of the original agreement only or points of contact).

(6) Disagreements

Procedures for the resolution of disagreements that may arise 

under the MOA or MOU.

(7) Severability

That nothing in the agreement is intended to conflict with current 

law, regulation, or judiciary policy. If a term of the agreement is 

inconsistent with such authority, then that term will be invalid, but 

the remaining terms and conditions of this agreement will remain in 

full force and effect.

(8) Effective Date of the Agreement

The date the agreement begins. For example, this could be a 

specified date after the MOA or MOU is signed by all parties, or the 

date the last party signs the agreement.

(9) Mutual Termination Provisions

Provisions that indicate whether:

(A) the MOA or MOU will terminate on a certain date, upon the 

accomplishment of its purpose, or upon agreement of the 

parties;

(B) the duration of the agreement may be extended and, if so, 

the extension mechanism (e.g. by written agreement of the 

parties); and

(C) a party may terminate the agreement early and if so, how it 

may be done (e.g., written notice to the other parties).

(10) Points of Contact
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 31

Provide the names and contact information (e.g., mailing and email 

addresses; phone and fax numbers) of the POCs for all parties.

(11) Approval Signature Blocks and Dates

Provide the names and signatures of approving officials for each 

party, along with the date the officials signed the MOA or MOU.

§ 550.55.40 Approval Requirements

(a) AO-issued MOAs/MOUs are subject to the AO internal approval

procedures.

(b) MOAs or MOUs issued by other judiciary organizations must be approved

according to local policy, as determined by the organization concerned.

§ 550.55.50 MOAs or MOUs Involving Gifts to the Judiciary

(a) When an MOA or MOU purports to provide a benefit or service to the 

judiciary by a non-federal entity at no cost, it is presumed to be a gift. 

See: Guide, Vol. 2C, § 620.30 (Solicitation of Gifts by a Judicial Officer or 

Employee). The limitations on accepting “gifts” to the judiciary include:

(1) Only those officers or employees that have been delegated 

authority from the AO Director may accept gifts to the judiciary.

See: Guide, Vol. 16, § 520.10(c) (Donation or Gift).

(2) The AO Director has delegated limited authority to certain judiciary 

officials who may accept voluntary and uncompensated (gratuitous) 

services from “volunteer employees.” See: Guide, Vol. 12, 

§ 550.20(c) (Authority).

(b) When the judiciary needs services or other capabilities to fulfill its missions 

(that can be contracted for), the judiciary organization should contact the 

servicing CO for advance procurement planning. See: Guide, Vol. 14, 

Ch. 2 (Procurement Planning and Preparations).

§ 550.55.60 MOAs or MOUs Versus No-Cost Contracts

If an MOA or MOU with a non-federal entity contains mutual promises and benefits to 

both parties (i.e., consideration, instead of obligating funds), it may constitute a “nocost” contract, versus a gift, depending on the facts.

(a) A judiciary no-cost contract (instead of an MOA or MOU) might be 

appropriate in rare instances, but only a CO can bind the judiciary to such 

contracts. For an example, see: Guide, Vol. 14, § 310.80 (Vendors 
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 32

Offering Services for Public Use); GAO B-410752.3 et seq. (LCPtracker, 

Inc.; eMars, Inc.).

(b) For any proposed no-cost contract:

(1) AO staff are subject to the applicable AO policies and procedures.

(2) Other judiciary organizations should consult with the AO’s PMD, as

such contracts may involve other potential issues to consider (e.g., 

conflicts of interest, augmentation of appropriations). See: GAO 

B-308968 (No-Cost Contracts for Event Planning Services).

§ 550.55.70 MOAs or MOUs Versus Loans of Personal Property (Bailments)

One of the ways the judiciary may temporarily obtain personal property for official use is 

a loan. See: Guide, Vol. 16, § 520.10(d) (Loans from a Public Institution or Private 

Benefactor). A temporary “loan” of such personal property can also be considered a 

“bailment contract.”

(a) A bailment is not a procurement contract. However, to protect the 

judiciary’s interests and make it contractually enforceable, a “bailment 

contract” (not an MOA or MOU) should be established in writing and 

signed by a judiciary CO. See: Telenor Satellite Services, Inc. v. United 

States, 71 Fed. Cl. 114 (2006).

(b) Judiciary organizations should take caution to not improperly solicit nonfederal persons or entities to temporarily bail (i.e., loan) their personal 

property to the judiciary.

(c) Where “bailment contracts” are not expressly delegated and authorized 

elsewhere in judiciary policy, the judiciary organization should consult with 

the AO’s PMD, as such contracts may involve other potential issues to 

consider.

§ 550.55.80 MOAs or MOUs Versus Leases of Real Property (Office Space)

(a) As a general rule, only the General Services Administration (GSA) may 

lease office space necessary for judiciary operations. See: Guide, 

Vol. 14, § 160.40 (Non-Ratifiable Unauthorized Commitments); Vol. 16, 

§§ 110.20 (Authority) and 110.20.40 (General Services Administration). 

For the narrow statutory exception involving space for holding sessions of 

court at no cost, see: Guide, Vol. 16, § 110.20.20(a) (Director of the 

Administrative Office).
Guide to Judiciary Policy, Vol. 14, Ch. 5 Page 33

(b) Branding a real property “lease” as something other than a lease (e.g., 

MOA, MOU, License, Facility Use Agreement), in and of itself, will 

normally not alter the legalities involved.

(c) Questions on the need for office space should be directed to the 

applicable GSA Regional Office and Assistant Circuit Executive. The 

AO’s Space and Facilities Division is also available to address questions 

on space needs.
Guide to Judiciary Policy 

Vol 14: Procurement 

Ch 5: Special Categories of Procurements 

Appx 5A: Economy Act Determination and Finding 

Note: The following determination and finding should only be used for procurement 

using an Interagency Agreement (IA) or Memorandum of Understanding (MOU) under 

the Economy Act. 

As required by the Economy Act, 31 U.S.C. § 1535, the attached documentation 

includes facts that demonstrate that: 

(1)	 amounts are available to meet the proposed cost; 

(2)	 the order is in the best interest of the judiciary; 

(3)	 the agency filling the order is able to provide, or get by contract, the 

ordered products and services; and 

(4)	 the ordered products or services cannot be provided by contract as 

conveniently or cheaply by a commercial enterprise. 

To the best of my knowledge and belief, I hereby certify that the information provided in 

this Determination and Finding, including the attached supporting documentation, is 

accurate and complete. 

Typed Name: 


Signature:
 

Title:
 

Typed Name of Approving Official:
 

Signature of Approving Official:
 

Title of Approving Official:
 

(Chief Judge or FPD, within their delegation authority (or 

PLO, if delegated), or at the AO the Procurement Executive) 

Last revised June 29, 2010 
Last substantive revision (Transmittal 14-011) January 18, 2017

Last revised (minor technical changes) June 5, 2020

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 6: Bonds, Insurance, Taxes, and Intellectual Property

§ 610 Bonds

§ 610.10 In General

§ 610.20 Performance Bonds for Other than Construction Contracts

§ 610.30 Payment Bonds for Other than Construction Contracts

§ 610.40 Fidelity Bonds

§ 610.50 Other Types of Bonds

§ 610.60 Execution of Bonds

§ 620 Sureties and Bond Alternatives

§ 620.10 Sureties

§ 620.20 Deposit of Assets Instead of Surety Bonds

§ 620.30 Irrevocable Letter of Credit

§ 620.40 Administration of Contracts Requiring Bonds

§ 630 Insurance

§ 630.10 In General

§ 630.20 Types of Insurance

§ 630.30 Self-Insurance

§ 630.40 Errors and Omissions Insurance

§ 630.50 Insurance Policies

§ 630.60 Notice of Cancellation or Change

§ 640 Taxes

§ 640.10 In General

§ 640.20 Federal Excise Taxes

§ 640.30 State and Local Taxes

§ 650 Rights in Data and Copyrights

§ 650.10 Data Rights Policy

§ 650.15 Unlimited Rights Data

§ 650.20 Limited Rights Data

§ 650.25 Restricted Computer Software

§ 650.30 Copyrighted Data

§ 650.35 Data Not First Produced in Performance of a Contract

§ 650.40 Unmarked or Improperly Marked Data or Software

§ 650.45 Special Works

§ 650.50 Professional Services/Work for Hire

§ 650.55 Commercial Computer Software

§ 650.60 Rights to Data in Successful Offers
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 2

§ 650.65 Clauses

§ 660 Patents and Copyrights

§ 660.10 In General

§ 660.20 Clauses

§ 610 Bonds

§ 610.10 In General

(a) A bond is a written instrument executed by a bidder or contractor (the 

“principal”) and a second party (the “surety” or “sureties”) to assure 

fulfillment of the principal’s obligations to a third party (the “obligee” or 

“judiciary”) identified in the bond. If the principal’s obligations are not met, 

the bond assures payment, to the extent stipulated in the bond, of any loss 

sustained by the obligee.

(b) Bonds and performance guarantees will be obtained only when needed to 

protect the interest of the judiciary.

(c) Procurement plans (see: Guide, Vol. 14, Ch. 2 (Procurement Planning 

and Preparations)) must describe and explain any requirements for bonds 

and performance guarantees.

(d) If contemplating the requirement of a bond, the contracting officer (CO) 

must submit that request to the Procurement Management Division (PMD) 

of the AO’s Budget, Accounting and Procurement Office (BAPO). PMD

must issue a one-time delegation of procurement authority before the CO 

may include the requirement for a bond in the solicitation.

§ 610.20 Performance Bonds for Other than Construction Contracts

§ 610.20.10 Requirement

A performance bond is a bond that secures performance and fulfillment of the 

contractor’s obligations under the contract. Performance bonds may be required only 

when the CO determines that performance bonding is essential to the interest of the 

judiciary. Examples of situations when a performance bond may be needed include:

(a) when a contract provides for the contractor’s use of judiciary property, or 

judiciary funds in performance, or
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 3

(b) when a contractor has sold all its assets to, or has merged with, another 

firm and the judiciary needs assurance of the new firm's responsibility 

(see: Guide, Vol. 14, § 745.55 (Novation and Change of Name 

Agreements)).

§ 610.20.20 Amount

The amount of the bond must be the minimum needed to protect the judiciary's interest.

§ 610.20.30 Clauses

(a) Clause 6-1, Performance Bond Requirements must be included in 

solicitations for nonconstruction contracts that contain a requirement for 

both payment bonds (see: § 610.30 (Payment Bonds for Other than 

Construction Contracts)) and performance bonds.

(b) Clause 6-1 Alternate I is included when only a performance bond is 

required.

Note: The CO must determine the amount of each bond for insertion in the clause. If 

the amount of the bond is less than 100 percent of the contract price, the provision must 

be appropriately modified. The amount must be adequate to protect the interest of the 

judiciary. The CO must also designate the period of time after contract award (normally 

ten days) for return of executed bonds.

§ 610.20.40 Annual Performance Bonds

Annual performance bonds may be used only for contracts other than construction. The 

amount of such a bond may not be more than the total amount of all contracts secured 

by the bond.

§ 610.30 Payment Bonds for Other than Construction Contracts

§ 610.30.10 Requirement

A payment bond is a bond that assures payments as required by law to all persons 

supplying labor or material in the prosecution of the work provided for in the contract. 

Payment bonds may be required only when the CO determines that payment bonding is 

essential to the interest of the judiciary. Examples of situations when a payment bond 

may be needed include:

(a) when a contract is for products or services unique to the judiciary that can 

be obtained only from a source that is not the producer of the products or 

services;
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 4

(b) when a contractor has sold all its assets to, or merged with, another firm 

and the judiciary needs assurance of the new firm's responsibility (see: 

Guide, Vol. 14, § 745.55 (Novation and Change of Name Agreements)); or

(c) uninterrupted provision of the products or services is essential to the 

continued operation of judiciary functions.

§ 610.30.20 Amount

The amount of the bond must be the minimum needed to protect the judiciary's interest.

§ 610.40 Fidelity Bonds

(a) A fidelity bond, in an amount sufficient to protect the judiciary’s interest, 

may be required for any contract that requires contractor employees to 

handle judiciary funds or judiciary employee funds.

(b) When a fidelity bond is required, Clause 6-5, Fidelity Bond Requirements

must be included in the solicitation and contract and the amount must be 

reviewed periodically to ensure that the judiciary's interest is adequately 

protected.

(c) The CO will indicate the amount of the bond required by filling in the blank 

in Clause 6-5, Fidelity Bond Requirements.

§ 610.50 Other Types of Bonds

Bonds, other than those discussed in this chapter, may be required only when the CO 

determines such bonds are necessary to protect the judiciary's interest.

§ 610.60 Execution of Bonds

§ 610.60.10 Prescribed Formats

If the applicable clause has not specified a prescribed format for a bond, a suitable 

commercial bond form may be used. An appropriate format may also be prepared with 

the PE’s assistance and in consultation with the AO’s Office of the General Counsel 

(OGC).

§ 610.60.20 Original Copy

Retain an original signed copy of any bond in the solicitation or contract file.

§ 610.60.30 Authority of Agents

Bonds signed by persons acting in a representative capacity must be accompanied by 

proof that the agent is authorized to act in that capacity. Proof may be a notarized 
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 5

power of attorney, a properly executed corporate certificate, or resolution attested to by 

the corporate secretary.

§ 610.60.40 Partnership as Principal

When a partnership is a principal, the names of all members of the firm must be listed in 

the bond following the trade name of the firm (if any) and the phrase: "a partnership 

composed of." When a corporation is a principal, the state of incorporation must be 

listed.

§ 610.60.50 Date

Unless an annual bond is accepted, performance or payment bonds must be dated after 

the effective date of the contract.

§ 610.60.60 Modifications

(a) When a modification changes the contract scope or increases the contract 

price by 10 percent or more, or when the CO determines that the original 

bond amount must be increased, the contractor and the surety must 

execute a consent of surety and increase of penal amount of the bond. 

This is then submitted to the CO. When more than one surety's consent is 

required, each surety must execute the form.

(b) When an increased bond amount is obtained from a party other than the 

original surety, the original surety must execute a consent of surety. 

Novation agreements require the execution of a consent of surety. See:

Guide, Vol. 14, § 745.55 (Novation and Change of Name Agreements).

§ 620 Sureties and Bond Alternatives

§ 620.10 Sureties

§ 620.10.10 In General

Bonds must be supported by acceptable corporate sureties (see: § 620.10.20 

(Corporate Sureties)), individual sureties (see: § 620.10.30 (Individual Sureties)), by 

assets acceptable as security for the contractor's obligation (see: § 620.20 (Deposit of 

Assets Instead of Surety Bonds)), or irrevocable letters of credit (see: § 620.30 

(Irrevocable Letter of Credit)).

§ 620.10.20 Corporate Sureties

Any corporate or individual surety offered for a bond furnished the judiciary must appear 

on the list contained in Treasury Department Circular 570 (Companies Holding 
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 6

Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable 

Reinsuring Companies).

§ 620.10.30 Individual Sureties

On a case by case basis, the judiciary may accept individual sureties.

§ 620.10.40 Amount

The penal amount of the bond should not exceed that surety’s underwriting limit as 

stated in Circular 570. “Penal amount” means the amount of money specified in a bond 

as the maximum payment for which the surety is obligated or the amount of security 

required to be pledged to the judiciary in lieu of a corporate or individual surety for the 

bond.

§ 620.20 Deposit of Assets Instead of Surety Bonds

§ 620.20.10 Assets in Lieu of Bond

In lieu of any bond, the contractor may deposit certain kinds of assets with the judiciary 

instead of furnishing a bond.

§ 620.20.20 Acceptable Assets

The only assets acceptable in place of a surety bond are described below:

(a) United States bonds or notes with a maturity date less than five years from 

the date of the contract, together with an agreement authorizing collection 

or sale in the event of default. The par value of the bonds or notes must 

be at least equal to the penal amount of the bond.

(b) A certified check, cashier's check, bank draft, postal money order, or 

currency. The deposit must be at least equal to the penal amount of the 

surety bond and payable to the finance office of the judiciary organization 

that required the bond (i.e., individual court unit, Federal Judicial Center 

(FJC), Judicial Panel on Multidistrict Litigation (JPML), Federal Public 

Defender Organization (FPDO), or the AO’s Finance and Accounting 

Division (FAD) or other judiciary organization).

§ 620.20.30 Deposit of Assets

The CO must turn all assets over to finance or another authorized judiciary official for 

deposit into an interest bearing account at a Federal Reserve Bank (or branch with 

requisite facilities) with instructions to hold the funds for the benefit of the contractor. A 

perpetual inventory of all deposited items must be kept by the senior contracting official 

at the purchasing office.
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 7

§ 620.20.40 Bond Form Requirements

When the contractor pledges assets instead of providing a surety bond, the contractor 

must complete the bond form as principal and the bond form must describe the assets 

pledged.

§ 620.20.50 Clauses/Provisions

(a) Provision 6-10, Deposit of Assets Requirements must be included in 

solicitations if the resulting contract will require furnishing of bonds.

(b) Clause 6-15, Deposit of Assets Instead of Surety Bonds must be included 

in every solicitation and contract requiring a bond for which assets may be 

deposited in lieu of bonds.

§ 620.30 Irrevocable Letter of Credit

§ 620.30.10 In General

Any person required to furnish a bond has the option to furnish a bond secured by an 

Irrevocable Letter of Credit (ILC) in an amount equal to the penal sum required to be 

secured. A separate ILC is required for each bond.

§ 620.30.15 Requirements

The ILC must be irrevocable and expire only as provided in § 620.30.40 (Expiration 

Dates). ILCs over $5 million must be confirmed by another acceptable financial 

institution that had letter of credit business of at least $25 million in the past year.

§ 620.30.20 Issuing Institution Requirements

(a) The ILC must be issued or confirmed by a federally insured financial 

institution rated investment grade or better.

(b) The contractor must provide the CO a credit rating that indicates the 

financial institution has the required rating(s) as of the date of issuance of 

the ILC.

(c) If the CO learns that a financial institution’s rating has dropped below the 

required level, the CO will give the contractor 30 days to substitute an 

acceptable ILC or will draw on the ILC using a sight draft.

§ 620.30.25 Cancellation of ILC

Letters of credit must indicate that the financial institution may not cancel the letter of 

credit before 90 days following the scheduled contract completion date. For contract 
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 8

completion disposition of assets after final contract payment, see: § 620.40.30(b) 

(Contract Completion).

§ 620.30.30 Failure to Furnish Replacement ILC

If the contractor does not furnish an acceptable replacement ILC, or other acceptable 

substitute, at least 30 days before an ILC’s scheduled expiration, the CO will 

immediately draw on the ILC.

§ 620.30.35 Drawing on the ILC

To draw on the ILC, the CO will use a sight draft and present it with the ILC to the 

issuing financial institution or the confirming financial institution, if any.

§ 620.30.40 Expiration Dates

The expiration dates of the ILC will be the later of:

(a) 90 days following final payment, or

(b) until completion of any warranty period for performance bonds only.

§ 620.30.45 Extended Contract Performance

When the contract performance period is extended, the CO will require the contractor to 

provide an ILC with an appropriately extended maturity date that meets the 

requirements in § 620.30.40 (Expiration Dates).

§ 620.30.50 ILC in Lieu of Payment Bond

If, after the period of performance of a contract where ILCs are used to support payment 

bonds, there are outstanding claims against the payment bond, the CO will draw on the 

ILC before the expiration date of the ILC to cover these claims.

§ 620.40 Administration of Contracts Requiring Bonds

See also: Guide, Vol. 14, § 740.50 (Assignment of Claims), § 745.55 (Novation and 

Change of Name Agreements), and § 755.45 (Actions Following Issuance of 

Termination).

§ 620.40.10 Information and Notice to Sureties

(a) Correspondence

A copy of all correspondence relating to contract modification, termination, 

renewal, or nonperformance must be provided to each surety with proof of 

delivery requested. Additional information on contract performance and 

payment must be provided to sureties on request.
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 9

(b) Failure to Perform

The CO must send each surety a copy of any notice of impending 

termination, demand for adequate assurances, assessment of liquidated 

or other damages, or other formal notice of failure to perform under the 

contract with a notice that the surety may be liable for damages suffered 

by the judiciary.

(c) Claims Against Sureties

If a contractor's failure to perform necessitates a claim against a surety, 

the CO must give the surety written notice of the amount of and reasons 

for the claim. If the surety refuses to pay or does not respond, the CO 

must obtain advice from the PE, who will consult with OGC.

§ 620.40.20 Surety Takeover Agreements

(a) Because of the surety's liability for damages resulting from a contractor's 

default, the surety has certain rights and interests in the completion of the 

contract work and the application of any undisbursed funds. Before 

terminating a contract for default, the CO must consider any offer by the 

surety for completion of the work. The surety must be permitted to 

complete the work unless the CO has reason to believe that the persons 

or firms proposed by the surety to complete the work are not competent or 

qualified.

(b) Because of the possibility of conflicting demands for the defaulting 

contractor's unpaid earnings (including retained percentages), the surety 

may condition its offer of completion on the execution of a takeover 

agreement establishing the surety's right to payment from the unpaid 

earnings. If so, with the PE’s written pre-concurrence and after consulting 

with OGC, the CO may enter into such an agreement with the surety in 

writing after the effective date of contract termination. The CO must 

consider including the defaulting contractor as a party to the agreement to 

preclude any disagreement on the contractor's residual rights.

(c) The agreement must provide that the surety will complete the work 

according to all contract terms and conditions and that the judiciary will 

pay the surety the balance of the contract price unpaid at termination but 

not more than the surety's costs and expenses, subject to the following 

conditions:

(1) Any unpaid earnings of the defaulting contractor, including retained 

percentages, for work accomplished before termination, are subject 

to debts owed the judiciary by the contractor except to the extent 

that the unpaid earnings are required to pay the completing surety 
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 10

the actual costs and expenses it incurs in completing the work 

exclusive of the surety's payments and obligations under the 

payment bond given in connection with the contract.

(2) The agreement may not waive or release the judiciary's right to 

liquidated damages for any delay in completion of the work that is 

not excusable under the contract.

(3) If the contract proceeds have been assigned to a financing 

institution, the surety may not be paid from unpaid earnings unless 

the assignee consents to the payment in writing.

(4) The surety may be reimbursed for discharging its liabilities under 

the payment bond of the defaulting contractor only when:

(A) there is mutual agreement among the judiciary, the 

defaulting contractor, and the surety, or

(B) a court of competent jurisdiction orders payment.

§ 620.40.30 Contract Completion

(a) Following contractor completion of all contract obligations, the CO must 

issue a Certificate of Completion to any surety. The certificate's terms 

may not release the surety from any obligation under a payment bond.

(b) When the contractor has deposited assets instead of providing a surety on 

a payment bond, the CO must refund the assets, with accrued interest 

(see: § 620.20.30 (Deposit of Assets)), within 90 days after final 

completion of contract performance, unless notice of a claim is received 

during the 90-day period. If a claim is received, the assets may be 

released only by order of a court of competent jurisdiction.

(c) Assets deposited to secure any other bond may be refunded, with accrued 

interest, following final completion and receipt of the contractor's written 

release of claims.

§ 630 Insurance

§ 630.10 In General

Contractors are required by law to provide insurance for certain types of perils (e.g., 

workers’ compensation). Insurance is mandatory also when commingling of property, 

type of operation, circumstances of ownership, or condition of the contract make it 

necessary for the protection of the judiciary.
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 11

§ 630.20 Types of Insurance

The kinds of insurance and coverage amounts specified in Clause 6-20, Insurance –

Work on or Within a Judiciary Facility are minimums. The CO may require additional 

coverage and/or higher limits, but should document the reasons for the additional 

coverage and/or higher limits in the contract file. The CO is authorized to modify Clause 

6-20 when such additional coverage and/or higher is required.

§ 630.20.10 [Reserved]

§ 630.20.20 [Reserved]

§ 630.20.30 [Reserved]

§ 630.20.40 Clauses

(a) Clause 6-20, Insurance – Work on or Within a Judiciary Facility is included 

in solicitations and contracts when:

(1) a fixed-price contract is contemplated;

(2) the contract amount is expected to exceed the judiciary’s small 

purchase threshold (see: Guide, Vol. 14, § 325.10 (Applicability)); 

and

(3) the contract will require work on a judiciary facility; unless only a 

small amount of work is required (i.e., a few brief visits per month).

(b) Clause 6-25, Insurance – Liability to Third Persons is included in 

solicitations and contracts (other than those for construction contracts and 

architect-engineer services) when a cost-reimbursement contract is 

contemplated.

§ 630.30 Self-Insurance

(a) The CO must obtain the PE’s written approval before accepting any 

contractor proposal for self-insurance.

(b) A qualified program of self-insurance covering any kind of liability may be 

approved in place of any type of insurance discussed in § 630.20 (Types 

of Insurance) when found to be in the interest of the judiciary.

(c) However, in a jurisdiction where workers' compensation does not 

completely cover employers' liability to employees, a program of selfinsurance for workers' compensation may be approved only if:
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 12

(1) the contractor also maintains a written approved program of selfinsurance for any employer's liability that is not covered, or

(2) the contractor has shown that the combined cost to the judiciary of 

self-insurance for workers' compensation and commercial 

insurance for employers' liability will not exceed the cost of covering 

both kinds of risks by commercial insurance.

§ 630.40 Errors and Omissions Insurance

§ 630.40.10 Professional Services

Contractors providing the following categories of services must carry errors and 

omissions (malpractice) insurance:

• accountants;

• architects;

• engineers; and

• fiscal agents.

§ 630.40.20 Amount

Insurance coverage must be at least $200,000. However, the CO may determine that a 

greater amount is needed to protect the interest of the judiciary. Any greater amount 

determined necessary may be indicated by filling in the blank in Clause 6-35, Errors and 

Omissions.

§ 630.40.30 Waiver

The CO may waive the requirement for errors and omissions insurance, in whole or in 

part, after first conferring with the PE, who will consult with OGC.

§ 630.40.40 Other Professional Services

The CO may require other professional services contractors to carry errors and 

omissions insurance when in the interest of the judiciary.

§ 630.40.50 Clauses

Clause 6-35, Errors and Omissions is included in solicitations and contracts when errors 

and omissions insurance is required under this section.

§ 630.50 Insurance Policies

When insurance is required, it may be provided either by a specific insurance policy or 

by the contractor's existing insurance policy. When an existing policy is used, it must be 
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 13

amended to name the loss payee as the finance office for the judiciary organization that 

required the insurance.

§ 630.60 Notice of Cancellation or Change

When the CO requires insurance (other than errors and omissions insurance issued on 

an occurrence basis), the insurance policy must contain an endorsement. The 

endorsement must state that a cancellation of, or material change in, the policy that 

adversely affects the judiciary’s interest will not be effective until at least 30 days after 

the CO receives written notice of the cancellation or change.

§ 640 Taxes

§ 640.10 In General

Contract tax problems are essentially legal in nature and vary widely. Specific tax 

questions must be resolved by reference to the applicable contract terms and pertinent 

tax laws and regulations. Therefore, when tax questions arise, COs generally must 

confer with the PE, who will consult with OGC.

Note: Telecommunications services are a special case. For guidance on these taxes, 

see: Guide, Vol. 15, § 555 (Taxes and Fees for Communications Services and 

Computers).

§ 640.20 Federal Excise Taxes

§ 640.20.10 Applicability

Federal excise taxes are levied on the sale or use of particular products and services. 

The judiciary is subject to the federal excise tax on firearms and ammunition, and 

vendors for these items may charge this tax. The judiciary is not subject to the federal 

excise tax on telecommunications (see: Guide, Vol. 15, § 555 (Taxes and Fees for

Communications Services and Computers)). Questions on the applicability of other 

federal excise taxes must be directed to the PE, who will consult with OGC.

§ 640.20.20 Solicitations

COs must solicit price offers on a tax-exclusive basis when it is known that the judiciary 

is exempt from federal excise taxes and on a tax-inclusive basis when no exemption 

exists.
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 14

§ 640.30 State and Local Taxes

§ 640.30.10 Definition

State and local taxes are taxes levied by the states, the District of Columbia, Puerto 

Rico, possessions of the United States, or their political subdivisions.

§ 640.30.20 Applicability

(a) As a federal government establishment, the judiciary is constitutionally 

immune from state and local taxes imposed directly on it. However, the 

applicability of particular taxes is a legal question often requiring OGC’s 

advice and assistance.

(b) The applicability of a tax depends on the nature of the tax and whether its 

legal incidence falls directly on the judiciary (as the purchaser) as 

compared with a tax imposed directly on a contractor with the contractor 

passing the cost of the tax onto its customers (including the judiciary) as 

part of its cost of doing business. In this latter instance, the legal 

incidence would not fall directly on the judiciary, but on the contractor, and 

the judiciary would probably not be immune.

(c) Each state’s taxing laws are different; therefore, immunity in one state 

does not automatically transfer to another state. Most states have 

provided the General Services Administration (GSA) with a copy of their 

respective state tax exemption letters, regarding purchases made with the 

government purchase card. These letters may be found in the State Tax 

Information area of GSA’s SmartPay website. These may provide helpful 

information concerning an individual state’s taxes.

§ 640.30.30 Exemptions for Contractors

(a) Prime contractors and subcontractors may not normally be designated as 

agents of the judiciary for the purpose of claiming exemption from state 

and local taxes. Such designation, when appropriate, must be 

accomplished in the solicitation and only after coordination with the PE, 

who will consult with OGC.

(b) Similarly, when contractors purchase goods or services for the 

performance of a judiciary contract, the right to an exemption of the 

transaction from a state or local sales or use tax may not be based on the 

judiciary immunity from direct taxation by states and localities. If an 

exemption exists, it must be based on the provisions of the particular state 

or local law involved.
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 15

§ 640.30.40 Exemption from Tax

(a) Whenever a state or locality asserts its right to tax judiciary property 

directly or to tax a contractor's possession, use of, or interest in, judiciary 

property, the CO must obtain advice from the PE, who will consult with 

OGC, concerning the appropriate course of action.

(b) In fixed-price solicitations and contracts that include Clause 6-40, Federal, 

State and Local Taxes or Clause 6-45, Federal, State and Local Taxes 

(Noncompetitive Contract), it is the offeror's responsibility to determine to 

what extent state and local taxes are applicable to its offer. The CO must 

make no representations concerning the applicability of any state or local 

tax and, except as provided in paragraph (c) below, the judiciary will have 

no involvement in resolving any dispute between the contractor and a 

taxing authority concerning tax applicability.

(c) The judiciary will, at the contractor's request, furnish the contractor 

evidence to establish exemption from any specified tax if a reasonable 

basis for the exemption exists.

§ 640.30.50 Evidence of Exemption

Evidence needed to establish exemption from state or local taxes, if an exemption is 

available, depends on the grounds for the exemption claimed, the parties to the 

transaction, and the requirements of the taxing jurisdiction. Such evidence may include:

(a) a copy of the contract;

(b) copies of other documents identifying the judiciary as the buyer (e.g., 

shipping documents, credit card imprinted sales slips, invoices);

(c) a United States Tax Exemption Form (Standard Form (SF) 1094);

(d) a state or local form indicating that the products or services are for the 

exclusive use of the judiciary or the federal government;

(e) any other state or locally required document for establishing exemption; or

(f) shipping documents indicating that shipments are in interstate or foreign 

commerce.

§ 640.30.60 Matters Requiring Special Consideration

The resolution of tax issues requiring special consideration must be coordinated with 

the PE, who will consult with OGC, in the course of solicitation preparation. The 

following are examples of state and local tax issues that may require special treatment:
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 16

(a) When there is a reasonable question of the applicability or allocability of a 

tax or when the applicability of a tax is in litigation, the contract may:

(1) state that the contract price includes or excludes the particular tax 

and is subject to adjustment following resolution of the tax question, 

or

(2) require the contractor to take specific actions regarding payment, 

non-payment, refund, protest, or other treatment of the tax.

For additional guidance on cost allocability, see: Guide, Vol. 14, § 470.30 

(Determining Allocability).

(b) When the applicability of state and local taxes depends on the place and 

terms of delivery and the effect of tax on the contract price will be 

substantial, alternative places of delivery and contract terms should be 

considered in light of tax consequences.

§ 640.30.70 Clauses

(a) Clause 6-40, Federal, State and Local Taxes is included in solicitations 

and contracts if the contract is to be performed wholly or partly within the 

United States, its possessions, or Puerto Rico, when a fixed-price 

competitively awarded contract is contemplated and the contract is 

expected to exceed the judiciary’s small purchase threshold, unless 

Clause 6-45, Federal, State, and Local Taxes (Noncompetitive Contract)

is included in the contract.

(b) Clause 6-45, Federal, State, and Local Taxes (Noncompetitive Contract) 

is included in fixed-price noncompetitive contracts exceeding the 

judiciary’s small purchase threshold to be performed wholly or partly within 

the United States, its possessions, or Puerto Rico, and when the CO is 

satisfied that the contract price does not include contingencies for state 

and local taxes, and that, unless the clause is used, the contract price will 

include such contingencies.

(c) Clause 6-105, California E-Waste Fee is included in all solicitations and 

contracts for electronic products purchased in the State of California.
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 17

§ 650 Rights in Data and Copyrights

§ 650.10 Data Rights Policy

§ 650.10.10 In General

It is the judiciary’s policy to acquire only those rights in data that are necessary to the 

fulfillment of its mission and programs. For purposes of this chapter, the term “data” 

means recorded information, regardless of the form or media on which it is recorded. 

The term includes technical data and computer software but does not include 

information incidental to contract administration (e.g., financial, administrative, cost or 

pricing, or management information). The judiciary requires rights to data to:

(a) obtain competition among potential suppliers of products and services;

(b) fulfill certain responsibilities for disseminating and publishing the results of 

activities;

(c) meet specialized acquisitions needs and ensure logistics support; and

(d) meet other programmatic and statutory requirements.

§ 650.10.20 Contractor Proprietary Interest

The judiciary recognizes that its contractors may have a legitimate proprietary interest 

(a property or other economic interest) in data resulting from private development and 

investment. Protection of such data from unnecessarily wide dissemination and use is 

necessary to:

(a) avoid jeopardizing the contractor’s commercial position and economic 

interest;

(b) preclude impairment of the judiciary’s ability to obtain access to or use 

such data; and

(c) encourage prospective contractors to contract with the judiciary.

§ 650.10.30 Determining Scope of Data Rights

Because of the considerations identified in § 650.10.10 (In General) and § 650.10.20 

(Contractor Proprietary Interest), COs should pay particular attention to the interests of 

the judiciary and the contractor when deciding the scope of data rights protection to be 

included in each solicitation or contract. All contracts that require data to be produced, 

furnished, acquired or specifically used in meeting contract performance requirements 

must contain terms that delineate the respective rights and obligations of the judiciary 

and the contractor regarding the use, duplication and disclosure of such data.
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 18

§ 650.15 Unlimited Rights Data

§ 650.15.10 Unlimited Rights under Clause 6-60

Data in the following categories is acquired with unlimited rights (except for copyrights) 

under Clause 6-60, Rights in Data – General:

(a) data first produced in the performance of the contract, including computer 

software (except to the extent the data constitute minor modifications to 

data that are limited rights data or restricted computer software);

(b) form, fit and function data delivered under the contract;

(c) data (except as may be included with restricted computer software) that 

constitute manuals or instructional and training material for installation, 

operation, or routine maintenance and repair of items, components, or 

processes delivered or furnished under a contract; and

(d) all other data delivered under the contract unless it is limited rights data.

§ 650.15.20 Contractor’s Right to Use Data

Clause 6-60, Rights in Data – General recognizes that the contractor has the right to 

use, release to others, reproduce, distribute, or publish data first produced in the 

performance of the contract. The CO may, however, place restrictions on the 

contractor’s right to use the data for these purposes. However, such restrictions should 

not be imposed unless they are determined to be necessary to the furtherance of 

judiciary mission objectives, needed to support specific judiciary programs, or 

necessary to meet statutory requirements.

§ 650.20 Limited Rights Data

The contractor must identify any data it proposes to deliver as limited rights data in its 

proposal consistent with Provision 6-50, Representation of Rights in Data. The 

contracting officer must include this provision in any solicitation that includes Clause 6-

60, Rights in Data – General if the contracting officer desires to have an offeror state in 

response to a solicitation whether limited rights data or restricted computer software are 

likely to be used in meeting the data delivery requirements provided in the solicitation. 

Such limited rights data will not, without the permission of the contractor, be used by the 

judiciary for manufacture, and will not be disclosed outside the judiciary except for 

certain specific purposes as may be provided in the notice.
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 19

§ 650.25 Restricted Computer Software

§ 650.25.10 In General

Restricted computer software normally is acquired with restricted rights. The 

contracting officer must include Provision 6-50, Representation of Rights in Data in any 

solicitation that includes Clause 6-60, Rights in Data – General if the contracting officer 

desires to have an offeror state in response to a solicitation whether limited rights data 

or restricted computer software are likely to be used in meeting the data delivery 

requirements provided in the solicitation. Contractors claiming that software is restricted 

computer software must identify such software according to Provision 6-50, 

Representation of Rights in Data and, when it is delivered to the judiciary, place on it the 

required restricted rights legend.

§ 650.25.20 Rights Needed with Restricted Software

Unlike other data, computer software is also an end item in itself, such that if withheld 

and form, fit and function data are provided instead, an operational program may not be 

acquired. Thus, if delivery of restricted computer software is anticipated to be needed 

to meet contract performance requirements, the CO should assure that the restricted 

rights acquired permit the computer software to be:

(a) used or copied for use in or with the computer or computers for which it 

was acquired, including use at any judiciary facility or office to which such 

computer(s) may be transferred;

(b) used or copied for use with a backup computer if any computer for which it 

was acquired becomes inoperative;

(c) reproduced for safekeeping (archives) or backup purposes;

(d) modified, adapted, or combined with other computer software, provided 

that the modified, combined or adapted portions of any derivative software 

incorporating restricted computer software are subject to the same 

restricted rights to the extent to which the original product is recognizable;

(e) disclosed to and reproduced for use by support service contractors, or 

their subcontractors consistent with paragraphs (a) through (d) above, and

(f) used or copied for use in or transferred to a replacement computer.

§ 650.25.30 Scope of Restricted Rights

(a) The restricted rights provided above are the minimum rights the judiciary 

will obtain with restricted computer software.
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 20

(b) However, the CO may specify either greater or lesser rights, consistent 

with the purposes and needs for which the software is to be acquired, in a 

particular solicitation or contract. For example, consideration should be 

given to any networking needs or any requirements for use of the 

computer software from remote terminals.

(c) Also, the scope of the restricted rights may be different for the 

documentation accompanying the computer software than for the 

programs and databases.

(d) Any additions to, or limitation on the restricted rights provided in the 

Restricted Rights Notice are to be expressly stated in the contract or in a 

collateral agreement incorporated in and made part of the contract.

§ 650.30 Copyrighted Data

§ 650.30.10 In General

To facilitate the dissemination of information produced at judiciary expense, contractors 

are normally authorized, without the CO’s pre-approval, to establish claim to copyright in 

technical or scientific articles based on or containing data first produced in performance 

of work under a contract containing Clause 6-60, Rights in Data – General and 

published in academic, technical, or professional journals, symposia proceedings and 

similar works. Otherwise, the permission of the CO must be obtained if the contractor 

desires to establish claim to copyright in data first produced in the performance of a 

contract.

§ 650.30.20 Denial of Copyright Request

(a) Usually, permission for a contractor to establish copyright in data first 

produced under the contract will be granted when copyright protection will 

enhance the transfer or dissemination of data and the commercialization 

of products or the process to which it pertains.

(b) The request for permission must be in writing, should identify the data 

involved or furnish copies of the data for which permission is sought, as 

well as a statement with the intended publication or dissemination media 

or other purpose for which copyright is requested.

(c) The request will normally be granted unless:

(1) the data consist of a report that represents the official views of the 

judiciary or that the judiciary is required by statute to prepare;

(2) the data are intended primarily for internal use by the judiciary;
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 21

(3) the data are of the type that the judiciary itself distributes to the 

public; or

(4) the judiciary determines that data should remain in the public 

domain and be disseminated without restriction.

§ 650.30.30 Judiciary License

Under Clause 6-60, Rights in Data – General the judiciary is granted a paid-up, 

nonexclusive, irrevocable, worldwide license to reproduce, prepare derivative works, 

distribute to the public, perform publicly and display publicly by or on behalf of the 

judiciary, all data first produced in the performance of the contract, whether copyrighted 

or not.

§ 650.30.40 Copyright Notice Requirement

Under Clause 6-60, Rights In Data – General whenever a contractor establishes a claim 

to copyright, the contractor is required to affix the applicable copyright notices of 

17 U.S.C. § 401 and acknowledgment of judiciary sponsorship (including the contract 

number) to the data whenever such data are delivered to the judiciary, published, or 

deposited for registration as a published work in the U.S. Copyright Office. Failure to do 

so could result in such data being treated as unlimited rights data.

§ 650.35 Data Not First Produced in Performance of a Contract

§ 650.35.10 In General

Contractors may not incorporate in data delivered under a contract any data that is not 

first produced under the contract (marked as required with the copyright notice of 

17 U.S.C. § 401), without either:

(a) acquiring for or granting to the judiciary a copyright license for the data, or

(b) obtaining permission from the CO to do otherwise.

§ 650.35.20 Scope of Copyright for Such Data

The copyright license the judiciary acquires for such data will normally be of the same 

scope as discussed in § 650.30.30 (Judiciary License). However, the judiciary may, on 

a case by case basis, obtain a license of different scope, only with the concurrence of 

the PE, who will consult with OGC, and only if such a license will not interfere with the 

judiciary’s use of the data as contemplated by the contract. If a license of a different 

scope is acquired, it must be so stated in the contract and clearly provided in a 

conspicuous place on the data when delivered to the judiciary. If the contractor delivers 

computer software not first produced under the contract, the contractor must grant the 

judiciary the license provided in paragraph (g)(4) of Alternate II of Clause 6-60, Rights in 
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 22

Data – General or a license agreed to in a collateral agreement made part of the 

contract.

§ 650.40 Unmarked or Improperly Marked Data or Software

§ 650.40.10 In General

Data or software received without a restrictive legend are deemed to have been 

furnished with unlimited rights. However, the CO may permit the contractor to place a 

restrictive legend on the data or software within six months of delivery if the contractor 

demonstrates that:

(a) its omission was inadvertent, and

(b) use of the legend is authorized.

Even if the CO permits the addition of a restrictive legend after delivery, the judiciary 

has no liability with respect to the use or disclosure of data or software made before the 

addition of the legend to the data/software.

§ 650.40.20 Delivery of Data/Software with Unauthorized Legend

Data or software received with a restrictive legend not permitted by the terms of the 

contract may be used with limited rights only pending inquiry to the contractor. If no 

response has been received within 30 days, or if the response fails to show that the 

restriction is authorized, the CO, after consultation with the PE, who will consult with 

OGC, may obliterate the legend, appropriately notify the contractor, and use the 

data/software after that as if acquired with unlimited rights.

§ 650.45 Special Works

§ 650.45.10 Use of Special Works

Clause 6-65, Rights in Data – Special Works may be used in contracts, or may be made 

applicable to portions of them, that are primarily for the production or compilation of data 

(other than limited rights data or restricted computer software) for the judiciary’s own 

use, or when there is a specific need to limit distribution and use of the data or to obtain 

indemnity for liabilities that may arise out of the content, performance, or disclosure of 

the data. Examples of such contracts may include those for:

(a) the production of audiovisual works;

(b) histories of the judiciary;

(c) works pertaining to training or career guidance;
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 23

(d) works pertaining to the instruction or guidance of judiciary employees in 

the discharge of their duties;

(e) surveys of judiciary establishments;

(f) the compilation of reports, books, studies, surveys, or similar documents;

(g) the collection of data containing personally identifiable information such 

that their disclosure would violate the right of privacy or publicity of the 

individual to whom the information relates;

(h) investigatory reports;

(i) the development, accumulation, or compilation of data, the early release 

of which could prejudice follow-on acquisition activities or agency 

regulatory or enforcement activities; or

(j) the development of computer software programs, where the program –

may give a commercial advantage; or is agency mission sensitive, and 

release could prejudice agency mission, programs, or follow-on 

acquisitions.

§ 650.45.20 Additional Contract Considerations

Contracts using Clause 6-65, Rights in Data – Special Works may specify the purposes 

and conditions (including time limitations) under which the data may be used, released, 

or reproduced by the contractor for other than contract performance. In addition, 

contracts for the production of audiovisual works, sound recordings, etc. may include 

limitations in connection with talent releases, music licenses, and the like that are 

consistent with the purposes for which the data in acquired.

§ 650.50 Professional Services/Work for Hire

Contracts for professional consultant, research, or other highly specialized services 

(e.g., expert or consultant services under 5 U.S.C. § 3109) may require that the judiciary 

retain broad intellectual property rights. In such cases, the work may be specifically 

characterized in the contract as a work for hire, in which case the intellectual property 

rights that accrue to the judiciary are those that would arise if the work were performed 

by a judiciary employee. In such an instance, the contract must specify that the work is 

a “work for hire.” When the work is classified as a “work for hire,” the contractor enjoys 

no right to the data produced under the contract but rather, all materials, data and other 

information developed, delivered, furnished or otherwise called for under the contract 

are works of the United States and are in the public domain. Because the judiciary’s 

needs can generally be met by acquiring unlimited rights in data, as provided in Clause 

6-60, Rights in Data – General, the inclusion of a clause treating all data as a work for 
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 24

hire should be used cautiously and only in those instances where the judiciary or 

public’s needs cannot otherwise be adequately met.

§ 650.55 Commercial Computer Software

§ 650.55.10 In General

(a) When contracting other than from GSA Multiple Award Schedule contracts 

for the acquisition of commercial computer software — i.e., software that

is privately developed and normally sold commercially under a license or 

lease agreement restricting its use, disclosure, or reproduction — no 

specific contract clause need be used, but the contract must specifically 

address the judiciary’s right to use, disclose, and reproduce the software, 

and these rights must be sufficient for the judiciary to fulfill the need for 

which the software is being acquired.

(b) Such rights may need to be negotiated and provided in the contract. If the 

computer software is to be acquired with unlimited rights, the contract 

must specifically provide for this.

(c) In addition, the contract must adequately describe the computer programs 

and/or databases, the media on which it is to be recorded, and all the 

necessary documentation.

§ 650.55.20 License Terms

(a) If the contract incorporates, makes reference to, or uses a contractor’s 

standard commercial license, lease, or purchase agreement, the CO must 

review the agreement to assure that it is consistent with other contract 

terms and provisions and the judiciary’s needs.

(b) Caution should be exercised in accepting a contractor’s terms and 

conditions since these may conflict with other contract provisions and may 

not be appropriate.

(c) Any inconsistencies in a contractor’s standard commercial agreement will 

be addressed in the contract and the terms will specify that the contract 

terms take precedence over the contractor’s standard commercial 

agreement. See also: § 540 (Commercial Agreements).

§ 650.60 Rights to Data in Successful Offers

The judiciary may desire to acquire unlimited rights in technical data contained in a 

successful offer on which an award is based. However, before such unlimited rights are 

acquired, the prospective contractor must be afforded the opportunity either:
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 25

(a) to advise the CO that the data, or portions thereof (to be identified by the 

prospective contractor) are covered by any restrictive notice regarding the 

disclosure and use of offer information, or

(b) establish to the CO’s satisfaction that identified portions of technical data 

do not relate directly to, or will not be used in, the work to be performed 

under the contract, and request that such portions be excluded from the 

judiciary’s rights.

§ 650.65 Clauses

Clause or 

Provision

Include in:

(a) Provision 6-50, 

Representation 

of Rights in 

Data

Solicitations and contracts when:

(1) the solicitation includes Clause 6-60, Rights in Data – General; 

and

(2) offerors must state in response to a solicitation whether limited 

rights data or restricted computer software are likely to be used in 

meeting the contract requirements.

Note: The offeror’s response will determine whether to incorporate 

Alternate I or II for Clause 6-60 in the resultant contract.

(b) Clause 6-60, 

Rights in Data –

General

Solicitations and contracts when data will be produced, furnished or 

acquired under the contract, unless the contract is for:

(1) the acquisition of existing data, commercial computer software, or 

other existing data;

(2) architect-engineer services or construction work;

(3) the production of special works.

(c) Clause 6-60, 

Rights in Data –

General, 

Alternate I

Solicitations and contracts when obtaining limited rights data. The CO 

must complete paragraph (g)(3) of the clause to state the purposes, if 

any, for which limited rights data are to be disclosed outside the 

judiciary. Examples of such purposes include:

(1) use by support contractors;

(2) use by non-judiciary evaluators in evaluating contractor offers; and

(3) use by other contractors participating in judiciary programs for use 

and information in connection with performance under the 

contract.

(d) Clause 6-60, 

Rights in Data –

Solicitations and contracts when obtaining restricted computer 

software. Any greater or lesser rights regarding the use, reproduction, 
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 26

§ 650.65 Clauses

Clause or 

Provision

Include in:

General, 

Alternate II

or disclosure of restricted computer software than those provided in 

the Restricted Rights Notice of paragraph (g)(4) of the clause must be 

specified in the contract and the notice appropriately modified.

(e) Clause 6-65, 

Rights in Data – 

Special Works

Solicitations and contracts when contracting primarily for the 

production or compilation of data (other than limited rights data or 

restricted computer software) for the judiciary’s internal use, or when 

there is a specific need to limit distribution and use of the data or to 

obtain indemnity for liabilities that may arise out of the content, 

disclosure, or performance of the data. Examples of such contracts 

are listed at § 650.45 (Special Works). Also include when existing 

works are to be modified, as by editing, translation, addition of subject 

matter, etc. With the approval of the PE, who will consult with OGC, 

the clause may be modified as follows:

(1) Paragraph (c)(1)(ii), which enables the judiciary to obtain 

assignment of copyright in any data first produced in the 

performance of the contract, may be deleted if the CO determines 

that such assignment is not needed;

(2) Paragraph (e) of the clause, which requires the contractor to 

indemnify the judiciary against any liability incurred as the result 

of any violation of trade secrets, copyrights, right of privacy or 

publicity, or any libelous or other unlawful matter arising out of or 

contained in any production of compilation of data that are subject 

to the clause, may be deleted or limited in scope when the CO 

determines that, because of the nature of the particular data 

involved, such liability will not arise;

(3) When the audiovisual or other special works are produced to 

accomplish a public purpose other than acquisition for the 

judiciary’s own use (e.g., for production and distribution to the 

public of works by organizations outside the judiciary), the clause 

may be modified with rights in data provisions that meet judiciary 

needs yet protect free speech and freedom of expression as well 

as the artistic license of the creator of the work.

(f) Clause 6-70, 

Work for Hire

Solicitations and contracts when the contract involves the 

procurement of professional services and it is determined by the CO 

that the contract should be treated as a “work for hire”

(g) Clause 6-75, 

Rights to Data 

in an Offer

Solicitations and contracts when it is desired to acquire unlimited 

rights in technical data contained in a successful proposal on which a 

contract award is based. Rights to technical data in a proposal are not 

acquired by mere incorporation by reference of the proposal in the 

contract.
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 27

§ 650.65 Clauses

Clause or 

Provision

Include in:

(h) Clause 6-80, 

Rights in Data – 

Existing Works

Solicitations and contracts when acquiring, without modification, 

existing audiovisual and similar works of the type provided in § 650.45 

(Special Works). The contract may provide limitations consistent with 

the purposes for which the work is being acquired. The clause is not 

required for the off-the-shelf purchase of books, publications, etc. 

However, if reproduction rights are to be acquired, the contract must 

include terms addressing such rights. 

(i) Clause 6-85, 

Commercial 

Computer 

Software 

License

Solicitations and contracts when acquiring commercial computer 

software (other than from GSA’s Multiple Award Schedule contracts).

(j) Clause 6-110, 

Deferred 

Ordering of 

Technical Data 

or Computer 

Software

Solicitations and contracts when a firm requirement for a particular 

data item(s) has not been established before contract award but there 

is a potential need for the data.

Under this clause, the contracting officer may order any data that has 

been generated in the performance of the contract or any subcontract 

thereunder at any time until three years after acceptance of all items 

(other than technical data or computer software) under the contract or 

contract termination, whichever is later. The obligation of 

subcontractors to deliver such data expires three years after the date 

the contractor accepts the last item under the subcontract.

When the data is ordered, the delivery dates must be negotiated and 

the contractor compensated only for converting the data into the 

prescribed form, and for costs of reproduction and delivery.

§ 660 Patents and Copyrights

§ 660.10 In General

(a) Under 28 U.S.C. § 1498, the exclusive remedy for patent or copyright 

infringement by or on behalf of the judiciary is a suit for monetary 

damages against the judiciary in the Court of Federal Claims. There is no 

injunctive relief available, and there is no direct cause of action against a 

contractor that is infringing a patent or copyright with the authorization or 

consent of the judiciary (e.g., while performing a contract). The judiciary 

may expressly authorize and consent to a contractor’s use or manufacture 

of inventions covered by U.S. patents by inserting Clause 5-30, 

Authorization and Consent.
Guide to Judiciary Policy, Vol. 14, Ch. 6 Page 28

(b) Because of the exclusive remedies granted in 28 U.S.C. § 1498, the 

judiciary requires notice and assistance from its contractors regarding any 

claims for patent or copyright infringement by inserting Clause 6-90, 

Notice and Assistance Regarding Patent and Copyright Infringement.

(c) The judiciary may require a contractor to reimburse it for liability for patent 

infringement arising out of a contract for commercial items by inserting 

Clause 6-95, Patent Indemnity.

§ 660.20 Clauses

Clause or Provision Include in:

(a) Clause 6-90, Notice 

and Assistance 

Regarding Patent 

and Copyright 

Infringement

all solicitations and contracts that include Clause 5-30, 

Authorization and Consent

(b) Clause 6-95, Patent 

Indemnity

solicitations and contracts over the small purchase threshold that 

may result in the delivery of commercial products or services, 

unless the CO determines, after consultation with legal counsel, 

that omission of the clause would be consistent with commercial 

practice

(c) Clause 6-95, 

Alternate I

(identification of 

excluded items)

solicitations and contracts when Clause 6-95 applies and:

(1) the contract includes delivery of both commercial and noncommercial items; or

(2) the CO determines, after consultation with legal counsel, that 

limitation of applicability of the clause would be consistent with 

commercial practice 

(d) Clause 6-95, 

Alternate II

(identification of 

included items)

solicitations and contracts when Clause 6-95 applies and:

(1) the contract includes delivery of both commercial and noncommercial items; or

(2) the CO determines, after consultation with legal counsel, that 

limitation of applicability of the clause would be consistent with 

commercial practice 

(e) Clause 6-95, 

Alternate III

solicitations and contracts for communication services and facilities 

where performance is by a common carrier, and the services are 

unregulated and are not priced by a tariff schedule set by a 

regulatory body

(f) Clause 6-100, 

Waiver of 

Indemnity

solicitations and contracts when it is in the interest of the judiciary 

to exempt specific U.S. patents from the patent indemnity clause
Last revised (Transmittal 14-021) December 1, 2023

Guide to Judiciary Policy

Vol. 14: Procurement

Ch. 7: Contract Administration

§ 710 Maintaining Records

§ 710.10 Procurement Files (Purchase/Delivery/Task Order or Contract Files)

§ 715 Responsibilities

§ 715.10 Contract Administration Process

§ 715.15 Participants in the Contract Administration Process

§ 715.20 Distinctions between Contracting Officer (CO) and Contracting Officer’s 

Representative (COR)

§ 715.25 Functions of the CO and COR

§ 715.30 COR Responsibilities to the Judiciary End User

§ 715.35 Role of COR Supervisor

§ 715.40 Becoming a COR

§ 715.45 Use of Contractors to Monitor Contract Performance

§ 715.50 Relationship Between Judiciary and Contractor Representatives

§ 715.55 Clauses/Provisions

§ 720 Judiciary Property

§ 720.10 In General

§ 720.20 Property Records

§ 725 Subcontracting

§ 725.10 In General

§ 730 Contract Performance

§ 730.10 Postaward Orientation

§ 730.20 Performance Record Keeping

§ 730.30 Performance Monitoring

§ 735 Quality Assurance

§ 735.10 In General

§ 735.15 Contract Remedies

§ 735.20 Types of Remedies

§ 735.25 Assessing Liquidated Damages

§ 735.30 Nonconforming Products or Services

§ 735.35 Acceptance

§ 735.40 Responsibility for Acceptance

§ 735.45 Place of Acceptance

§ 735.50 Express Warranties

§ 735.55 Fraud, Gross Mistake, or Latent Defects

§ 735.60 Bankruptcy
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 2 

§ 740 Payments

§ 740.10 In General

§ 740.20 Invoices

§ 740.30 Payment

§ 740.40 Withholding Payments

§ 740.50 Assignment of Claims

§ 745 Contract Modifications

§ 745.10 Policy

§ 745.15 Types of Modifications

§ 745.20 Notification of Contract Changes

§ 745.25 Availability of Funds

§ 745.30 Exercise of Options

§ 745.35 Correction of Mistakes

§ 745.40 Changes

§ 745.45 Equitable Adjustments

§ 745.50 Acceleration of Performance

§ 745.55 Novation and Change of Name Agreements

§ 750 Claims and Disputes

§ 750.10 Policy

§ 750.20 Decisions and Appeal

§ 755 Contract Termination

§ 755.10 In General

§ 755.15 Notice of Termination

§ 755.20 Termination for Convenience

§ 755.25 Termination for Default

§ 755.30 Termination for Default Procedures

§ 755.35 Termination for Default Notice

§ 755.40 Procedure in Lieu of Termination for Default

§ 755.45 Actions Following Issuance of Termination

§ 755.50 Remedies and Damages Following Termination for Default

§ 760 Contract Closeout

§ 760.10 Closeout of Contract Files

§ 760.20 Contract Closeout Procedures

§ 760.30 Disposition of Contract Files

Appendices

Appx. 7A Sample Notice of Assignment

Appx. 7B Sample Novation Agreement

Appx. 7C Sample Change of Name Agreement

Appx. 7D Sample Contract Termination Notices

Appx. 7E Sample Contracting Officer Representative Appointment Memo
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 3 

§ 710 Maintaining Records

§ 710.10 Procurement Files (Purchase/Delivery/Task Order or Contract 

Files)

§ 710.10.10 In General

(a) A file must be established and maintained for every purchase action, 

solicitation, and contract.

(1) Procurement files may be retained in any medium (paper, 

electronic, microfilm, etc.) or any combination of media, as long as 

the requirements of this chapter are satisfied.

(2) When the original medium is changed to facilitate storage, the 

process used to create and store records must record and 

reproduce the original document, including signatures and other 

written and graphic images completely, accurately, and clearly. 

Data transfer, storage, and retrieval procedures must protect the 

original data from alteration. Signed originals may be destroyed 

after verification by the Procurement Liaison Officer (PLO) (or 

designee) that record copies on alternate media and copies 

reproduced from the record copy are accurate, complete, and clear 

representations of the originals.

(3) Procedures for contract file disposal must ensure that the 

documents specified in this chapter may not be destroyed before 

the times indicated in § 760.30 (Disposition of Contract Files), and 

may be retained longer if the PLO determines that the files have 

future value to the judiciary. When original documents have been 

converted to alternate media for storage, the requirements of 

§ 760.30 (Disposition of Contract Files) also apply to the record 

copies in the alternate media.

(b) Procurement file content deemed to be sensitive information, e.g., 

proposal information or proposal evaluation information, must be 

maintained in a secured area and otherwise not left unattended nor in 

open view when personnel without a need-to-know are present.

(c) Access to procurement file content deemed to be sensitive, e.g., proposal 

information or proposal evaluation information, must be limited to 

authorized judiciary procurement and audit personnel. For a discussion 

on obtaining and disclosing procurement documents according to the 

Procurement Integrity Act, see: Guide, Vol. 14, § 150.20 (Procurement 

Integrity Act). 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 4

(d) Proprietary data furnished by contractors or offerors must be secured at all 

times and made available on a need-to-know basis only.

(e) Purchases made with the purchase card are exempt from the requirement 

to establish files for each individual transaction, since there is generally 

minimal documentation — either pre-award or post-award — associated 

with these procurements. However, each purchase must be recorded as 

an obligation in JIFMS and records maintained consistent with the

Judiciary Purchase Card Program Manual.

(f) Files for each procurement must contain the documentation identified 

below in § 710.10.20 (Required Documentation). See also: Guide, 

Vol. 11, § 340.30 (Appropriate Records and Documentation).

(g) Access to the purchase card and related documents and information (e.g., 

monthly billing statements, summary statements of accounts) must be 

restricted to authorized individuals, including audit personnel.

§ 710.10.20 Required Documentation

(a) Purchases Below the Applicable Competition Threshold (Judiciary open 

market, GSA Schedule, etc.), require the following documentation:

(1) Requisition (electronic or hard copy) or statement of need with the 

authorizing official’s signature or reference to the judiciary 

organization’s approved spending plan for certain types of 

purchases such as office supplies;

(2) Signed purchase/delivery/task order and any signed modifications;

(3) Supporting documentation for each purchase/delivery/task order 

modification (see: § 745 (Contract Modifications));

(4) Documentation that products or services have been received and 

accepted, e.g., copies of receiving reports for products with 

annotation indicating inspection and acceptance, or contracting 

officer’s representative (COR) signature on invoices signifying 

services were performed satisfactorily;

(5) Copies of all invoices or vouchers;

(6) Any other pertinent information, e.g., documented phone 

conversations with offerors/contractors, evaluation worksheets, 

correspondence to and from offerors, commercial agreements, 

documentation of follow-up on late deliveries or unsatisfactory 

performance, etc.; and
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 5

(7) Copies of any applicable one-time delegations of procurement 

authority from the Procurement Management Division (PMD) of the 

AO’s Finance and Procurement Office (FPO).

(b) Purchases Greater than the Applicable Competition Threshold (Judiciary, 

GSA Schedule, etc.) require the following documentation:

(1) Requisition (electronic or hard copy) or statement of need with the 

authorizing official’s signature or reference to the judiciary 

organization’s approved spending plan for certain types of 

purchases, such as office supplies;

(2) Rationale for selection of the source of supply (low price/technically 

acceptable or best value, including documentation of evaluation 

process);

(3) For competitively awarded delivery orders or task orders under 

judiciary or non-judiciary contracts, including GSA schedule 

contracts or other executive branch contracts, such as NASA’s 

Solutions for Enterprise-Wide Procurement (SEWP) contracts, 

evidence of the level of competition required for use of the specific 

contract;

(4) Where competition was not obtained, a copy of the approved:

(A) Form AO 370A (Justification for Limiting Open Market 

Competition (JLOC)), including copy of the one-time 

delegation from PMD (see: Guide, Vol. 14, § 335 

(Justifications and Approvals for Limiting Competition));

(B) Form AO 370B (Justification for an Exception to Fair 

Opportunity (JEFO)), including copy of the one-time 

delegation from PMD, when required (see: Guide, Vol. 14, 

§ 410.30.73 (Documenting Exceptions to Fair Opportunity 

Requirement)); or

(C) Form AO 370C (Limited Sources Justification (LSJ)) (see: 

Guide, Vol. 14, § 310.50.63 (Limiting Sources on Orders 

Placed under Federal Supply Schedules) and § 310.50.66

(Limiting Sources Based on Items Particular to One 

Manufacturer (Brand Name))).

(5) Copy of any other applicable one-time delegation of procurement 

authority from PMD;
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 6

(6) Copies of the advertisement of the requirement and/or 

documentation that the requirement was advertised locally or on

SAM.gov (or the approved exception from advertising);

(7) Copies of any written solicitation, amendments, questions, 

clarifications, all correspondence with prospective offerors and their 

replies;

(8) Copies of unsuccessful offers, or, where award is based on oral 

quotes, a record of each quote obtained and who provided it;

(9) Determination of fair and reasonable price and basis of selection.

Note: If price is not the basis of selection, the required PMD 

written approvals — the pre-solicitation approval to use best value 

source selection as well as the one-time delegation granted after 

review of the evaluation of offers — must be included.

(10) Signed award (contract or purchase/delivery/task order) and any 

signed modifications with the supporting documentation (see: 

§ 745 (Contract Modifications));

(11) For Blanket Purchase Agreements (BPAs), indefinite 

delivery/indefinite-quantity (IDIQ) or requirements contracts, copies 

of all BPA calls or delivery/task orders and all other documents 

supporting them (e.g., copies of task order solicitations, competitive 

range determinations, memo of negotiations, pre-negotiation 

positions, post-performance assessment, contractor reports and 

copies of deliverables, as applicable);

(12) Documentation that products or services have been received and 

accepted, e.g., copies of receiving reports for products with 

annotation indicating inspection and acceptance, or COR signature 

on invoices signifying services were performed satisfactorily;

(13) Copies of all invoices or vouchers;

(14) Any other pertinent information (e.g., documented phone 

conversations with offerors, evaluation worksheets, commercial 

agreements, records of site visits by or to prospective offerors, 

post-award correspondence, documentation of follow-up on late 

deliveries or unsatisfactory performance);

(15) Copies of debriefing requests and documentation of debriefing, if 

any; and
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 7

(16) Documentation of protests, if any, and of required coordination with 

the PE (see: Guide, Vol. 14, § 350 (Judiciary Protest Procedures)).

§ 715 Responsibilities

§ 715.10 Contract Administration Process

§ 715.10.10 In General

Once a contract is awarded, the contract administration process begins. Every 

contract-related issue that arises after the contract is awarded becomes part of the 

contract administration process. Contract administration encompasses a broad range 

of functions that, together, ensure that the judiciary obtains exactly what it has 

contracted to purchase. For contract administration involving sureties, see: Guide, 

Vol. 14, § 620.30 (Irrevocable Letter of Credit). The contract administration process 

includes:

(a) receiving, inspecting, and either accepting or rejecting contractor 

deliverables in a timely manner;

(b) monitoring the contractor’s progress, making sure contractual delivery 

dates are met and that products and services are of acceptable quality;

(c) ensuring that the judiciary is meeting its own contractual obligations, such 

as timely review of deliverables or providing the contractor data that it may 

need;

(d) placing orders under indefinite-delivery contract types and treating those 

orders as contracts that must be separately administered (see: Guide, 

Vol. 14, § 410.30 (Indefinite-Delivery Contracts));

(e) answering questions and addressing contractor issues;

(f) changing or modifying the contract as necessary;

(g) ensuring that the contractor is paid only the amount to which it is entitled, 

but is not paid before delivery and fulfillment of acceptance criteria of each 

procurement, unless advance payment terms have been included in the 

contract;

(h) obtaining assistance from other offices in addressing unusual contract 

actions when necessary, such as protests, disputes or terminations; and

(i) closing out the contract and orders (for closing out purchase orders, see: 

§ 760 (Contract Closeout)).
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 8

§ 715.15 Participants in the Contract Administration Process

There are many individuals involved in the contract administration process. Each of 

these individuals or groups has specific functions, responsibilities, and accountability.

§ 715.15.10 Contracting Officer

(a) The contracting officer (CO) is the only judiciary employee who is 

delegated authority to legally commit the judiciary to the purchase of 

products and services.

(b) The CO is supported by other individuals in the judiciary. One of the 

support individuals is the COR.

(c) CO appointments are evidenced by a signed Form AO 375 (Procurement 

Liaison Officer's Appointment of Contracting Officer) or a signed certificate 

(applicable to PMD).

(d) COCP Level 3 appointments are subject to continuing education training 

requirements and are valid until rescinded or until a new PLO is 

appointed. See: Guide, Vol. 14, § 120.20.60(c) (When Delegations Must 

be Re-Issued).

§ 715.15.20 Designation of COR

(a) The CO delegates specific contract administration responsibilities to the 

COR through a written designation. Through this memo of designation, 

the COR is empowered to fulfill the delegated responsibilities on a specific 

contract and/or delivery or task order, as appropriate. For a sample COR 

designation memo, see: Appx. 7E (Sample Contracting Officer 

Representative Appointment Memo). For more detail on the respective 

roles of the CO and COR, see: § 715.25 (Functions of the CO and COR).

(b) To be eligible for designation as a COR by the CO, prospective CORs 

must complete, at a minimum, the online COR training available through 

CourtsLearn University.

(c) For routine purchases of non-complex, off-the-shelf products, e.g., office 

supplies, formal appointment of a COR is not required and acceptance 

may consist of merely confirming receipt of the ordered items in 

undamaged condition. Formal appointment of a COR is recommended for 

more complex purchases, such as IT hardware or software that must be 

tested before acceptance, or installation of furniture, or complex, nonroutine types of services performed on a labor-hour or time-and-materials 

basis, where there may be extended communications between the 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 9

contractor and the judiciary during installation, testing, or over the period 

of performance.

(d) The contractor must be provided a copy of any formal appointment of a 

COR to ensure the contractor understands the limits of the COR’s 

authority.

§ 715.15.30 Other Participants

(a) AO’s Office of the General Counsel (OGC) staff provides requested 

essential legal reviews and guidance.

(b) Financial and budget officials establish budgets and reprogram funds 

when necessary to exercise options, make changes, and settle claims.

(c) The CO, or the COR when authorized, tracks expenditures against 

contracts/orders, determines the adequacy and accuracy of vouchers and 

invoices, and ultimately approves payments to the contractor.

(d) Other financial officials ultimately process payments to the contractor after 

written approval from the CO or COR. They may also track expenditures 

against contracts/orders and provide advice to the CO as to the adequacy 

and accuracy of vouchers and invoices.

§ 715.15.40 Authority of Other Participants

With the single exception of the COR, all support personnel operate under their own 

authorities derived through their organizations. It is only the COR who, through formal 

appointment and designation, shares authorities otherwise reserved exclusively for the 

CO.

§ 715.20 Distinctions between Contracting Officer (CO) and Contracting 

Officer’s Representative (COR)

(a) The CO is the only person with the legal authority to commit the judiciary 

to a legally binding contract and obligate appropriated funds for that 

purpose. This legal authority cannot be delegated to the COR. Although 

certain contract administration functions may be delegated to the COR, 

the CO remains ultimately responsible for the administration of each 

contract.

(b) The COR assists the CO by providing specific services as directed by the 

CO. However, the CO makes the final decisions and retains signature 

authority in the contracting matter.

(c) The CO and the COR are the primary members of a team that provides 

proper contract administration and oversight. This team’s efforts ensure 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 10

that tax dollars are being wisely and efficiently expended, and that the 

judiciary and, in particular, the customer organization that generates each 

requirement, are receiving the full measure of the products and/or services 

purchased.

§ 715.25 Functions of the CO and COR

§ 715.25.10 Monitoring Progress

Monitoring the progress of a contractor and making sure contractual due dates are met 

are shared responsibilities. However, the CO and the COR often look at different 

aspects of the contractor’s performance.

(a) The CO will examine delivery and reporting due dates and consult with the 

COR to determine if the contractor is making all deliveries according to the 

contract delivery schedule.

(b) Since the COR is more closely involved in the contractor’s day-to-day 

activities, the COR acts as the eyes and ears of the CO and customer. 

The COR is, in effect, an early-warning system. For instance, the COR 

will be the first one to know when a contractor does not understand or 

meet a contract requirement, is making inaccurate assumptions, or is 

asking questions that suggest that it is not making adequate contract 

performance progress.

§ 715.25.15 Ensuring Judiciary Contractual Commitments Are Met

(a) Making sure that the judiciary is meeting its contractual commitments is a 

shared responsibility. For example, when performance of the work 

requires the use of judiciary property, or access to judiciary data or 

information technology, etc., such property or access must be provided 

within the time frame provided in the contract. This is generally a COR 

responsibility.

(b) If the judiciary is failing to meet its responsibilities in making data, 

property, physical or virtual access, etc. available within the contractually 

required time frames, the contractor may be entitled to an equitable 

adjustment. The CO is responsible for negotiating any such adjustment 

with the contractor, which may ultimately cause the expenditure of further 

judiciary funds and/or a delay in delivery or other contract performance.

§ 715.25.20 Placing Orders

The CO is responsible for the placement of orders, since it normally involves a binding 

contract and obligating judiciary funds. Administering each of these orders requires 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 11

similar actions as the administration for the contracts under which the orders were 

issued. See: Guide, Vol. 14, § 410.30.60 (Delivery Orders or Task Orders).

§ 715.25.25 Receipt, Inspection, and Acceptance of Performance

The COR accepts or rejects performance of services, including any deliverables 

required. If applicable, the COR will normally consult with customer organizations to 

confirm the contractor has performed consistent with the contract before accepting or 

rejecting performance. The COR performs this function because he or she is generally 

on-site and either observes the performance of services first-hand or is the delivery 

point for material deliveries.

§ 715.25.30 Providing Technical Direction

(a) The COR provides technical direction, including answering questions, and 

addressing other issues that the contractor may have.

(b) The COR may provide technical direction only within the general scope of 

the contract and only if the direction does not alter any of the contract 

specifications or the statement of work, or terms and conditions of the 

contract.

(c) Only the CO can change a contract. This is a vital area for both the CO 

and the COR to understand, since open communication between the 

contractor and the judiciary can mean the difference between success and 

failure.

(d) Requesting changes that are outside the scope of the contract or that alter 

the specifications, terms, or conditions would be considered new work, 

and subject to competition and advertising requirements.

(e) Only the CO is empowered to change a contract, whether any adjustment 

in the contract price will result or not.

(f) The CO and COR must work together closely in this area as it is often 

quite difficult to distinguish between “technical direction” and “changes.”

§ 715.25.35 Changing or Modifying the Contract

As discussed above, this is a function strictly reserved for the CO and it may not be 

delegated. However, the COR may be asked to support this process in, for example, 

evaluating change order price proposals or technical aspects of proposed changes.

§ 715.25.40 Ensuring that the Contractor Is Paid

This is primarily a COR function, which requires the COR to work closely with 

accounting/disbursement personnel to ensure that payments are made in proper 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 12

amounts and within reasonable or contract specified time frames for services or 

products that have been delivered and accepted. If it is appropriate to refuse payment 

of an invoice, in whole or in part, the COR must notify the CO promptly of the reasons, 

and CO must provide appropriate notification to the contractor. For additional guidance 

on withholding payment, see: § 740.40 (Withholding Payments).

§ 715.25.45 Maintaining Procurement Files

(a) Both the CO and the COR must maintain files for every purchase action, 

solicitation, and contract. For file requirements for the CO, see: § 710.10 

(Procurement Files (Purchase Delivery/Task Order or Contract Files)). 

The COR must maintain a contract work file.

(b) Any procurement documents relating to offer evaluation, including the 

offers themselves, must be maintained in a secured area and otherwise 

not left unattended nor in open view when personnel without a need-toknow are present. Access to pre-award procurement files and related 

documents, as well any post-award documents that contain confidential 

contractor information (e.g., invoices that include indirect rates), must be 

limited to authorized judiciary procurement and audit personnel. Preaward disclosure of offeror information can result in penalties under the 

Procurement Integrity Act. For additional information, see: Guide, Vol. 

14, § 150.20 (Procurement Integrity Act) and Guide, Vol. 14, § 170 

(Release of Information).

(c) The contract work file must contain all relevant documentation, such as 

notes of conversations with the contractor, written instructions given to the 

contractor and similar items, as called for by the CO. The COR must 

document all significant actions, including any technical directions given to 

the contractor, in an action file. This file must contain enough detail so 

that if a contract dispute or claim occurs, the CO can reconstruct what the 

COR did or did not do. Because it is often difficult to determine what 

might be the subject of a dispute or claim, the COR must adequately 

document significant actions that might develop into a problem later.

(d) The file must also contain copies of the contract, all modifications, the 

COR delegation letter, and all correspondence between the COR and the 

contractor or the CO.

(e) The file must be maintained intact and updated by each successor COR 

until the contract ends.

§ 715.25.50 Closing out Contracts and Orders

(a) This is a shared function. First, the COR confirms final receipt and 

acceptance of all products and services, ensures the return of contractor 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 13

employee badges and judiciary property, if applicable, and recommends 

that the contractor be relieved of any further performance responsibilities 

under the contract.

(b) Fixed-price awards under the small purchase threshold are considered 

closed following the CO’s receipt of confirmation of acceptance of the 

products or services and issuance of final payment.

(c) For awards over the small purchase threshold or awards made on a basis 

other than fixed-price, the CO must determine if a release of claims is 

required before final payment.

(d) The CO negotiates any final payment issues or actions for the closeout of 

the contract. See: § 740.30.40 (Final Payment) and § 760 (Contract 

Closeout).

§ 715.25.55 Supporting Contract Actions Such As Disputes or Terminations

These types of contract actions are always a joint function of the CO and COR, but with 

a clear separation of responsibilities. The COR plays a major part in the program 

related aspects of the action, including providing supporting information that relates to 

the specifications or statement of work. The CO has sole responsibility for any 

negotiations and the business and financial aspects of the transaction, such as deciding 

whether any payments will be made to the contractor. The CO also has responsibility 

for ensuring any required coordination with the PE on such matters is done.

§ 715.30 COR Responsibilities to the Judiciary End User

§ 715.30.10 In General

(a) Aside from the COR responsibilities to the CO, the COR also has 

concurrent responsibilities to the judiciary end user, if the COR is not the 

end user. The COR must work closely with end users during contract 

delivery or performance to ensure that the end user is receiving 

satisfactory products and services according to the contract.

(b) Moreover, the COR needs to be involved closely enough with the project 

to anticipate newly evolving requirements that may result in the need to 

change the contract.

(c) Under certain types of contracts, the COR will also be responsible to draft 

work requirements, which will be awarded by the CO through task orders.

(d) As requested by the CO, the COR may review and approve technical 

offers and quotations and participate in negotiations.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 14

§ 715.30.20 Acceptance Responsibilities

The COR also has the critical responsibility to recommend acceptance or rejection of 

contract/order deliverables and/or performance. If there is premature acceptance of the 

performance or deliverables, the judiciary may inadvertently waive many of its rights to 

require the contractor to perform remedial activities or modify the deliverables. Thus, 

the COR must closely observe the contractor’s performance or delivery and consult 

often with management within the customer organization and with the CO before 

deciding whether or not to accept performance or deliverables.

§ 715.35 Role of COR Supervisor

(a) The COR’s direct supervisor must provide as much of the individual’s time 

and resources as needed to allow the COR to fulfill all of the delegated 

COR responsibilities.

(b) Formal COR appointment and designation comes from the CO. 

Therefore, the COR will have contract responsibilities to the CO, as well 

as having contract and non-contract responsibilities to the COR’s direct 

supervisor.

(c) If a COR’s work conflicts in fulfilling these concurrent responsibilities, the 

COR’s direct supervisor must confer with the CO to resolve the conflict.

(d) Finally, in evaluating job performance, the COR’s direct supervisor must 

take into account performance as a COR by gathering input from the CO 

before issuing a rating.

§ 715.40 Becoming a COR

§ 715.40.10 Nomination

Judiciary employees are normally nominated in writing by the customer organizations. 

Provided that the individual has completed the required training and is otherwise 

capable, the CO may appoint the employee as a COR. For information on the required 

COR training, see: JNet Procurement page.

§ 715.40.20 Designation is for Specific Contracts

(a) The CO designates a COR for specific contracts, delivery orders, and task 

orders. Formal designation to act as a COR on a specific contract, 

delivery order, and/or task order is evidenced by a letter of designation, 

signed by the CO. A copy of this designation will be furnished to the 

COR’s immediate supervisor, and to the contractor.

(b) The designation letter will describe the exact functions the COR will be 

required to perform on the particular contract or order. Separate letters of 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 15

designation are required for each contract, delivery order, or task order 

assigned to the COR. COR designations expire automatically at the 

conclusion of the specific contract, delivery order, or task order for which 

the COR was appointed.

§ 715.45 Use of Contractors to Monitor Contract Performance

The judiciary may contract with third parties to perform contract administration 

responsibilities such as testing for contract conformance (but not acceptance); 

reviewing contractor submittals, construction shop drawings, written requests for design 

approval; developing negotiation positions; reviewing offers; advising panels; drafting 

modifications. However, the CO remains as the signature authority for any contract 

actions.

§ 715.50 Relationship Between Judiciary and Contractor Representatives

§ 715.50.10 Objective of Purchase Actions

(a) The objective of any purchase action is performance or delivery of the 

contract requirements, not control of the contractor's business. Judiciary 

personnel must devote their efforts to tasks associated with that 

requirement, such as:

• quality assurance,

• cost monitoring, and

• other activities intended to ensure compliance with contract terms.

(b) Judiciary personnel may not:

• direct the contractor's activities, or

• intervene to supervise, train, or discipline contractor personnel (see: 

Guide, Vol. 14, § 510 (Personal Services Contracts)).

§ 715.50.20 Disputes with Contractors

Disputes with contractors are an obstacle to contract performance or delivery. CO’s 

and their supporting staffs must seek to resolve contract disputes through businesslike 

approaches that promote efficiency and cost-effectiveness and enforce the judiciary's 

interests.

§ 715.55 Clauses/Provisions

Clause or Provision Include in ...

(a) Clause 7-1, Contract 

Administration

all formal solicitations and contracts. (The CO will provide 

the CO’s name, business address, e-mail address and 

telephone number in a cover letter accompanying the 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 16

solicitation or contract or by incorporating this information at 

the end of the clause.)

(b) Clause 7-5, Contracting 

Officer’s Representative

all formal solicitations and contracts.

(c) Clause 7-10, Contractor 

Representative

all formal solicitations and contracts.

(d) Clause 7-15, Observance of 

Regulations/Standards of 

Conduct

all formal solicitations and contracts.

(e) Clause 7-20, Security 

Requirements

all solicitations and contracts that require unescorted access 

to judiciary buildings or access to the judiciary IT network. 

(For additional information on the types of background 

checks, procedures for obtaining background checks, and 

appropriate forms to use, see: Guide, Vol. 12, § 570 

(Background Checks and Investigations).)

(f) Clause 7-25, Indemnification all solicitations and contracts.

(g) Clause 7-30, Public Use of 

the Name of the Federal 

Judiciary

all solicitations and contracts.

(h) Clause 7-35, Disclosure or 

Use of Information

all solicitations and contracts.

(i) Clause 7-40, JudiciaryContractor Relationshipsall solicitations and contracts for non-personal services. 

(The CO will not include this clause in PE-authorized 

personal services contracts using judiciary information 

technology funds.)

(j) Clause 7-45, Travel all solicitations and contracts when travel is reimbursable 

either as a separate line item in an award that is otherwise 

fixed-price or as part of cost-reimbursement or labor-hour 

contract.

(k) Clause 7-50, Parking all solicitations and contracts when performance will be at 

the Thurgood Marshall Federal Judiciary Building.

(l) Clause 7-55, Contractor Use 

of Judiciary Networks

all solicitations and contracts when the contractor will use 

judiciary computer networks during performance.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 17

§ 720 Judiciary Property

§ 720.10 In General

§ 720.10.10 Policy

(a) Contractors are ordinarily required to furnish all property necessary to the

performance of judiciary contracts. The CO will provide property to 

contractors only when it is clearly demonstrated:

• to be in the judiciary’s best interest;

• that the overall benefit to the procurement significantly outweighs the 

increased cost of administration, including ultimate property disposal;

• that providing the property does not substantially increase the 

judiciary’s assumption of risk; and

• that judiciary requirements cannot otherwise be met.

(b) The contractor’s inability or unwillingness to supply its own resources is 

not sufficient reason for the furnishing of judiciary property.

§ 720.10.20 Property Liability and Contract Type

Generally, contractors are not held liable for loss, damage, destruction or theft of 

judiciary property under the following contract types, absent evidence of gross 

negligence on the part of the contractor:

• cost-reimbursement contracts

• time-and-material contracts

• labor-hour contracts

§ 720.10.30 Judiciary Property Used Outside Judiciary Facilities

(a) The CO must obtain approval from the PE before the award of any 

contract that authorizes judiciary property to be provided for contractor to 

use in performance of a contract outside of judiciary facilities. The CO 

must obtain and provide to the PE information on the contractor’s property 

control system to ensure compliance with the contract's property clauses.

(b) In the event that the PE finds deficiencies in the contractor’s property 

control system, the CO must notify the contractor in writing, requesting 

prompt correction of deficiencies. If the contractor does not correct the 

deficiencies within a reasonable period, the CO may, subject to PE 

approval:
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 18

(1) notify the contractor in writing of any required corrections and 

establish a schedule for completion,

(2) caution the contractor that failure to take the required corrective 

action within the time specified will result in withholding or 

withdrawing system approval, and

(3) advise the contractor that its liability for loss of or damage to 

judiciary property may increase if approval is withheld or withdrawn.

(c) Where judiciary property is authorized for removal from and use outside 

judiciary facilities, the contractor’s records of the property, established and 

maintained under the terms of the contract, constitute the judiciary’s 

official property records.

§ 720.10.40 Clauses

Clause or Provision Include in ...

(a) Provision 7-60, Judiciary Furnished 

Property or Services

all solicitations.

(b) Clause 7-65, Protection of Judiciary 

Buildings, Equipment, and Vegetation

solicitations and contracts for services to be 

performed in judiciary buildings.

(c) Clause 7-70, Judiciary Property Furnished 

“As Is”

solicitations and contracts when judiciary 

property is to be furnished "as is."

§ 720.20 Property Records

§ 720.20.20 Judiciary Maintenance of Official Records

The judiciary will maintain the official property records when judiciary property is 

furnished to a contractor:

(a) for repair or servicing and return to the judiciary;

(b) for use at a judiciary facility/office;

(c) under a contract with a short performance period or involving judiciary 

property having a contract cost of $50,000 or less; or

(d) when otherwise determined by the CO to be in the judiciary’s interest.

§ 720.20.30 Inventory

A detailed inventory list of judiciary-furnished products, material or services must be 

maintained in the contract file and kept current at all times, specifying, as applicable:
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 19

• quantity

• nomenclature

• serial number

• model number

• general condition

§ 725 Subcontracting

§ 725.10 In General

§ 725.10.10 Notification Requirement

When a contract contains Clause 7-75, Subcontracts, the contractor must give the CO 

advance notice of its intent to subcontract. The clause authorizes the contractor to 

proceed to enter into a subcontract unless notice of disapproval is received from the CO 

within 15 days from the date the CO was notified. The CO must:

(a) promptly evaluate contractor notices of intent to subcontract;

(b) obtain assistance in this evaluation, as necessary, from audit, technical, or 

other specialists; and

(c) notify the contractor in writing if the subcontract is disapproved.

§ 725.10.20 Subcontract Review Considerations

The CO must review the notice of intent to subcontract with any supporting data and 

consider the following:

(a) whether the subcontract is for the purchase of equipment or facilities that 

are available from judiciary sources;

(b) whether the contractor’s selection of the particular products, equipment, or 

services being purchased under the subcontract is technically justified;

(c) whether adequate price competition was obtained for the subcontract or 

its absence is justified;

(d) whether the contractor adequately assessed alternate subcontractor 

offers;

(e) whether the contractor had a sound basis for selecting and determining 

the responsibility of the subcontractor;

(f) whether the contractor performed adequate price or cost analysis;
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 20

(g) whether the contract type (see: Guide, Vol. 14, § 410 (Contract Types)) 

for the proposed subcontract is appropriate;

(h) whether the contractor has adequately and reasonably translated prime 

contract technical requirements into subcontract requirements;

(i) whether the proposed subcontractor is on the list of debarred, suspended, 

and ineligible contractors; and

(j) whether the contractor has incorporated terms and conditions contained in 

the prime contract that are expressly applicable to subcontracts.

§ 725.10.30 Subcontracting Situations Requiring Special Care

Particularly careful and thorough consideration is necessary when:

(a) the prime contractor's purchasing system or performance is inadequate;

(b) close working relationships or ownership affiliation between the prime and 

subcontractor may preclude competition or result in higher prices;

(c) subcontracts are proposed on a noncompetitive basis, at prices that 

appear unreasonable, or at prices higher than those offered the judiciary 

in comparable circumstances; or

(d) subcontracts are proposed on other than a fixed-price basis.

§ 725.10.40 Clauses

Clause or Provision Include in ...

(a) Clause 7-75, 

Subcontracts

solicitations and contracts when awarding:

(1) a cost-reimbursement contract;

(2) a letter contract that exceeds the judiciary’s small purchase 

threshold;

(3) a fixed-price contract that exceeds the judiciary’s small purchase 

threshold under which unpriced contract actions (including unpriced 

modifications or unpriced delivery orders) are anticipated;

(4) a time-and-materials contract that exceeds the judiciary’s small 

purchase threshold; or

(5) a labor-hour contract that exceeds the judiciary’s small purchase 

threshold.

The CO will fill in the clause’s blank spaces as appropriate.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 21

§ 725.10.40 Clauses

Clause or Provision Include in ...

(b) Clause 7-80, 

Competition in 

Subcontracting

solicitations and contracts when the contract amount is expected to 

exceed the judiciary’s small purchase threshold, except when awarding:

(1) a firm-fixed-price contract awarded on the basis of adequate price 

competition or whose prices are set by law or regulation, or

(2) a time-and-materials, labor-hour, or architect-engineer contract.

§ 730 Contract Performance

§ 730.10 Postaward Orientation

§ 730.10.10 In General

Postaward orientation is conducted by the CO. It is optional and is recommended in 

cases of complex service contracts. It is a planned and structured discussion between 

judiciary and contractor representatives that focuses on:

(a) introducing judiciary and contractor representatives;

(b) ensuring mutual understanding of the technical aspects of the contract;

(c) discussing judiciary oversight approach;

(d) preventing problems;

(e) averting misunderstandings;

(f) establishing a methodology to solve problems that may occur later; and

(g) reaching agreement on communication issues.

§ 730.10.20 When to Schedule a Postaward Orientation

The CO decides whether postaward orientation is necessary. The CO must consider 

the following factors:

(a) contract type, value, and complexity;

(b) procurement history of the required products or services;

(c) requirements for judiciary-provided property, if applicable;
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 22

(d) urgency of the contract delivery schedule and relationship of the products 

or services to critical judiciary programs;

(e) extent of subcontracting;

(f) contractor's performance history and experience with the products or 

services;

(g) safety precautions required for hazardous materials or operations; and

(h) any financing arrangements contemplated.

§ 730.10.30 Timing of Postaward Orientation

When the CO decides a postaward orientation is appropriate, it must be held promptly 

after award. The CO must prepare an agenda before the orientation, provide copies to 

all appropriate parties, and summarize by memorandum the actual topics covered in the 

orientation session. The CO and the contractor, and, whenever possible, all other 

principal parties, for example, CORs, project officers, program managers, and other 

appropriate subject matter experts, must attend any postaward orientation.

§ 730.10.40 Contract Changes

A postaward orientation may not be used to change the contract. However, if any 

changes are identified in a postaward orientation, and are determined by the CO to be 

necessary, they must be confirmed by the CO by issuance of a contract modification.

§ 730.20 Performance Record Keeping

Maintenance of complete records on contract performance is essential in monitoring 

contractor performance.

§ 730.20.10 In General

§ 730.20.20 Contractor Record Retention

The contractor must maintain records for three years after final payment on the contract. 

Clause 7-85, Examination of Records, is required to be included in all solicitations and 

contracts.

§ 730.20.30 Judiciary Contract Files

The CO and COR both maintain records on each contract assigned to them. Records 

must be maintained by the CO in a separate official contract file (see: § 710.10 

(Procurement Files (Purchase/Delivery/Task Order or Contract Files)) and by the COR 

in a contract work file (see: § 715.25.45 (Maintaining Procurement Files)).
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 23

§ 730.30 Performance Monitoring

§ 730.30.10 In General

Performance monitoring involves those contract administration activities that COs, 

CORs, and support personnel use to ensure that the products and services received 

conform to the contract requirements in quality, quantity, and all other specifics.

§ 730.30.20 Judiciary Policy on Performance Monitoring

Judiciary policy requires that the CO ensure that:

(a) procured products or services meet contract requirements and are 

delivered/performed according to contract delivery schedules;

(b) procedures for assuring that the contract requirements are fulfilled are 

followed before acceptance of products or services under the contract; 

and

(c) no contract clause or term precludes the judiciary from performing 

inspection.

§ 730.30.30 CO Responsibilities

The CO is responsible for the actions of all other personnel involved in the 

administration of the contract. The CO must instruct judiciary officials not to require the 

contractor to do anything that is not specified in the contract.

§ 730.30.40 Monitoring and Inspection Objectives

When a contract is signed, it is the intent of both parties to perform their respective 

obligations. Poor performance or late deliveries may cause costly delays in the 

program that the contract supports. The judiciary monitors contract performance closely 

to ensure that required end items are delivered on time. Monitoring and inspection 

supports many objectives, including:

(a) identifying potential delinquencies;

(b) isolating specific performance problems;

(c) supporting contractor requests;

(d) pointing out the need for judiciary assistance;

(e) revealing actual or anticipated default; and

(f) identifying judiciary-caused delays.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 24

§ 730.30.50 Review of Contractor Deliverables

(a) Review of contractor deliverables is an important method of enforcing 

contract requirements. Contract terms that require submission and written 

approval of interim deliverables before proceeding with subsequent 

performance, for example, a requirement for approval of a design before 

proceeding with installation of equipment for a courtroom technology 

project, must be strictly enforced.

(b) The CO will ensure that contractor deliverables are disapproved only for 

failure to meet a material requirement of the contract.

(c) If a contractor deliverable fails to meet judiciary expectations because the 

contract specifications are inadequate, the CO must determine the 

appropriate correction to the specifications with the assistance of technical 

personnel and modify the contract to reflect those revised specifications.

§ 730.30.60 Approval Process

(a) COs and their representatives will approve, conditionally approve, or 

disapprove contractor deliveries promptly and according to any time limits 

provided in the contract.

(b) Disapprovals and conditional approvals will clearly indicate what the 

contractor must do to comply with the contract requirements.

(c) Approval of late deliveries or deliveries of less than fully conforming 

products or services may constitute relaxation of contract performance or 

delivery requirements.

(d) When such relaxation occurs for reasons other than conditions caused by 

the judiciary, they constitute changes to the contract that require the 

negotiation of consideration. For types of contract remedies, see:

§ 735.20 (Types of Remedies).

§ 735 Quality Assurance

§ 735.10 In General

The CO is responsible for ensuring that products and services received under each 

contract conform to the quality and quantity requirements of the contract, including 

inspection, acceptance, warranty, and any other measures associated with quality 

assurance. The COR assists the CO by performing this function because the COR is 

generally on-site and either observes the performance of services first-hand or is the 

delivery point for material deliveries.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 25

§ 735.15 Contract Remedies

Contract remedies are forms of relief that the judiciary can pursue to compensate for a 

contractor’s nonperformance or noncompliance with a contract term or condition. These 

forms of relief can be provided by clauses or from basic rights provided in government 

contract law and, occasionally, in commercial contract law.

§ 735.20 Types of Remedies

§ 735.20.10 Remedies Other than Termination

The judiciary has several methods at its disposal to remedy a given situation without 

resorting to terminating the contract. Remedies include:

(a) rejecting nonconforming products and services;

(b) invoking written warranties, if provided for in the contract;

(c) invoking implied warranties;

(d) proving the existence of latent defects, fraud, or gross mistakes amounting 

to fraud;

(e) imposing liquidated damages if provided for in the contract (see: Guide, 

Vol. 14, § 220.30 (Liquidated Damages) and § 735.25 (Assessing 

Liquidated Damages)); and

(f) modifying contracts to relax or delete requirements provided that 

consideration is obtained from the contractor.

§ 735.20.20 Remedies Involving Cure Notice or Show Cause

The PE must review all proposed application of remedies involving a cure notice or 

show cause letter. The PE may seek the advice of OGC. For further guidance on the 

use of cure notices or show cause letters, see: § 755 (Contract Termination).

§ 735.25 Assessing Liquidated Damages

§ 735.25.10 In General

When the contract includes a liquidated damages clause, such as Clause 2-75, 

Liquidated Damages, assessment of liquidated damages must be reasonable and 

considered in light of contract requirements and done on a case-by-case basis. Any 

amount established without reference to probable actual damages may be interpreted 

as punitive and thus unenforceable. Before making any assessment of liquidated 

damages, the CO must obtain PE approval of the action.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 26

§ 735.25.15 Documentation Required

The CO must document any evidence of the contractor’s failure to deliver the products 

or perform the services within the time specified in the contract. This documentation will 

focus on the:

(a) stage of completion;

(b) probable amount of damages sustained by the judiciary;

(c) reason and excusability for a delay; and

(d) contractor’s ability to complete the contract.

§ 735.25.20 Computation of Assessment Amount

When assessment of liquidated damages is appropriate, the CO must withhold payment 

based on an accurate computation of the amount due. The actual computation will 

depend on the specific amount or specific formula in the contract.

§ 735.25.25 Discussion with the Contractor

After the CO has determined the judiciary is entitled to assess liquidated damages, the 

CO must discuss the situation with the contractor. Before the actual assessment of 

liquidated damages, the CO will advise the contractor of the:

(a) judiciary’s intention to assess liquidated damages unless the contractor 

provides evidence to the judiciary by a specified date that such an 

assessment would be improper;

(b) basis or bases for the judiciary’s assessment of these damages; and

(c) amount of the planned liquidated damages assessment, including the 

reasons for any reduction in the specified amount for liquidated damages 

stated in the contract.

§ 735.25.30 Liquidated Damages Notice

A liquidated damages notice must indicate:

(a) the specific reason for assessing the damages provided in the clause;

(b) the dollar amount of the damages; and

(c) any steps the contractor may be able to take to avoid further assessment 

of liquidated damages.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 27

§ 735.25.35 Waiver of Liquidated Damages

Liquidated damages may occasionally be waived by the CO. A decision to grant a 

waiver should be based on one of the following reasons:

(a) the contractor documents a reasonable case for an excusable delay;

(b) the contractor claims impossibility of performance; or

(c) the contractor claims the work is substantially complete.

§ 735.25.40 Determination of “Substantial Completion”

Assessment of liquidated damages is generally not appropriate after the work can be 

considered substantially complete.

§ 735.25.45 CO Actions

Based on the evidence, the CO, with approval from the PE, may:

(a) forego or waive assessing liquidated damages (see: § 735.25.35 (Waiver 

of Liquidated Damages));

(b) assess a reduced amount; or

(c) assess maximum allowable liquidated damages.

§ 735.25.55 Alternative Actions

The CO also may consider terminating for default (see: § 755 (Contract Termination)) 

or taking other appropriate action in lieu of or following an earlier assessment of 

liquidated damages.

§ 735.30 Nonconforming Products or Services

§ 735.30.10 In General

COs must normally reject products or services not conforming in all respects to contract 

requirements. Rejection is mandatory when nonconformance adversely affects safety, 

health, reliability, durability, performance, or any other basic objective of the 

specification. In addition, products or services that do not conform to the terms of the 

contract must be rejected before any acceptance takes place. Products or services that 

have been accepted cannot be rejected later, except for:

(a) latent defects;

(b) fraud; and
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 28

(c) gross mistakes amounting to fraud.

See: § 735.55 (Fraud, Gross Mistake, or Latent Defects)

§ 735.30.20 Opportunity to Correct or Replace

Contractors may be given an opportunity to correct or replace nonconforming products 

or to re-perform non-conforming services. Unless the CO specifies otherwise, 

correction, replacement or re-performance must be at no additional cost to the judiciary. 

In addition, the CO must reserve the right of the judiciary to charge the contractor the 

cost of reinspection and retesting needed because of a previous rejection.

(a) For Products

(1) The judiciary’s rights when delivered products are defective are 

provided in Clause 2-5A, Inspection of Products. Similar language 

appears in paragraph (d) of Clause 3-3, Provisions, Clauses, Terms 

and Conditions – Small Purchases.

(2) Notice of rejection of defective products must be provided by the 

CO in writing, at which time the CO must inform the contractor 

whether the judiciary requires replacement or correction of the 

defects; will acquire replacement products from another source and 

charge the contractor for any excess costs incurred by the judiciary; 

or will accept the products at a reduced price.

(3) Corrected or replaced products may not be re-delivered for 

acceptance unless the contractor discloses the previous rejection 

and correction action taken.

(4) If the contractor fails to proceed with reasonable promptness to 

perform replacement or correction, the CO may, by contract or 

otherwise, remove, replace, or correct the products and charge the 

cost to the contractor, or terminate the contract for default.

(b) For Services

(1) The judiciary’s rights when services do not meet contract 

requirements are provided in Clause 2-5B, Inspection of Services. 

Similar language appears in paragraph (d) of Clause 3-3, 

Provisions, Clauses, Terms and Conditions – Small Purchases.

(2) Notice of rejection of defective services must be provided by the 

CO in writing, at which time the CO may require the contractor to 

perform the services again in conformity with the requirements at 

no increase in contract amount.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 29

(3) When the services are of such a nature that they cannot be 

corrected by re-performance, the CO may require the contractor to 

take necessary action to ensure that future performance conforms 

to contract requirements and reduce the contract price to reflect the 

reduced value of the services performed.

(4) If the services are of a nature that can be corrected by reperformance and the contractor fails to promptly perform the 

services again, the CO may, by contract or otherwise, obtain 

performance of the services and charge to the contractor any cost 

incurred by the judiciary that is directly related to the performance 

of such service or terminate the contract for default.

(c) For either products or services, the choice of remedy — replacement or 

correction of products, re-performance of services, negotiation of a 

reduced price, or reprocurement from another source — is generally within 

the discretion of the CO. Where the rejected products or services 

constitute the majority of the contract’s required deliveries, acquiring 

replacement products or re-performance of services should follow 

termination of the contract for default, which requires the PE’s approval. 

For additional information about termination procedures, see: § 755 

(Contract Termination).

§ 735.30.30 Minor Nonconformances

(a) The CO may accept a nonconforming product or service when the 

nonconformance is minor. In such instances, when the savings realized 

by the contractor by not conforming does not exceed the administrative 

cost to the judiciary for processing a formal modification, the 

nonconformance may be accepted without consideration. For example, 

there may be no cost variance based on the color of a product, so the 

contractor realized no savings in delivering an incorrect color. The 

incorrect color may be either rejected or accepted, at the discretion of the 

CO, without requiring consideration for acceptance of the 

nonconformance. See: § 735.30.50 (Consideration for Acceptance of 

Defective Performance).

(b) The CO will consult with technical personnel as necessary in making a 

determination to accept a minor nonconformance. Generally, a minor 

nonconformance does not adversely affect:

(1) safety;

(2) health;

(3) reliability;
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 30

(4) durability;

(5) performance;

(6) interchangeability of parts or assemblies;

(7) weight (if a contract requirement);

(8) appearance (if a contract requirement); or

(9) any other basic requirement of the contract.

§ 735.30.40 Substantial Nonconformance

The CO may not accept products or services whose nonconformance is substantial and 

adversely affects satisfaction of a basic contract requirement, unless acceptance is 

clearly in the judiciary’s interest. The CO's determination to accept the products or 

services must be in writing and must be based on:

(a) information on the nature and extent of the nonconformance;

(b) advice of the technical activity that products or services are safe and will 

perform or meet the intended purpose;

(c) the contractor’s request for acceptance of the nonconforming products or 

service;

(d) a recommendation for acceptance by the organization on whose behalf 

the products or services are being purchased (i.e., the end user), with 

supporting rationale; and

(e) appropriate monetary or other consideration.

§ 735.30.50 Consideration for Acceptance of Defective Performance

(a) COs must discourage the repeated delivery of nonconforming products or 

services, including those with only minor nonconformances.

(b) In such cases, the CO must take appropriate action, such as rejection and 

documentation of the contractor's performance record or acceptance with 

consideration required from the contractor for the nonconformance.

(c) A downward price adjustment is the most common form of consideration, 

though consideration may take many other forms, such as additional 

quantities of items, accelerated deliveries, etc.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 31

(d) In all instances where the savings realized by the contractor by a 

nonconforming delivery exceed the administrative cost to the judiciary for 

processing a formal modification, the nonconformance may not be 

accepted without consideration and the CO must modify the contract.

§ 735.30.60 Notice of Rejection

(a) Contractors must be given prompt written notice of rejection, including the 

reasons for rejection when:

(1) the products or services have been rejected at a place other than 

the contractor's facility;

(2) the contractor persists in offering nonconforming products or 

services for acceptance; or

(3) delivery or performance was late without excusable cause.

(b) A rejection notice does not extend the delivery period. The contractor is 

still required to provide products and services that conform to the 

contract’s delivery schedule.

(c) Products or services that are otherwise in compliance with the contract are 

nonconforming when they are late in delivery or performance, and 

consideration may be required for acceptance of a late delivery.

§ 735.30.70 Contractor Response

A contractor may respond to a notice of rejection by:

(a) offering to correct the work;

(b) offering to provide a downward price adjustment for acceptance;

(c) offering to negotiate a revised delivery schedule for a conforming product 

with consideration; or

(d) alleging the judiciary specifications were ambiguous or defective.

§ 735.35 Acceptance

§ 735.35.10 Definition

(a) Acceptance constitutes acknowledgment that products or services 

conform with the quality, quantity, and packaging requirements provided in 

the contract.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 32

(b) The acceptance of products or services that do not conform with the 

contract requirements may only be performed by the CO and, if the nonconformance is significant, must be accompanied by a contract 

modification and negotiation of an equitable price reduction or other 

consideration from the contractor. See: § 735.30 (Nonconforming 

Products or Services).

(c) Acceptance may take place at delivery or after delivery, depending on the 

contract’s requirements.

§ 735.35.20 Evidence of Acceptance

Acceptance may be evidenced by execution of an acceptance certificate on an 

inspection form, receiving report, or commercial shipping document or packing list, or, in 

the case of services, by the COR’s approval of the contractor’s invoice. Electronic 

receiving reports may also be used.

§ 735.40 Responsibility for Acceptance

(a) Product or service acceptance is the responsibility of the CO.

(b) When this responsibility is delegated to a COR or another judiciary 

employee, acceptance by that person is binding on the judiciary.

§ 735.45 Place of Acceptance

(a) Each contract must specify the time and place of acceptance. Contracts 

providing for judiciary inspection at source (i.e., contractor’s place of 

business) ordinarily provide for acceptance at source.

(b) Those providing for inspection at destination (i.e., judiciary’s facilities) 

ordinarily provide for acceptance at destination.

(c) Products accepted at a place other than destination may not be 

reinspected at destination for acceptance purposes. However, they must 

be examined at destination to confirm quantity and that there has been no 

damage in transit. Destination examination also includes ensuring that 

there has been no substitution or fraud following acceptance, which would 

invalidate such acceptance.

§ 735.50 Express Warranties

§ 735.50.10 Definition

An express warranty is a written promise or affirmation given by a contractor to the 

judiciary regarding the nature, usefulness, or conditions of the products or performance 

of services furnished under the contract.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 33

§ 735.50.20 Purpose

(a) Written warranties can limit the judiciary’s risk when relying on the 

contractor’s own inspection methods to ensure the quality of the work. For 

clauses and other requirements for inclusion of warranties, see: Guide, 

Vol. 14, § 220.20 (Warranties).

(b) Express warranties are the contractor’s way of assuring the judiciary that 

the product or service:

(1) is free from defects in workmanship, and

(2) will conform to the requirements of the contract.

§ 735.50.30 Required Information

Express warranties must:

(a) state the duration of the warranty, and

(b) specify a period during which notice of any defect must be given to the 

contractor.

§ 735.50.40 Remedies Provided by Warranties

The CO must accurately determine the contractor’s responsibilities and the judiciary’s 

rights under the terms and conditions of the warranty and must verify that the warranty 

does not erode nor limit any of the judiciary’s rights conferred elsewhere in the contract. 

Warranties may provide alternate remedies such as:

(a) repair the defect;

(b) replace the item;

(c) reperform the service;

(d) make an equitable adjustment; or

(e) pay for repairs, replacements, or reperformance when the judiciary has 

obtained the products or services from other sources.

§ 735.55 Fraud, Gross Mistake, or Latent Defects

§ 735.55.10 In General

The judiciary’s acceptance of contractor products and services is final unless:

(a) the defect is latent;
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 34

(b) it is proven in litigation in a court of law there was fraud involved; or

(c) it is proven in litigation in a court of law there was a gross mistake 

amounting to fraud.

Note: Any situation involving suspected fraud or gross mistake amounting to fraud 

must be referred to the PE for review and appropriate action.

§ 735.55.20 Latent Defect

For a defect to be latent it must:

(a) not be susceptible to discovery using inspection methods that are 

reasonable under the circumstances, and

(b) be in existence at the time of acceptance.

§ 735.55.30 Proving Fraud or Gross Mistake Amounting to Fraud

(a) The only difference between fraud and gross mistake is intent.

(b) To prove a gross mistake, the judiciary need only prove that the mistake 

was truly irresponsible.

(c) Proving fraud requires a showing that the misrepresentation or 

concealment of fact was made with the intent to mislead.

§ 735.55.40 Evidence of Fraud

To prove fraud, the judiciary must show evidence of:

(a) a misrepresentation of fact (actual or implied), or a concealment of 

material fact;

(b) contractor knowledge of the fact concealed or misrepresented;

(c) an intent to mislead the judiciary into relying on its misrepresentation or 

concealment; and

(d) judiciary injury suffered as a result of the concealment or 

misrepresentation.

§ 735.55.50 Remedies if Fraud is Proven

If fraud or gross mistake amounting to fraud is proven in a court of law, the contractor 

can be forced to repair or replace the product or reperform the service at its own cost 

any time after acceptance.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 35

§ 735.60 Bankruptcy

§ 735.60.10 In General

Once a contractor declares bankruptcy, the right of the judiciary to take unilateral action 

with respect to the contractor is limited. COs need to monitor the financial strength of 

the contractor to anticipate possible problems that could arise in this area and take

prompt action to protect the interests of the judiciary following notification of a 

contractor's bankruptcy.

§ 735.60.20 Procedures

Following notification that a contractor is in bankruptcy proceedings, the CO must:

(a) furnish the notice of bankruptcy to PMD with a copy to the Procurement 

Liaison Officer (PLO);

(b) determine the amount of any claims that the judiciary may have against 

the contractor on any contracts that have not been closed out;

(c) take actions necessary to protect the judiciary's financial interests;

(d) safeguard judiciary property; and

(e) furnish pertinent contract information to the PE.

§ 735.60.30 Consultation with Office of the General Counsel

The PE will consult with OGC as necessary before taking any action regarding the 

contractor's bankruptcy proceedings.

§ 735.60.40 Clause

Clause 7-110, Bankruptcy must be included in all solicitations and contracts exceeding 

the judiciary’s small purchase threshold.

§ 740 Payments

§ 740.10 In General

§ 740.10.10 Payment Categories

Payments fall into two general categories:

(a) Delivery Payment
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 36

A payment made once delivery has been made and the product or service 

has been accepted;

(b) Partial Payment

A partial payment is a method of payment based on acceptance of a 

particular individually priced portion of the contract deliverables.

§ 740.10.20 Partial Payments

(a) A partial payment is any payment for accepted products or services that 

are only a part of the total requirement (e.g., payment for delivery of less 

than the full quantity of computers ordered, or for completion of one month 

of 12 in a fixed price service contract). Contractors may be paid for partial 

delivery of products or performance of services unless the contract 

specifically prohibits partial payments. Partial payment is a method of 

payment, not a method of contract financing. Partial payments can assist 

contractors to participate in judiciary contracts with minimal or no contract 

financing. For contract financing, see: Guide, Vol. 14, § 220.55 (Contract 

Financing).

(b) When delivery or performance is authorized in installments or when a 

number of items of work are called for by the contract, partial payment of a 

portion of the price may be made for the items delivered or performed and 

accepted.

(c) In firm-fixed-price contracts, the pricing section of the contract establishes 

unit prices for each ordered product or service, and payment may be 

made for any product or services listed in the pricing section that has been 

delivered and accepted. However, contracts should generally not 

authorize payment more often than monthly.

(d) A payment should reflect the complete value of the product or service 

accepted, so that if the contract is terminated the CO will know the value 

of the payments for finished work, as well as the value of the terminated 

work.

(e) Contracts should not authorize contractors to invoice partial performance 

based on the contractor’s expenditures, since this may or may not reflect 

the value of the partial delivery. For example, the contractor may have 

underestimated the labor required for performance and incur expenditures 

of 50 percent of the contract price when only 25 percent of the contract 

work has been performed.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 37

§ 740.10.30 Advance or Pre-payments

The judiciary has limited authority to make advance or pre-payments. In addition to 

commercial advance payment, the judiciary may make payment in advance for the 

purchase of publications, when making payment to other federal agencies, and when 

paying state and local governments, where these entities are furnishing products or 

services that are reasonably available only from the state/local government 

organization. See: Guide, Vol. 14, § 550 (Interagency Agreements, MOAs, and MOUs)

and Guide, Vol. 14, § 220.55 (Contract Financing).

§ 740.10.40 Nonpayment or Payment Delays

Nonpayment and delays in payment have harmful effects on contractors, especially 

small businesses. COs and financial personnel must ensure that payments legitimately 

due are made promptly. If a dispute arises regarding the contractor's entitlement to 

payment, the CO must pay the contractor any amount not in dispute, except for 

withholding as allowed under § 740.40 (Withholding Payments).

§ 740.10.50 Approving Partial Payments

If partial payments are specified in the payment provisions of the contract, the CO will 

generally approve requests for partial payment following partial delivery of products or 

services that fulfill contract requirements. When the contract does not provide unit 

prices, the CO may determine an appropriate formula for payment.

§ 740.10.60 Payment Under Cost-Reimbursement Contracts

Requests for payment under cost-reimbursement type contracts must be reviewed and 

approved for payment by the CO, with the assistance of technical personnel, to 

determine that such requests comply with the requirements for allowability, allocability, 

and reasonableness. See: Guide, Vol. 14, § 470 (Cost Allowability).

§ 740.20 Invoices

§ 740.20.10 In General

Payment will be made only after receipt of an invoice that complies with the applicable 

Invoices clause of the contract.

§ 740.20.20 Submission

Invoices must be sent to the invoice address specified in the contract. A copy is sent to 

the CO, if required by the contract. Invoices sent to any other person or office are not

considered properly submitted.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 38

§ 740.20.30 Clause

Include Clause 7-125, Invoices in all solicitations and contracts unless another 

“Invoices” clause is appropriate. The CO will include a schedule of payments in the 

contract whenever payment is not on a unit price basis (e.g., completion of milestones). 

For experts and consultant services solicitations and contracts, include the clause with 

its Alternate I.

§ 740.30 Payment

§ 740.30.10 Means of Payment

(a) Payment may be made by check or electronic funds transfer (EFT) (if 

available). Use of an online payment platform (e.g., PayPal, Venmo) for 

making contract payments is not authorized.

(b) An exception may be made where there is only one source of a needed

product or service that will not accept payment by any method except the 

online payment platform. In such cases, the file must be thoroughly 

documented to show the efforts made to reach agreement with the 

contractor to pay by other methods before resorting to the online payment 

platform. Payments made using this method may not exceed the 

purchase cardholder’s single-purchase limit.

§ 740.30.20 Time of Payment

As a matter of judiciary policy, payment must be made as close as possible to, but not 

later than, the 30th calendar day after receipt of an invoice or product/service 

acceptance, whichever occurs later.

§ 740.30.30 Payment of Interest

The Prompt Payment Act of 1982 is not applicable to the judiciary. Include Clause 7-

130, Interest (Prompt Payment) in all solicitations and contracts.

§ 740.30.40 Final Payment

(a) Final payment may be made after acceptance of all products or services 

covered by the contract.

(b) However, final payment may not be made under any contract involving 

retainage (e.g., liquidated damages, or withholding pending final audit 

under certain contracts), or under any contract involving payment or 

performance guarantees, until the CO receives a release of claims from 

the contractor discharging the judiciary from any further obligations under 

the contract.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 39

(c) Contract closeout may not be finalized until all delivery and payment 

issues are settled.

§ 740.30.50 Clauses 

Clause Include in ...

(a) Clause 7-135, Payments solicitations and contracts for fixed-price products or 

services, unless another “Payments” clause is 

appropriate (e.g., Clause 5-1, Payments under Personal 

and Professional Services Contracts). When the CO 

uses a “Payments” clause and an “Inspection” clause is 

not included in the contract, then payment signifies 

acceptance.

(b) Clause 7-140, Discounts for 

Prompt Payment

solicitations and contracts for fixed-price products or 

services

(c) Clause 7-145, Government 

Purchase Card

solicitations and contracts when the CO determines that 

a purchase card can be used to make payments on the 

contract

(d) Clause 7-150, Extras solicitations and contracts for fixed-price products, 

services, or transportation

(e) Clause 7-155, Certification of 

Final Indirect Costs

solicitations and contracts that provide for establishment 

of final indirect cost rates

§ 740.40 Withholding Payments

§ 740.40.10 In General

The CO may refuse to pay a contractor, may suspend payments until resolution of an 

issue, may disallow a cost, or may withhold payments otherwise due, in whole or in part, 

when:

(a) the contract provides for withholding, such as for cost-plus-fixed-fee or 

incentive fee contracts when retainage is authorized according to the 

applicable fee clause;

(b) the CO determines that elements of the amount invoiced by the contractor 

under a cost-reimbursement contract are not allowable (see: Guide, Vol. 

14, § 470.10 (Determining Cost Allowability)), allocable (see: § 470.30 

(Determining Allocability)), or reasonable (see: § 470.20 (Determining 

Reasonableness));

(c) the contractor has been overpaid or otherwise owes the judiciary money 

as a result of the contractor's actions or inactions under the contract;
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 40

(d) the contractor owes the judiciary money for reasons unrelated to the 

contract under which payment will be withheld; or

(e) as a result of judicial action or applicable law, parties other than the 

contractor have made claims against the judiciary, or have not waived 

rights exercisable against the judiciary. Any time a CO receives a claim 

from a third party for compensation otherwise due a contractor, the PE 

must be notified immediately.

§ 740.40.20 Impact of Withholding Payment

Nonpayment may be damaging to a contractor's business and may jeopardize 

performance. Therefore, the CO must carefully consider the reasons for withholding or 

refusing payment and process disputes regarding payment expeditiously.

§ 740.40.30 Notice to Contractor

(a) The CO must notify the contractor of any intended withholding or of the 

CO’s intent to disallow specified costs incurred or planned under a costreimbursement or fixed-price incentive contract.

(b) However, before issuing the notice, the CO must make a reasonable effort 

to reach a satisfactory settlement through discussions with the contractor 

and must provide an opportunity for the contractor to respond.

(c) If time permits, notice must be in writing.

§ 740.40.40 Contractor Response

If the contractor disagrees with the deduction from current payments, the contractor 

may:

(a) request in writing that the CO reconsider the deduction; and/or

(b) file a claim under Clause 7-235, Disputes.

§ 740.40.50 Withholding Under Different Clauses

Some contract clauses, such as Clause 2-75, Liquidated Damages, provide for 

withholding payment in certain circumstances. In addition, some clauses provide for 

withholding a percentage or portion of payments otherwise due to induce continued 

acceptable performance. The CO must strictly enforce such clauses and maintain a 

complete record of the amounts withheld under any clause, the basis for withholding, 

and the disposition of funds withheld.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 41

§ 740.40.50 Clauses

Clause Include in ...

(a) Clause 7-160, Limitation 

on Withholding of 

Payments

solicitations and contracts for products or services whenever 

the contract specifies two or more circumstances authorizing 

the temporary withholding of amounts otherwise payable to the 

contractor for products delivered or services performed

(b) Clause 7-165, Penalties 

for Unallowable Costs

all solicitations and contracts over $500,000, except fixed-price 

contracts without cost incentives

(c) Clause 7-170, Notice of 

Intent to Disallow Costs

solicitations and contracts when a cost-reimbursement contract 

or a fixed-price incentive contract is contemplated

§ 740.50 Assignment of Claims

§ 740.50.10 In General

A contractor may assign monies coming due under a judiciary contract to a bank, trust

company or other financial institution with the written approval of the CO. Any other 

attempted assignment may be treated as a breach of contract.

§ 740.50.20 Approval

COs may approve in writing any authorized assignment that does not jeopardize 

contract performance.

§ 740.50.30 Assignments by Law

This part does not govern assignments ordered by a court or by operation of law. COs 

must notify the PE, who will consult with OGC, in such cases.

§ 740.50.40 Clauses

Clause Include in ...

(a) Clause 7-175, Assignment of 

Claims

solicitations and contracts expected to exceed the 

judiciary’s small purchase threshold unless the contract will 

prohibit the assignment of claims

(b) Clause 7-180, Prohibition of 

Assignment of Claims

solicitations and contracts for which a determination has 

been made that the prohibition of assignment of claims is in 

the judiciary's interest

§ 740.50.50 Assignments

(a) Assignments by corporations must be:
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 42

(1) executed by an authorized representative;

(2) attested by the secretary or the assistant secretary of the 

corporation; and

(3) impressed with the corporate seal or accompanied by a true copy 

of the resolution of the corporation’s board of directors authorizing 

the signing representative to execute the assignment.

(b) Assignment by a partnership may be signed by one partner, if the 

assignment is accompanied by adequate evidence that the signer is a 

general partner of the partnership and is authorized to execute 

assignments on behalf of the partnership.

(c) Assignments by an individual must be signed by that individual and the 

signature acknowledged before a notary public or other person authorized 

to administer oaths.

§ 740.50.60 Filing

(a) The assignee must file the notice of assignment and copy of the 

instrument of assignment with:

(1) the CO; and

(2) the surety on any bond applicable to the contract.

(b) The assignee must forward to each party specified above an original and 

three copies of the notice of assignment together with one true copy of the 

instrument of assignment. The true copy must be a certified duplicate or 

photostat copy of the original assignment. The CO must provide a copy of 

the notice of assignment to the payment office.

§ 740.50.70 Format for Notice of Assignment

Appx. 7A (Sample Notice of Assignment) is a suggested format for use by an assignee 

in providing the notice of assignment.

§ 745 Contract Modifications

§ 745.10 Policy

§ 745.10.10 In General

Only COs are authorized to sign contract modifications on behalf of the judiciary. Other 

judiciary personnel may not:
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 43

(a) sign contract modifications;

(b) act in such a manner as to cause the contractor to believe that they have 

authority to bind the judiciary;

(c) direct or encourage the contractor to perform work that must be the 

subject of a contract modification but has not yet been executed; or

(d) accept products and/or services that are in any way dependent on a 

contract modification that has not been executed.

§ 745.10.20 Pricing of Contract Modifications

(a) Contract modifications, including changes that may be issued unilaterally, 

will be priced before their execution, if doing so can be done without 

adversely affecting the interest of the judiciary.

(b) If a significant price increase could result from a contract modification and 

time does not permit negotiation of a definitive price, at least a maximum 

cost ceiling must be established in the modification.

(c) For additional guidance on analyzing contractor requests for price 

adjustments, see: § 745.45 (Equitable Adjustments).

§ 745.10.30 Unpriced Contract Modifications

If an unpriced contract modification is issued (e.g., a unilateral change order under 

Clause 7-185, Changes), the CO must justify, in writing, the reasons for the issuance of 

the unpriced modification.

§ 745.10.40 Funds Availability

The CO cannot execute a contract modification, including a change order, if doing so 

will cause an increase in the funding level of the contract without having first ensured 

that sufficient funds are available in the judiciary’s financial system of record. See also:

§ 745.25 (Availability of Funds). The CO may not perform any related reprogramming 

of funds that must be done in the financial system. See also: Guide, Vol. 11, § 320 

(Separation of Duties).

§ 745.10.50 Modifications

Modifications may be:

(a) initiated by either party;

(b) bilateral within scope changes;
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 44

(c) a unilateral change (such as an administrative change of the accounting 

and appropriation data, or a change under Clause 7-185, Changes);

(d) new work within the scope of the contract; or

(e) new work outside the scope of the contract (although this requires either 

competition or a justification for other than full and open competition (see:

Guide, Vol. 14, § 335 (Justifications and Approvals for Limiting 

Competition)).

§ 745.10.60 Contractor-Requested Modifications

The contractor may request a contract modification. Examples of reasons for a 

contractor-requested change include:

(a) adjustments to the contract based on circumstances or events beyond the 

contractor’s control (e.g., excusable delay, stop work order issued, 

constructive change, settlement for contract termination for convenience);

(b) adjustments due to action by the contractor (e.g., name changed, 

consideration offered for nonexcusable delay, novation agreement); and

(c) adjustments required by or authorized by the terms of the contract (e.g., 

economic price adjustment, price redeterminations, Department of Labor 

wage rate increases for an exercised option).

Note: Any contractor request for a price increase must have some legal basis for the 

requested increase, especially when the contract is firm-fixed-price. A mere notification 

from the contractor after award that a mistake was made in the price is generally not 

sufficient legal basis for agreeing to a requested increase.

§ 745.10.70 Submission of Modification Requests

Contractor requests for modification must provide all necessary documentation as 

required by the CO. The CO will review the request and related documentation, and 

either process a modification or make a determination that the change is not warranted.

§ 745.15 Types of Modifications

§ 745.15.10 Bilateral Modification

(a) A bilateral modification (also known as a supplemental agreement) is a 

modification that is signed by both the contractor and the CO and is the 

preferred type of modification for accomplishing changes. The contractor 

should always be asked to execute the modification first, with the CO 

signature being second. Most supplemental agreements involve 

negotiation of price and other terms, usually relating to tasks that are 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 45

similar to the award of the basic contract. A bilateral agreement is used 

when:

(1) the change has an effect on the substantive rights of either party;

(2) there is sufficient time to negotiate a supplemental agreement; or

(3) there is no basis in the contract’s terms for issuing a unilateral 

modification.

(b) Bilateral modifications are used to:

(1) incorporate changes to the contract made under Clause 7-185, 

Changes;

(2) incorporate negotiated equitable adjustments resulting from the 

issuance of a unilateral change order;

(3) reflect other agreements of the parties that modify the original 

contract terms;

(4) definitize a letter contract;

(5) approve changes required by or authorized by the contract, such as 

economic price adjustments;

(6) incorporate novation agreements where the judiciary is the 

responsible agency (see: § 745.55 (Novation and Change of 

Name Agreements));

(7) incorporate name-change agreements where the judiciary is the 

responsible agency (see: § 745.55 (Novation and Change of 

Name Agreements)); or

(8) recognize when a sole proprietor originally doing business under a 

social security number (SSN) changes to a sole proprietor doing 

business under an Employer Identification Number (EIN).

§ 745.15.20 Unilateral Modification

(a) A unilateral modification is a modification that is signed only by the CO as 

permitted within the operation of an existing contract clause. Unilateral 

modifications are of three basic types:

(1) Administrative Changes
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 46

These are changes that are minor in nature and do not materially 

affect contract performance or the substantive rights of the parties. 

Examples include:

(A) correcting a fund citation;

(B) adding a zip code on a delivery address;

(C) designating a change in COR or other contract 

administrators;

(D) recognizing a novation agreement executed by another 

agency on behalf of the government (see: § 745.55 

(Novation and Change of Name Agreements)); and

(E) recognizing name-change agreements executed by another 

agency on behalf of the government (see: § 745.55 

(Novation and Change of Name Agreements)).

(2) Change Orders

The term “change order” refers to the actual issuance of a change 

authorized by Clause 7-185, Changes, usually as a unilateral 

modification. It directs the contractor to make a change, without the 

contractor’s earlier consent, within the general scope of the 

contract. See: § 745.20.20 (Determination of “Within Scope”). 

Clause 7-185, Changes, authorizes the CO to change the following 

things in this manner:

(A) drawings, designs, or specifications, when the products to be 

furnished are to be specially manufactured for the judiciary 

according to the drawings, designs, or specifications;

(B) method of shipment or packing;

(C) place of delivery (e.g., changing the delivery address from 

one state to another);

(D) statement of work or description of services to be performed;

(E) delivery or performance schedule with regard to time (i.e., 

hours of day, days of the week, etc), or place of performance 

of services; and

(F) judiciary-furnished property.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 47

Note: A change order is the least preferred method of 

changing a contract. A supplemental agreement is the 

preferred method. See: § 745.15.10 (Bilateral Modification). 

The Changes clause is cited as the authority for the 

modification in Block 13.A of the Standard Form (SF) 30 

(Amendment of Solicitation/Modification of Contract). 

Change orders may be used only when there is not enough 

time to negotiate with the contractor and/or the change must 

be put into effect immediately. Clause 7-185, Changes

requires that the contractor assert its right to an equitable 

adjustment within 30 days after receipt of a change order. 

See: § 745.40 (Changes) and § 745.45 (Equitable 

Adjustments).

(3) Changes Authorized by Other Contract Clauses

Although these are not termed change orders, unilateral 

modifications may be issued under other contract clauses. 

Examples are the issuance of a stop work order or termination 

notice, obligation of additional funding for a contract that is being 

funded incrementally, or exercise of an option. Clause 7-185, 

Changes, only authorizes change orders within the scope of the 

contract and within the conditions specified in the clause. For 

additional information on contract modifications in general, see:

§ 745.20.10 (In General) and § 745.40 (Changes).

(b) The CO will issue a unilateral modification when:

(1) the change has no effect on the substantive rights of the contractor 

or the judiciary;

(2) the change can be made unilaterally under a specific contract term 

(e.g., Stop Work, Termination or Option clauses);

(3) the contractor’s agreement with the change is not required; or

(4) in the case of a change order, the time required to negotiate a 

bilateral agreement would cause a delay that would adversely 

affect the judiciary’s interest.

§ 745.20 Notification of Contract Changes

§ 745.20.10 In General

Under the “Changes” clause, when a contractor considers that any written or oral order 

(including direction, interpretation, instruction, or determination) from the CO, or another 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 48

judiciary representative, constitutes a change in the contract, the contractor must notify 

the CO in writing that the contractor regards the order as a change order. The CO must 

then evaluate the order and:

(a) confirm that it is a change, in which case the CO will also:

(1) direct the mode of further delivery or performance,

(2) plan for its funding, and

(3) issue a formal change order;

(b) countermand the alleged change; or

(c) notify the contractor that no change is considered to have been ordered.

§ 745.20.20 Determination of “Within Scope”

(a) Before issuing any contract modification, the CO must determine whether 

the contract change, initiated by either the judiciary or the contractor, is 

“within the scope” of the contact. A “within scope” change does not 

materially change the contract. The types of factors examined when 

determining whether a modification is “within scope” include:

(1) whether there is a change to the type of work required;

(2) whether there is a major cost impact to make the change;

(3) whether the change impacts the period of performance, and the 

length of the extension period relative to the original period of 

performance; and

(4) whether the solicitation for the original contract adequately advised 

offerors of the potential for the type of changes found in the 

modification, and thus whether the modification would have 

materially changed the field of competition.

(b) Another way of analyzing whether a change is within scope is to ask the 

following questions. If all these questions can be answered in the 

affirmative, the change can be considered within scope.

(1) Is the changed work within what both parties would have 

reasonably contemplated at the time of award? For example, at the 

time of award, parties would likely contemplate a change to a 

component in a courtroom technology upgrade involving many 

components; however, parties would not reasonably contemplate 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 49

adding an upgrade to another courtroom not identified in the 

solicitation.

(2) Is the changed work essentially the same as the original 

agreement?

(3) Is the nature of the requirement altered by the change?

(4) Would this type of change normally be expected for this kind of 

requirement? For example, more changes would be expected for 

complex requirements, such as development of a software system 

such as the Jury Management System than would be expected for 

a requirement for copier maintenance.

§ 745.20.30 Out of Scope Changes

If the CO determines that the contemplated action is not in scope, the change must be 

regarded as a cardinal change, i.e., new work (possibly subject to further competition). 

The contractor is not obligated to perform work that constitutes a cardinal change. See: 

§ 745.40.30 (Contractor’s Obligation to Perform).

§ 745.25 Availability of Funds

§ 745.25.10 In General

The CO may not execute a modification that causes or will cause an increase in 

required funds without first ensuring that funds are available in the judiciary’s financial 

system of record, except for modifications to contracts that:

(a) are conditioned on availability of funds, or

(b) contain a limitation of cost or funds clause.

See also: § 745.10.40 (Funds Availability) and Guide, Vol. 11, § 320 (Separation of 

Duties).

§ 745.30 Exercise of Options

§ 745.30.10 In General

(a) Options provide the judiciary with firm prices for additional quantities or 

periods of performance. Depending on the terms of the solicitation 

leading to the contract, certain options may only be exercised at the time 

of contract award. For example, additional items of furniture identified in a 

solicitation as optional, to be awarded depending on available funds at the

time of award. For additional information on options exercised at the time 

of award, see: Guide, Vol. 14, § 220.40 (Options).
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 50

Examples of options that may be exercised after award include:

(1) options for additional periods of performance for service contracts;

(2) options to extend the ordering period for indefinite contracts (see:

Guide, Vol. 14, § 410.30 (Indefinite-Delivery Contracts)); and

(3) options for additional work, such as adding another courtroom to a 

courtroom technology contract.

(b) The judiciary is under no legal obligation to exercise an option and the 

contractor has no recourse against the judiciary when an option is not 

exercised. Options may be exercised by issuance of a unilateral 

modification, i.e., without the contractor’s signature, but only if the option is 

exercised exactly consistent with the terms of the contract.

§ 745.30.20 Notice Requirement

(a) The option clause to extend service contracts or indefinite delivery 

ordering contracts requires that the CO provide advance notification of the 

judiciary’s intent to exercise an option no later than a specified time, 

usually 60 days before the current period of performance expires.

(b) In the event that the CO fails to provide the notice of intent by the 

specified time, the judiciary forfeits its right to exercise the option without 

the contractor’s agreement or signature on the modification. The notice 

requirement is for the benefit of the contractor, and may be waived by the 

contractor either expressly or by its conduct in performing in response to a 

unilateral option exercise. However, it is recommended that the CO obtain 

the contractor’s signature on the modification if the notice was late.

(c) The notification of intent does not bind the judiciary to exercise the option.

(d) In addition to the required time for providing the advance notice of intent to 

exercise an option, every option clause must state a “no later than” time 

by which the judiciary must exercise the option.

§ 745.30.30 Exercising Options

Options must be exercised exactly as they are stated in the contract. The CO may not 

change quantities, for instance, unless the option itself authorizes the specific change. 

Changes to a Statement of Work also cannot be combined with the unilateral exercise 

of an option. Unilateral exercise of an option is considered to be a best practice, where 

the CO has provided the advance notice in a timely manner and issues the modification 

exercising the option within the required time frame.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 51

§ 745.30.40 Written Determinations

Before exercising an option, the CO must sign and place a written determination in the 

official contract file. This written determination must show that:

(a) the judiciary has a need for the products or services covered by the 

option;

(b) exercise of the option is the most advantageous alternative, price and 

other factors considered (e.g., a need for continuity of operations and 

potential costs to the judiciary of disrupting operations);

(c) the option exercise complies with the terms of the contract;

(d) funds are available (or will be available); and

(e) the contractor remains a responsible source (see: Guide, Vol. 14, § 320 

(Contractor Qualifications)).

§ 745.30.50 Reviewing Option Prices

A determination that the option price is fair and reasonable must be based on one of the 

following:

(a) an informal investigation of prices, or other examination of the market, 

indicates that the option pricing is more advantageous than market prices;

(b) the time between the award of the contract containing the option and the 

exercise of the option is so short that it indicates the option price is the 

lowest price obtainable under the conditions. The CO may take into 

consideration such factors as market stability and a comparison of the 

time since award with the usual duration of contracts for such products 

and services; or

(c) a new solicitation fails to produce a better price than that offered by the 

option.

§ 745.30.60 Economic Price Adjustments

If the contract provides for economic price adjustment, the effect of such adjustment on 

prices under the option must be determined when considering whether or not to 

exercise the option.

§ 745.30.70 Option Procedures

When an option is to be exercised, the CO must:
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 52

(a) make a written determination that the option may properly be exercised 

according to the availability of funds (see: § 745.25 (Availability of 

Funds));

(b) give written advance notification of intent to the contractor within the time 

period specified in the contract; and

(c) give the contractor written notification of the exercise of the option by 

executing a modification, citing the option clause as authority for the 

modification.

§ 745.35 Correction of Mistakes

§ 745.35.10 In General

A contract may be modified to correct or mitigate the effect of a mistake such as the 

following:

(a) a mistake, ambiguity, or unclear expression in a written contract of the 

contract terms as both parties understood them;

(b) a contractor's mistake so obvious that it was or must have been apparent 

to the CO; and

(c) a mutual mistake as to a material fact.

§ 745.35.20 Procedure

A claim of mistake asserted by the contractor after award is a claim subject to the 

procedures of Clause 7-235, Disputes. A decision by the CO to deny, in whole or in 

part, a claim of mistake asserted after award is a final decision under the clause.

§ 745.40 Changes

§ 745.40.10 In General

The “Changes” clause permits the CO to make unilateral changes, as specified in the 

clause, within the general scope of the contract. These changes are accomplished by 

issuing written change orders. See also: § 745.15.20(a)(2) (Change Orders).

§ 745.40.20 Constructive Change

A constructive change is an implied change. It occurs when judiciary officials, who are 

not appointed as a CO, change the contract via verbal or written action. Constructive 

changes are considered unauthorized commitments. If the unauthorized commitment is 

ratified, the CO may issue a modification to the contract confirming the change and 

making an appropriate equitable adjustment.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 53

For procedures concerning ratifying unauthorized acts, see: Guide, Vol. 14, § 160 

(Ratification).

§ 745.40.30 Contractor’s Obligation to Perform

Under a change order issued by the CO under Clause 7-185, Changes, the contractor 

must continue performance of the contract as changed, except that in costreimbursement or incrementally-funded contracts the contractor is not obligated to 

continue performance or incur costs beyond the amount incrementally funded, or limits 

established in Clause 4-85, Limitation of Cost or Clause 4-90, Limitation of Funds.

§ 745.40.40 Clauses

Clause Include in ...

(a) Clause 7-185, Changes all firm-fixed-price solicitations and contracts

(b) Clause 7-185, Changes Alternate I all cost-reimbursement solicitations and contracts

(c) Clause 7-185, Changes Alternate II all time-and-materials or labor-hour solicitations 

and contracts

(d) Clause 7-185, Changes Alternate III all fixed-price architect-engineer contracts

(e) Clause 7-190, Change Order 

Accounting

solicitations and contracts for products of 

significant technical complexity if numerous 

changes are anticipated

§ 745.45 Equitable Adjustments

§ 745.45.10 In General

Change orders are not required to be priced before performance. They usually require 

two documents: the change order, and a supplemental agreement reflecting a resulting 

equitable adjustment.

(a) If an equitable adjustment in the price or delivery terms, or both, can be 

agreed on in advance, only a supplemental agreement need be issued.

(b) If the change order has no effect on price or delivery, no equitable 

adjustment is needed and there will be no related supplemental 

agreement.

(c) Administrative changes (such as a change in an accounting citation) and 

changes issued under a clause giving the judiciary a unilateral right to 

make a change (such as an option clause) require only one document, 

signed only by the CO.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 54

§ 745.45.15 Judiciary Policy

COs must promptly negotiate equitable adjustments resulting from change orders and 

follow up when claims for equitable adjustment are not received within 30 days after 

issuance of any change order.

§ 745.45.20 Price and/or Cost Analysis

Before negotiating an equitable adjustment, the CO must ensure that a price and/or cost 

analysis, as appropriate, is accomplished to also consider the contractor’s segregable 

costs of the change. See also: Guide, Vol. 14, § 440 (Price Analysis) and § 450 (Cost 

Analysis). If additional funds are required as a result of the change, the funds must be 

available before the supplemental agreement accomplishing the equitable adjustment is 

executed. In fixed-price contracts, analysis should include ensuring that the proposed 

equitable adjustment does not include recovery of overruns on the original work that the 

contractor is not entitled to recover.

§ 745.45.25 Settlement of Change Orders

To avoid controversies that may arise after a supplemental agreement making an 

equitable adjustment, the CO must ensure:

(a) that all elements of the equitable adjustment have been presented and 

resolved, and

(b) a release of claims is included in the supplemental agreement, similar to 

the following, stating sufficient information to identify the specific proposals 

and any exceptions to the settlement. If it is not possible to resolve all 

issues, the CO should add the statement “This release is final except for 

_________.” and list the specific issues that could not be resolved and are 

excepted from the release.

Contractor’s Statement of Release

In consideration of the modification(s) agreed to herein as complete equitable adjustments for 

the Contractor’s “proposal(s) for adjustment” dated _____, subject ________, the Contractor 

hereby releases the Government from any and all liability under this contract for further 

equitable adjustments attributable to such facts or circumstances giving rise to the “proposal(s) 

for adjustment.”

§ 745.45.30 Equitable Adjustments for Delays

(a) The contractor bears the risk of schedule and cost effects for delays it 

causes or for delays within its control.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 55

(b) Generally, the contractor is excused from nonperformance due to delays 

caused by factors for which neither the contractor nor the judiciary is

responsible.

(c) However, the contractor must bear the cost impact of such delays.

(d) The judiciary is responsible for the schedule and cost effects of delays it 

causes, delays that are under its control, or delays for which it has agreed 

to compensate the contractor.

§ 745.45.35 Excusable Delays

(a) A contractor may be granted an extension of the delivery or performance 

schedule for an excusable delay.

(b) A contractor's failure to perform may be considered due to an excusable 

delay when it arises out of either of the following types of causes:

(1) causes beyond the control and without the negligence of the 

contractor, including:

• acts of God or of the public enemy;

• acts of the judiciary in its sovereign capacity or its contractual 

capacity; and

• fires, floods, epidemics, quarantine restrictions, strikes, freight 

embargoes, or unusually severe weather; or

(2) a subcontractor default due to causes beyond the control and 

without the fault or negligence of both the contractor and the 

subcontractor, unless the products or services were obtainable 

from other sources in time to permit the contractor to meet the 

delivery schedule.

§ 745.45.40 Compensable Delays

A contractor may be granted an extension of the contract delivery or performance 

schedule, a price adjustment, or both, as the CO deems appropriate, when an 

unreasonable delay in performance is caused by the judiciary or is under its control. 

Situations that may entitle the contractor to an equitable adjustment (schedule, cost, or 

both) include:

(a) delay in issuing a notice to proceed;

(b) delay in availability of the site;
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 56

(c) differing site conditions;

(d) actual or constructive changes or delays;

(e) delay in providing funding;

(f) delay in inspections;

(g) delay in issuing changes;

(h) delay in providing judiciary-furnished equipment; and

(i) failure of performance of other judiciary contractors.

§ 745.45.45 Contractor’s Burden of Proof

The contractor has the burden of proof in establishing the basis for the equitable 

adjustment to which it is entitled as compensation for the delay, both in terms of a price 

increase and in terms of a revised delivery date.

§ 745.45.50 Concurrent Causes

When a delay is attributable to both the judiciary and the contractor, a delivery or 

performance schedule adjustment must not normally be granted for a period of delay 

caused at least in part by actions or failures on the part of the contractor. Damages 

may not be assessed against the contractor in such situations.

§ 745.45.55 Clauses

Clause Include in ...

(a) Clause 7-195, Excusable 

Delays

all solicitations and contracts for products and services, 

when using a cost-reimbursement contract, time-andmaterials contract or labor-hour contract

(b) Clause 7-200, Judiciary 

Delay of Work

solicitations and contracts for products. The clause may 

also be used in solicitations and contracts for fixed-price 

services

(c) Clause 7-205, Payment for 

Judiciary Holidays

all solicitations and contracts when awarding a time-andmaterials or labor-hour contract

(d) Clause 7-210, Payment for 

Emergency Closures

all solicitations and contracts
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 57

§ 745.50 Acceleration of Performance

§ 745.50.10 In General

The judiciary has the right to require accelerated performance under Clause 7-185, 

Changes. However, acceleration can be very costly. Therefore, this right must be 

exercised only when required to maintain the operational capability of the judiciary or 

when the CO otherwise determines acceleration is necessary.

§ 745.50.20 Documentation

COs must document the specific facts that require acceleration of performance and the 

estimated impact on price. Whenever possible, the CO must negotiate acceleration 

actions as supplemental agreements rather than by issuance of change orders.

§ 745.50.30 Constructive Acceleration

COs must be alert to constructive acceleration situations. Constructive acceleration 

occurs when the judiciary does not agree to a delivery or performance schedule 

extension to which the contractor is entitled, or is later determined to be entitled. This 

has the effect of causing the contractor to accelerate performance. Such acceleration 

may form the basis for a claim against the judiciary for an increase in price.

§ 745.55 Novation and Change of Name Agreements

§ 745.55.10 Policy

(a) The government, including the judiciary, generally prohibits the transfer of 

government contracts from the contractor to a third party by contract 

novation. However, when it is in its interest, the government may 

recognize a third party as the successor in interest when the third party's 

interest arises out of the transfer of:

(1) all the contractor's assets, or

(2) the entire portion of the assets involved in performing the contract.

(b) If the judiciary agrees to recognize a successor in interest, the procedures 

of this chapter must be followed to ensure that payments are made to the 

proper party. Failure to follow the procedures at § 745.55.20 (Recognizing 

Novation/Change of Name Executed by Another Agency) or § 745.55.30 

(Procedures When Judiciary Is Responsible Contracting Officer), may 

result in making payment to the wrong party, for which the Certifying 

Officer may be personally liable. See: Guide, Vol. 13, § 1310.40(b) 

(Improper Payment).
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 58

(c) Examples of situations in which novation may be permitted include, but 

are not limited to:

(1) sale of the contractor's assets with a provision for assuming 

liabilities;

(2) transfer of assets as part of a merger or corporate consolidation; 

and

(3) incorporation of a sole proprietorship or partnership, or formation of 

a partnership.

Note: The decision of a sole proprietor to obtain a Employer 

Identification Number (EIN) from the IRS for business purposes 

instead of using a Social Security Number (SSN) is not considered 

to require a novation agreement, although it may require a change 

to the financial system’s vendor table record, provided that the 

business entity remains a sole proprietorship.

(d) Federal policy is that contractors should deal with a single contracting 

officer when executing novation and change-of-name agreements, who 

will execute them on behalf of all affected agencies. The specific agency 

responsible for processing and executing novation and change-of-name 

agreements for an individual contractor is determined as follows:

(1) If administration of any of the contractor’s affected contracts —

regardless of awarding agency — has been assigned to an 

Administrative Contracting Officer (ACO), usually in an agency 

such as the Defense Contract Management Agency, that agency 

contracting office is responsible for executing novation and changeof-name agreements for the contractor.

(2) If none of the contractor’s affected contracts have been assigned to 

an ACO, the contracting office responsible for the largest unsettled 

(unbilled plus billed but unpaid) dollar balance of contracts will be 

the responsible contracting office. This will often be an executive 

agency contracting office, rather than the judiciary CO.

§ 745.55.20 Recognizing Novation/Change of Name Executed by Another Agency

If, under § 745.55.10(b) (Policy), an executive agency is responsible for executing the 

novation or change of name agreement, the judiciary CO, following receipt of a copy of 

the executed agreement signed by the executive agency CO, will recognize such 

agreement by modification of the judiciary contract incorporating the agreement. This 

may be accomplished as an administrative change order issued with only the signature 

of the judiciary CO, and does not require review or approval by the PE.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 59

§ 745.55.30 Procedures When Judiciary Is Responsible Contracting Officer

If, under § 745.55.10(b) (Policy), the judiciary CO is determined to be the responsible 

CO for executing a novation or change of name agreement with a specific contractor, 

then, following a request by that contractor for novation or change of name recognition,

the CO will:

(a) identify and request from the contractor the information necessary to 

evaluate the proposed agreement for recognizing a successor in interest 

or a name change (see: § 745.55.40 (Novation Agreements) and 

§ 745.55.50 (Change of Name Agreements));

(b) notify every other federal contract administration office and contracting 

office, including non-judiciary offices, affected by a proposed agreement 

for recognizing a successor in interest, and provide those offices with a list 

of all affected contracts;

(c) request submission of any comments or objections to the proposed 

transfer within 30 days after notification; and

(d) following receipt of all information above, the CO will determine whether it 

is in the Government’s best interest to recognize the proposed successor 

in interest on the basis of:

(1) the comments received from the other affected federal agencies;

(2) the proposed successor’s responsibility (see: Guide, Vol. 14, 

§ 320.10 (Responsible Prospective Contractors)); and

(3) any factor relating to the proposed successor’s performance of 

contracts with the Government that the Government determines 

would impair the proposed successors’ ability to perform the 

contract satisfactorily.

§ 745.55.40 Novation Agreements

(a) Any contractor’s request for recognition of a successor in interest, must 

include three signed copies of the proposed novation agreement (see: 

Appx. 7B (Sample Novation Agreement)) and one copy each, as 

applicable, of the following:

(1) the document describing the proposed transaction, e.g., 

purchase/sale agreement or memorandum of understanding;

(2) a list of all affected contracts between the transferor and the 

Government, including non-judiciary contracts, as of the date of 

sale or transfer of assets, showing for each, as of that date, the:
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 60

• contract number and contract type,

• name and address of the CO,

• total dollar value, as amended, and

• approximate remaining unpaid balance;

(3) evidence of the transferee’s capability to perform; and

(4) any other relevant information requested by the CO.

(b) Except as provided in § 745.55.40(c), the contractor must submit to the 

CO one copy of each of the following applicable documents as the 

documents become available:

(1) an authenticated copy of the instrument effecting the transfer of 

assets; e.g., bill of sale, certificate of merger, contract, deed, 

agreement, or court decree;

(2) a certified copy of each resolution of the corporate parties’ boards 

of directors authorizing the transfer of assets;

(3) a certified copy of the minutes of each corporate party’s stockholder 

meeting necessary to approve the transfer of assets, or, if no 

minutes were kept, other certified documentation demonstrating the 

respective stockholder approval of such transfer;

(4) an authenticated copy of the transferee’s certificate and articles of 

incorporation, if a corporation was formed for the purpose of 

receiving the assets involved in performing the judiciary contracts;

(5) the opinion of legal counsel for the transferor and transferee stating 

that the transfer was properly effected under applicable law and the 

effective date of transfer;

(6) balance sheets of the transferor and transferee as of the dates 

immediately before and after the transfer of assets, audited by 

independent accountants;

(7) evidence that any security clearance requirements have been met; 

and

(8) the consent of sureties on all contracts listed under 

§ 745.55.40(a)(2) if bonds are required, or a statement from the 

transferor that none are required.

(c) If the judiciary CO has acquired the documents listed under 

§ 745.55.40(b) during participation in the pre-merger or pre-contract 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 61

review process, or the government’s interests are adequately protected 

with an alternative formulation of the information, the CO may modify the 

list of documents to be submitted by the contractor.

(d) When recognizing that a successor in interest to a government contract is 

consistent with the government’s interest, the judiciary CO will execute a 

novation agreement with the transferor and the transferee. It will ordinarily 

provide in part that:

(1) the transferee assumes all the transferor’s obligations under the 

contract;

(2) the transferor waives all rights under the contract against the 

judiciary;

(3) the transferor guarantees performance of the contract by the 

transferee (a satisfactory performance bond may be accepted 

instead of the guarantee); and

(4) nothing in the agreement will relieve the transferor or transferee 

from compliance with any federal law.

(e) The CO will use the Novation Agreement format (see: Appx. 7B (Sample 

Novation Agreement)) when the transferor and transferee are corporations 

and all the transferor’s assets are transferred. This format may be 

adapted to fit specific cases, such as when the transferor or transferee is

not a corporate entity or not all the transferor’s assets are transferred.

(f) Before executing a contract novation as the responsible agency on behalf 

of the government, the CO must determine that the successor in interest is 

a responsible contractor (see: Guide, Vol. 14, § 320.10 (Responsible 

Prospective Contractors)) and obtain PE approval with OGC concurrence.

If, for any reason, it is determined not to be in the government’s interest to 

concur in the transfer of a contract from one company to another company 

via a contract novation, the original contractor remains responsible for 

contract performance and the contract may be terminated for default 

should the original contractor fail to perform.

(g) A novation agreement must be signed by:

(1) the contractor (transferor)

(2) the successor in interest (transferee), and

(3) the judiciary CO.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 62

(h) After execution by all three parties, the CO will:

(1) forward a fully signed copy of the executed novation or change of 

name agreement to both the transferor and the transferee;

(2) retain a fully signed copy in the contract file;

(3) prepare an SF 30 (Amendment of Solicitation/Modification of 

Contract), incorporating a summary of the agreement and attaching 

a complete list of contracts affected, including non-judiciary 

contracts;

(4) retain the original SF 30 with the attached list in the contract file;

(5) send a signed copy of the SF 30, with the attached list, to the 

transferor and the transferee; and

(6) send a copy of the signed SF 30, with attached list, to each other 

agency contracting office involved, which will be responsible for any 

further appropriate distribution.

(i) Clause 7-215, Notification of Ownership Changes is included in all open 

market solicitations and contracts.

§ 745.55.50 Change of Name Agreements

(a) If only a change of the contractor’s name is involved and the government’s 

and contractor’s rights and obligations remain unaffected, the parties must 

execute an agreement to reflect the name change. For guidance on 

determining which federal contracting office is responsible for executing a 

change of name agreement for a specific contractor on behalf of the 

government, see: § 745.55.10(b) (Policy). If the judiciary is the 

responsible contracting office, the proposed change of name agreement 

must be reviewed by the PE, who will consult with OGC. The contractor 

must forward to the responsible contracting officer three signed copies of 

the proposed Change-of-Name Agreement, and one copy each of the 

following:

(1) the document effecting the name change, authenticated by a 

proper official of the state having jurisdiction;

(2) the opinion of the contractor’s legal counsel stating that the change 

of name was properly effected under applicable law and showing 

the effective date; and

(3) a list of all affected contracts and purchase orders remaining 

unsettled between the contractor and the government, showing for 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 63

each the contract number and contract type, and name and 

address of the contracting office. If there is any question as to 

which federal contracting office is responsible for executing the 

agreement, the contracting officer may also request the total dollar 

value as modified and the remaining unpaid balance for each 

contract.

(b) When the judiciary is the responsible contracting office, following approval

by the PE and concurrence by OGC, the CO is responsible for:

(1) processing and signing the change-of-name agreements (see:

Appx. 7C (Sample Change of Name Agreement));

(2) processing and signing the contract modification specifying that the 

name has been changed using the following language; and

“The purpose of this modification is to incorporate the attached 

Change-of-Name Agreement between the contractor and the 

government. This contract is modified by substituting the name 

(contractor’s previous name) for the name (contractor’s changed 

name) wherever it appears in the contract. All other terms and 

conditions remain unchanged.”

(3) distributing a copy of the executed change of name agreement to 

all other affected federal agencies that will be responsible for any 

further appropriate distribution.

§ 750 Claims and Disputes

§ 750.10 Policy

§ 750.10.10 In General

It is the policy of the judiciary to resolve contractual issues by mutual agreement at the 

level of the CO whenever possible. The CO must consider holding informal discussions 

to resolve differences before issuing a final decision on a claim.

§ 750.10.20 Initiation of Contract Disputes

A contract dispute is initiated by:

(a) a written claim, demand or assertion by a contracting party for:

(1) the payment of money in a sum certain,

(2) the adjustment or interpretation of contract terms, or
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 64

(3) other specific relief arising under or relating to the contract;

(b) any termination for convenience settlement proposal that is denied in 

whole or in part; and

(c) any request for an equitable adjustment that is denied in whole or in part.

§ 750.10.30 Submission of a Claim

(a) The contract claim must be submitted in writing to the CO and must be 

filed within 12 months of its accrual unless superseded by a different time 

period as specified in the contract’s terms and conditions. The CO must 

document the contract file with evidence of the date of receipt of any 

submission that the CO deems to be a claim.

(b) The claim must contain a detailed statement of the legal and factual basis 

of the claim with any accompanying documents to support the claim.

(c) The claimant must specify the specific relief requested as provided above 

in § 750.10.20(a)-(c) (Initiation of Contract Disputes).

(d) If the CO requires additional information the CO will promptly request the 

claimant to provide such information.

(e) The contractor must proceed with performance of the contract pending 

resolution of the claim.

§ 750.20 Decisions and Appeal

§ 750.20.10 CO Authority and Responsibility

(a) Judiciary COs are authorized to decide or settle disputes under the 

Disputes clause, within the limits of their COCP appointment. This 

authority does not extend to:

(1) A claim or dispute for penalties or forfeitures prescribed by statute 

or regulation that another federal agency is specifically authorized 

to administer, settle, or determine; or

(2) The settlement, compromise, payment, or adjustment of any claim 

involving potential fraud. See: § 735.55 (Fraud, Gross Mistake, or 

Latent Defects).

(b) The CO must issue a written determination on any contractor claim 

against the judiciary within 60 days of receipt of all the requested 

information from the contractor.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 65

(c) If the CO is unable to render a determination within 60 days, the CO will 

notify the contractor of the date on which a determination will be made.

(d) The claim may be denied when the CO determines that the contractor is 

unable to support any part of the claim and/or there is evidence that the 

inability is attributable to either misrepresentation of fact or potential fraud 

on the contractor's part. CO decisions to deny a claim, in whole or in part, 

must be coordinated with the PE, who will consult with OGC as to the 

legal basis of the claim and its denial.

(e) The determination of the CO will be considered the final determination of 

the judiciary.

§ 750.20.20 Issuance of CO Determination

When a claim by or against a contractor cannot be resolved by agreement and a 

determination to deny or assert the claim, in whole or in part, under Clause 7-235, 

Disputes is necessary, the CO must:

(a) review the facts pertinent to the claim;

(b) obtain assistance from the PE, who will consult with OGC and other 

advisors; and

(c) issue a final determination in writing.

§ 750.20.30 Contents of Final Determination

The final determination must include:

(1) a description of the claim or dispute with references to the pertinent 

contract provisions;

(2) a statement of the factual areas of agreement and disagreement;

(3) a statement of the CO's determination with supporting rationale; and

(4) the following paragraph:

This is the final determination of the contracting officer under the 

clause of your contract entitled Disputes. This determination may 

be appealed to a court of competent jurisdiction.

§ 750.20.40 Evidence of Contractor Receipt

The CO must furnish a copy of the determination to the contractor by:
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 66

• certified mail,

• return receipt requested, or

• another method that provides evidence of receipt.

§ 750.20.50 Modification of Contract

If the CO is able to resolve the claim through discussions and negotiation, the 

settlement agreement must be incorporated in a bilateral modification to the contract. 

Contract modifications should be executed on an SF 30 (Amendment of 

Solicitation/Modification of Contract). The modification must include the following 

statement:

“This modification is intended to and does constitute a full and final 

settlement and disposition of all matters relating to the claim dated (insert 

date) and is a full release, accord, and satisfaction of any and all claims,

demands or causes of action that the contractor has against the judiciary 

arising out of or related to this claim.”

§ 750.20.60 Appeal

Contractors may appeal the CO’s final determination to a court of competent 

jurisdiction. The contractor must comply with the final determination of the CO unless 

such determination is overturned by a court of competent jurisdiction. If the contractor 

fails to continue contract performance while the claim is being settled or fails to comply 

with the final determination of the CO, the CO may terminate the contract for default 

and/or impose other available remedies.

§ 750.20.70 Clause

Include Clause 7-235, Disputes in all open market solicitations and contracts over the 

judiciary small purchase threshold.

§ 755 Contract Termination

§ 755.10 In General

§ 755.10.10 Termination for Default or Convenience

(a) Contracts may be terminated for default or convenience only when such 

action is in the interest of the judiciary. The CO should consider a no-cost 

termination settlement of the contract when:

(1) the contractor will accept it;

(2) there is no judiciary furnished property; and
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 67

(3) there are no outstanding payments, debts due to government or 

other contractor obligations, such as warranty or data rights issues.

(b) The potentially high price to pay for a wrongful termination requires the 

CO to carefully review the clauses and surrounding circumstances before 

making a decision to recommend termination.

§ 755.10.20 Applicability

This section applies to contracts that contain Clause 3-3, Provisions, Clauses, Terms 

and Conditions – Small Purchases, or other clauses permitting termination for the 

convenience of the judiciary or for contractor default. For other clauses and when they 

should be included in a contract, see: § 755.20.60 (Clauses) and § 755.25.60 (Clause). 

This section establishes uniform procedures for the complete or partial termination of 

such contracts.

§ 755.10.40 Review and Approval

The PE must review and approve, in writing, all proposed contract terminations whether 

for convenience or default.

§ 755.15 Notice of Termination

§ 755.15.10 In General

(a) The CO may terminate contracts only by written notice to the contractor. 

For a sample notice, see: Appx. 7D (Sample Contract Termination 

Notices).

(b) Notice of termination for convenience may be done at any time.

(c) Notice of termination for default should be done only after following the 

termination procedures at § 755.30 (Termination for Default Procedures).

(d) Issuance of any termination notice must be by certified mail, return receipt 

requested or any other method that provides evidence of receipt.

(e) The notice must state:

(1) the type of termination contemplated (convenience or defaults) and 

the contract clause authorizing the termination;

(2) the effective date of termination;

(3) the extent of the termination and, if a partial termination, the portion 

of the contract to be continued; and
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 68

(4) any special instructions.

(f) For additional information required to be included in a notice of termination 

for default, see: § 755.35 (Termination for Default Notice).

§ 755.15.20 Distribution

When the termination notice is sent to the contractor, the CO must also distribute a copy 

of the notice to any known assignee, guarantor, or surety of the contractor.

§ 755.15.30 Amendment of Notice

The CO may amend a termination notice to:

(a) correct nonsubstantive mistakes in the notice;

(b) add supplemental data or instructions;

(c) rescind the notice if the items of work terminated have been completed or 

shipped before the contractor receives the notice; and/or

(d) reinstate the terminated portion of a contract.

§ 755.15.40 Reinstatement

The CO may, with the consent of the contractor, reinstate the terminated portion of a 

contract in whole or in part by amending the notice of termination when:

(a) circumstances clearly indicate a requirement for the terminated items, or

(b) reinstatement is otherwise advantageous to the judiciary.

§ 755.20 Termination for Convenience

§ 755.20.10 In General

Termination for convenience is appropriate when the judiciary no longer requires the 

contracted products or services.

§ 755.20.15 Applicability

The provisions of this part apply to all contracts containing Clause 3-3, Provisions, 

Clauses, and Terms – Small Purchases, Clause 7-220; Termination for Convenience of 

the Judiciary (Fixed-price); Clause 7-223, Termination for the Convenience of the 

Judiciary (Short Form); or Clause 7-225, Termination (Cost-Reimbursement).
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 69

§ 755.20.20 Settlement Methods

The CO may settle contracts terminated for convenience by:

(a) negotiated agreement (including a no-cost settlement);

(b) CO determination (used only when a negotiated agreement cannot be 

reached);

(c) costing vouchers, if the contract is a cost-reimbursement contract; or

(d) a combination of these methods.

§ 755.20.25 Policy

When possible, the CO must negotiate a fair and prompt settlement with the contractor 

according to the applicable clause and within the appropriate allocable, allowable, and 

reasonable amounts. See also: Guide, Vol. 14, § 470 (Cost Allowability).

§ 755.20.30 Contractor’s Duties

After receiving a termination notice and, except as otherwise directed by the CO, the 

contractor must comply with the clause and the termination notice, which generally 

require the contractor to:

(a) stop work immediately on the terminated portion of the contract and stop 

placing subcontracts under that portion;

(b) terminate all subcontracts related to the terminated portion of the contract;

(c) immediately advise the CO of any special circumstances precluding the 

stoppage of work;

(d) perform the continued portion of the contract, if any, and promptly submit 

any request for an equitable adjustment of price with respect to the 

continued portion, supported by evidence of any increase in the cost;

(e) take necessary actions to protect and preserve property in which the 

judiciary has or may acquire an interest, and, as directed by the CO:

(1) deliver the property to the judiciary, or

(2) otherwise dispose of it;

(f) promptly notify the CO in writing of any legal proceedings growing out of a 

subcontract or other commitment related to the terminated portion of the 

contract;
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 70

(g) settle outstanding liabilities and claims arising out of subcontract 

terminations, with written pre-approval or ratification as required by the 

CO;

(h) promptly submit a settlement offer, supported by appropriate 

documentation; and

(i) dispose of any termination inventory, as the CO directs or authorizes.

§ 755.20.35 Settlement of Subcontractor Claims

(a) Subcontractor Rights

A subcontractor has no contractual rights against the judiciary, since it 

lacks what is known as “privity of contract.” However, the subcontractor 

may have rights against the prime contractor or the immediate 

subcontractor with which it has contracted. Following termination of a 

judiciary contract, or a change that necessitates subcontract termination, 

the contractor is responsible for prompt settlement of the termination 

claims of all their immediate subcontractors. The subcontractors have 

responsibility for settlement of any of their next lower tier subcontractors.

(b) Prime Contractor Rights and Obligations

The termination clauses provide that, following contract termination, the 

contractor must, except as otherwise directed by the CO, terminate all 

subcontracts to the extent that they relate to performance of the 

terminated work.

§ 755.20.40 Subcontractor Settlements

The reasonableness of the contractor's settlement with a subcontractor must be 

measured by the aggregate amount that would be due under an equivalent judiciary 

termination clause. The CO may allow reimbursement to the prime in excess of that 

amount only in unusual cases, and then only when satisfied that the subcontract terms 

were negotiated in good faith and did not unreasonably increase the subcontractor's 

rights. The provisions of this section must be used as a guide in evaluating settlement 

of a subcontract terminated for the convenience of a contractor whenever the settlement 

could be the basis of a prime contractor claim for reimbursement by the judiciary.

§ 755.20.45 Delay in Settlement of Subcontractor Claims

When a contractor's inability to reach settlement with a subcontractor delays the 

settlement of the judiciary contract, the CO may settle with the prime contractor for all 

amounts except the subcontractor settlement offer, and reserve judiciary and contractor 

rights as to the subcontractor settlement offer.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 71

§ 755.20.50 Assistance in Subcontract Settlements

In unusual cases, the CO may determine that it is in the interest of the judiciary to offer 

to assist the prime contractor in the settlement of a particular subcontract. The 

judiciary, the prime contractor, and the subcontractor may then enter into an agreement 

covering settlement of the subcontract. In such case, the subcontractor must be paid by 

the prime contractor as part of the overall settlement.

§ 755.20.55 Direct Settlement with Subcontractors

(a) Clause 7-220, Termination for Convenience of the Judiciary (Fixed-Price)

clause gives the judiciary the right, but not the obligation, to settle and pay 

any claims arising out of subcontract terminations.

(b) Direct settlements with subcontractors are not encouraged, since the 

judiciary contractor is obligated to settle and pay subcontractor termination 

claims.

(c) However, when the CO determines that it is in the interest of the judiciary 

to settle a subcontractor claim directly and such direct settlement has 

been approved by the PE, the CO may, after notifying the contractor, 

direct the assignment of all contractor rights to the judiciary, and settle the 

subcontractor claim using the termination procedures for settlement of 

judiciary contracts. An example in which the interest of the judiciary would 

be served is when a subcontractor is the sole source of a product and it 

appears that a delay by the contractor in settling the subcontractor's claim 

will jeopardize the subcontractor's financial position.

§ 755.20.60 Clauses

Clause Include in ...

(a) Clause 7-220, 

Termination for 

Convenience of 

the Judiciary 

(Fixed-Price)

open market solicitations and contracts when a fixed-price contract is 

contemplated and the contract amount is expected to be over the 

judiciary’s small purchase threshold, except in contracts for architectengineer services, which are required to include Clause 5-70, 

Termination (Fixed-Price Architect-Engineer).

(b) Clause 7-223, 

Termination for 

Convenience of 

the Judiciary 

(Short Form)

open market solicitations and contracts when the contract is expected 

to be at or less than the judiciary’s small purchase threshold, except 

when the contracting officer has determined that another termination 

for convenience clause is appropriate (i.e., Clause 3-3, Provisions, 

Clauses, Terms and Conditions – Small Purchases, Clause 5-70, 

Termination (Fixed-Price Architect-Engineer), or Clause 7-220, 

Termination for Convenience of the Judiciary (Fixed-Price) when a CO 

believes the longer form is more appropriate, or Clause 7-225, 

Termination (Cost-Reimbursement) for cost reimbursement contracts).
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 72

§ 755.20.60 Clauses

Clause Include in ...

(c) Clause 7-225, 

Termination 

(CostReimbursement)

open market solicitations and contracts when a cost-reimbursement 

contract is contemplated.

(d) Clause 7-225, 

Termination 

(CostReimbursement)

Alternate I

open market solicitations and contracts when a time-and-materials or 

labor-hour contract is contemplated.

§ 755.25 Termination for Default

§ 755.25.10 In General

Termination for default is the exercise of the judiciary’s contractual right, under the 

applicable Termination for Default clause, to completely or partially terminate a contract 

by reason of the contractor's actual or anticipated failure to perform its contractual 

obligations. The judiciary’s right to terminate is subject to the notice requirements of the 

clause. The judiciary may terminate all or any part of a contract without regard to 

severability of contract obligations when the contractor fails to:

(a) complete any material requirement of the contract within the time specified 

in the contract (including any extensions);

(b) make progress to a degree that this failure endangers performance of the 

contract;

(c) perform any other contract provision; or

(d) give adequate assurances of performance after issuance of a delinquency 

notice.

§ 755.25.20 Waiver and Reinstatement of Termination Rights

(a) When termination for default is warranted, the total undelivered contract 

quantity, whether delinquent or not, may be terminated for default.

(b) Failure of the CO to terminate a contract within a reasonable time when a 

contractor fails to make timely delivery may result in a waiver of the right 

of the judiciary to terminate for default. In this event, a new delivery date 

must be established by contract modification. The new delivery date must 

be reasonable considering all the circumstances of contract performance. 

When the new date is established, the right to terminate for default is 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 73

reinstated. In extreme cases, where the judiciary and the contractor 

cannot agree on a new delivery date, or the contractor refuses to commit 

to a new date, the CO may unilaterally establish a new date.

§ 755.25.30 Conversion for Convenience Termination

If the contractor can establish that its failure to perform arose out of causes beyond its 

control and without its fault or negligence, the default termination clause provides that a 

termination for default will be deemed a termination for the convenience of the judiciary, 

and the rights and obligations of the parties will be so governed. For this reason, the 

CO should make every attempt to determine if the reason for the failure to perform is 

excusable before issuing a notice of termination for default.

§ 755.25.40 Mitigation of Liquidated Damages

If the contract includes a liquidated damages clause, the CO must take all reasonable 

steps to mitigate liquidated damages. If the CO is considering terminating the contract 

for default, the CO must seek expeditiously to obtain performance by the contractor or 

terminate the contract.

§ 755.25.50 Termination Factors to Consider

When a default termination is being considered, the CO must ensure that termination for 

default rather than for convenience is appropriate. The CO must consult with program 

officials, technical personnel, and the PE, and consider the following factors:

(a) the specific failure of the contractor and, unless time does not permit, the 

excuses for the failure;

(b) the availability of the products or services from other sources;

(c) the urgency of the need for the products or services, and whether they can 

be obtained sooner from sources other than the delinquent contractor;

(d) the degree to which the contractor is essential to the judiciary, and the 

effect of a termination for default on the contractor's capability as a 

supplier under other contracts;

(e) the effect of a termination for default on the ability of the contractor to 

liquidate progress payments; and

(f) any other pertinent facts and circumstances.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 74

§ 755.25.60 Clause

Clause Include in ...

Clause 7-230, Termination for 

Default (Fixed-Price – Products and 

Services)

open market fixed-price solicitations and contracts 

expected to exceed the judiciary’s small purchase 

threshold

§ 755.30 Termination for Default Procedures

§ 755.30.10 Issuing Delinquency and Termination Notices

The following table indicates which action by the CO is generally most appropriate 

based on the point in time at which a contractor’s performance becomes unsatisfactory.

§ 755.30.10 Issuing Delinquency and Termination Notices

If ... the CO should issue ...

(a) the contract’s required delivery date is in the future, but 

there is reason to believe that the contractor will not 

meet that date (failure to make progress so as to 

endanger performance); or if services being performed 

are not in conformance with the contract

a cure notice (see: § 755.30.20 

(Issuing a Cure Notice) and 

§ 735.20.20 (Remedies Involving 

Cure Notice or Show Cause))

(b) the contract’s required delivery date or date for 

completion of services has been passed without 

delivery or with delivery that has been rejected

a show cause notice (see: 

§ 755.30.40 (Issuing a Show 

Cause Notice))

(c) a cure notice has been issued, and the contractor has 

failed to correct the performance issue

a show cause notice (see: 

§ 755.30.40 (Issuing a Show 

Cause Notice))

(d) a show cause notice has been issued, and the 

contractor has failed to respond or to correct the 

performance issue, or the contractor’s response does 

not show that the failure to perform was excusable

a notice of termination (see: 

Appx. 7D (Sample Contract 

Termination Notices))

Note: While a cure notice or show cause notice is not mandatory when termination is 

based on failure to meet a contract delivery date(s), issuance of a show cause notice is 

advised to allow the contractor the opportunity to assert any alleged excusable delay. If 

the CO, after consultation with the PE to analyze any potential waiver of the right to 

terminate and any excusable delays asserted by the contractor, determines that 

termination for default is proper, the CO must issue a termination notice at once.

§ 755.30.20 Issuing a Cure Notice

(a) A written cure notice must be issued when the CO determines that the 

contractor is failing to make satisfactory progress to a degree that this 

failure endangers contract performance, or determines that some other 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 75

failure, under the contract or otherwise (other than failure to make timely 

delivery) is cause for concern. Coordination of the cure notice with the PE 

is required. See: § 735.20.20 (Remedies Involving Cure Notice or Show 

Cause).

(b) The notice must specify the failure and give the contractor 10 days (or 

longer, if necessary) to either correct the deficiency or provide written 

assurance to the judiciary of the steps that will be taken to cure the failure. 

A cure notice based on failure to make satisfactory progress may be 

issued before the contractually specified delivery date if the CO has cause 

to believe that the contractor is too far behind schedule to be able to 

deliver by the required date. A cure notice based on other causes (e.g., 

unsatisfactory quality of performance) may be issued at any time, provided 

that there is sufficient time remaining in the contract delivery schedule for 

the contractor to implement a correction.

(c) At a minimum, a cure notice must:

(1) specifically state the failure endangering performance as it relates 

to the corresponding requirement in the contract;

(2) allow the contractor at least 10 days to “cure” the failure;

(3) be in writing and sufficient to support a default termination; and

(4) follow the following format:

Subject: Cure Notice

You are notified that the judiciary considers your _____ (contracting officer specifies the 

contractor’s failure or failures) a condition that is endangering performance of the contract. 

Therefore, unless this condition is cured within 10 days after receipt of this notice (or the CO 

inserts any longer time that may be considered reasonably necessary), the judiciary may 

terminate for default under the terms and conditions of the ________ (insert clause title)

clause of this contract.

§ 755.30.30 Actions Following Issuance of Cure Notice

After a cure notice has been issued, the contract generally cannot be terminated until 

the 10 day “cure” period (or other time period specified in the cure notice) has elapsed.

§ 755.30.40 Issuing a Show Cause Notice

(a) When the CO makes a preliminary determination that termination for 

default is appropriate, a written show cause notice should be provided to 

the contractor of the judiciary’s intent to terminate. Issuance of a written 

show cause notice is particularly critical when termination is based on 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 76

causes other than failure to make timely delivery. Issuance of the show 

cause notice is optional when the proposed termination is based on failure 

to make timely delivery. Its use is, however, encouraged before any 

termination for default as it affords the contractor an opportunity to provide 

evidence the delinquency was beyond its control or was the fault of the 

judiciary, or other defenses should the termination result in contract 

litigation.

(b) A show cause notice is used:

(1) after a cure notice time elapses without a satisfactory response 

from the contractor;

(2) without a preceding cure notice when there is insufficient time 

remaining in the contract delivery schedule for the contractor to 

cure or correct the delinquency; or

(3) when the time for delivery or completion of services has passed 

without performance.

Note: The PE must approve a show cause notice in writing before it is 

issued. Usually a show cause notice is issued when there is less than 10 

days remaining in the contract delivery schedule, or when the delivery 

date has passed. However, it can be used at any time when it is 

determined there is an “insufficient amount of time left.”

(c) At a minimum, a show cause notice must:

(1) request the contractor to show cause why the contract should not 

be terminated for default (i.e., identify any waiver of delivery 

schedule or describe any action or inaction of the judiciary that has 

contributed to the failure to perform, or describe any other factors 

contributing to the delinquency that were beyond the control, and 

without the fault or negligence, of the contractor);

(2) inform the contractor that failure to explain the cause of the 

deficiency/delinquency may be taken as admission that no valid 

explanation exists;

(3) invite the contractor to discuss the matter at a conference, when 

appropriate; and

(4) inform the contractor of its liabilities in the event of contract default.

(d) A show cause notice must be in the following format:
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 77

Subject: Show Cause Notice

Since you have failed to ___________(insert “perform Contract No. _______) within the time 

required by its terms”, or “cure the conditions endangering performance under Contract No. 

_______as described to you in the judiciary’ s letter of ______(date),” the judiciary 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 of negligence on your part. 

Therefore, you are given the opportunity to present, in writing, any facts bearing on the 

question to __________ (insert the name and complete address of the CO), 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 judiciary 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 judiciary of delinquent 

products or services will be solely for the purpose of mitigating damages, and it is not the 

intention of the judiciary to condone any delinquency or to waive any right the judiciary has 

under the contract.

§ 755.30.50 Evaluate Contractor’s Response

A contractor’s response to a delinquency notice can take several forms:

(a) Cure Notice Response

A contractor is not necessarily required to respond to a cure notice since 

the contractor is told to correct the problem before the contract becomes 

delinquent. Often, however, the contractor will respond in writing with its 

detailed plans to cure performance. Such a response does not absolve 

the contractor of actually curing the delinquency within the period specified 

in the cure notice. If the problem is not actually cured, the judiciary, 

following expiration of the cure period specified in the cure notice, has the 

option of issuing either a show cause notice or a termination notice. A 

show cause notice may also be issued if the contractor’s response to the 

cure notice is considered inadequate.

(b) Show Cause Notice Response

If the CO chooses to issue a show cause (either with or without an earlier 

cure notice), the contractor has 10 days to respond. The CO must 

evaluate the contractor’s response and take one of the following actions, 

based on that evaluation:

(1) defer termination action (appropriate when the contractor’s 

response shows that timely completion of the work is assured or 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 78

when the response adequately addresses other issues such as 

quality of work, which were the basis of the show cause notice);

(2) modify the contract (appropriate when the COs analysis shows 

there has been excusable delay or waiver, in which case a 

modification is required to establish a new delivery date and to 

reinstate the judiciary’s termination rights).

(3) issue a notice of termination when the response to a show cause 

notice is determined to be inadequate.

(c) The PE must review and approve all proposed terminations for default, as 

well as issuance of cure notices and show cause notices. When a CO 

proposes to initiate termination for default, the CO must prepare for the 

contract file a memorandum that fully explains the proposed action. This 

memorandum must be submitted to the PE for written concurrence before 

issuance of a cure notice, show cause notice or notice of termination. Any 

contractor response, and the court CO’s analysis of that response, must 

also be provided to the PE.

§ 755.35 Termination for Default Notice

§ 755.35.10 In General

Unless it is determined that the nonperformance will be cured, then, immediately 

following a determination that termination is proper under § 755 (Contract Termination), 

or after expiration of the 10-day period, or longer, if allowed by a delinquency notice, the 

CO may issue a notice of termination for default, provided that such termination has 

been reviewed and approved by the PE in consultation with OGC.

§ 755.35.20 Termination Notice Contents

The notice of termination for default must meet all the general requirements provided in 

§ 755.15 (Notice of Termination) and:

(a) provide the contract number and date;

(b) describe the acts or omissions constituting the default;

(c) state that the contractor's right to proceed with performance of the contract 

(or a specified portion of the contract) is terminated;

(d) state that the products or services terminated may be procured against the 

contractor's account, and that the contractor will be held liable for any 

excess repurchase costs;
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 79

(e) state that the judiciary reserves all rights and remedies provided by law or 

under contract, in addition to charging excess costs;

(f) inform the contractor that the termination is subject to Clause 7-235, 

Disputes; and

(g) when the CO has determined that the failure to perform is not excusable, 

state that the notice reflects that decision, and that the contractor has the 

right to appeal as specified in Clause 7-235, Disputes.

§ 755.35.30 Notice Distribution

The CO must make the same distribution of the termination notice as was made of the 

contract, and any surety must be furnished a copy of both the delinquency notices and 

the notice of termination at both its main and local offices and asked to advise whether it 

desires to arrange for completion of the work under a takeover agreement. See also:

Guide, Vol. 14, § 620.40 (Administration of Contracts Requiring Bonds).

§ 755.40 Procedure in Lieu of Termination for Default

When the CO determines that the contractor's failure to perform arose from causes 

beyond its control and without its fault or negligence, the CO may not terminate the 

contract for default. When it is in the interest of the judiciary to do so, the CO may, in 

lieu of termination for default:

(a) terminate the contract for convenience;

(b) permit the contractor, its surety, or its guarantor to continue performance 

of the contract under a revised delivery schedule;

(c) permit the contractor to continue performance of the contract by means of 

a subcontract or other business arrangement with an acceptable third 

party, if the rights of the judiciary are adequately preserved; or

(d) execute a no-cost termination settlement agreement (or terminate on 

notice if allowed under the contract), if the requirement for the products 

and services specified in the contract no longer exists and the contractor 

is not liable to the judiciary for damages, as provided below.

§ 755.45 Actions Following Issuance of Termination

§ 755.45.10 Payment Precautions

(a) The CO must notify the payment office to withhold further payments under 

the terminated contract.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 80

(b) The CO must also guard against the potential for overpayment resulting 

from outstanding lien rights of laborers and material suppliers against 

completed products that have been accepted and for which payment have 

been made to the contractor.

(c) The CO must take one or more of the following measures before making 

any payment following a termination:

(1) ascertain whether the payment bonds, if any, furnished by the 

contractor are adequate to satisfy all claims, or whether it is 

feasible to obtain similar bonds to cover outstanding liens;

(2) require the contractor to furnish appropriate statements from 

laborers and material suppliers disclaiming any lien rights they may 

have in the completed products;

(3) obtain appropriate agreement between the judiciary, the contractor, 

and any claimants to ensure release of the judiciary from any 

potential liability to the contractor or claimants;

(4) withhold from the amount otherwise due for the completed products 

an amount the CO determines necessary to protect the judiciary’s 

interest, according to § 740.40 (Withholding Payments); or

(5) take any other action that is appropriate in view of the contractor's 

degree of solvency and other circumstances.

§ 755.45.20 Determination Following Termination Notice

When the CO is unable to determine, before issuing the notice of termination, whether 

the contractor's failure to perform arose from causes beyond its control and without its 

fault or negligence, the CO must make a written decision on that point as soon as 

practicable after issuing the notice. This decision must be delivered promptly to the 

contractor, with a notification of the right to appeal as specified in Clause 7-235, 

Disputes.

§ 755.45.30 Undelivered Work

The judiciary is not liable for the contractor's costs on undelivered work and is entitled to 

repayment of any advance payments for undelivered work.

§ 755.45.40 Completed Products

The CO may direct the contractor to transfer title and deliver to the judiciary completed 

products. The judiciary must pay the contractor the contract price for any products 

completed, delivered and accepted.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 81

§ 755.45.50 Excess Costs of Reprocurement

The contractor is liable to the judiciary for any excess costs the judiciary incurs in 

acquiring products and services similar to those terminated for default, and any other 

damages, whether or not the repurchase is made.

§ 755.45.60 Mailing Checks to Surety

If requested by the surety, and agreed to by the contractor and any assignees, 

arrangements may be made to have future checks mailed to the contractor in care of 

the surety. In this case, the contractor must forward a written request to the designated 

disbursing officer, specifically directing a change in address for mailing of checks.

§ 755.50 Remedies and Damages Following Termination for Default

§ 755.50.10 Remedies

On rightful rejection or justifiable revocation of acceptance of products or services, the 

judiciary has a security interest in products delivered under the contract for any 

payments and expenses reasonably incurred in:

• inspection,

• receipt,

• transportation,

• care, and

• custody.

§ 755.50.20 Repurchase Against Contractor’s Account

(a) When products or services are still required after termination for default, 

the CO may repurchase the same or similar products or services against 

the contractor's account as soon as practicable. The repurchase must be 

at a reasonable price, considering the quality required by the judiciary and 

the time within which the products or services are required. Whenever 

practicable, the CO must make necessary repurchase decisions before 

issuing the termination notice.

(b) The CO may repurchase a quantity larger than the quantity terminated for 

default when needed, but the defaulting contractor may be charged for no 

more than the terminated quantity (including any variations in quantity 

permitted by the terminated contract).

(c) If the repurchase is for a quantity not larger than the terminated quantity, 

the CO may use any terms and contract methods deemed appropriate for 

the repurchase, following normal written approval or deviation procedures. 

If the repurchase is for a quantity larger than the terminated quantity, the 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 82

entire quantity must be treated as a new purchase, adhering to all 

applicable procedures.

(d) If repurchase is made at a price higher than the price of the terminated 

products or services, the CO must, after final payment of the repurchase 

contract, make a written demand on the defaulted contractor for the 

excess amount, taking into account any increases or decreases in cost 

due to transportation charges, discounts, and other factors.

§ 755.50.30 Damages

(a) Default

If a contract is terminated for default or if a procedure in lieu of termination 

for default is followed (other than termination for convenience or a no-cost 

settlement agreement), the CO must ascertain and demand any damages 

to which the judiciary may be entitled. These damages are in addition to 

any excess repurchase cost.

(b) When the CO has accepted defective products, and such acceptance has 

been revoked on the basis of latent defect, fraud, or gross mistake 

amounting to fraud (see: § 735.55 (Fraud, Gross Mistake, or Latent 

Defects)), the judiciary may recover as damages for any nonconformity 

the loss resulting in the ordinary course of events from the contractor's 

breach as determined in any reasonable manner.

(c) The measure of damages for breach of warranty is the difference at the 

time and place of acceptance between the value of the products or 

services accepted and the value they would have had if they had been as 

warranted, unless special circumstances show proximate damages of a 

different amount.

(d) The CO must obtain concurrence of the PE before any demand for 

damages following a termination for default.

§ 760 Contract Closeout

§ 760.10 Closeout of Contract Files

§ 760.10.10 In General

Contract closeout refers to the procedure of verifying that all administrative matters 

have been concluded on a contract that is physically complete. A contract is physically 

complete when the contractor has delivered the required products or performed the 

required services and the judiciary has inspected and accepted the products or 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 83

services. A physically complete contract may not have had the final payment made, in 

which case final payment would be part of the contract closeout.

§ 760.10.20 Closeout Time Frames

Standard times for closing out a contract vary depending on the contract type:

(a) files for orders using small purchase procedures are considered closed 

after receipt of property or services when the CO receives evidence of

final payment;

(b) files for firm-fixed-price contracts, other than those using small purchase 

procedures, must be closed within six months after the date on which the 

CO receives evidence of physical completion;

(c) files for contracts requiring settlement of indirect cost rates must be closed 

within 36 months of the month in which the CO receives evidence of 

physical completion; and

(d) files for all other contracts must be closed within 20 months of the month 

in which the CO receives evidence of physical completion.

§ 760.10.30 Closeout Actions

When closing out contract files, the CO must use the closeout procedures at § 760.20 

(Contract Closeout Procedures). However, these closeout actions may be modified to 

reflect the extent of administration that has been performed. A contract file must not be 

closed if:

(a) the contract is in litigation or under appeal;

(b) all termination actions have not been completed; or

(c) warranties or guarantees provided under the contract are still in effect.

§ 760.10.40 Physically Completed Contracts

(a) Except for rental, use, and storage agreements, a contract is physically 

complete when one of two events has occurred:

(1) all required products or services have been delivered or performed, 

as well as inspected and accepted; and all existing options have 

been exercised or have expired; or

(2) a contract termination notice has been issued to the contractor.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 84

(b) Rental, use, and storage agreements are considered to be physically 

completed when the:

(1) judiciary has given the contractor a notice of complete contract 

termination; or

(2) contract period has expired.

§ 760.20 Contract Closeout Procedures

§ 760.20.10 Administrative Closeout

The CO is responsible for initiating administrative closeout of the contract after receiving 

evidence of its physical completion. At the outset of this process, the CO must review 

the contract funds status and determine whether or not there are payments to be made, 

claims to be settled, or excess funds to be deobligated. When complete, the 

administrative closeout procedures must ensure that, as appropriate:

(a) a property clearance is received;

(b) all interim or disallowed costs are settled;

(c) a price revision is completed;

(d) subcontracts are settled by the prime contractor;

(e) all indirect cost rates are settled;

(f) the termination is settled;

(g) contractor's closing statement is completed;

(h) contractor's final invoice has been submitted;

(i) a contract funds review is completed;

(j) excess funds are deobligated;

(k) either a final release of claims has been obtained from the contractor or a 

bilateral modification has been completed to effect the final closeout with 

the contractor’s statement of release as follows; and

This modification is intended to and does constitute a full and final 

settlement and disposition of all matters relating to this contract 

(including all its modifications) and is a full release, accord, and 

satisfaction of any and all claims, demands, or causes of action that 
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 85

the contractor has against the judiciary arising out of or related to 

this contract.

(l) the contractor’s final invoice has been paid (where a release of claims is 

required, final payment must not be made until the release of claims has 

been received).

§ 760.20.20 Contract Completion Statement

(a) When the actions in the above section have been completed, the CO must 

ensure that a contract completion statement, containing the following 

information, is prepared:

(1) contract administration office name and address (if different from 

the purchasing office),

(2) purchasing office name and address,

(3) contract number,

(4) last modification number,

(5) last order number (if the contract is an IDIQ or requirements 

contract or a blanket purchase agreement (BPA)),

(6) contractor name and address,

(7) dollar amount of excess funds, if any,

(8) voucher number and date, if final payment has been made,

(9) invoice number and date, if the final written approved invoice has 

been forwarded to a disbursing office and the status of the payment 

is unknown,

(10) a statement that all required contract administration actions have 

been fully and satisfactorily accomplished,

(11) name and signature of the CO, and

(12) date.

(b) When the statement is completed, the CO must ensure that the signed 

statement is placed in the purchasing office contract file.
Guide to Judiciary Policy, Vol. 14, Ch. 7 Page 86

§ 760.20.30 Storage, Handling, and Disposal of Contract Files

(a) The process used to create and store records must record and reproduce 

the document, including signatures and other written and graphic images 

completely, accurately, and clearly.

(b) Data transfer, storage, and retrieval procedures must protect the data from 

alteration.

(c) Unless law or other regulations require signed documents to be kept, they 

may be destroyed after the responsible judiciary official verifies that record 

copies on alternate media and copies reproduced from the record copy 

are accurate, complete, and clear representations of the originals. For 

contents of contract files, see: § 710.10 (Procurement Files 

(Purchase/Delivery/Task Order or Contract Files)). For destruction of 

records after closeout, see: § 760.30 (Disposition of Contract Files), 

below.

§ 760.30 Disposition of Contract Files

§ 760.30.10 In General

Contract files and supporting documentation may be destroyed after final payment, 

cancellation, or settlement of related investigations, litigation (including protests), or 

similar matters, whichever is later, consistent with Guide, Vol. 10, § 620 (Records 

Disposition Schedules).

§ 760.30.20 Unsolicited Proposals

Unsolicited proposals that did not result in a contract award may be destroyed no earlier 

than one year after the decision not to award a contract. See: Guide, Vol. 14, § 340 

(Unsolicited Offers).

§ 760.30.30 Canceled Solicitations

Formal solicitations of quotations or offers may be canceled before award of a contract. 

The contracting officer should retain the presolicitation documentation on the 

requirement, any offers received before the cancellation, documentation on any 

judiciary action up to the time of cancellation, and evidence of the cancellation.
__________________________________________________ 

__________________________________________________ 

__________________________________________________ 

Guide to Judiciary Policy 

Vol 14: Procurement 

Ch 7: Contract Administration 

Appx 7A: Sample Notice of Assignment 

To: ___________ [Name of Contracting Officer]. 

This has reference to Contract No. __________ dated ______, entered into between 

______ [Contractor’s name and address] and ______ [name of judiciary office and 

address], for ________ [Describe nature of the contract]. 

Moneys due or to become due under the contract described above have been assigned 

to the undersigned under the provisions of the Assignment of Claims Act of 1940, as 

amended, 31 U.S.C. § 3727, 41 U.S.C. § 15. 

A true copy of the instrument of assignment executed by ___________ [Contractor’s 

name] on ___________ [Date], is attached to the original notice. 

Payments due or to become due under this 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 signed by the person 

acknowledging receipt on behalf of the addressee. 

Very truly yours, 

[Name of Assignee] 

By _______________________________________________ 

[Signature of Signing Officer] 

[Title of Signing Officer] 

[Address of Assignee] 

Last revised June 29, 2010 
__________________________________________________ 

__________________________________________________ 

__________________________________________________ 

__________________________________________________ 

Guide to Judiciary Policy, Vol. 14, Appx. 7A Page 2 

Acknowledgment 

Receipt is acknowledged of the above notice and of a copy of the instrument of
 

assignment. They were received ____(a.m.) (p.m.) on ______, 20___.
 

[Signature]
 

[Title]
 

On behalf of
 

[Name of judiciary office of Addressee of this Notice]
 
Guide to Judiciary Policy 

Vol 14: Procurement 

Ch 7: Contract Administration 

Appx 7B: Sample Novation Agreement 

The ______________(i.e. ABC Corporation (Transferor)), a corporation duly organized 

and existing under the laws of __________ [insert State] with its principal office in 

____________ [insert city]; the ___________________(i.e. XYZ Corporation 

(Transferee), [if appropriate add "formerly known as the EFG Corporation"] a 

corporation duly organized and existing under the laws of _________ [insert State] with 

its principal office in ____________ [insert city]; and the United States Of America 

(judiciary) enter into this Agreement as of ____________ [insert the date transfer of 

assets became effective under applicable State law]. 

(a) 	 The parties agree to the following facts: 

(1) 	 The judiciary, represented by various contracting officers has entered into 

certain contracts with the Transferor, namely: ____________ [insert 

contract or purchase order identifications]; [or delete "namely" and insert 

"as shown in the attached list marked `Exhibit A' and incorporated in this 

Agreement by reference."]. The term "the contracts," as used in this 

Agreement, means the above contracts and purchase orders and all other 

contracts and purchase orders, including all modifications, made between 

the judiciary and the Transferor before the effective date of this 

Agreement (whether or not performance and payment have been 

completed and releases executed if the judiciary or the Transferor has any 

remaining rights, duties, or obligations under these contracts and 

purchase orders). Included in the term "the contracts" are also all 

modifications made under the terms and conditions of these contracts and 

purchase orders between the judiciary and the Transferee, on or after the 

effective date of this Agreement. 

(2) 	 As of ____________, 20___, the Transferor has transferred to the 

Transferee all the assets of the Transferor by virtue of a __________ 

[insert term descriptive of the legal transaction involved] between the 

Transferor and the Transferee. 

(3)	 The Transferee has acquired all the assets of the Transferor by virtue of 

the above transfer. 

Last revised June 29, 2010 
Guide to Judiciary Policy, Vol. 14, Appx. 7B	 Page 2 

(4) 	 The Transferee has assumed all obligations and liabilities of the 

Transferor under the contracts by virtue of the above transfer. 

(5) 	 The Transferee is in a position to fully perform all obligations that may 

exist under the contracts. 

(6) 	 It is consistent with the judiciary's interest to recognize the Transferee as 

the successor party to the contracts. 

(7) 	 Evidence of the above transfer has been filed with the judiciary. [When a 

change of name is also involved; e.g., a prior or concurrent change of 

the Transferee's name, an appropriate statement must be inserted (see 

example in paragraph (8) of this Agreement)]. 

(8) 	 A certificate dated _________, 20___, signed by the Secretary of State of 

___________ [insert State], to the effect that the corporate name of 

___________(EFG Corporation) was changed to _______________(XYZ 

Corporation) on _____________, 20__, has been filed with the judiciary. 

(b) 	 In consideration of these facts, the parties agree that by this Agreement: 

(1) 	 The Transferor confirms the transfer to the Transferee, and waives any 

claims and rights against the judiciary that it now has or may have in the 

future in connection with the contracts. 

(2) 	 The Transferee agrees to be bound by and to perform each contract in 

accordance with the conditions contained in the contracts. The 

Transferee also assumes all obligations and liabilities of, and all claims 

against, the Transferor under the contracts as if the Transferee were the 

original party to the contracts. 

(3) 	 The Transferee ratifies all previous actions 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 judiciary recognizes the Transferee as the Transferor's successor in 

interest in and to the contracts. The Transferee by this Agreement 

becomes entitled to all rights, titles, and interests of the Transferor in and 

to the contracts as if the Transferee were the original party to the 

contracts. Following the effective date of this Agreement, the term 

"Contractor," as used in the contracts, must refer to the Transferee. 

(5) 	 Except as expressly provided in this Agreement, nothing in it must be 

construed as a waiver of any rights of the judiciary against the Transferor. 
Guide to Judiciary Policy, Vol. 14, Appx. 7B	 Page 3 

(6) 	 All payments and reimbursements previously made by the judiciary to the 

Transferor, and all other previous actions taken by the judiciary under the 

contracts, must be considered to have discharged those parts of the 

judiciary's obligations under the contracts. All payments and 

reimbursements made by the judiciary after the date of this Agreement in 

the name of or to the Transferor must have the same force and effect as if 

made to the Transferee, and must constitute a complete discharge of the 

judiciary's obligations under the contracts, to the extent of the amounts 

paid or reimbursed. 

(7) 	 The Transferor and the Transferee agree that the judiciary is not obligated 

to pay or reimburse either of them for, or otherwise give effect to, any 

costs, taxes, or other expenses, or any related increases, directly or 

indirectly arising out of or resulting from the transfer or this Agreement, 

other than those that the judiciary in the absence of this transfer or 

Agreement would have been obligated to pay or reimburse under the 

terms of the contracts. 

(8) 	 The Transferor guarantees payment of all liabilities and the performance 

of all obligations that the Transferee: 

(i) 	 assumes under this Agreement; or 

(ii) 	 may undertake in the future if these contracts be modified under 

their terms and conditions. The Transferor waives notice of, and 

consents to, any such future modifications. 

(9) 	 The contracts must remain in full force and effect, except as modified by 

this Agreement. Each party has executed this Agreement as of the day 

and year first above written. 

United States of America 

 By _____________________________________________ 

 Title ___________________________________________ 

ABC Corporation 

 By _____________________________________________ 

 Title ___________________________________________ 

 [Corporate Seal]

 XYZ Corporation 

 By _____________________________________________ 
Guide to Judiciary Policy, Vol. 14, Appx. 7B Page 4

 Title ___________________________________________ 

 [Corporate Seal] 

Certificate 

I, ___________, certify that I am the Secretary of ______________(ABC Corporation), 

that ________________, who signed this Agreement for this corporation, was then 

_____________ of this corporation; and that this Agreement was duly signed for and on 

behalf of this corporation by authority of its governing body and within the scope of its 

corporate powers. Witness my hand and the seal of this corporation this day of 

__________________ 20 ___.

 By _____________________________________________ 

 [Corporate Seal] 

Certificate 

I, ____________, certify that I am the Secretary of __________________(XYZ 

Corporation), that ________________, who signed this Agreement for this corporation, 

was then _____________ of this corporation; and that this Agreement was duly signed 

for and on behalf of this corporation by authority of its governing body and within the 

scope of its corporate powers. Witness my hand and the seal of this corporation this 

day of ____________________20___. 

 By _____________________________________________ 


 [Corporate Seal]
 
Guide to Judiciary Policy 

Vol 14: Procurement 

Ch 7: Contract Administration 

Appx 7C: Sample Change of Name Agreement 

The _____________________(i.e. ABC Corporation) (contractor), a corporation duly 

organized and existing under the laws of __________ [insert State], and the United 

States Of America (judiciary), enter into this Agreement as of __________ [insert date 

when the change of name became effective under applicable State law]. 

(a) 	 The parties agree to the following facts: 

(1) 	 The judiciary, represented by various contracting officers has entered into 

certain contracts and purchase orders with the ________________(i.e.. 

XYZ Corporation), namely: ____________ [insert contract or purchase 

order identifications]; [or delete "namely" and insert "as shown in the 

attached list marked "Exhibit A" and incorporated in this Agreement by 

reference."]. The term "the contracts," as used in this Agreement, means 

the above contracts and purchase orders and all other contracts and 

purchase orders, including all modifications, made by the judiciary and the 

contractor before the effective date of this Agreement (whether or not 

performance and payment have been completed and releases executed if 

the judiciary or the contractor has any remaining rights, duties, or 

obligations under these contracts and purchase orders). 

(2) 	 The _____________(XYZ Corporation), by an amendment to its certificate 

of incorporation, dated _________ 20___, has changed its corporate 

name to ___________(ABC Corporation). 

(3) 	 This amendment accomplishes a change of corporate name only and all 

rights and obligations of the judiciary and of the contractor under the 

contracts are unaffected by this change. 

(4) 	 Documentary evidence of this change of corporate name has been filed 

with the judiciary. 

(b) 	 In consideration of these facts, the parties agree that: 

(1) 	 the contracts covered by this Agreement are amended by substituting the 

name __________________("ABC Corporation") for the name 

Last revised June 29, 2010 
Guide to Judiciary Policy, Vol. 14, Appx. 7C	 Page 2 

_________________("XYZ Corporation") wherever it appears in the 

contracts; and 

(2) 	 each party has executed this Agreement as of the day and year first 

above written. 

United States of America 

By _____________________________________________ 

Title ___________________________________________ 

ABC Corporation 

By _____________________________________________ 

Title ___________________________________________ 

[Corporate Seal] 

Certificate 

I, ___________, certify that I am the Secretary of ___________________(ABC 

Corporation); that ___________, who signed this Agreement for this corporation, was 

then _____________ of this corporation; and that this Agreement was duly signed for 

and on behalf of this corporation by authority of its governing body and within the 

scope of its corporate powers. Witness my hand and the seal of this corporation this 

________ day of ____________ 20___.

 By _____________________________________________ 


 [Corporate Seal]
 
Guide to Judiciary Policy 

Vol 14: Procurement 

Ch 7: Contract Administration 

Appx 7D: Sample Contract Termination Notices 

Review and approval by the PE must be obtained prior to issuance of any of the 

following notices. See: Guide, Vol 14, § 755.10.40. 

§ 7A.100 No-cost settlement agreement – complete termination. 

[Insert the following in Block 14 of SF 30 when executing a no-cost settlement 

agreement, under a complete termination.] 

(a) This supplemental agreement [insert “modifies the contract to reflect a nocost settlement agreement with respect to the Notice of Termination dated ____” 

or, if the contract has not been terminated by prior notice, “terminates the 

contract in its entirety”]. 

(b) The parties agree as follows: 

The contractor unconditionally waives any charges against the judiciary because 

of the termination of the contract and, except as set forth below, releases it from 

all obligations under the contract or due to its termination. The judiciary agrees 

that all obligations under the contract are concluded, except as follows: [List 

reserved or excepted rights and liabilities.] 

(End of agreement) 

§ 7A.105 No-cost settlement agreement – partial termination. 

[Insert the following in Block 14 of SF 30 when executing a no-cost settlement 

agreement, under a partial termination.] 

(a)	 This supplemental agreement modifies the contract to reflect a no-cost 

settlement agreement with respect to [insert “the Notice of Termination 

dated ____________” or, if there has not been a prior termination notice 

issued, “the partial termination of the contract as outlined below”.] 

(b)	 The parties agree as follows: 

(1) The terminated portion of the contract is as follows: [Specify— 

Last revised June 29, 2010 
Guide to Judiciary Policy, Vol. 14, Appx. 7D	 Page 2 

(i)	 item numbers, 

(ii)	 descriptions, 

(iii)	 quantity terminated, 

(iv)	 unit and total price of terminated items, and 

(v)	 any other explanation necessary to avoid uncertainty or 

misunderstanding.] 

(2)	 The contractor unconditionally waives any charges against the 

judiciary arising under the terminated portion of the contract or by 

reason of its termination, including, without limitation, all obligations 

of the judiciary to make further payments or to carry out any further 

undertakings under the terminated portion of the contract. The 

judiciary acknowledges that the contractor has no obligation to 

perform further work or services or to make further deliveries under 

the terminated portion of the contract. Nothing in this paragraph 

affects any other covenants, terms, or conditions of the contract. 

Under the terminated portion of the contract, the following rights 

and liabilities of the parties are reserved: [List reserved or excepted 

rights and liabilities.] 

(End of agreement) 

§ 7A.110 Letter Notice of Termination for Convenience. 

The following letter is suggested for use if a contract for products is being terminated for 

convenience, and a no-cost settlement is not possible. With appropriate modifications, 

it may also be used in terminating contracts for services. This notice shall be sent by 

certified mail, return receipt requested. Alternatively, it may be hand-delivered to the 

contractor’s representative and a hand receipt obtained. 

Notice of Termination 

[At the top of the notice, set out all special details relating to the particular 

termination; e.g., name and address of company, contract number of terminated 

contract, items, etc.] 

(a) 	Effective date of termination. You are notified that Contract No. 

______________ (referred to as “the contract”) is terminated __________ 

[insert “completely” or “in part”] for the judiciary’s convenience under the 

clause entitled _____________ [insert title of appropriate termination 
Guide to Judiciary Policy, Vol. 14, Appx. 7D	 Page 3 

clause]. The termination is effective __________________ [insert either 

“immediately upon receipt of this Notice” or “on ____________, 20____,” 

or “as soon as you have delivered, including prior deliveries, the following 

items:” (list items to be delivered)]. Reduce items to be delivered as 

follows: [insert instructions]. 

(b)	 Cessation of work and notification to immediate subcontractors. You 

shall take the following steps: 

(1)	 Stop all work, make no further shipments, and place no further 

orders relating to the contract, except for— 

(i) The continued portion of the contract, if any; 

(ii)	 Work-in-process or other materials that you may wish to 

retain for your own account; or 

(iii)	 Work-in-process that the contracting officer authorizes you 

to continue (A) for safety precautions, (B) to clear or avoid 

damage to equipment, (C) to avoid immediate complete 

spoilage of work-in-process having a definite commercial 

value, or (D) to prevent any other undue loss to the judiciary. 

(If you believe this authorization is necessary or advisable, 

immediately notify the contracting officer by telephone or 

personal conference and obtain instructions.) 

(2)	 Keep adequate records of your compliance with paragraph (b)(1) of 

this section showing the— 

(i)	 Date you received the Notice of Termination; 

(ii)	 Effective date of the termination; and 

(iii)	 Extent of completion of performance on the effective date. 

(3)	 Furnish notice of termination to each immediate subcontractor and 

supplier that will be affected by this termination. In the notice— 

(i)	 Specify your judiciary contract number; 

(ii)	 State whether the contract has been terminated completely 

or partially; 
Guide to Judiciary Policy, Vol. 14, Appx. 7D	 Page 4 

(iii)	 Provide instructions to stop all work, make no further 

shipments, place no further orders, and terminate all 

subcontracts under the contract, subject to the exceptions in 

paragraph (b)(1) of this section; 

(iv)	 Provide instructions to submit any settlement proposal 

promptly; and 

(v)	 Request that similar notices and instructions be given to its 

immediate subcontractors. 

(4)	 Notify the contracting officer of all pending legal proceedings that 

are based on subcontracts or purchase orders under the contract, 

or in which a lien has been or may be placed against termination 

inventory to be reported to the judiciary. Also, promptly notify the 

contracting officer of any such proceedings that are filed after 

receipt of this Notice. 

(5)	 Take any other action required by the contracting officer or under 

the Termination clause in the contract. 

(c)	 Termination inventory. 

(1)	 As instructed by the contracting officer, transfer title and deliver to 

the judiciary all termination inventory of the following types or 

classes, including subcontractor termination inventory that you 

have the right to take: [Contracting officer insert proper 

identification or “None”]. 

(2)	 To settle your proposal, it will be necessary to establish that all 

prime and subcontractor termination inventory has been properly 

accounted for. 

(d)	 Settlements with subcontractors. You remain liable to your 

subcontractors and suppliers for proposals arising because of the 

termination of their subcontracts or orders. You are requested to settle 

these settlement proposals as promptly as possible. 

(e)	 Completed end items. 

(1)	 Notify the contracting officer of the number of items completed 

under the contract and still on hand and arrange for their delivery or 

other disposal. 
Guide to Judiciary Policy, Vol. 14, Appx. 7D	 Page 5 

(2)	 Invoice acceptable completed end items under the contract in the 

usual way and do not include them in the settlement proposal. 

(f)	 Patents. If required by the contract, promptly forward the following to the 

contracting officer: 

(1)	 Disclosure of all inventions, discoveries, and patent applications 

made in the performance of the contract. 

(2)	 Instruments of license or assignment on all inventions, discoveries, 

and patent applications made in the performance of the contract. 

(g)	 Employees affected. 

(1)	 If this termination, together with other outstanding terminations, will 

necessitate a significant reduction in your work force, you are urged 

to— 

(i)	 Promptly inform the local state employment service of your 

reduction-in-force schedule in numbers and occupations, so 

that the service can take timely action in assisting displaced 

workers; 

(ii)	 Give affected employees maximum practical advance notice 

of the employment reduction and inform them of the facilities 

and services available to them through the local state 

employment service offices; 

(iii)	 Advise affected employees to file applications with the state 

employment service to qualify for unemployment insurance, 

if necessary; 

(iv)	 Inform officials of local unions having agreements with you 

of the impending reduction-in-force; and 

(v)	 Inform the local Chamber of Commerce and other 

appropriate organizations which are prepared to offer 

practical assistance in finding employment for displaced 

workers of the impending reduction-in-force. 

(2)	 If practicable, urge subcontractors to take similar actions to those 

described in paragraph (1) of this section. 
__________________________________________________ 

__________________________________________________ 

__________________________________________________ 

__________________________________________________ 

__________________________________________________ 

Guide to Judiciary Policy, Vol. 14, Appx. 7D	 Page 6 

(h)	 Administrative. The contracting officer will, upon request, provide the 

necessary settlement forms. Matters not covered by this notice should be 

brought to the attention of the undersigned. 

(i)	 Please acknowledge receipt of this notice as provided below. 

(Contracting Officer) 

(Name of Office) 

(Address) 

Acknowledgment of Notice 

The undersigned acknowledges receipt of a signed copy of this notice on 

____________, 20____. Two signed copies of this notice are returned. 

(Name of Contractor) 

By _______________________________________________
 

(Name)
 

(Title) 

(End of notice) 

§ 7A.115 Letter Notice of Default Termination. 

The following letter is suggested for use if a contract for products is being terminated for 

default. With appropriate modifications, it may be used in terminating contracts for 

services. This notice shall be sent by certified mail, return receipt requested. 

Alternatively, it may be hand-delivered to the contractor’s representative and a hand 

receipt obtained. 

Notice of Termination 

[At the top of the notice, set out all special details relating to the particular 

termination; e.g., name and address of company, contract number of terminated 

contract, items, etc.] 
Guide to Judiciary Policy, Vol. 14, Appx. 7D	 Page 7 

(a) 	Effective date of termination. You are notified that Contract No. 

______________ (referred to as “the contract”) is terminated __________ 

[insert “completely” or “in part”] for default under the clause entitled 

_____________ [insert title of appropriate termination clause]. The 

termination is effective __________________ [insert either “immediately 

upon receipt of this Notice”] 

(b)	 This termination is based upon your failure to [describe the acts or 

omissions constituting the default, including the response, if any, to a cure 

notice or show cause notice]; 

(c)	 Your right to proceed further under the contract [or a specified portion of 

the contract, in the case of a partial determination for default] is hereby 

terminated; 

(d)	 In accordance with the termination clause of the contract, you may be 

held liable for any additional costs incurred by the judiciary in purchasing 

the goods or services terminated from other sources; 

(e)	 By issuance of this notice of termination, the contracting officer has 

determined that you failure to perform is not excusable. 

(f)	 The judiciary reserves all rights and remedies provided by law or under 

the contract in addition to its right to hold you liable for excess 

reprocurement costs. 

(g)	 You have the right to appeal the contracting officer’s termination of this 

contract under the Disputes clause of the contract. 
Guide to Judiciary Policy 

Vol 14: Procurement 

Ch 7: Contract Administration 

Appx 7E: Sample COR Appointment Memorandum 

[Insert Date] 

MEMORANDUM 

To:	 [Insert COR Name] 

From:	 [Insert Name], Contracting Officer 

RE:	 Designation of Contracting Officer’s Representative (COR) for [Insert 

Purchase Order/Contract/Award Number] 

You are hereby designated as COR in connection with the performance of the 

subject award. If, at any time, you will be unavailable or unable to perform the contract 

oversight responsibilities outlined below, you must immediately notify the contracting 

officer so that provision can be made for appointment of a new COR, on either a 

temporary or permanent basis, as appropriate. 

A. DESIGNATION OF COR 

This designation sets forth in detail the full extent of the COR's authority and 

limitations therein. The designation does not change or supersede the established line 

of authority and/or responsibility of any organization. Changes in the designated COR 

will be made by the Contracting Officer (CO) by a contract modification and letter 

appointment as the need arises. The appointment as COR applies to the subject award 

only, and shall terminate on completion of that award. 

B. SCOPE OF SPECIFIC RESPONSIBILITIES 

1.	 Coordinating actions relating to funding and changes in the contract 

requirements; 

2.	 Monitoring the contractor's performance to ensure that performance is in 

accordance with the stated requirements of the contract; 

Last revised (Transmittal 14-005) April 30, 2013 
Guide to Judiciary Policy, Vol. 14, Appx. 7E	 Page 2 

3.	 Confirming in writing any oral technical instructions to the contractor with a 

copy to the contracting officer; 

4.	 Assuring that changes in the work or services, and resulting effects on the 

delivery schedule, are formally reflected by a written modification issued 

by the CO before the contractor proceeds with the changes; 

5.	 Assuring prompt review of draft reports (if any are required) and providing 

any comments to the contractor promptly so the contractor can finalize 

them within the specified completion date; 

6.	 Assuring prompt inspection and acceptance or rejection of all delivered 

products or services; 

7.	 Maintaining a working file for the administration of the subject award; 

8.	 Informing the CO when the contractor is behind schedule, with the 

reasons for the delay (if known), and coordinating with the CO on any 

corrective action taken; 

9.	 Informing the CO of any unsatisfactory performance by the contractor; 

10.	 Furnishing to the CO a copy of notes of meetings held with the contractor 

and any correspondence with the contractor, and coordinating with the CO 

on the content of any contractually significant correspondence addressed 

to the contractor in order to prevent misunderstandings or the creation of a 

condition that may become the basis of a claim. 

11.	 Monitoring invoices and payments, and ensuring invoices reflect 

accurately work completed in accordance with the requirements of the 

subject award and certifying acceptance of the work being invoiced; 

12.	 Furnishing the CO notice of satisfactory completion; 

13.	 Reporting to the CO any suspected procurement frauds, bribery, conflicts 

of interest, or other improper conduct by the contractor; 

14.	 Assuring that the contractor has access to the judiciary facility, if required 

for performance of the contract, as well as appropriate clearances for 

personnel; 

15.	 Reviewing and recommending to the contracting officer 

approval/disapproval of contractor requests for public release of 

information regarding work being performed under the subject award; 
Guide to Judiciary Policy, Vol. 14, Appx. 7E	 Page 3 

16.	 Evaluating contractor requests for approval of travel, if the contract 

authorizes travel as a reimbursable expense. 

C. EXCLUSIONS FROM COR AUTHORITY AND RESPONSIBILITIES 

A COR is expressly excluded from performing or being responsible for the 

following: 

1.	 Re-delegating any of the above responsibilities without the written 

approval of the contracting officer; 

2.	 Making commitments or promises to the contractor relating to any other 

awards; 

3.	 Modifying the stated terms of the subject award; 

4.	 Approving items of cost not specifically authorized by the subject award; 

5.	 Directing changes to the required work; 

6.	 Executing supplemental agreements or modifications on behalf of the 

judiciary; 

7.	 Rendering a decision on any dispute or any question of fact under the 

Disputes provision of the subject award; 

8.	 Taking any action with respect to a termination, except to coordinate with 

the CO when termination actions become appropriate; 

9.	 Authorizing delivery or disposition of judiciary-furnished property not 

specifically authorized by the subject award; 

10.	 Discussing procurement plans or any other advance information with the 

contractor that might provide preferential treatment to one firm over 

another when a solicitation is issued for a competitive procurement. 

Violation of the foregoing may give the appearance that the judiciary is not acting 

in good faith. Commitments made to contractors by other than duly appointed COs can 

result in protests by other companies as well as embarrassment to the judiciary. 

Please sign and date the acknowledgment below and return one original signed 

copy of the acknowledgment to the Contracting Officer and retain this memo for your 

records and future reference. 
_____________________________ 

_____________________________ 

Guide to Judiciary Policy, Vol. 14, Appx. 7E Page 4 

Acknowledgment of COR Appointment: 

The undersigned acknowledges and accepts the responsibilities and authority 

delegated as the Contracting Officer's Representative as described in this memorandum 

for the subject award, and confirms that I have completed the required COR training. 

Contracting Officer's Representative: 

Signature 

Date 
Last revised (Transmittal 14-021) December 1, 2023

Guide to Judiciary Policy

Vol. 14: Procurement

Glossary of Procurement Terms

Acceptance of Offer – In contract law, the act accepting an offer (e.g., awarding a 

contract based on an offer under a request for proposals).

Acceptance of Work – The act of an authorized representative by which the judiciary, 

for itself or as an agent of another, assumes ownership of existing identified products 

tendered or approves specific services rendered as partial or complete performance of 

the contract.

Acceptance Period – The number of calendar days available to the judiciary for 

awarding a contract from the date specified in the solicitation for receipt of offers.

Acceptance Procedures – The process followed by judiciary personnel during 

acceptance of a product or service.

Acquisition – See: Procurement. The term acquisition generally only refers to 

contracts. Procurement is a more comprehensive term that involves other contractual 

instruments such as purchase orders, delivery or task orders, contracts, etc. Therefore, 

the judiciary uses the term procurement.

Acquisition Life-Cycle – See: Procurement Life-Cycle.

Acquisition Planning – See: Procurement Planning.

Adequate Price Competition – This situation exists when two or more responsible 

offerors, competing independently, submit reasonable priced offers that satisfy the 

judiciary’s expressed requirement. A statement of the facts must support any finding 

that the price is unreasonable. If there was a reasonable expectation (based on market 

research or other assessment) that two or more responsible offerors, competing 

independently, would submit priced offers in response to the solicitation’s expressed 

requirement, even though only one offer is received from a responsible offeror and if:

(a) based on the offer received, the contracting officer can reasonably 

conclude that the offer was submitted with the expectation of competition, 

e.g., circumstances indicate that:

(1) the offeror believed that at least one other offeror could submit a 

meaningful offer, and

(2) the offeror had no reason to believe that other potential offerors did 

not intend to submit an offer; or
Guide to Judiciary Policy, Vol. 14 Glossary Page 2

(b) the determination that the proposed price is based on adequate price 

competition is reasonable.

Price analysis must clearly demonstrate that the proposed price is reasonable in 

comparison with current or recent prices for the same or similar items, adjusted to

reflect changes in market conditions, economic conditions, quantities, or terms and 

conditions under contracts that resulted from adequate price competition.

Administrative Change – A unilateral contract modification, in writing, that does not 

affect the substantive rights of the parties (e.g., a change in the paying office or the 

appropriation data).

Advertisement – Any single message prepared for placement in communication media, 

regardless of the number of placements.

Advertising Material – Material designed to acquaint the judiciary with a prospective 

contractor’s present products, services, or potential capabilities, or designed to 

stimulate the government’s interest in buying such products or services.

Affiliates – Contractors so related that one either directly or indirectly controls or has

the power to control the other, or a third party controls or has the power to control both.

Aggregate – The whole considered with respect to all its parts (i.e., the contract with all 

its modifications).

Amendment – A change in a solicitation before contract award.

Analysis of Trade-Off – The process of identifying and analyzing feasible qualities that 

satisfy or exceed requirement for judiciary requirements. See also: Trade-Off.

Annual Bond or Annual Offer Guarantee – A single bond or offer guarantee in place 

of separate bonds or guarantees to secure all of an offeror's or contractor's obligations 

under offers submitted or contracts entered into during a specific fiscal year.

Anti-Deficiency Act – Requires that no officer or employee of the government may 

create or authorize an obligation in excess of the funds available, or in advance of 

appropriations unless otherwise authorized by law.

As Written – Any worded or numbered expression that can be read, reproduced, and 

later communicated, and includes electronically transmitted and stored information. 

Also referred to as in writing.

Assisted Acquisition – A type of interagency procurement where a servicing agency 

performs procurement activities on a requesting agency’s behalf, such as awarding and 

administering a contract, task order, or delivery order.
Guide to Judiciary Policy, Vol. 14 Glossary Page 3

Bailment Contract – A type of interagency procurement where a servicing agency 

performs procurement activities on a requesting agency’s behalf, such as awarding and 

administering a contract, task order, or delivery order.

Base Year or Base Period – The initial contract term during which the judiciary will 

procure a specific product and/or service.

Basic Quantities – The quantity of a product or service that the judiciary will procure. 

See also: Optional Quantities.

Best and Final Offer (BAFO) – A final opportunity for offerors in the competitive range 

to revise offers.

Best Value – The expected outcome of a procurement that, in the judiciary's estimation, 

provides the greatest overall benefit in response to the requirement.

Bid – This term is not used, since the sealed bid process is not applicable to the 

judiciary. See: Offer or Solicitation.

Bid Bond – See: Offer Bond.

Bid Sample – See: Offer Sample.

Bidder – This term is not used, since the sealed bid process is not applicable to the 

judiciary. See: Offeror.

Bilateral – The equal agreement of both sides, the contractor and contracting officer, 

and accomplished by signature of both parties.

Bilateral Modification – A contract modification that the contractor and the contracting 

officer sign. Bilateral modifications are used to:

(a) make negotiated equitable adjustments resulting from the issuance of a 

change order,

(b) definitize letter contract, and

(c) reflect other agreements of the parties modifying the terms of contracts.

Boiler Plate – A pre-approved format that must be used as it is presented as opposed 

to a shell document, which allows for fill-in information.

Bona Fide Needs Rule – Provides that a fiscal year appropriation may be obligated 

only to meet a legitimate or bona fide need arising in the fiscal year for which the 

appropriation was made.
Guide to Judiciary Policy, Vol. 14 Glossary Page 4

Bond – A written instrument executed by an offeror or contractor (the principal), and a 

second party (the surety), to assure fulfillment of the principal’s obligations to a third 

party (the judiciary), identified in the bond. If the principal’s obligations are not met, the 

bond assures payment, to the extent stipulated, of any loss sustained by the obligee.

Brand-Name – A product description when only one brand-name will satisfy the 

requirement. A brand-name description limits competition to only those sources able to 

provide the particular brand-name. Since competition is limited, a justification for otherthan-full-and-open-competition must be processed and approved before making the 

purchase.

Brand-Name or Equal – A product description that includes a brand-name followed by 

the phrase “or equal”. This means that the particular brand-name will satisfy the 

requirement, but an equal product also will be considered.

Budget Considerations – Budget rules and issues that need to be considered during 

planning.

Cancellation – To annul or invalidate. This is used as in cancellation of a solicitation 

(before award) or the cancellation of a contract (within a contractually specified time) of 

the total requirements of all remaining program years of a multi-year contract. 

Cancellation results when the contracting officer:

(a) notifies the contractor that the judiciary no longer needs the requirement,

(b) notifies the contractor of non-availability of funds for contract performance 

for any subsequent program year; or

(c) fails to notify the contractor that funds are available for performance of the 

succeeding program year requirement.

Change-of-Name Agreement – A legal instrument executed by the contractor and the 

judiciary that recognizes the legal change of name of the contractor without disturbing 

the original contractual rights and obligations of the parties. A change-of-name 

agreement involves only a change of the contractor's name. The rights and obligations 

of the parties remain unaffected. The agreement must be executed by the contracting 

officer and the contractor modifying all existing contracts between the parties to reflect 

the change of name. When more is involved than just changing the name, see also: 

Sample Novation Agreement (Appx. 7B).

Change Order – A written order signed by the contracting officer, directing the 

contractor to make a change that the Changes clause authorizes the contracting officer 

to order without the contractor’s consent.

Change Within Scope – A change allowed within the area covered by the 

procurement.
Guide to Judiciary Policy, Vol. 14 Glossary Page 5

Claim – A written demand or written assertion by one of the contracting parties seeking, 

as a matter of right, the payment of money in a sum certain, the adjustment or 

interpretation of contract terms, or other relief arising under or relating to the contract. A 

claim arising under a contract, unlike a claim relating to that contract, is a claim that can 

be resolved under contract clause that provides for the relief sought by the claimant. 

When a claim is in dispute refer to the language of the contract.

Clarification – Limited communication with an offeror for the sole purpose of 

eliminating minor irregularities, informalities, or apparent clerical mistakes in an offer.

Clause – See: Contract Clause.

CO – See: Contracting Officer.

Commercial Item – Any item, other than real property, that is of a type customarily 

used for non-governmental purposes and that has been sold, leased, or licensed to the 

general public; or has been offered for sale, lease, or license to the general public. The 

term also includes installation services, maintenance services, repair services, and 

other services if:

(a) Such services are procured for support of a commercial item, regardless 

of whether such services are provided by the same source or at the same 

time as the item; and

(b) The source of such services provides similar services contemporaneously 

to the public under terms and conditions similar to those offered to the 

federal government.

Commercial Item also includes services of a type offered and sold competitively in 

substantial quantities in the commercial marketplace based on established catalog or 

market prices for specific tasks performed or specific outcomes to be achieved and 

under standard commercial terms and conditions, such as commercial training. This 

does not include services that are sold based on hourly rates without an established 

catalog or market price for a specific service performed or a specific outcome to be 

achieved. For purposes of these services:

(a) Catalog price means a price included in a catalog, price list, schedule, or 

other form that is regularly maintained by the manufacturer or vendor, is 

either published or otherwise available for inspection by customers, and 

states prices at which sales are currently, or were last, made to a 

significant number of buyers constituting the general public; and

(b) Market prices means current prices that are established during ordinary 

trade between buyers and sellers free to bargain and that can be 

substantiated through competition or from sources independent of the 

offerors.
Guide to Judiciary Policy, Vol. 14 Glossary Page 6

Commercial Item Offer – An offer of a commercial off-the-shelf item that the vendor 

wishes to see introduced in the government’s supply system as an alternate or a 

replacement for an existing product. This term does not include innovative or unique 

configurations or uses of commercial items that are being offered for further 

development and that may be submitted as an unsolicited offer. The term also includes 

an offer of commercial services as described under the definition of commercial item.

Commercial Use Agreements – Requests by contractors for procurement and 

contracting officials to sign agreement to terms and conditions not specified in the 

procurement or contractual document.

Compensation – A payment or reimbursement whether monetary or otherwise.

Competition Threshold – For the judiciary, see: Guide, Vol. 14, § 325.15.10. Note:

For GSA federal supply schedules and other federal agency contracts refer to those 

agency contracts or their regulations.

Competitive Procedures – The procedures under which the judiciary enters into a 

contract under full and open competition.

Competitive Range – The offerors selected who have a reasonable chance of being 

awarded a contract after offer evaluation, based on total cost and other factors stated in 

the solicitation. The competitive range is established for the purpose of conducting oral 

or written discussions with these offerors and for requesting best and final offers.

Compliance – Meeting all technical, contractual, and price/cost requirements of a 

solicitation. A synonym for conformance.

Component – Any item supplied to the judiciary as a part of an end item or of another 

component.

Composite Rating – The combined representation of an offer’s technical merit after 

considering all evaluation factors, significant sub-factors, and their relative importance.

Computer Database – A collection of recorded information in a form capable of, and for 

the purpose of, being stored in, processed, and operated on by a computer. The term 

does not include computer software.

Computer Software – Computer programs that comprise a series of instructions, rules, 

routines, or statements, regardless of the media in which recorded, that allow or cause 

a computer to perform a specific operation or series of operations; and recorded 

information comprising source code listings, design details, algorithms, processes, flow 

charts, formulas, and related material that would enable the computer program to be 

produced, created, or compiled. The term does not include computer databases or 

computer software documentation.
Guide to Judiciary Policy, Vol. 14 Glossary Page 7

Computer Software Documentation – Information, including computer listings and 

printouts in human-readable form that:

(a) documents the design or detail of computer software,

(b) explains its capabilities, or

(c) provides operating instructions for using it.

Conflict of Interest – Because of other activities or relationships with other persons:

(a) a person or organization is unable or potentially unable to render impartial 

assistance or advice to the judiciary,

(b) a person’s or organization’s objectivity in performing the contract work is 

or might be otherwise impaired, or

(c) a person or organization has an unfair competitive advantage.

Conformance – Meeting all technical, contractual, and price/cost requirements of a 

solicitation. A synonym for compliance.

Consent of Surety – An acknowledgment by a surety that its bond continues to apply 

to the contract as modified.

Consideration – In contract law, consideration is something of value. It may be money, 

an act, or a promise. It is one of the key elements required to have a binding contract.

Construction – Construction, alteration, or repair of any public building or public work 

in the United States.

Construction Contract – Any contract for construction.

Construction Work – The construction, rehabilitation, alteration, conversion, extension, 

demolition, or repair of buildings, highways, or other changes or improvements to real 

property, including facilities providing utility services. The term also includes the 

supervision, inspection, and other on-site functions incidental to the actual construction.

Construction, Alteration, or Repair – All types of work done on a particular building or 

work at the building site, including without limitation:

• altering, remodeling, installation (if appropriate) on the site of the work of 

items fabricated offsite;

• painting and decorating;
Guide to Judiciary Policy, Vol. 14 Glossary Page 8

• transporting materials and supplies to or from the building or work by the 

employees of the construction contractor or construction subcontractor; and

• manufacturing or furnishing materials, articles, products, or equipment on the 

site of the building, or work by persons employed by the contractor or 

subcontractor.

Constructive Change – A government action or inaction that constitutes an 

unauthorized modification of contract requirements. The contracting officer may be 

required to follow ratification procedures, before considering formalization of the 

modification. This must be avoided.

Consultant – A person who provides views or opinions on problems but does not 

supervise or carry out operating functions. The person or business entity serves 

primarily as an adviser to an officer or instrumentality of the judiciary, rather than an 

officer or employee who carries out the judiciary’s duties and responsibilities. 

Generally, a consultant has a high degree of broad administrative, professional, or 

technical knowledge or experience that must make the advice distinctively valuable to 

the agency.

Consultant Conflict of Interest – See: Conflict of Interest.

Continued Portion of the Contract – The portion of a partially terminated contract that 

the contractor must continue to perform.

Contract – A mutually binding legal relationship obligating the seller to furnish the 

products or services and the buyer to pay for them. It is any understanding that can be 

legally enforced, formed by two or more parties who promise to perform or to refrain 

from performing some act. For purposes of judiciary procurement, a contract exists 

when there is a bilateral agreement; a unilateral order (such as a purchase order) by the 

judiciary that becomes effective upon performance by the other party; or a binding order 

under an agreement. A contract includes all types of commitments that obligate the 

judiciary to an expenditure of appropriated funds and that, except as otherwise 

authorized, are in writing. In addition to bilateral instruments, contracts include (but are 

not limited to) awards and notices of awards; delivery orders or task orders, issued 

under Blanket Purchase Agreements (BPAs); orders, such as purchase orders, under 

which the contract becomes effective by written acceptance or performance; and 

bilateral contract modifications. Contracts do not include grants and cooperative 

agreements.

Contract Action – An action resulting in a contract, including contract modifications for 

additional products or services, but not including contract modifications that are within 

the scope and under the terms of the contract, such as contract modifications issued 

under the Changes clause, or funding and other administrative changes.
Guide to Judiciary Policy, Vol. 14 Glossary Page 9

Contract Administration – Management of a contract to ensure that the judiciary 

receives the products and services specified within established costs and schedules.

Contract Administration File – File that contains the documentation supporting all 

actions reflecting the basis for and the performance of contract administration 

responsibilities. Included are the copy of the contract and all modifications, together 

with official record copies of supporting documents executed by the contract 

administration office.

Contract Administration Office – An office that performs assigned post-award 

functions related to the administration of contracts.

Contract Administrator – An individual who acts as an agent for the contracting officer 

in administration matters. The contracting officer is the signature authority for any 

administration actions.

Contract Clause – A term or condition used in solicitations and contracts and applying 

before and after contract award.

Contract Closeout – Action taken to close the contract and dispose of the contract file 

after receipt of evidence of physical contract completion.

Contract Date – The effective date of a contract or modification.

Contract Elements – To be legally enforceable, a contract must include the following: 

an offer, an acceptance, consideration, execution by competent parties, legality of 

purpose, and clear terms and conditions.

Contract Modification – Also referred to as a modification. Any written change in the 

terms of a contract. See: Modification.

Contract Option – See: Option.

Contract Price – The award price of a contract. The total amount of a contract for the 

term of the contract (excluding options, if any).

Contract Specialist – An individual who assists the contracting officer and completes 

procurement actions up to the point of signature. The actual final approval and 

signature is accomplished by a certified contracting officer.

Contracting – Purchasing, renting, leasing, or otherwise obtaining products or services 

from non-federal sources. Contracting includes description (but not determination) of 

products and services required, selection and solicitation of sources, preparation and 

award of contracts, and all phases of contract administration. It does not include 

making grants or cooperative agreements.
Guide to Judiciary Policy, Vol. 14 Glossary Page 10

Contracting Action – An action resulting in a contract, including contract modifications 

for additional products or services, but not including contract modifications that are 

within the scope and under the terms of the contract, such as contract modifications 

issued under the contract Changes clause, or funding and other administrative changes.

Contracting by Negotiation – Contracting using offers and discussions. The 

procedure includes the receipt of offers, permits bargaining, and usually affords offerors 

an opportunity to revise their offers before award of a contract.

Contracting Office – An office that awards or executes a contract for products or 

services and performs post-award functions not assigned to a contract administration 

office. Any contracting office that the procurement is transferred to, such as another 

division of the judiciary.

Contracting Officer (CO) – A person with the authority to enter into, administer, and/or 

terminate contracts and make related determinations and findings. A single contracting 

officer may be responsible for duties in any or all of these areas. A person who has 

direct purchasing authority or has been delegated purchasing authority. The CO is the 

only judiciary employee who is delegated authority to legally commit the judiciary to the 

purchase of products and services. The judiciary COs are delegated authority under 

the Contracting Officers Certification Program (COCP). See: Guide, Vol. 14, § 140.

Contracting Officers Certification Program (COCP) – The judiciary’s program for 

certifying contracting officers. See: Guide, Vol. 14, § 140.

Contracting Officer’s Representative (COR) – An individual to whom the CO 

delegates certain contract administration responsibilities. The CO makes the delegation 

in writing with a copy furnished to the contractor. The designation does not include any 

authority to make any commitments or changes that affect price, quality, quantity, 

delivery, or other terms and conditions of the contract. At the judiciary, the designation 

was previously referred to as COTR.

Contractor – Any individual or other legal entity that 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 judiciary contract, including a contract for carriage under 

government or commercial bills of lading, or conducts business or reasonably may be 

expected to conduct business, with the judiciary as an agent or representative of 

another contractor.

Contractor-Acquired Property – Property acquired or otherwise provided by the 

contractor for performing a contract and to which the judiciary has title.

Contractor Offer Information – Any of the following information submitted to the 

judiciary as part of or in connection with an offer to enter into a judiciary procurement 

contract, if that information has not been previously disclosed publicly:
Guide to Judiciary Policy, Vol. 14 Glossary Page 11

(a) cost or pricing data;

(b) indirect costs and direct labor rates;

(c) proprietary information about manufacturing processes, operations, or 

techniques marked by the contractor consistent with applicable law or 

regulation; and

(d) information marked by the contractor as contractor offer information, 

consistent with applicable law or regulation.

Contribution – A concept, suggestion, or idea presented to the government for its use 

with no indication that the source intends to devote any further effort to it on the 

government’s behalf.

Cost – The amount of money (estimated before award, actual after award) incurred for 

performance consistent with contract terms and conditions.

Cost Analysis – The review and evaluation of the separate cost elements and 

proposed profit of an offeror's or contractor's cost or pricing data — and the judgmental 

factors applied in projecting from the data to the estimated costs to form an opinion on 

the degree to which the proposed costs represent what the contract will probably cost, 

assuming reasonable economy and efficiency.

Cost Evaluation Panel (CEP) – The individuals responsible, during the source 

selection process, for performing the total cost evaluation of offers submitted in 

response to a solicitation.

Cost or Pricing Data – All facts as of the time of price agreement that prudent buyers 

and sellers would reasonably expect to significantly affect price negotiations. Cost or 

pricing data are factual, not judgmental, and are therefore verifiable. While they do not 

indicate the accuracy of the prospective contractor's judgment about estimated future 

costs or projection, they do include the data forming the basis for that judgment. Cost 

or pricing data are more than historical accounting data; they are all the facts that can 

be reasonably expected to contribute to the soundness of estimates of future costs and 

to the validity of determinations of costs already incurred. They also include such 

factors as:

(a) supplier quotations;

(b) nonrecurring costs;

(c) information on changes in production methods and in production or 

purchasing volume;

(d) data supporting projections of business prospects and objectives and 

related operating costs;
Guide to Judiciary Policy, Vol. 14 Glossary Page 12

(e) unit-cost trends such as those associated with labor efficiency;

(f) make-or-buy decisions;

(g) estimated resources to attain business goals;

(h) information on management decisions that could have a significant 

bearing on costs; and

(i) historical actual costs for the same or similar items.

Cost Realism – Measuring the degree to which estimated or projected costs will 

represent actual costs of contract performance.

Cost-Reimbursable Contract – A contract that provides for payment of allowable 

incurred costs to the extent prescribed in the contract.

Court Unit – A term used to refer to courts of appeals, circuit offices, district courts, 

bankruptcy courts, bankruptcy administrator offices, and probation and pretrial services 

offices, along with their constituent units.

Data – Recorded information, regardless of form or the medium on which it may be 

recorded. The term includes technical data and computer software. The term does not 

include information incidental to contract administration, such as financial, 

administrative, cost or pricing, or management information.

Day – For purposes of the notification process, means calendar day. When it is 

designated as a working day or business day, then the period will include any day which 

is not a Saturday, Sunday, or legal holiday.

Debarment – An action taken by a debarring official to exclude a contractor from 

government contracting and government-approved subcontracting for a reasonable, 

specified period.

Debarred – Excluded from government contracting and government-approved 

subcontracting for a reasonable, specified period of time commensurate with the 

seriousness of the offense or failure, or the inadequacy of performance.

Debriefing – Discussions with a losing offeror about the strengths and weaknesses of 

its offer as compared to the award criteria.

Defect – Any condition or characteristic in any products or services furnished by the 

contractor under the contract that is not in compliance with the requirements of the 

contract.

Deficiency – Any part of an offer that fails to satisfy the judiciary’s requirements.
Guide to Judiciary Policy, Vol. 14 Glossary Page 13

Delegated Procurement Level – The COCP Level of the contracting officer which 

describes the authority which is delegated to that contracting officer.

Delegation Level – See: Delegated Procurement Level.

Delegation of Procurement Authority – Authority to contract for judiciary products and 

services.

Delivery Order – An order for products placed against an established contract or with 

government sources.

Delivery Schedule – Specifics in the procurement for the delivery mode, where and 

when the product is to be delivered.

Descriptive Literature – Information furnished by offerors as a part of their offers to 

describe the products offered, such as cuts, illustrations, drawings, and brochures that 

shows the characteristics or construction of a product or explains its operation. The 

term includes only information required to determine acceptability of the product. It 

excludes other information such as that furnished in connection with the qualifications of 

an offeror or for use in operating or maintaining equipment.

Designated Transition Procurement Official – An individual who is assigned the 

contracting officer duties during the transition program as specified in the Guide.

Desirable Items/Features – Items or features that may represent value to the judiciary, 

but are not mandatory for an offer to be in compliance with a solicitation.

Deviation – A request for a change from the prescribed procedures. To be effective, 

the deviation must be approved on a signed waiver from the PE.

Direct Acquisitions – A type of interagency acquisition where a requesting agency 

places an order directly against a servicing agency’s indefinite-delivery contract. The 

servicing agency manages the indefinite-delivery contract but does not participate in the 

placement or administration of an order.

Director – Refers to the Director of the Administrative Office of the United States 

Courts.

Discount for Prompt Payment – An invoice payment reduction voluntarily offered by 

the contractor, in conjunction with the Discounts for Prompt Payment clause, if payment 

is made by the judiciary before the due date. The due date is calculated from the date 

of the contractor’s invoice. If the contractor has not placed a date on the invoice, the 

due date is calculated from the date the designated billing office receives a proper 

invoice, provided the judiciary annotates such invoice with the date of receipt at the time 

of receipt. When the discount date falls on a Saturday, Sunday, or legal holiday when 
Guide to Judiciary Policy, Vol. 14 Glossary Page 14

judiciary offices are closed and judiciary business is not expected to be conducted, 

payment may be made on the following business day and a discount may be taken.

Discussions – Oral or written communications between the judiciary and an offeror that 

involve information essential for determining the acceptability of an offer and provide an 

offeror an opportunity to revise or modify its offer. In negotiations, it occurs after 

establishment of the competitive range that may, at the contracting officer’s discretion, 

result in the offeror being allowed to revise its proposal. See also: Best and Final Offer 

(BAFO).

DUNS – Data Universal Numbering System (Note: In April 2022, the federal 

government stopped using the DUNS number to uniquely identify entities.) See: 

Unique Entity Identifier.

Effective Competition – See: Adequate Price Competition.

Electronic Funds Transfer (EFT) – Any transfer of funds, other than a transaction 

originated by cash, check, or similar paper instrument, that is initiated through an 

electronic terminal, telephone, computer, or magnetic tape, for the purpose of ordering, 

instructing, or authorizing a financial institution to debit or credit an account. The term 

includes Automated Clearing House transfers, Fedwire transfers, and transfers made at 

automatic teller machines and point-of-sale terminals. For purposes of compliance with 

31 U.S.C. § 3332 and implementing regulations at 31 CFR part 208, the term "electronic 

funds transfer" includes a governmentwide commercial purchase card transaction.

Ethics – See: Procurement Integrity and Ethics.

Evaluated Optional Items/Features – Items/features that must be offered and 

evaluated, but that the judiciary may acquire at its option at a date later than contract 

award.

Evaluation Criteria – See: Evaluation Factors.

Evaluation Factors – The standards by which the value of an offer is assessed. The 

aspects of an offer are evaluated quantitatively or qualitatively to arrive at an integrated 

assessment as to which offer can provide the best solution to meet the judiciary’s 

requirements as described in the solicitation. The terms evaluation factors and 

evaluation criteria are used interchangeably. See: Guide, Vol. 14, § 210.70.50.

Evaluation Panel – A panel of requirement activity individuals, usually with technical 

knowledge and experience, to rate the offers using the evaluation criteria specified in 

the solicitation. See: Guide, Vol. 14, § 210.70.40.

Excess Property – Any personal property under the control of the judiciary that is 

determined to be not required for its needs and for the discharge of its responsibilities.
Guide to Judiciary Policy, Vol. 14 Glossary Page 15

Execution – The final consummation of a contract action including all formalities (e.g., 

signature and any necessary approvals) needed to complete the action.

Expert – A person who is specially qualified by education and experience to perform 

difficult and challenging tasks in a particular field beyond the usual range of 

achievement of competent persons in that field. An expert is regarded by other persons 

in the field as an authority or practitioner of unusual competence and skill in a 

professional, scientific, technical, or other activity.

Fair Market Price – See: Fair and Reasonable Price.

FedBizOpps – FBO has moved to SAM.gov and is known as Contract Opportunities. 

See: SAM website.

Federal Supply Schedule (FSS) – Publications issued by the General Services 

Administration (GSA) schedule contracting office containing the information for placing 

delivery or task orders under indefinite delivery contracts (including requirements 

contracts) established with commercial firms to obtain commonly used commercial 

products and services associated with volume buying. Ordering officers issue delivery 

or task orders directly to the schedule contractors. See also: GSA Advantage!.

Fee – The portion of total remuneration to a contractor over and above allowable costs. 

Also called profit.

Fidelity Bond – A bond to assure the faithful performance of an employee's duties to 

his or her employer and the employer's clients. The bond is used to cover losses such 

as employee thefts or embezzlements.

Firm Fixed-Price Contract – A contract that provides for a price that is not subject to 

any adjustment on the basis of the contractor’s cost experience in performing the 

contract. See also: Fixed-Price Contract.

Firmware – Hardware-embedded and hardware-oriented programming that is used for 

machine control, error recovery, mathematical functions, applications programs, and the 

like, including firmware furnished with a computer, commercially available proprietary 

firmware acquired separately, and all related vendor documentation and manuals.

Fixed-Price Contract – A contract that provides for a firm price, or in appropriate 

cases, an adjustable price.

F.o.b. (Free on Board) – Used in conjunction with a physical point to determine:

(a) the responsibility and basis for payment of freight charges; and

(b) unless otherwise agreed, the point where title for goods passes to the 

buyer or consignee.
Guide to Judiciary Policy, Vol. 14 Glossary Page 16

F.o.b. destination (Free on Board at destination) – Delivery, free of expense to the 

judiciary, to a destination specified in the purchase document (i.e., the seller or 

consignor delivers the goods on seller's or consignor's conveyance at destination). 

Cost of shipping and risk of loss are borne by the seller or consignor.

F.o.b. origin (Free on Board at origin) – The seller or consignor places the goods on 

the conveyance by which they are to be transported. The judiciary pays for the pick-up, 

transportation, and delivery to the required destination. Cost of shipping and risk of loss 

are borne by the judiciary.

Form, Fit, and Function Data – Data relating to an item component, or process that 

are sufficient to enable physical and functional interchangeability, and data identifying 

source, size, configuration, mating and attachment characteristics, functional 

characteristics, and performance requirements; except that for computer software, it 

means data identifying origin, functional characteristics, and performance requirements 

but specifically excludes the source code, algorithm, process, formulas, and machinelevel flow charts of the computer software.

Formal Source Selection – A structured, compartmented process that uses a source 

selection panel for evaluating offers and selecting the source(s) for contract award. The 

source selection panel is frequently structured to include at least three individuals to 

accomplish offer evaluation, comparative analysis of the offers, and source selection. 

The source selection authority is at a management level above that of the contracting 

officer.

Fraud – Acts of fraud or corruption or attempts to defraud the government or to corrupt 

its agents; which constitute a cause for debarment or suspension; and which violate the 

False Claims Act.

Freedom of Information Act – Does not apply to the judiciary. However, as a matter 

of policy, and to the extent that it is in the best interest of the judiciary, procurement 

documents that would be released under FOIA may be released upon request.

Full and Open Competition – All responsible sources are permitted to compete for a 

procurement.

Functional Requirement – A requirement in which the judiciary describes functions to 

be performed and offerors propose appropriate solutions.

General Accounting Office (GAO) Protest – A procurement protest made to the 

General Accounting Office. See also: Judiciary Protest.

General Wage Determination – Contains prevailing wage rates for the types of service 

designated in the determination, and is used in contracts performed within a specified 

geographical area. General wage determinations contain no expiration date and remain 

valid until modified, superseded, or canceled by a notice in the Federal Register by the 
Guide to Judiciary Policy, Vol. 14 Glossary Page 17

Department of Labor. Once incorporated in a contract, a general wage determination 

normally remains effective for the term of the contract. When options are exercised an 

updated wage determination must be requested from the Department of Labor and 

modified into the contract.

Gifts – See: Gratuities or Gifts.

Go/No-Go Standard – A standard of comparison defined so that proposals either 

satisfy an evaluation factor completely or fail to meet it.

Government – Also referred to as entity of the government. 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 non-appropriated-fund 

instrumentality of the Armed Forces.

Governmentwide Acquisition Contract (GWAC) – A task order or delivery order 

contract for information technology established by one agency for governmentwide use 

that is operated:

(a) by an executive agent designated by the Office of Management and 

Budget (OMB), or

(b) under a delegation of authority issue by the General Services 

Administration (GSA).

The Economy Act does not apply to orders under a GWAC.

Governmentwide Point of Entry (GPE) – A daily publication that lists the 

government’s proposed contract actions, contract awards, subcontracting leads, sales, 

surplus property, and foreign business opportunities. See also: SAM website.

Gratuities or Gifts – Items of value given to judiciary employees.

GSA Advantage! – An on-line shopping service that enables purchasing offices to 

search product information, review delivery options, place orders directly with 

contractors and pay contractors for orders using the purchase card. The service may 

be accessed through the GSA Federal Supply Service Home Page.

GSA Competition Threshold – The threshold at which GSA contract actions must be 

competed ($10,000).

Hire – See: Leasing.

In Writing – See: As Written.

Incumbent Contractor – Current contractor on an ongoing contractual requirement 

program.
Guide to Judiciary Policy, Vol. 14 Glossary Page 18

Ineligible – Excluded from contracting and subcontracting under statutes, executive 

orders, or regulations of government agencies, such as the Davis-Bacon Act, the 

Service Contract Act, and the Walsh-Healey Public Contracts Act.

Information Technology – Any equipment, or interconnected system(s) or 

subsystem(s) of equipment, that is used in the automatic acquisition, storage, analysis, 

evaluation, manipulation, management, movement, control, display, switching, 

interchange, transmission, or reception of data or information by the agency. The term 

"information technology" includes computers, ancillary equipment (including imaging 

peripherals, input, output, and storage devices necessary for security and surveillance), 

peripheral equipment designed to be controlled by the central processing unit of a 

computer, software, firmware and similar procedures, services (including support 

services), and related resources.

Inherently Governmental Function – A function that is so intimately related to the 

public interest as to mandate performance by government employees. An inherently 

governmental function includes activities that require either the exercise of discretion in 

applying government authority (i.e., the act of governing), or the making of value 

judgments related to government monetary transactions and entitlements, and in 

making decisions for the government.

Inspection – Examining and testing products or services (including, when appropriate, 

raw materials, components, and intermediate assemblies) to determine whether they 

conform to contract requirements.

Insurance – A contract that provides that, for a stipulated consideration, one party 

undertakes to indemnify another against loss, damage, or liability arising from an 

unknown or contingent event.

Integrity – See: Procurement Integrity and Ethics.

Interagency Agreement (IA) – A document authorizing the obligation of appropriated 

funds to provide goods or services to, or obtain goods or services from, another federal 

agency. (Note: This definition does not include IAs for details of personnel by the 

judiciary to or from another federal agency. See: Guide, Vol. 12, § 510.70 (Interagency 

Agreements and Memoranda of Understanding (MOU)).)

Interagency Agreement (IA) Determination and Finding – A document for Economy 

Act IAs, which is prepared by the requesting office and signed by the CO, to explain 

how:

(a) using an IA to obtain products or services under the Economy Act 

(31 U.S.C. § 1535) is in the judiciary’s best interest; and

(b) the products or services cannot be provided by contract as conveniently or 

cheaply by a commercial enterprise.
Guide to Judiciary Policy, Vol. 14 Glossary Page 19

See: Guide, Vol. 14, § 550.40.20 (Economy Act Determination and Finding).

Interested Party – A prime contractor or an actual or prospective offeror whose direct 

economic interest would be affected by the award of a subcontract or by the failure to 

award a subcontract. For the purpose of filing a protest, an actual or prospective offeror 

whose direct economic interest would be affected by the award of a contract or by 

failure to award a contract.

Invitation for Bid (IFB) – This term is not used in the judiciary, because it refers to 

sealed bidding procedures. Outside the judiciary, it is a contracting officer’s invitation to 

vendors to respond with a bid.

Invoice – A contractor's bill or written request for payment under the contract for 

products delivered or services performed. See also: Proper Invoice.

Invoice Payment – A judiciary disbursement of monies to a contractor under a contract 

or other authorization for products or services accepted by the judiciary. This includes 

payments for partial deliveries that have been accepted by the judiciary and final cost or 

fee payments where amounts owed have been settled between the judiciary and the 

contractor.

Javits-Wagner-O’Day Act (JWOD) – Requires the judiciary to purchase products or 

services on the Procurement List, at prices established by the Committee, from JWOD 

participating nonprofit agencies if they are available within the period required. Also 

National Industries for the Blind (NIB) and NISH.

JIT Funds – Judiciary Information Technology Funds.

Judiciary-Furnished Property – Property in the possession of, or directly acquired by, 

the judiciary and subsequently made available to the contractor. It includes materials or 

other property to contractors in performance of their contracts when doing so will result 

in significant economies, standardization, expedited production, or when it is otherwise 

in the judiciary's interest.

Judiciary Organizations – See: Guide, Vol. 14, § 110.40(a) for a list of Judicial 

Branch organizations to which Guide, Vol. 14 (Procurement) applies.

Judiciary Property – All property owned by or leased to the judiciary or acquired by the 

judiciary under the terms of the contract. It includes both judiciary-furnished property 

and contractor-acquired property. See also: Judiciary-Furnished Property.

Judiciary Protest – A procurement protest made to the contracting office. See also: 

General Accounting Office (GAO) Protest.

Judiciary Purchase Card Program – A purchase card, similar to a commercial credit 

card, issued to authorized judiciary personnel to use to acquire and to pay for products 
Guide to Judiciary Policy, Vol. 14 Glossary Page 20

and services. See: Guide, Vol. 14, § 140 (Contracting Officers Certification Program 

(COCP)) as it relates to purchase card authorized use. See also: Judiciary Purchase 

Card Program Manual.

Judiciary’s Small Purchase Threshold – A limitation specifying that open market 

purchases must not exceed. See: Guide, Vol. 14, § 325.10.

Justification for an Exception to Fair Opportunity (JEFO) – A document to justify 

and obtain approval for contract solicitations that limit competition for Delivery Order or 

Task Orders. See: Guide, Vol. 14, § 410.30.73.

Justification for Limited Open Market Competition (JLOC) – A document to justify

and obtain approval for contract solicitations that use other than Full and Open Market 

Competition. See: Guide, Vol. 14, § 335.60.30.

Labor-Hour Contract – A variation of the time-and-materials contract, differing only in 

that materials are not supplied by the contractor.

Late Offer – An offer received in the office designated in the RFP, RFQ, or RFI after the 

exact time set for receipt.

Leasing – Also referred to as rent or hire. Procurement from private or commercial 

sources other than by purchase.

Limited Rights – The rights of the judiciary in limited rights data, as provided in a 

Limited Rights Notice if included in a data rights clause of the contract.

Limited Rights Data – Data, other than computer software, developed at private 

expense.

Limited Source Justification (LSJ) – A document to justify and obtain approval for

limiting sources in a procurement that exceeds the GSA’s micro-purchase threshold at 

either the order or BPA level. See: Guide, Vol. 14, § 310.50.63 (Limiting Sources on 

Orders Placed Under Federal Supply Schedules) and § 310.50.66 (Limiting Sources 

Based on Item Particular to One Manufacturer (Brand Name)).

Liquidated Damages – A contractual remedy which may be used when there are 

delays in contract delivery or performance and when such delays are solely attributable 

to the contractor.

List of Parties Excluded From Federal Procurement and Non-procurement 

Programs – A list compiled, maintained and distributed by the General Services 

Administration (GSA) containing the names and other information about parties, 

debarred, suspended, or voluntarily excluded under the Non-procurement Common 

Rule, those proposed for debarment, and determined to be ineligible.
Guide to Judiciary Policy, Vol. 14 Glossary Page 21

Lowest Price Technically Acceptable – An evaluation process that is appropriate 

when best value is expected to result from selection of the technically acceptable 

proposal with the lowest evaluated price.

Market Research – Collecting and analyzing information about capabilities within the 

market to satisfy judiciary needs.

Memorandum of Agreement (MOA) – A document describing the specific 

responsibilities and actions to be taken by the judiciary and the other federal agency to 

achieve the agreement’s goals. (Note: MOAs by themselves may not be used to 

obligate funds. An accompanying IA, contract, or other lawful instrument is needed to 

do so.)

Memorandum of Understanding (MOU) – A document describing very broad concepts 

of mutual understanding, goals, and plans shared by the parties. MOUs establish an 

understanding between the judiciary and another federal agency. (Note: MOUs by 

themselves may not be used to obligate funds; an accompanying IA, contract, or other 

lawful instrument is needed to do so. This definition does not include MOUs for details 

of personnel by the judiciary to or from another federal agency. See: Guide, Vol. 12, 

§ 510.70 (Interagency Agreements and Memoranda of Understanding (MOU)).)

Micro-Purchase Threshold – This is not a judiciary term. However, a micro-purchase 

threshold does apply to the judiciary when purchasing from another agency contract. 

Then, the judiciary must abide by the terms of the other agency’s contract, including its 

micro-purchase threshold for competitive purposes.

Minor Nonconformance – A nonconformance that is not likely to materially reduce the 

usability of the products or services for their intended purpose, or is a departure from 

established standards having little bearing on the effective use or operation of the 

products or services.

Modification – A written alteration in the specifications, delivery point, rate of delivery, 

contract period, price, quantity or other provisions of an existing contract whether made 

unilaterally under a provision in the contract or bilaterally by the parties to the contract. 

It includes such bilateral actions as supplemental agreements, and such unilateral 

actions as change orders, administrative changes, notice of termination, and exercise of 

options.

Must – This is imperative.

National Industries for the Blind (NIB) – A nonprofit agency designated to represent 

people who are blind in government contracting under the Javits-Wagner-O’Day Act.

Negotiation – An exchange, in either a competitive or sole source environment, 

between the judiciary and offerors that are undertaking with the intent of allowing the 
Guide to Judiciary Policy, Vol. 14 Glossary Page 22

offeror to revise its proposal. The discussion between the contracting officer and the 

offeror will determine final terms, conditions, prices, etc. acceptable to both parties.

NISH – A nonprofit agency designated to represent participating nonprofit agencies 

serving people with severe disabilities other than blindness in government contracting 

under the Javits-Wagner-O’Day Act.

No-Cost Contract – A contract between the judiciary and a vendor under which no 

monetary payment is made by the judiciary for the vendor’s performance. Under a 

typical no-cost contract, instead of receiving compensation from the judiciary, the 

vendor charges and retains fees (assessed against third parties) for its services or an 

alternative form of consideration is present.

No-Cost Settlement – A termination settlement at no cost to the judiciary or the 

contract.

Noncompetitive Open Market Threshold – See: Open Market Small Purchase 

Threshold With or Without Competition.

Nonconforming Products or Services – Products or services that do not conform in 

all respects to contract requirements.

Nonpersonal Services Contract – A contract under which the personnel rendering the 

services are not subject, either by the contract’s term or the manner of its 

administration, to the supervision and control usually prevailing in relationships between 

the judiciary and its employees.

Nonseverable services – Services that constitute a specific, entire job with a defined 

end-product that cannot feasibly be subdivided for separate performance in each fiscal 

year, essentially a single undertaking which, by its nature, cannot be separated for 

performance in separate fiscal years. Contracts for nonseverable services should be 

financed entirely out of the appropriation current at the time of award, notwithstanding 

that performance may extend into future years. Examples of nonseverable services 

include studies, reports, overhaul of an engine, and painting a building.

Novation Agreement – A legal instrument executed by the contractor (transferor); 

successor in interest (transferee); or government; by which, among other things, the 

transferor guarantees delivery or performance of the contract, the transferee assumes 

all obligations under the contract, and the government recognizes the transfer of the 

contract and related assets. A novation agreement involves recognizing a third party as 

the successor in interest when the third party’s interest arises out of the transfer of all of 

the contractors’ assets, or the entire portion of the assets involved in performing the 

contract. See: Guide, Vol. 14, Appx. 7B (Sample Novation Agreement).

Offer – A response to a solicitation that, if accepted, would bind the offeror to perform 

the resultant contract. A response to a request for quotations is a quote not an offer. 
Guide to Judiciary Policy, Vol. 14 Glossary Page 23

See also: Request for Information, Request for Proposals, and Request for Quotations. 

An offer may be made in response to a solicitation or may be unsolicited. See also: 

Solicitation and Quote.

Offer Bond – A bond given to serve as an offer guarantee in connection with an 

individual offer or with offers submitted during a specific fiscal year.

Offer Evaluation – An integrated assessment, using total cost and other evaluation 

factors and standards, of each offeror’s ability to satisfy the requirements of a 

solicitation. It is the process of examining each proposal against the requirements of 

the solicitation and rating its response to each factor identified in the solicitation based 

on an assessment of merit and/or compliance with established requirements.

Offer Guarantee – A firm commitment, such as an offer bond, a postal money order, a 

certified check, a cashier's check, an irrevocable letter of credit, or certain bonds or 

notes of the United States, accompanying an offer as assurance that the offeror will, 

upon acceptance of the offer, execute required contractual documents and promptly 

provide necessary bonds.

Offer Sample – A sample to be furnished by an offeror with its offer to show the 

characteristics of the product offered.

Offeror – Any person who has submitted an offer. An offeror is one who is offering a 

product or service for a price.

Office of the General Counsel (OGC) – An office of the Administrative Office of the 

U.S. Courts that provides legal advice and opinions.

Open Market – Pricing received that is not specific to any contractual agreement, i.e.,

not on a GSA schedule, a judiciary wide contract, or a contract from another federal 

agency.

Open Market Small Purchase Threshold With or Without Competition – The 

judiciary has established an open market small purchase threshold of $10,000. Open 

market purchases for $10,000 or less may be made without obtaining competitive 

quotations when the contracting officer determines the price to be reasonable.

Option – A unilateral right in a contract by which, for a specified time, the government 

may elect to purchase additional products or services called for by the contract, or may 

elect to extend the term of the contract.

Optional Quantities – Quantities in addition to basic quantities that the judiciary may 

acquire at its option.

Optional Periods – Time beyond the base period during which the judiciary may 

acquire products or services at its option.
Guide to Judiciary Policy, Vol. 14 Glossary Page 24

Oral Presentation – A meeting at which an offeror presents information to evaluators 

and the contracting officer that validates its offer.

Organizational Conflict of Interest – See: Conflict of Interest.

Outlying Area – The group of U.S. commonwealths, territories, and islands listed 

below:

(a) Commonwealths

• Puerto Rico

• Northern Mariana Islands

(b) Territories

• American Samoa

• Guam

• U.S. Virgin Islands

(c) Minor Outlying Islands

• Baker Island

• Howland Island

• Jarvis Island

• Johnston Atoll

• Kingman Reef

• Midway Islands

• Navassa Island

• Palmyra Atoll

• Wake Atoll

Partial Payments – Payments for accepted products and services that are only a part 

of the contract requirements are authorized under law. Although partial payments 

generally are treated as a method of a payment and not as a method of contract 

financing, using partial payments can assist contractors to participate in judiciary 

contracts without, or with minimal, contract financing.

Past Performance – A contractor’s performance evaluations. It is relevant information, 

for future source selection purposes, regarding a contractor’s actions under previously 

awarded contracts. It includes, for example, the contractor’s record of conforming to 

contract requirements and to standards of good workmanship; the contractor’s record of 

forecasting and controlling costs; the contractor’s adherence to contract schedules, 

including the administrative aspects of performance; the contractor’s history of 

reasonable and cooperative behavior and commitment to customer satisfaction; and 

generally, the contractor’s business-like concern for the interest of its customer.
Guide to Judiciary Policy, Vol. 14 Glossary Page 25

Patent Infringement Bond – A bond given as security for a contractor's obligations 

under a patent clause.

Payment – Is an essential contract element (i.e., consideration). It satisfies the 

judiciary’s obligation to compensate the contractor according to the terms of the 

contract.

Payment Bond – A bond which assures payments as required by law to all persons 

supplying labor or material in the prosecution of the work provided for in the contract.

PE – See: Procurement Executive, PMD.

Penal Amount or Penal Sum – The amount of money specified in a bond as the 

maximum payment for which the surety is obligated or the amount of security required 

to be pledged to the judiciary in lieu of a corporate or individual surety for the bond.

Performance-Based Contracting – Structuring all aspects of a procurement around 

the purpose of the work to be performed with the contract requirements provided in 

clear, specific, and objective terms which contain measurable outcomes. This is as 

opposed to either the manner by which the work is to be performed or broad and 

imprecise statements of work.

Performance Bond – A bond which secures performance and fulfillment of the 

contractor’s obligations under the contract.

Performance Measures – Standards by which a contractor’s work can be measured.

Performance Schedule – Specifics in the procurement for the delivery mode, where 

and when the service is to be performed.

Personal Services Contract – A contract that, by its express terms or as administered, 

makes the contractor personnel appear to be, in effect, government employees. The 

judiciary uses this type of contract very cautiously.

PLO – See: Procurement Liaison Officer.

PMD – See: Procurement Management Division (PMD).

PO – See: Purchasing Office.

Post-Award Conference – A meeting of judiciary and contractor representatives after 

award of a contract and before commencement of work to discuss significant elements 

of administering the contract including any unusual or significant contract requirements 

(e.g., labor clause requirements).
Guide to Judiciary Policy, Vol. 14 Glossary Page 26

Post-Award Letter – A letter or other written form of post-award orientation. It must 

identify the judiciary representative responsible for administering the contract and cite 

any unusual or significant contract requirements.

Post-Award Orientation – A post-award conference, letter, or other form of written 

communication to aid both the judiciary and contractor personnel to achieve a clear and 

mutual understanding of all contract requirements, and to identify and resolve potential 

problems.

Preliminary Meeting – A meeting to prepare judiciary representatives for a post-award 

conference. Purposes include to:

• establish an understanding of conference roles and responsibilities,

• develop a conference agenda,

• form a unified judiciary team, and

• identify any unusual or significant contract requirements.

Price – Cost plus any fee or profit applicable to the contract type; the process of 

examining and evaluating a proposed price without evaluating its separate cost 

elements and proposed profit. The amount paid for a product or service.

Price Analysis – The process of examining and evaluating a proposed price without 

evaluating its separate cost elements and proposed profit.

Price-Related Factors – Elements that are quantified and used with price to determine 

the most advantageous offer for the judiciary. They include:

(a) foreseeable costs or delays to the judiciary resulting from such factors as 

differences in inspection, locations of products, and transportation;

(b) changes made, or requested by the offeror, in any of the provisions of the 

RFQ, if the change does not constitute grounds for offer rejection;

(c) advantages or disadvantages to the judiciary that might result from making 

more than one award; and

(d) federal, state, and local taxes which are not exempted.

Prime Contractor – A firm that is the responsible contractor under a contract, but who 

has portions of the products or services provided by one or more sub-contractors.

Procurement – All stages involved in the process of procuring products or services, 

beginning with the determination of a need for products or services and ending with 

contract completion or closeout. It involves the procuring by purchase order, delivery 

order, task order, or contract of products or services with appropriated funds, by and for 

the use of the judiciary, through purchase or lease, whether the products or services are 
Guide to Judiciary Policy, Vol. 14 Glossary Page 27

already in existence or must be created, developed, demonstrated, and evaluated. 

Procurement begins at the point when judiciary needs are established and includes the 

description of requirements to satisfy judiciary needs, solicitation and selection of 

sources, award, financing, performance, administration, and those technical and 

management functions directly related to the process of fulfilling judiciary needs by 

procurement.

Procurement Action – See: Procurement Activity.

Procurement Activity – Action taken that leads to an award of a procurement or 

administration of an existing procurement.

Procurement Agent – An individual who acts as an agent for the contracting officer. 

The contracting officer is the final signature authority for any actions.

Procurement Authority – Delegated authority as a certified contracting officer to 

process procurements. See: Guide, Vol. 14, § 140.

Procurement Executive, PMD (PE) – The individual appointed, who is responsible for 

management direction of the procurement system, including implementation of the 

unique judiciary procurement procedures; Chief of the Procurement Management 

Division (PMD).

Procurement Integrity and Ethics – Statutory and ethical standards to ensure 

procurements are conducted fairly and without prejudice.

Procurement Liaison Officer (PLO) – A delegated official in the court unit or FPDO, 

who has procurement oversight authority.

Procurement Life Cycle – The period covering all procurement-related activities. The 

life cycle begins when agency needs are established and ends with disposal of the 

products.

Procurement Management Division (PMD) – A Division of the Administrative Office of 

the U.S. Courts responsible for procurement in the judiciary. The Procurement 

Executive is the chief of PMD.

Procurement Officer – (As used in the interim transition period for a person who is not 

a certified contracting officer) a person designated by the chief judge or federal public 

defender to conduct procurement activities during the transition to the Contracting 

Officers Certification Program. During the transition period, the procurement officer is 

the same as a contracting officer. See: Contracting Officer.

Procurement Official – Includes any individual who has participated personally and 

substantially in the conduct of a procurement. The classes of employees listed in 

Guide, Vol. 14, Ch. 1 are considered procurement officials depending on the 
Guide to Judiciary Policy, Vol. 14 Glossary Page 28

circumstances prevailing in a given case. See also: Designated Transition 

Procurement Official.

Procurement Planning – The process by which the efforts of all personnel responsible 

for significant aspects of a procurement are coordinated and integrated in a 

comprehensive plan to fulfill needs of the judiciary in a timely manner and at a 

reasonable cost. It includes developing the overall strategy for managing the 

procurement. For the benefits of procurement planning, see: Guide, Vol. 14, Ch. 2

(Procurement Planning and Preparations).

Procurement Sensitive Information – Information prepared or developed by the 

judiciary for use in conducting a procurement. It must not be released or disclosed to 

anyone outside of those having an official procurement need to know. The disclosure of 

this information to a competing offeror may jeopardize the integrity or successful 

completion of the procurement. Inappropriately released documents may prejudice or 

bias the award, or otherwise adversely impact a competitive procurement.

Procurement Sensitive Information Legend – This document contains procurement 

sensitive information related to the conduct of a federal agency procurement, the 

disclosure of which is restricted by the Office of Federal Procurement Policy Act. The 

unauthorized disclosure of such information may subject both the discloser and the 

recipient of the information to contractual, civil and/or criminal penalties as provided by 

law. Do not copy enclosed materials.

Procurement Strategy – The set of decisions that determines how products or services 

will be procured, including contracting methods.

Procurement Team – Judiciary members of the procurement team including 

representatives of the requesting office and purchasing office.

Procuring IA – An IA in which the judiciary is obtaining goods or services from another 

federal agency and is reimbursing it for the costs of those goods or services.

Product Descriptions – Are usually described by a common generic description of the 

item. However, they are not as qualitative or quantitative as a specification and usually 

describe the end-product in terms of performance or standard commercial name (e.g., 

copier).

Products – All property and rights or interest in property of any kind except real 

property (i.e., ownership).

Professional Services – Services rendered by persons who are members of a 

particular profession or possess a special skill and who are not officers or employees of 

the contractor. These services are generally acquired to obtain information, advice, 

opinions, alternatives, conclusions, recommendations, training, or direct assistance, 
Guide to Judiciary Policy, Vol. 14 Glossary Page 29

such as studies, analyses, evaluations, liaison with government officials, or other forms 

of representation.

Program Manager (PM) – The key management official who represents the program 

office in formulating requirements and managing pre-solicitation activities. In some 

organizations the program manager or another management official is designated as 

the procurement manager for a specific procurement.

Proper Invoice – A bill or written request for payment which meets the minimum 

standards specified in the terms and conditions contained in the contract for invoice 

submission. See also: Invoice.

Property – See: Judiciary Property or Contractor-Acquired Property.

Proposal – Except as it is used in request for proposal (RFP), this term is not 

applicable to the judiciary. The term offer is used instead. See: Offer.

Proprietary – Information owned by an individual or corporation.

Proprietary Information – Information in an offer or otherwise submitted to the 

judiciary by an offeror in response to a solicitation or during the conduct of a 

procurement that has been marked as proprietary information consistent with applicable 

laws and regulations.

Protest – A written objection by an interested party to any of the following:

(a) a solicitation or other request for offers for a contract for the procurement 

of products or services;

(b) an award or proposed award of a contract;

(c) a cancellation of the solicitation or other request; or

(d) 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.

Protest After Award – A protest filed after contract award.

Protest Before Award – A protest filed before contract award.

Provision – See: Solicitation Provision.

Purchasing Office – An organizational element, comprised of one or more contracting 

officers, responsible for the purchase of products, services and equipment, real 

property, design and construction and related services, and mail transportation.
Guide to Judiciary Policy, Vol. 14 Glossary Page 30

Purchase Order – An offer by the government to buy products or services, including 

construction and research and development, upon specified terms and conditions, using 

small purchase procedures.

Quality Assurance – The various functions, including inspection, performed by the 

judiciary to determine whether a contractor has fulfilled the contract obligations 

pertaining to quality and quantity.

Quality Requirements – Specific requirements communicated in the procurement to 

the contractor which will be compared to the delivery of the product or performance of 

the service and used to evaluate if the contractor met the quality required.

Quotation or Quote – A response to a request for quotation (RFQ) which provides a 

statement of current prices. It is informational and, unlike an offer, cannot be accepted 

by the judiciary to form a binding contract. However, the quotation may be used as a 

basis for a government offer in the form of a purchase order.

Quoter – Any person who submitted a quote.

Ratification – The act of approving an unauthorized commitment by an official who has 

the authority to do so. The approval of an unauthorized commitment or act results in 

the act being given effect as if originally authorized. It is not a desirable method of 

procurement, because it is not consistent with the judiciary’s policies and procedures, 

and may result in punitive action against the person(s) who committed the unauthorized 

act.

Rating – The application of a scale of words, colors, numbers, signs, or other indicators 

to denote the degree to which the proposal has met the standard for a technical 

evaluation factor.

Rating Systems – A rating system suitable for evaluating offers.

Real Property – Means land and rights in land, ground improvements, utility distribution 

systems, and buildings and other structures. It does not include foundations and other 

work necessary for installing special tooling, special test equipment, or plant equipment.

Reasonableness – A cost is reasonable if, in its nature and amount, it does not exceed 

that which would be incurred by a prudent person in the conduct of competitive 

business.

Receiving Report – Written evidence that indicates government acceptance of 

products delivered or services performed.

Release of Information – Procurement documents released upon request, after 

determining it is proper to release them.

Rent – See: Leasing.
Guide to Judiciary Policy, Vol. 14 Glossary Page 31

Request for Information (RFI) – An announcement publicly requesting industry 

comment on draft specifications or solicitations for products or services.

Request for Proposals (RFP) – A solicitation used to communicate the judiciary’s 

requirements and request vendors submit offers for products or services. Vendors may 

use the term proposals interchangeably with the term offers.

Request for Quotations (RFQ) – A solicitation for quotes; commonly used under small 

purchase procedures. Responses to an RFQ are referred to as quotes or quotations, 

not offers.

Requesting Office – Refers to the organization with the bona fide need and which has 

initiated the procurement or contracting request.

Responsibility – A determination that a prospective contractor meets the following 

standards; adequate financial resources to perform a contract or the ability to obtain 

them; ability to comply with a delivery schedule, taking other business commitments into 

consideration; a satisfactory performance record on other contracts; a satisfactory 

record of integrity and business ethics; the necessary organization, experience, 

accounting and operational controls, and technical skills, or the ability to obtain them; 

the necessary technical equipment and facilities or the ability to obtain them; otherwise 

qualified and eligible to receive an award under applicable laws and regulations.

Responsible Prospective Contractor – A contractor that meets the criteria for 

responsibility and is not otherwise debarred. See: Responsibility.

Responsible Source – See: Responsible Prospective Contractor.

Responsive Offeror – An offeror whose offer conforms to the solicitation.

Restricted Computer Software – Computer software developed at private expense 

that is a trade secret, is commercial or financial and confidential or privileged, or is 

published copyrighted computer software, including minor modifications of this 

computer software.

Restricted Rights – The rights of the judiciary in restricted computer software, as 

provided in a Restricted Rights Notice included in a computer software rights clause of 

the contract, or as otherwise may be included or incorporated in the contract.

RFP – See: Request for Proposals.

RFQ – See: Request for Quotations.

Scope – The area covered by a given activity or subject.

Selection – The selection of an offeror for contract award, with or without discussion of 

offers, or for final negotiations leading to contract award following discussion of offers.
Guide to Judiciary Policy, Vol. 14 Glossary Page 32

Service – The performance of identifiable tasks.

Service Contract – A contract that directly engages the time and effort of a contractor 

whose primary purpose is to perform an identifiable task rather than to furnish a 

product. A service contract may be either nonpersonal or personal contract. It can also 

cover services performed by either professional or nonprofessional personnel whether 

on an individual or organizational basis. Some of the areas in which service contracts 

are found include the following:

(a) maintenance, overhaul, repair, servicing, rehabilitation, salvage, 

modernization, or modification of products, systems, or equipment;

(b) routine recurring maintenance of real property;

(c) housekeeping and base services;

(d) advisory and assistance services;

(e) operation of judiciary-owned equipment facilities, and systems; 

(f) communications services;

(g) architect-engineering;

(h) transportation and related services; and

(i) research and development.

Service Contract Labor Standards – Formerly the Service Contract Act of 1965, the 

Service Contract Labor Standards statute requires that service contracts over $2,500 

contain mandatory provisions regarding minimum wages and fringe benefits, safe and 

sanitary working conditions, notification to employees of the minimum allowable 

compensation, and equivalent federal employee classifications and wage rates.

Service Employee – Any person engaged in the performance of a service contract 

other than any person employed in a bona fide executive, administrative, or professional 

capacity. The term includes all such persons regardless of any contractual relationship 

that may be alleged to exist between a contractor or subcontractor and such persons.

Servicing IA – An IA in which the judiciary is providing goods or services to another 

federal agency and is being reimbursed by it for the costs of those goods or services.

Severable Services – Services that are continuing and recurring in nature, and that can 

be separated into components that independently meet a separate and ongoing need of 

the government. Common examples are court reporters, court interpreters, local area 

network and help desk support services, etc. To the extent that a need for a specific 

portion of a continuing service arises in a subsequent fiscal year, that portion is 
Guide to Judiciary Policy, Vol. 14 Glossary Page 33

severable and chargeable to appropriations available in the subsequent FY. Generally, 

severable services must be charged to the fiscal year(s) in which they are rendered. 

However, the judiciary has authority to enter into one-year severable service contracts, 

beginning at any time during the fiscal year and extending into the next fiscal year, and 

to obligate the total amount of the contract to the appropriation current at the time of the 

award, provided that performance commences within the same fiscal year as the award.

Shall – An order, promise, or obligation.

Shell – A pre-approved format that allows for fill in information as opposed to a boiler 

plate, which must be used as it is presented.

Signature or Signed – The discrete, verifiable symbol of an individual which, when 

affixed to a writing with the knowledge and consent of the individual, indicates a present 

intention to authenticate the writing. This includes electronic symbols and signatures 

including digital electronic signatures via the Facility Access Card-Personal Identity 

Verification (FAC-PIV) used by Contracting Officers that meet the standards of the 

Judiciary Information Security Framework (JISF).

Small Purchase – A purchase made using less strict contract forms and procedures. 

Small purchases involve the use of a purchase order, rather than a contract. This 

procurement has a monetary restriction. See: Guide, Vol. 14, § 325.10.10 and § 140.

Small Purchase Threshold – See: Judiciary’s Small Purchase Threshold.

Software As A Product – Software provided to the judiciary for use on its systems,

such as term software licenses and perpetual software licenses. Once the initial 

software has been delivered, the contractor is deemed to have substantially fulfilled its 

contractual obligations, so there is no or minimal risk to the government of the vendor 

failing to perform. This is true even if the software is accompanied by agreements from 

the vendor to provide standard software support that includes such things as bug fixes, 

access to software updates, online help. Payment may be made in full at the time of 

purchase for software as a product and such payment is not considered an advance 

payment.

Software As A Service (SaaS) – Purchase of software with significant services from 

the vendor, such as developing and supporting customized software, or that relies on 

the vendor or manufacturer to maintain the software on its systems or the web and 

provide customer access via the vendor's software rather than the user's own system. 

This can also be referred to as a "software subscription." Purchases of software as a 

service are considered service contracts and are, therefore, subject to the restrictions 

on advance payments that generally apply to service contracts.

Sole Source Procurement – A contract for the purchase of products or services that is 

entered into or proposed to be entered into by the judiciary after soliciting and 

negotiating with only one source.
Guide to Judiciary Policy, Vol. 14 Glossary Page 34

Solicitation – An official judiciary request for offers or quotes. It is a document sent to 

prospective contractors by the judiciary, requesting submission of an offer, quote, or 

information. It is also the process of issuing a document requesting submission of an 

offer, quote, or information and obtaining responses. A solicitation in the judiciary is 

either a Request for Proposals (RFP) or a Request for Quote (RFQ).

Solicitation List – A contracting officer’s list of potential sources of products and 

services.

Solicitation Provision – Term or condition used only in solicitations and applying only 

before contract award. See: Guide, Vol. 14, Appx. 1B (Solicitation Provisions and 

Contract Clauses).

Source – A potential supplier of products or services to the judiciary including public 

corporations, private companies, and non-profit organizations.

Source Selection – The process of identifying which offeror(s) will receive a contract in 

a competitive negotiated procurement. It’s the process of choosing the offeror whose 

offer is most advantageous to the judiciary, total cost and other factors considered when 

compared with the solicitation’s criteria.

Source Selection Authority (SSA) – The government official in charge of selecting the 

source. This title is most often used when the selection process is formal, and the 

official is someone other than the contracting officer.

Source Selection Information – Any of the following information prepared or 

developed for use by the judiciary for the purpose of evaluating an offer the disclosure 

of which to a competing offeror would jeopardize the integrity or successful completion 

of the procurement and which is required by statute, regulation, or order to be secured 

in a source selection file or other facility to prevent disclosure:

(a) offer prices submitted in response to a judiciary solicitation for offers, or 

lists of those offer prices before award;

(b) proposed costs or prices submitted in response to a judiciary solicitation, 

or lists of those proposed costs or prices;

(c) source selection plans;

(d) technical evaluation plans;

(e) technical evaluations of offers;

(f) cost or price evaluations of offers;

(g) competitive range determinations that identify offers that have a 

reasonable chance of being selected for award of a contract;
Guide to Judiciary Policy, Vol. 14 Glossary Page 35

(h) rankings of offers or competitors;

(i) reports and evaluations of source selection panels, boards, or advisory 

councils; and

(j) other information marked as source selection information based on a 

case-by-case determination by the contracting officer that its disclosure 

would jeopardize the integrity or successful completion of the judiciary 

procurement to which the information relates.

Source Selection Panel – The entity responsible for proposal evaluation in a 

negotiated competitive acquisition. It is usually organized into technical and cost teams.

Source Selection Plan (SSP) – The plan established before solicitation releases to 

guide the source selection process. It is the document that explains how offerors will be 

solicited and evaluated to make the selection decision. It contains such information as 

evaluation factors and sub-factors, evaluation standards, evaluation methodology, 

evaluators’ responsibilities, and final selection procedures. It is the judiciary’s statement 

to itself about how it intends to procure what it needs when contracting including basis 

for a best value decision; source selection organization; proposal evaluation criteria; 

and evaluation procedures. The contracting officer’s plan to solicit offers will include 

decisions such as technically acceptable/lowest price or best buy source selection. It is 

developed with assistance of the evaluation panel, requesting office, and other advisors 

as needed.

Specification – A description of the essential technical requirements for a material, 

product, or service. Specifications usually include the product’s qualitative and 

quantitative design, function, or performance requirements and the factors used to 

determine whether those contract requirements have been met.

Standards – The criteria for determining the effectiveness of the procurement by 

measuring the performance of the various elements.

Statement of Work (SOW) – A detailed and complete description of requirements 

prepared for inclusion in a solicitation. A statement of work:

(a) is used to describe the service to be performed rather than an endproduct,

(b) may contain specifications or other descriptions of requirements,

(c) is usually used in contracts for services or research and development.

(d) defines service contract requirements in clear, concise language 

identifying specific work to be accomplished,
Guide to Judiciary Policy, Vol. 14 Glossary Page 36

(e) must be individually tailored to consider the period of performance, 

deliverable items, if any, and the desired degree of performance. (Note: 

With task order contracts, the SOW for the basic contract need only define 

the scope of the overall contract. Individual task orders must define 

specific task requirements.)

Subcontract – Any contract entered into by a subcontractor to furnish products or 

services for the performance of a prime contract or higher-tier subcontract. It includes 

but is not limited to purchase orders, and changes and modifications to purchase 

orders.

Subcontractor – Any supplier, distributor, vendor, or firm that furnishes supplies or 

services to or for a prime contractor or another subcontractor. The CO’s communication 

must be to the prime contractor, who will, when applicable, communicate to the 

subcontractor. No direct communication is accomplished from the CO to the 

subcontractor. The prime contractor is the primary firm responsible for the contract’s 

delivery or performance.

Sub-Factor – A segment, usually more focused or detailed, of an evaluation factor.

Supplemental Agreement – A contract modification that is accomplished by the mutual 

action by signature of both contract parties.

Surety – An individual or corporation legally liable for another's debt, default, or failure 

to satisfy a contractual obligation.

Suspension or Suspended – A disqualification from contracting and subcontracting for 

a temporary period because a contractor is suspected upon adequate evidence of 

engaging in criminal, fraudulent, or other seriously improper conduct.

System Award Management (SAM) – The primary government repository for 

prospective federal awardee and federal awardee information and the centralized 

government system for certain contracting, grants, and other assistance-related 

processes. It includes:

(a) Data collected from prospective federal awardees required for the conduct 

of business with the government;

(b) Prospective contractor-submitted annual representations and certifications 

consistent with FAR subpart 4.12; and

(c) Identification of those parties excluded from receiving federal contracts, 

certain subcontracts, and certain types of federal financial and nonfinancial assistance and benefits. See: SAM Website.
Guide to Judiciary Policy, Vol. 14 Glossary Page 37

Task Order – An order for services placed against an established contract or with 

government sources.

Tax ID Number – See: Taxpayer Identification Number (TIN).

Taxpayer Identification Number (TIN) – The number required by the IRS to be used 

by the offeror in reporting income tax and other returns. The TIN may be either a Social 

Security Number or an Employer Identification Number.

Technical – Has a broad connotation and includes, among other things, the 

engineering approach, special manufacturing processes, and special testing 

techniques.

Technical Analysis – The review, examination, and evaluation of an offer by personnel 

having specialized knowledge, skills, experience, or capability in engineering, science, 

management, or other personnel having specialized knowledge of the proposed types 

and quantities of materials, labor, processes, and other factors provided in the offer(s) 

to determine the need for and reasonableness of the proposed resources and efforts, 

assuming reasonable economy and efficiency.

Technical Data – Recorded information (regardless of the form or method of the 

recording) of a scientific or technical nature (including computer software 

documentation) relating to products procured by the judiciary. Such term does not 

include computer software or financial, administrative, cost or pricing, or management 

data or other information incidental to contract administration.

Technical Direction – An interpretation of SOW requirements provided by a 

representative of the CO. Representatives of the CO have no authority to alter the 

SOW. The SOW can only be altered through use of a contract modification signed by 

the CO.

Technical Evaluation Panel (TEP) – The individuals responsible, during the source 

selection process, for performing the evaluation of technical offers submitted in a 

response to a solicitation.

Technical Leveling – Helping an offeror bring its proposal up to the level of other 

proposals. This is to be avoided as it adversely effects the competition.

Technical Transfusion – Disclosing technical information from one or more offerors’ 

offers that allows competing offerors to improve their proposals. This is to be avoided 

as it adversely affects the competition.

Termination for Convenience – The CO may terminate performance of work under the 

contract in whole or, occasionally, in part, if the CO determines that a termination is in 

the judiciary’s interest.
Guide to Judiciary Policy, Vol. 14 Glossary Page 38

Termination for Default – The exercise of the judiciary’s contractual right to terminate 

a contract completely or partially because of the contractor’s actual or anticipated failure 

to perform its contractual obligations.

Time and Materials Contract – A contract type that provides payment for contractor’s 

time spent on a task and reimburses the contractor for materials used for the task.

TIN – See: Tax ID Number.

Total Cost – All projected judiciary costs over the product life as a result of 

implementing an offeror’s offered approach. In addition to the contract prices or costs, 

other elements, such as support and in-house costs over the product life for installing, 

operating, and disposing of the products are included in total cost.

Trade Off – A term applied during best value evaluation to justify the increase cost of a 

more desirable quality which meets or exceeds the judiciary’s needs.

Transition Procurement Official – See: Designated Transition Procurement Official.

Unacceptable Offer – An offer that does not represent a reasonable initial effort to 

address the essential requirements of the solicitation, clearly demonstrates that the 

offeror does not understand the solicitation’s requirement, contains such substantial 

deficiencies or omissions that sufficient correction or improvement to consider the 

proposal acceptable would require virtually an entirely new proposal, or contains major 

technical or business deficiencies, omissions, or out-of-line costs which discussions with 

the offeror could not reasonably be expected to cure.

Unauthorized Commitment – An agreement that is not binding solely because the 

judiciary representative who made it lacked the procurement authority to enter into that 

agreement on behalf of the judiciary. See also: Ratification.

Uniform Contract Format (UCF) – The format required for preparation of a solicitation. 

See: Guide, Vol. 14, Appx. 1A.

Unilateral – Signed by the contracting officer only.

Unilateral Modification – A contract modification that is signed only by the contracting 

officer. Unilateral modifications are used, for example, to:

(a) make administrative changes;

(b) issue change orders;

(c) make changes authorized by clauses other than a changes clause (e.g., 

property clause, options clause, suspension of work clause); and

(d) issue termination notices.
Guide to Judiciary Policy, Vol. 14 Glossary Page 39

Unique Entity Identifier (UEI) Number – A 12-character alphanumeric field that is the 

official identifier for doing business with the U.S. government, replacing DUNS Number.

Unlimited Rights – The right of the judiciary in technical data and computer software to 

use, disclose, reproduce, prepare derivative works, distribute copies to the public, and 

perform and display publicly, in any manner and for any purpose, and to have or permit 

others to do so.

Unsuccessful Offer – An offer that did not result in a procurement award.

Vendor – A term commonly used for source.

Wage Determination – A determination of minimum wages or fringe benefits made 

under the Service Contract Labor Standards (formerly known as the Service Contract 

Act of 1965) applicable to the employment in a given locality of one or more classes of 

service employees. See also: General Wage Determination.

Waiver – A document signed by the PE authorizing a deviation from the prescribed 

procedures.

Walsh-Healey Public Contracts Act – Requires that (unless exempted), all contracts 

subject to the Act and entered into by any instrumentality of the United States, or by the 

District of Columbia, for the manufacture or furnishing of materials, products, articles, 

and equipment in any amount over $15,000, must 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.

Warranty – A promise or affirmation given by a contractor to the government regarding 

the nature, usefulness, or condition of the products or performance of services furnished 

under the contract.

Weighting – The technique that assigns percentage or numerical values to evaluation 

factors and significant sub-factors.

Within the Scope – The area covered by the procurement.

Work Statement – See: Statement of Work.

Working Days – Excludes weekends and U.S. federal holidays.

Written – See: As Written.