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FEDERAL ACQUISITION CIRCULAR January 13, 2017 Number 2005-95
Effective January 13, 2017 Loose-leaf pages
Federal Acquisition Circular (FAC) 2005-95 is issued under
the authority of the Secretary of Defense, the Administrator of
General Services, and the Administrator for the National
Aeronautics and Space Administration. Unless otherwise specified,
all Federal Acquisition Regulation (FAR) and other directive
material contained in FAC 2005-95 is effective January 13, 2017
except for Item III, which is effective January 19, 2017.
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(BLANK PAGE)
ii
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FAC 2005-95 List of Subjects
Item Title Page
I Uniform Use of Line Items v
II Acquisition Threshold for Special Emergency Procurement
Authority
v
III Contractor Employee Internal Confidentiality Agreements or
Statements
vi
IV Contracts Under the Small Business Administration 8(a)
Program
vii
V Prohibition on Reimbursement for Congressional Investigations
and Inquiries
vii
iii
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(BLANK PAGE)
iv
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FAC 2005-95 SUMMARY OF ITEMs
Federal Acquisition Circular (FAC) 2005-95 amends the Federal
Acquisition Regulation (FAR) as specified below: Item I— Uniform
Use of Line Items (FAR Case 2013-014) This final rule amends the
FAR to establish standards for the uniform use of line items in
Federal procurement. These standards are designed to improve the
accuracy, traceability, and usability of procurement data. The
implementation of these standards will facilitate the
identification and traceability of spending from appropriation
through expenditure, supporting automated collection of information
using key identifiers. The implementation date for FAR 4.1002
through 4.1008 will be October 1, 2019. The requirements in the
rule have the potential to impact any entity, small or large, that
does business with the Federal Government because the proposed rule
would apply to purchases of items, including commercial items and
commercially available off-the-shelf items, and purchases under the
simplified acquisition threshold. Any small business that contracts
with a Federal agency could be impacted to at least some extent.
Replacement pages: 2.1-11 thru 2.1-18; 3.3-1 and 3.3-2; TOC 4-1 and
4-2; 4.10-1 and 4.10-2; 5.2-3 and 5.2-4, 7.1-3 and 7.1-4; 8.4-1
thru 8.4-12; 9.3-1 and 9.3-2; 12.3-3 and 12.3-4; 12.6-1 and 12.6-2;
14.2-1 thru 14.2-4; 15.4-5 thru 15.4-20; 16.2-1 and 16.2-2; 16.5-3
thru 16.5-8; 17.1-1 and 17.1-2; 17.2-1 thru 17.2-4; 27.4-7 and
27.4-8; 32.9-1 thru 32.9-4; 32.10-1 and 32.10-2; 32.11-3 and
32.11-4; 42.3-3 and 42.3-4; 48.1-3 and 48.1-4; 49.6-1 thru 49.6-4;
49.6-7 and 49.6-8; TOC 52-1 and 52-2; TOC 52-5 and 52-6; 52.2-12.9
thru 52.2-12.10; 52.2-27 thru 52.2-42.6; 52.2-47 and 52.2-48;
52.2-53 and 52.2-54; 52.2-65 thru 52.2-68; 52.2-217 thru 52.2-228;
52.2-261 and 52.2-262; 52.2-267 thru 52.2-270; 52.2-331 thru
52.2-334; 52.2-341 and 52.2-342; Matrix 52.3-5 and 52.3-6. Item II—
Acquisition Threshold for Special Emergency Procurement Authority
(FAR Case 2016-004) This final rule amends the FAR by increasing
the simplified acquisition threshold (SAT) for special emergency
procurement authority from $300,000 to $750,000 (within the United
States) and from $1 million to $1.5 million (outside the United
States)
v
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for acquisitions of supplies or services that, as determined by
the head of the agency, are to be used to support a contingency
operation or to facilitate defense against or recovery from
nuclear, biological, chemical, or radiological attack. This change
implements Section 816 of the National Defense Authorization Act
for Fiscal Year 2016 (Pub. L. 114-92). This rule provides
contracting officers with more flexibility when contracting in
support of contingency operations. The rule is not anticipated to
have a significant economic impact on small business entities,
because the rule raises the SAT for special emergency procurements,
an arena in which a smaller percentage of small businesses
participate, as compared to larger businesses. This final rule does
not place any new requirements on small entities. Replacement
pages: 2.1-15 and 2.1-16; 13.1-1 and 13.1-2; 19.2-3 and 19.2-4;
19.5-1 and 19.5-2. Item III—Contractor Employee Internal
Confidentiality Agreements or Statements (FAR Case 2015-012) This
final rule revises the FAR to implement section 743 of division E,
title VII, of the Consolidated and Further Continuing
Appropriations Act, 2015 (Pub. L. 113-235) and successor provisions
in subsequent appropriations acts. Section 743 prohibits the use of
funds appropriated or otherwise made available by Division E or any
other act, for a contract with an entity that requires employees
and subcontractors of such entity to sign internal confidentiality
agreements or statements prohibiting or otherwise restricting such
employees or subcontractors from lawfully reporting waste, fraud,
or abuse, to a designated investigative or law enforcement
representative of a Federal department or agency authorized to
receive such information (e.g., agency office of the Inspector
General). This rule is not expected to have a significant impact on
small entities contracting with the Government. Replacement pages:
THE REPLACEMENT PAGES WILL BE POSTED ON THEIR EFFECITVE DATE OF:
January 19, 2017.
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Item IV—Contracts Under the Small Business Administration 8(a)
Program (FAR Case 2012-022)
This final rule amends the Federal Acquisition Regulation (FAR)
to implement clarifications made by the Small Business
Administration in its final rule, which published in the Federal
Register at 76 FR 8222 on February 11, 2011. This final rule
clarifies in the FAR the procedures and requirements used when
contracting under the 8(a) program. Clarifications include the
evaluation, offering, and acceptance process, procedures for
acquiring SBA’s consent to procure an 8(a) requirement outside the
8(a) program, and the impact of exiting the 8(a) program in terms
of the firm’s ability to receive future 8(a) requirements and its
current contractual commitments.
This final rule does not place any new requirements,
financial or otherwise, on small entities, and serves mainly to
provide more explicit guidance to Federal contracting
officials.
Replacement pages: 5.2-3 and 5.2-4; 6.2-1 and 6.2-2; 18.1-1 and
18.1-2; TOC 19-1 and 19-2; 19.1-1 and 19.1-2; 19.8-1 thru 19.8-8;
19.13-1 and 19.13-2; 19.14-1 and 19.14-2; 19.15-1 and 19.15-2;
52.2-41 and 52.2-42; 52.2-97 thru 52.2-104.
Item V—Prohibition on Reimbursement for Congressional
Investigations and Inquiries (FAR Case 2015-016)
This rule amends the FAR to implement section 857 of the Carl
Levin and Howard P. ‘Buck’ McKeon National Defense Authorization
Act for Fiscal Year 2015. Section 857 imposes additional
requirements relative to the allowability of costs incurred by a
contractor in connection with a congressional investigation or
inquiry. Contracting officers need to be aware of these new
restrictions on certain costs, which cannot be charged under
contracts. Although small businesses subject to FAR part 31 will
need to maintain accounting records, this rule does not place any
new requirements on small entities. Replacement pages: 31.2-27 and
31.2-28; 31.6-1 and 31.6-2.
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FAC 2005-95 FILING INSTRUCTIONS
NOTE: The FAR is segmented by subparts. The FAR page numbers
reflect FAR Subparts. For example, “2.1-11” is page 11 of subpart
2.1. Remove Pages Insert Pages
2.1-11 thru 2.1-18 2.1-11 thru 2.1-18 3.3-1 and 3.3-2 3.3-1 and
3.3-2 TOC 4-1 and 4-2 TOC 4-1 and 4-2 4.10-1 and 4.10-2 4.10-1 and
4.10-2 5.2-3 and 5.2-4 5.2-3 and 5.2-4 6.2-1 and 6.2-2 6.2-1 and
6.2-2 7.1-3 and 7.1-4 7.1-3 and 7.1-4 8.4-1 thru 8.4-12 8.4-1 thru
8.4-12 9.3-1 and 9.3-2 9.3-1 and 9.3-2 12.3-3 and 12.3-4 12.3-3 and
12.3-4 12.6-1 and 12.6-2 12.6-1 and 12.6-2 13.1-1 and 13.1-2 13.1-1
and 13.1-2 14.2-1 thru 14.2-4 14.2-1 thru 14.2-4 15.4-5 thru
15.4-20 15.4-5 thru 15.4-20 16.2-1 and 16.2-2 16.2-1 and 16.2-2
16.5-3 thru 16.5-8 16.5-3 thru 16.5-8 17.1-1 and 17.1-2 17.1-1 and
17.1-2 17.2-1 thru 17.2-4 17.2-1 thru 17.2-4 18.1-1 and 18.1-2
18.1-1 and 18.1-2 TOC 19-1 and 19-2 TOC 19-1 and 19-2 19.1-1 and
19.1-2 19.1-1 and 19.1-2 19.2-3 and 19.2-4 19.2-3 and 19.2-4 19.5-1
and 19.5-2 19.5-1 and 19.5-2 19.8-1 thru 19.8-8 19.8-1 thru 19.8-8
19.13-1 and 19.13-2 19.13-1 and 19.13-2 19.14-1 and 19.14-2 19.14-1
and 19.14-2 19.15-1 and 19.15-2 19.15-1 and 19.15-2
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Remove Pages Insert Pages 27.4-7 and 27.4-8 27.4-7 and 27.4-8
31.2-27 and 31.2-28 31.2-27 and 31.2-28
31.6-1 and 31.6-2 31.6-1 and 31.6-2 32.9-1 thru 32.9-4 32.9-1
thru 32.9-4 32.10-1 and 32.10-2 32.10-1 and 32.10-2 32.11-3 and
32.11-4 32.11-3 and 32.11-4 42.3-3 and 42.3-4 42.3-3 and 42.3-4
48.1-3 and 48.1-4 48.1-3 and 48.1-4 49.6-1 thru 49.6-4 49.6-1 thru
49.6-4 49.6-7 and 49.6-8 49.6-7 and 49.6-8 TOC TOC 52-1 and 52-2
52-1 and 52-2 52-5 and 52-6 52-5 and 52-6 52.2-12.9 thru 52.2-12.10
52.2-12.9 thru 52.2-12.10 52.2-27 thru 52.2-42.6 52.2-27 thru
52.2-42.6 52.2-47 and 52.2-48 52.2-47 and 52.2-48 52.2-53 and
52.2-54 52.2-53 and 52.2-54 52.2-65 thru 52.2-68 52.2-65 thru
52.2-68 52.2-97 thru 52.2-104 52.2-97 thru 52.2-104 52.2-217 thru
52.2-228 52.2-217 thru 52.2-228 52.2-261 and 52.2-262 52.2-261 and
52.2-262 52.2-267 thru 52.2-270 52.2-267 thru 52.2-270 52.2-331
thru 52.2-334 52.2-331 thru 52.2-334 52.2-341 and 52.2-342 52.2-341
and 52.2-342 Remove Pages Insert Pages Matrix Matrix 52.3-5 and
52.3-6 52.3-5 and 52.3-6
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SUBPART 2.1—DEFINITIONS 2.101
FAC 2005–95 JANUARY 13, 2017
2.1-11
“Invoice” means a contractor’s bill or written request
forpayment under the contract for supplies delivered or
servicesperformed (see also “proper invoice”).
“Irrevocable letter of credit” means a written commitmentby a
federally insured financial institution to pay all or part ofa
stated amount of money, until the expiration date of the let-ter,
upon the Government’s (the beneficiary) presentation ofa written
demand for payment. Neither the financial institu-tion nor the
offeror/contractor can revoke or condition the let-ter of
credit.
“Labor surplus area” means a geographical area identifiedby the
Department of Labor in accordance with20 CFR Part 654, Subpart A,
as an area of concentratedunemployment or underemployment or an
area of laborsurplus.
“Labor surplus area concern” means a concern thattogether with
its first-tier subcontractors will perform sub-stantially in labor
surplus areas. Performance is substantiallyin labor surplus areas
if the costs incurred under the contracton account of
manufacturing, production, or performance ofappropriate services in
labor surplus areas exceed 50 percentof the contract price.
“Latent defect” means a defect that exists at the time
ofacceptance but cannot be discovered by a
reasonableinspection.
“Line item” means the basic structural element in a pro-curement
instrument that describes and organizes the requiredproduct or
service for pricing, delivery, inspection, accep-tance, invoicing,
and payment. The use of the term “line item”includes “subline
item,” as applicable.
“Line item number” means either a numeric or alphanu-meric
format to identify a line item.
“Major system” means that combination of elements thatwill
function together to produce the capabilities required tofulfill a
mission need. The elements may include hardware,equipment,
software, or any combination thereof, but excludeconstruction or
other improvements to real property. A systemis a major system
if—
(1) The Department of Defense is responsible for thesystem and
the total expenditures for research, development,test, and
evaluation for the system are estimated to be morethan $185 million
based on Fiscal Year 2014 constant dollarsor the eventual total
expenditure for the acquisition exceeds$835 million based on Fiscal
Year 2014 constant dollars (orany update of these thresholds based
on a more recent fiscalyear, as specified in the DoD Instruction
5000.02, “Operationof the Defense Acquisition System”);
(2) A civilian agency is responsible for the system andtotal
expenditures for the system are estimated to exceed $2million or
the dollar threshold for a “major system” estab-lished by the
agency pursuant to Office of Management andBudget Circular A-109,
entitled “Major System Acquisi-tions,” whichever is greater; or
(3) The system is designated a “major system” by thehead of the
agency responsible for the system(10 U.S.C. 2302 and 41 U.S.C.
109).
“Make-or-buy program” means that part of a contractor’swritten
plan for a contract identifying those major items to beproduced or
work efforts to be performed in the prime con-tractor’s facilities
and those to be subcontracted.
Manufactured end product means any end product in prod-uct and
service codes (PSC) 1000-9999, except-
(1) PSC 5510, Lumber and Related Basic Wood Mate-rials;
(2) Product or service group (PSG) 87, AgriculturalSupplies;
(3) PSG 88, Live Animals; (4) PSG 89, Subsistence; (5) PSC 9410,
Crude Grades of Plant Materials; (6) PSC 9430, Miscellaneous Crude
Animal Products,
Inedible; (7) PSC 9440, Miscellaneous Crude Agricultural and
Forestry Products; (8) PSC 9610, Ores; (9) PSC 9620, Minerals,
Natural and Synthetic; and (10) PSC 9630, Additive Metal
Materials.
“Market research” means collecting and analyzing infor-mation
about capabilities within the market to satisfy agencyneeds.
“Master solicitation” means a document containing specialclauses
and provisions that have been identified as essentialfor the
acquisition of a specific type of supply or service thatis acquired
repetitively.
“May” denotes the permissive. However, the words “noperson may…”
mean that no person is required, authorized, orpermitted to do the
act described.
“Micro-purchase” means an acquisition of supplies or ser-vices
using simplified acquisition procedures, the aggregateamount of
which does not exceed the micro-purchasethreshold.
“Micro-purchase threshold” means $3,500, except itmeans—
(1) For acquisitions of construction subject to 40 U.S.C.chapter
31, subchapter IV, Wage Rate Requirements (Con-struction),
$2,000;
(2) For acquisitions of services subject to 41 U.S.C.chapter 67,
Service Contract Labor Standards, $2,500; and
(3) For acquisitions of supplies or services that, as
deter-mined by the head of the agency, are to be used to support
acontingency operation or to facilitate defense against orrecovery
from nuclear, biological, chemical or radiologicalattack as
described in 13.201(g)(1), except for constructionsubject to 40
U.S.C. chapter 31, subchapter IV, Wage RateRequirements
(Construction) (41 U.S.C. 1903)—
(i) $20,000 in the case of any contract to be awardedand
performed, or purchase to be made, inside the UnitedStates; and
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2.101 FEDERAL ACQUISITION REGULATION
FAC 2005–95)
2.1-12 (
(ii) $30,000 in the case of any contract to be awardedand
performed, or purchase to be made, outside the UnitedStates.
“Minority Institution” means an institution of higher edu-cation
meeting the requirements of Section 365(3) of theHigher Education
Act of 1965 (20 U.S.C. 1067k), including aHispanic-serving
institution of higher education, as defined inSection 502(a) of the
Act (20 U.S.C. 1101a).
“Multi-agency contract (MAC)” means a task-order
ordelivery-order contract established by one agency for use
byGovernment agencies to obtain supplies and services, consis-tent
with the Economy Act (see 17.502-2). Multi-agency con-tracts
include contracts for information technologyestablished pursuant to
40 U.S.C. 11314(a)(2).
“Multiple-award contract” means a contract that is—(1) A
Multiple Award Schedule contract issued by GSA
(e.g., GSA Schedule Contract) or agencies granted MultipleAward
Schedule contract authority by GSA (e.g., Departmentof Veterans
Affairs) as described in FAR part 38;
(2) A multiple-award task-order or delivery-order con-tract
issued in accordance with FAR subpart 16.5, includingGovernmentwide
acquisition contracts; or
(3) Any other indefinite-delivery, indefinite-quantitycontract
entered into with two or more sources pursuant to thesame
solicitation.
“Must” (see “shall”).“National defense” means any activity
related to programs
for military or atomic energy production or construction,
mil-itary assistance to any foreign nation, stockpiling, or
space,except that for use in subpart 11.6, see the definition in
11.601.
“Neutral person” means an impartial third party, whoserves as a
mediator, fact finder, or arbitrator, or otherwisefunctions to
assist the parties to resolve the issues in contro-versy. A neutral
person may be a permanent or temporary offi-cer or employee of the
Federal Government or any otherindividual who is acceptable to the
parties. A neutral personmust have no official, financial, or
personal conflict of interestwith respect to the issues in
controversy, unless the interest isfully disclosed in writing to
all parties and all parties agree thatthe neutral person may serve
(5 U.S.C. 583).
“Nondevelopmental item” means—(1) Any previously developed item
of supply used
exclusively for governmental purposes by a Federal agency,a
State or local government, or a foreign government withwhich the
United States has a mutual defense cooperationagreement;
(2) Any item described in paragraph (1) of this defini-tion that
requires only minor modification or modifications ofa type
customarily available in the commercial marketplace inorder to meet
the requirements of the procuring department oragency; or
(3) Any item of supply being produced that does notmeet the
requirements of paragraphs (1) or (2) solely becausethe item is not
yet in use.
“Novation agreement” means a legal instrument—(1) Executed by
the—
(i) Contractor (transferor);(ii) Successor in interest
(transferee); and(iii) Government; and
(2) By which, among other things, the transferor guar-antees
performance of the contract, the transferee assumes allobligations
under the contract, and the Government recog-nizes the transfer of
the contract and related assets.
“Offer” means a response to a solicitation that, if
accepted,would bind the offeror to perform the resultant
contract.Responses to invitations for bids (sealed bidding) are
offerscalled “bids” or “sealed bids”; responses to requests for
pro-posals (negotiation) are offers called “proposals”;
however,responses to requests for quotations (simplified
acquisition)are “quotations,” not offers. For unsolicited
proposals, seesubpart 15.6.
“Offeror” means offeror or bidder.“Office of Small and
Disadvantaged Business Utilization”
means the Office of Small Business Programs when referringto the
Department of Defense.
“OMB Uniform Guidance at 2 CFR part 200” is the abbre-viated
title for Uniform Administrative Requirements, CostPrinciples, and
Audit Requirements for Federal Awards (2CFR part 200), which
supersedes OMB Circulars A-21, A-87,A-89, A-102, A-110, A-122, and
A-133, and the guidance inCircular A-50 on Audit Followup.
“Option” means a unilateral right in a contract by which,for a
specified time, the Government may elect to purchaseadditional
supplies or services called for by the contract, ormay elect to
extend the term of the contract.
“Organizational conflict of interest” means that because ofother
activities or relationships with other persons, a person isunable
or potentially unable to render impartial assistance oradvice to
the Government, or the person’s objectivity in per-forming the
contract work is or might be otherwise impaired,or a person has an
unfair competitive advantage.
“Outlying areas” means—(1) Commonwealths.(i) Puerto Rico.
(ii) The Northern Mariana Islands;(2) Territories.(i) American
Samoa.
(ii) Guam.(iii) U.S. Virgin Islands; and
(3) Minor outlying islands.(i) Baker Island.(ii) Howland
Island.(iii) Jarvis Island.(iv) Johnston Atoll.(v) Kingman
Reef.(vi) Midway Islands.(vii) Navassa Island.(viii) Palmyra
Atoll.(ix) Wake Atoll.
“Overtime” means time worked by a contractor’semployee in excess
of the employee’s normal workweek.
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SUBPART 2.1—DEFINITIONS 2.101
(FAC 2005–95)
2.1-13
“Overtime premium” means the difference between thecontractor’s
regular rate of pay to an employee for the shiftinvolved and the
higher rate paid for overtime. It does notinclude shift premium,
i.e., the difference between the con-tractor's regular rate of pay
to an employee and the higher ratepaid for extra-pay-shift
work.
“Ozone-depleting substance” means any substance theEnvironmental
Protection Agency designates in40 CFR part 82 as—
(1) Class I, including, but not limited to,
chlorofluoro-carbons, halons, carbon tetrachloride, and methyl
chloroform;or
(2) Class II, including, but not limited
to,hydrochlorofluorocarbons.
“Partial termination” means the termination of a part, butnot
all, of the work that has not been completed and acceptedunder a
contract.
“Past performance” means an offeror’s or contractor’s
per-formance on active and physically completed contracts
(see4.804-4).
“Performance-based acquisition (PBA)” means an acqui-sition
structured around the results to be achieved as opposedto the
manner by which the work is to be performed.
“Performance Work Statement (PWS)” means a statementof work for
performance-based acquisitions that describes therequired results
in clear, specific and objective terms withmeasurable outcomes.
“Personal property” means property of any kind or interestin it
except real property, records of the Federal Government,and naval
vessels of the following categories:
(1) Battleships;(2) Cruisers;(3) Aircraft carriers;(4)
Destroyers; and(5) Submarines.
“Personal services contract” means a contract that, by
itsexpress terms or as administered, makes the contractor
per-sonnel appear to be, in effect, Government employees
(see37.104).
“Plant clearance officer” means an authorized representa-tive of
the contracting officer, appointed in accordance withagency
procedures, responsible for screening, redistributing,and disposing
of contractor inventory from a contractor’splant or work site. The
term “Contractor’s plant” includes, butis not limited to,
Government-owned contractor-operatedplants, Federal installations,
and Federal and non-Federalindustrial operations, as may be
required under the scope ofthe contract.
“Pollution prevention” means any practice that—(1)(i) Reduces
the amount of any hazardous substance,
pollutant, or contaminant entering any waste stream or
other-wise released into the environment (including fugitive
emis-sions) prior to recycling, treatment, or disposal; and
(ii) Reduces the hazards to public health and theenvironment
associated with the release of such substances,pollutants, and
contaminants;
(2) Reduces or eliminates the creation of pollutantsthrough
increased efficiency in the use of raw materials,energy, water, or
other resources; or
(3) Protects natural resources by conservation.“Power of
attorney” means the authority given one person
or corporation to act for and obligate another, as specified
inthe instrument creating the power; in corporate suretyship,
aninstrument under seal that appoints an attorney-in-fact to actin
behalf of a surety company in signing bonds (see
also“attorney-in-fact” at 28.001).
“Preaward survey” means an evaluation of a
prospectivecontractor’s capability to perform a proposed
contract.
“Preponderance of the evidence” means proof by informa-tion
that, compared with that opposing it, leads to the conclu-sion that
the fact at issue is more probably true than not.
“Pricing” means the process of establishing a reasonableamount
or amounts to be paid for supplies or services.
“Principal” means an officer, director, owner, partner, or
aperson having primary management or supervisory responsi-bilities
within a business entity (e.g., general manager; plantmanager; head
of a division or business segment; and similarpositions).
“Procurement” (see “acquisition”).“Procuring activity” means a
component of an executive
agency having a significant acquisition function and desig-nated
as such by the head of the agency. Unless agency regu-lations
specify otherwise, the term “procuring activity” issynonymous with
“contracting activity.”
“Products” has the same meaning as “supplies.”“Projected average
loss” means the estimated long-term
average loss per period for periods of comparable exposure
torisk of loss.
“Proper invoice” means an invoice that meets the mini-mum
standards specified in 32.905(b).
“Purchase order,” when issued by the Government, meansan offer
by the Government to buy supplies or services,including
construction and research and development, uponspecified terms and
conditions, using simplified acquisitionprocedures.
“Qualification requirement” means a Government require-ment for
testing or other quality assurance demonstration thatmust be
completed before award of a contract.
“Qualified products list (QPL)” means a list of productsthat
have been examined, tested, and have satisfied all appli-cable
qualification requirements.
“Receiving report” means written evidence that
indicatesGovernment acceptance of supplies delivered or services
per-formed (see subpart 46.6). Receiving reports must meet
therequirements of 32.905(c).
“Recovered material” means waste materials and by-prod-ucts
recovered or diverted from solid waste, but the term doesnot
include those materials and by-products generated from,
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2.101 FEDERAL ACQUISITION REGULATION
FAC 2005–95)
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and commonly reused within, an original manufacturing pro-cess.
For use in subpart 11.3 for paper and paper products, seethe
definition at 11.301.
“Registered in the System for Award Management (SAM)database”
means that—
(1) The Contractor has entered all mandatory informa-tion,
including the unique entity identifier and the ElectronicFunds
Transfer indicator (if applicable), the Commercial andGovernment
Entity (CAGE) code, as well as data required bythe Federal Funding
Accountability and Transparency Act of2006 (see subpart 4.14), into
the SAM database;
(2) The Contractor has completed the Core,
Assertions,Representations and Certifications, and Points of
Contact sec-tions of the registration in the SAM database;
(3) The Government has validated all mandatory datafields, to
include validation of the Taxpayer IdentificationNumber (TIN) with
the Internal Revenue Service (IRS). Thecontractor will be required
to provide consent for TIN valida-tion to the Government as a part
of the SAM registration pro-cess; and
(4) The Government has marked the record Active.“Renewable
energy” means energy produced by solar,
wind, geothermal, biomass, landfill gas, ocean (includingtidal,
wave, current, and thermal), municipal solid waste, ornew
hydroelectric generation capacity achieved fromincreased efficiency
or additions of new capacity at an exist-ing hydroelectric project
(Energy Policy Act of 2005, 42U.S.C. 15852).
“Renewable energy technology” means—(1) Technologies that use
renewable energy to provide
light, heat, cooling, or mechanical or electrical energy for
usein facilities or other activities; or
(2) The use of integrated whole-building designs thatrely upon
renewable energy resources, including passive solardesign.
“Requesting agency” means the agency that has therequirement for
an interagency acquisition.
“Residual value” means the proceeds, less removal anddisposal
costs, if any, realized upon disposition of a tangiblecapital
asset. It usually is measured by the net proceeds fromthe sale or
other disposition of the asset, or its fair value if theasset is
traded in on another asset. The estimated residualvalue is a
current forecast of the residual value.
“Responsible audit agency” means the agency that isresponsible
for performing all required contract audit servicesat a business
unit.
“Responsible prospective contractor” means a contractorthat
meets the standards in 9.104.
“Scrap” means personal property that has no value exceptits
basic metallic, mineral, or organic content.
“Segment” means one of two or more divisions,
productdepartments, plants, or other subdivisions of an
organizationreporting directly to a home office, usually identified
withresponsibility for profit and/or producing a product or
service.The term includes—
(1) Government-owned contractor-operated (GOCO)facilities;
and
(2) Joint ventures and subsidiaries (domestic and for-eign) in
which the organization has—
(i) A majority ownership; or(ii) Less than a majority ownership,
but over which
it exercises control.“Self-insurance” means the assumption or
retention of the
risk of loss by the contractor, whether voluntarily or
involun-tarily. Self-insurance includes the deductible portion of
pur-chased insurance.
“Senior procurement executive” means the individualappointed
pursuant to 41 U.S.C. 1702(c) who is responsiblefor management
direction of the acquisition system of theexecutive agency,
including implementation of the uniqueacquisition policies,
regulations, and standards of the execu-tive agency.
“Service-disabled veteran-owned small businessconcern”—
(1) Means a small business concern—(i) Not less than 51 percent
of which is owned by one
or more service-disabled veterans or, in the case of any
pub-licly owned business, not less than 51 percent of the stock
ofwhich is owned by one or more service-disabled veterans; and
(ii) The management and daily business operationsof which are
controlled by one or more service-disabled vet-erans or, in the
case of a service-disabled veteran with perma-nent and severe
disability, the spouse or permanent caregiverof such veteran.
(2) Service-disabled veteran means a veteran, asdefined in 38
U.S.C. 101(2), with a disability that is service-connected, as
defined in 38 U.S.C. 101(16).
“Servicing agency” means the agency that will conduct anassisted
acquisition on behalf of the requesting agency.
“Shall” means the imperative.“Shipment” means freight
transported or to be transported.“Shop drawings” means drawings
submitted by the con-
struction contractor or a subcontractor at any tier or
requiredunder a construction contract, showing in detail either or
bothof the following:
(1) The proposed fabrication and assembly of
structuralelements.
(2) The installation (i.e., form, fit, and attachmentdetails) of
materials or equipment.
“Should” means an expected course of action or policy thatis to
be followed unless inappropriate for a particularcircumstance.
“Signature” or “signed” means the discrete, verifiablesymbol of
an individual that, when affixed to a writing withthe knowledge and
consent of the individual, indicates a pres-ent intention to
authenticate the writing. This includes elec-tronic symbols.
“Simplified acquisition procedures” means the methodsprescribed
in part 13 for making purchases of supplies or ser-vices.
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SUBPART 2.1—DEFINITIONS 2.101
FAC 2005–95 JANUARY 13, 2017
2.1-15
“Simplified acquisition threshold” means $150,000 (41U.S.C.
134), except for–
(1) Acquisitions of supplies or services that, as deter-mined by
the head of the agency, are to be used to support acontingency
operation or to facilitate defense against orrecovery from nuclear,
biological, chemical, or radiologicalattack (41 U.S.C. 1903), the
term means–
(i) $750,000 for any contract to be awarded and per-formed, or
purchase to be made, inside the United States; and
(ii) $1.5 million for any contract to be awarded andperformed,
or purchase to be made, outside the United States;and
(2) Acquisitions of supplies or services that, as deter-mined by
the head of the agency, are to be used to support ahumanitarian or
peacekeeping operation (10 U.S.C. 2302), theterm means $300,000 for
any contract to be awarded and per-formed, or purchase to be made,
outside the United States.
“Single, Governmentwide point of entry,” means the onepoint of
entry to be designated by the Administrator of OFPPthat will allow
the private sector to electronically access pro-curement
opportunities Governmentwide.
“Small business concern” means a concern, including
itsaffiliates, that is independently owned and operated, not
dom-inant in the field of operation in which it is bidding on
Gov-ernment contracts, and qualified as a small business under
thecriteria and size standards in 13 CFR part 121 (see 19.102).Such
a concern is “not dominant in its field of operation”when it does
not exercise a controlling or major influence ona national basis in
a kind of business activity in which a num-ber of business concerns
are primarily engaged. In determin-ing whether dominance exists,
consideration must be given toall appropriate factors, including
volume of business, numberof employees, financial resources,
competitive status or posi-tion, ownership or control of materials,
processes, patents,license agreements, facilities, sales territory,
and nature ofbusiness activity. (See 15 U.S.C. 632.)
“Small Business Teaming Arrangement”–(1) Means an arrangement
where–
(i) Two or more small business concerns haveformed a joint
venture; or
(ii) A small business offeror agrees with one or moreother small
business concerns to have them act as its subcon-tractors under a
specified Government contract. A SmallBusiness Teaming Arrangement
between the offeror and itssmall business subcontractor(s) exists
through a writtenagreement between the parties that–
(A) Is specifically referred to as a “Small Busi-ness Teaming
Arrangement”; and
(B) Sets forth the different responsibilities, roles,and
percentages (or other allocations) of work as it relates tothe
acquisition;
(2)(i) For civilian agencies, may include two businessconcerns
in a mentor-protégé relationship when both the men-tor and the
protégé are small or the protégé is small and the
concerns have received an exception to affiliation pursuant to13
CFR 121.103(h)(3)(ii) or (iii).
(ii) For DoD, may include two business concerns ina
mentor-protégé relationship in the Department of DefensePilot
Mentor-Protégé Program (see section 831 of theNational Defense
Authorization Act for Fiscal Year 1991(Public Law 101-510; 10
U.S.C. 2302 note)) when both thementor and the protégé are small.
There is no exception tojoint venture size affiliation for offers
received from teamingarrangements under the Department of Defense
Pilot Mentor-Protégé Program; and
(3) See 13 CFR 121.103(b)(9) regarding the exceptionto
affiliation for offers received from Small Business
TeamingArrangements in the case of a solicitation of offers for a
bun-dled contract with a reserve.
“Small business subcontractor” means a concern that doesnot
exceed the size standard for the North American
IndustryClassification Systems code that the prime contractor
deter-mines best describes the product or service being acquired
bythe subcontract.
“Small disadvantaged business concern” consistent with13 CFR
124.1002, means a small business concern under thesize standard
applicable to the acquisition, that:
(1) Is at least 51 percent unconditionally and directlyowned (as
defined at 13 CFR 124.105) by—
(i) One or more socially disadvantaged (as defined at13 CFR
124.103) and economically disadvantaged (asdefined at 13 CFR
124.104) individuals who are citizens ofthe United States; and
(ii) Each individual claiming economic disadvantagehas a net
worth not exceeding $750,000 after taking intoaccount the
applicable exclusions set forth at 13 CFR124.104(c)(2); and
(2) The management and daily business operations ofwhich are
controlled (as defined at 13 CFR 124.106) by indi-viduals who meet
the criteria in paragraphs (1)(i) and (ii) ofthis definition.
“Sole source acquisition” means a contract for the pur-chase of
supplies or services that is entered into or proposedto be entered
into by an agency after soliciting and negotiatingwith only one
source.
“Solicitation” means any request to submit offers or quo-tations
to the Government. Solicitations under sealed bid pro-cedures are
called “invitations for bids.” Solicitations undernegotiated
procedures are called “requests for proposals.”Solicitations under
simplified acquisition procedures mayrequire submission of either a
quotation or an offer.
“Solicitation provision or provision” means a term or con-dition
used only in solicitations and applying only before con-tract
award.
“Source selection information” means any of the
followinginformation that is prepared for use by an agency for the
pur-pose of evaluating a bid or proposal to enter into an
agencyprocurement contract, if that information has not been
previ-ously made available to the public or disclosed publicly:
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2.101 FEDERAL ACQUISITION REGULATION
FAC 2005–95 JANUARY 13, 2017
2.1-16
(1) Bid prices submitted in response to an agency invi-tation
for bids, or lists of those bid prices before bid opening.
(2) Proposed costs or prices submitted in response to anagency
solicitation, or lists of those proposed costs or prices.
(3) Source selection plans.(4) Technical evaluation plans.(5)
Technical evaluations of proposals.(6) Cost or price evaluations of
proposals.(7) Competitive range determinations that identify
pro-
posals that have a reasonable chance of being selected foraward
of a contract.
(8) Rankings of bids, proposals, or competitors.(9) Reports and
evaluations of source selection panels,
boards, or advisory councils.(10) Other information marked as
“Source Selection
Information—See FAR 2.101 and 3.104” based on a case-by-case
determination by the head of the agency or the contract-ing
officer, that its disclosure would jeopardize the integrity
orsuccessful completion of the Federal agency procurement towhich
the information relates.
“Special competency” means a special or unique capabil-ity,
including qualitative aspects, developed incidental to theprimary
functions of the Federally Funded Research andDevelopment Centers
to meet some special need.
“Special test equipment” means either single or multipur-pose
integrated test units engineered, designed, fabricated, ormodified
to accomplish special purpose testing in performinga contract. It
consists of items or assemblies of equipmentincluding foundations
and similar improvements necessaryfor installing special test
equipment, and standard or generalpurpose items or components that
are interconnected andinterdependent so as to become a new
functional entity forspecial testing purposes. Special test
equipment does notinclude material, special tooling, real property,
and equipmentitems used for general testing purposes or property
that withrelatively minor expense can be made suitable for general
pur-pose use.
“Special tooling” means jigs, dies, fixtures, molds, pat-terns,
taps, gauges, and all components of these items includ-ing
foundations and similar improvements necessary forinstalling
special tooling, and which are of such a specializednature that
without substantial modification or alteration theiruse is limited
to the development or production of particularsupplies or parts
thereof or to the performance of particularservices. Special
tooling does not include material, special testequipment, real
property, equipment, machine tools, or simi-lar capital items.
“State and local taxes” means taxes levied by the States,
theDistrict of Columbia, outlying areas of the United States,
ortheir political subdivisions.
“Statement of Objectives (SOO)” means a Government-prepared
document incorporated into the solicitation thatstates the overall
performance objectives. It is used in solici-tations when the
Government intends to provide the maxi-
mum flexibility to each offeror to propose an
innovativeapproach.
“Subline item” means a subset of a line item.“Substantial
evidence” means information sufficient to
support the reasonable belief that a particular act or
omissionhas occurred.
“Substantially as follows” or “substantially the same as,”when
used in the prescription and introductory text of a pro-vision or
clause, means that authorization is granted to prepareand utilize a
variation of that provision or clause to accommo-date requirements
that are peculiar to an individual acquisi-tion; provided that the
variation includes the salient featuresof the FAR provision or
clause, and is not inconsistent with theintent, principle, and
substance of the FAR provision or clauseor related coverage of the
subject matter.
“Supplemental agreement” means a contract modificationthat is
accomplished by the mutual action of the parties.
“Supplies” means all property except land or interest inland. It
includes (but is not limited to) public works, buildings,and
facilities; ships, floating equipment, and vessels of
everycharacter, type, and description, together with parts and
acces-sories; aircraft and aircraft parts, accessories, and
equipment;machine tools; and the alteration or installation of any
of theforegoing.
“Supporting a diplomatic or consular mission” means per-forming
outside the United States under a contract adminis-tered by Federal
agency personnel who are subject to thedirection of a Chief of
Mission.
“Surety” means an individual or corporation legally liablefor
the debt, default, or failure of a principal to satisfy a
con-tractual obligation. The types of sureties referred to are
asfollows:
(1) An individual surety is one person, as distinguishedfrom a
business entity, who is liable for the entire penalamount of the
bond.
(2) A corporate surety is licensed under various insur-ance laws
and, under its charter, has legal power to act assurety for
others.
(3) A cosurety is one of two or more sureties that arejointly
liable for the penal sum of the bond. A limit of liabilityfor each
surety may be stated.
“Surplus property” means excess personal property notrequired by
any Federal agency as determined by the Admin-istrator of the
General Services Administration (GSA). (See41 CFR 102-36.40).
“Suspension” means action taken by a suspending officialunder
9.407 to disqualify a contractor temporarily from Gov-ernment
contracting and Government-approved subcontract-ing; a contractor
that is disqualified is “suspended.”
“Sustainable acquisition” means acquiring goods and ser-vices in
order to create and maintain conditions—
(1) Under which humans and nature can exist in
productiveharmony; and
(2) That permit fulfilling the social, economic, and
otherrequirements of present and future generations.
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SUBPART 2.1—DEFINITIONS 2.101
(FAC 2005–95)
2.1-17
“System for Award Management (SAM)” means the pri-mary
Government repository for prospective Federal awardeeand Federal
awardee information and the centralized Govern-ment system for
certain contracting, grants, and other assis-tance-related
processes. It includes—
(1) Data collected from prospective Federal awardeesrequired for
the conduct of business with the Government;
(2) Prospective contractor-submitted annual representa-tions and
certifications in accordance with FAR subpart 4.12;and
(3) Identification of those parties excluded from receiv-ing
Federal contracts, certain subcontracts, and certain typesof
Federal financial and non-financial assistance and benefits.
“Task order” means an order for services placed against
anestablished contract or with Government sources.
“Taxpayer Identification Number (TIN)” means the num-ber
required by the IRS to be used by the offeror in reportingincome
tax and other returns. The TIN may be either a SocialSecurity
Number or an Employer Identification Number.
“Technical data” means recorded information (regardlessof the
form or method of the recording) of a scientific or tech-nical
nature (including computer databases and computersoftware
documentation). This term does not include com-puter software or
financial, administrative, cost or pricing, ormanagement data or
other information incidental to contractadministration. The term
includes recorded information of ascientific or technical nature
that is included in computer data-bases (See 41 U.S.C. 116).
“Termination for convenience” means the exercise of
theGovernment’s right to completely or partially terminate
per-formance of work under a contract when it is in the
Govern-ment’s interest.
“Termination for default” means the exercise of the
Gov-ernment’s right to completely or partially terminate a
contractbecause of the contractor’s actual or anticipated failure
to per-form its contractual obligations.
“Termination inventory” means any property purchased,supplied,
manufactured, furnished, or otherwise acquired forthe performance
of a contract subsequently terminated andproperly allocable to the
terminated portion of the contract. Itincludes Government-furnished
property. It does not includeany facilities, material, special test
equipment, or special tool-ing that are subject to a separate
contract or to a special con-tract requirement governing their use
or disposition.
“Terminated portion of the contract” means the portion ofa
contract that the contractor is not to perform following a par-tial
termination. For construction contracts that have beencompletely
terminated for convenience, it means the entirecontract,
notwithstanding the completion of, and payment for,individual items
of work before termination.
“Unallowable cost” means any cost that, under the provi-sions of
any pertinent law, regulation, or contract, cannot beincluded in
prices, cost-reimbursements, or settlements undera Government
contract to which it is allocable.
“Unique and innovative concept,” when used relative to
anunsolicited research proposal, means that—
(1) In the opinion and to the knowledge of the Govern-ment
evaluator, the meritorious proposal—
(i) Is the product of original thinking submitted
con-fidentially by one source;
(ii) Contains new, novel, or changed concepts,approaches, or
methods;
(iii) Was not submitted previously by another; and(iv) Is not
otherwise available within the Federal
Government.(2) In this context, the term does not mean that
the
source has the sole capability of performing the
research.“Unique entity identifier” means a number or other
identi-
fier used to identify a specific commercial, nonprofit, or
Gov-ernment entity. See www.sam.gov for the designated entity
forestablishing unique entity identifiers.
“United States,” when used in a geographic sense, meansthe 50
States and the District of Columbia, except as follows:
(1) For use in subpart 3.10, see the definition at 3.1001.(2)
For use in subpart 22.8, see the definition at 22.801.(3) For use
in subpart 22.10, see the definition at
22.1001.(4) For use in subpart 22.12, see the definition at
22.1201.(5) For use in subpart 22.13, see the definition at
22.1301.(6) For use in subpart 22.16, see the definition at
22.1601.(7) For use in subpart 22.17, see the definition at
22.1702.(8) For use in subpart 22.18, see the definition at
22.1801.(9) For use in part 23, see definition at 23.001.(10)
For use in part 25, see the definition at 25.003.(11) For use in
part 27, see the definition at 27.001.(12) For use in subpart 47.4,
see the definition at
47.401.“Unsolicited proposal” means a written proposal for a
new
or innovative idea that is submitted to an agency on the
initia-tive of the offeror for the purpose of obtaining a contract
withthe Government, and that is not in response to a request
forproposals, Broad Agency Announcement, Small BusinessInnovation
Research topic, Small Business TechnologyTransfer Research topic,
Program Research and DevelopmentAnnouncement, or any other
Government-initiated solicita-tion or program.
“Value engineering” means an analysis of the functions ofa
program, project, system, product, item of equipment, build-ing,
facility, service, or supply of an executive agency, per-formed by
qualified agency or contractor personnel, directedat improving
performance, reliability, quality, safety, and life-
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2.101 FEDERAL ACQUISITION REGULATION
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cycle costs (41 U.S.C. 1711). For use in the clause at
52.248-2,see the definition at 52.248-2(b).
“Value engineering change proposal (VECP)”—(1) Means a proposal
that—
(i) Requires a change to the instant contract to imple-ment;
and
(ii) Results in reducing the overall projected cost tothe agency
without impairing essential functions or character-istics,
provided, that it does not involve a change—
(A) In deliverable end item quantities only;(B) In research and
development (R&D) items or
R&D test quantities that are due solely to results of
previoustesting under the instant contract; or
(C) To the contract type only.(2) For use in the clauses at—
(i) 52.248-2, see the definition at 52.248-2(b); and(ii)
52.248-3, see the definition at 52.248-3(b).
“Veteran-owned small business concern” means a smallbusiness
concern—
(1) Not less than 51 percent of which is owned by oneor more
veterans (as defined at 38 U.S.C. 101(2)) or, in thecase of any
publicly owned business, not less than 51 percentof the stock of
which is owned by one or more veterans; and
(2) The management and daily business operations ofwhich are
controlled by one or more veterans.
“Virgin material” means—(1) Previously unused raw material,
including previ-
ously unused copper, aluminum, lead, zinc, iron, other metalor
metal ore; or
(2) Any undeveloped resource that is, or with new tech-nology
will become, a source of raw materials.
“Voluntary consensus standards” means common andrepeated use of
rules, conditions, guidelines or characteristicsfor products, or
related processes and production methods andrelated management
systems. Voluntary Consensus Standardsare developed or adopted by
domestic and international vol-untary consensus standard making
bodies (e.g., InternationalOrganization for Standardization (ISO)
and ASTM-Interna-tional). See OMB Circular A-119.
“Warranty” means a promise or affirmation given by a con-tractor
to the Government regarding the nature, usefulness, orcondition of
the supplies or performance of services furnishedunder the
contract.
“Waste reduction” means preventing or decreasing theamount of
waste being generated through waste prevention,
recycling, or purchasing recycled and environmentally
pref-erable products.
“Water consumption intensity” means water consumptionper square
foot of building space.
“Women-owned small business concern” means—(1) A small business
concern—
(i) That is at least 51 percent owned by one or morewomen; or,
in the case of any publicly owned business, at least51 percent of
the stock of which is owned by one or morewomen; and
(ii) Whose management and daily business opera-tions are
controlled by one or more women; or
(2) A small business concern eligible under the Women-Owned
Small Business Program in accordance with 13 CFRpart 127 (see
subpart 19.15).
“Women-Owned Small Business (WOSB) Program.”(1) “Women-Owned
Small Business (WOSB) Pro-
gram” means a program that authorizes contracting officers
tolimit competition, including award on a sole source basis,
to—
(i) Economically disadvantaged women-ownedsmall business
(EDWOSB) concerns eligible under theWOSB Program for Federal
contracts assigned a North Amer-ican Industry Classification
Systems (NAICS) code in anindustry in which the Small Business
Administration (SBA)has determined that WOSB concerns are
underrepresented inFederal procurement; and
(ii) WOSB concerns eligible under the WOSB Pro-gram for Federal
contracts assigned a NAICS code in anindustry in which SBA has
determined that WOSB concernsare substantially underrepresented in
Federal procurement.
(2) “Economically disadvantaged women-owned smallbusiness
(EDWOSB) concern” means a small business con-cern that is at least
51 percent directly and unconditionallyowned by, and the management
and daily business operationsof which are controlled by, one or
more women who are citi-zens of the United States and who are
economically disadvan-taged in accordance with 13 CFR part 127. It
automaticallyqualifies as a women-owned small business (WOSB)
concerneligible under the WOSB Program.
(3) “Women-owned small business (WOSB)” concerneligible under
the WOSB Program means a small businessconcern that is at least 51
percent directly and unconditionallyowned by, and the management
and daily business operationsof which are controlled by, one or
more women who are citi-zens of the United States (13 CFR part
127).
“Writing or written” (see “in writing”).
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SUBPART 3.3—REPORTS OF SUSPECTED ANTITRUST VIOLATIONS 3.303
FAC 2005–95 JANUARY 13, 2017
3.3-1
Subpart 3.3—Reports of Suspected Antitrust Violations
3.301 General.(a) Practices that eliminate competition or
restrain trade
usually lead to excessive prices and may warrant criminal,civil,
or administrative action against the participants. Exam-ples of
anticompetitive practices are collusive bidding, fol-low-the-leader
pricing, rotated low bids, collusive priceestimating systems, and
sharing of the business.
(b) Contracting personnel are an important potential sourceof
investigative leads for antitrust enforcement and shouldtherefore
be sensitive to indications of unlawful behavior byofferors and
contractors. Agency personnel shall report, inaccordance with
agency regulations, evidence of suspectedantitrust violations in
acquisitions for possible referral to—
(1) The Attorney General under 3.303; and(2) The agency office
responsible for contractor debar-
ment and suspension under Subpart 9.4.
3.302 Definitions.As used in this subpart—“Identical bids” means
bids for the same line item that are
determined to be identical as to unit price or total line
itemamount, with or without the application of evaluation
factors(e.g., discount or transportation cost).
3.303 Reporting suspected antitrust violations.(a) Agencies are
required by 41 U.S.C. 3707 and
10 U.S.C. 2305(b)(9) to report to the Attorney General anybids
or proposals that evidence a violation of the antitrustlaws. These
reports are in addition to those required bySubpart 9.4.
(b) The antitrust laws are intended to ensure that
marketsoperate competitively. Any agreement or mutual
understand-ing among competing firms that restrains the natural
operationof market forces is suspect. Paragraph (c) of this section
iden-tifies behavior patterns that are often associated with
antitrustviolations. Activities meeting the descriptions
inparagraph (c) are not necessarily improper, but they are
suffi-ciently questionable to warrant notifying the
appropriateauthorities, in accordance with agency procedures.
(c) Practices or events that may evidence violations of
theantitrust laws include—
(1) The existence of an “industry price list” or
“priceagreement” to which contractors refer in formulating
theiroffers;
(2) A sudden change from competitive bidding to iden-tical
bidding;
(3) Simultaneous price increases or
follow-the-leaderpricing;
(4) Rotation of bids or proposals, so that each compet-itor
takes a turn in sequence as low bidder, or so that
certaincompetitors bid low only on some sizes of contracts and
highon other sizes;
(5) Division of the market, so that certain competitorsbid low
only for contracts awarded by certain agencies, or forcontracts in
certain geographical areas, or on certain products,and bid high on
all other jobs;
(6) Establishment by competitors of a collusive priceestimating
system;
(7) The filing of a joint bid by two or more competitorswhen at
least one of the competitors has sufficient technicalcapability and
productive capacity for contract performance;
(8) Any incidents suggesting direct collusion amongcompetitors,
such as the appearance of identical calculation orspelling errors
in two or more competitive offers or the sub-mission by one firm of
offers for other firms; and
(9) Assertions by the employees, former employees, orcompetitors
of offerors, that an agreement to restrain tradeexists.
(d) Identical bids shall be reported under this section if
theagency has some reason to believe that the bids resulted
fromcollusion.
(e) For offers from foreign contractors for contracts to
beperformed outside the United States and its outlying
areas,contracting officers may refer suspected collusive offers to
theauthorities of the foreign government concerned for appropri-ate
action.
(f) Agency reports shall be addressed to the—
Attorney GeneralU.S. Department of JusticeWashington DC
20530Attention: Assistant Attorney GeneralAntitrust Division
and shall include—(1) A brief statement describing the suspected
practice
and the reason for the suspicion; and(2) The name, address, and
telephone number of an indi-
vidual in the agency who can be contacted for
furtherinformation.
(g) Questions concerning this reporting requirement maybe
communicated by telephone directly to the Office of theAssistant
Attorney General, Antitrust Division.
http://uscode.house.gov/browse.xhtml;jsessionid=9F4BEA467D4DDD1DD75B265F8B1F83E0http://uscode.house.gov/uscode-cgi/fastweb.exe?getdoc+uscview+t09t12+37+408++%2810%29%20%2
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3.3-2
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FAC 2005–95 JANUARY 13, 2017
Sec.
PART 4—ADMINISTRATIVE MATTERS
4.000 Scope of part.4.001 Definition.
Subpart 4.1—Contract Execution4.101 Contracting officer’s
signature.4.102 Contractor’s signature.4.103 Contract clause.
Subpart 4.2—Contract Distribution4.201 Procedures.4.202 Agency
distribution requirements.4.203 Taxpayer identification
information.
Subpart 4.3—Paper Documents4.300 Scope of subpart.4.301
Definition.4.302 Policy.4.303 Contract clause.
Subpart 4.4—Safeguarding Classified Information Within
Industry
4.401 [Reserved]4.402 General.4.403 Responsibilities of
contracting officers.4.404 Contract clause.
Subpart 4.5—Electronic Commerce in Contracting
4.500 Scope of subpart.4.501 [Reserved]4.502 Policy.
Subpart 4.6—Contract Reporting4.600 Scope of subpart.4.601
Definitions.4.602 General.4.603 Policy.4.604 Responsibilities.4.605
Procedures.4.606 Reporting Data.4.607 Solicitation provisions and
contract clause.
Subpart 4.7—Contractor Records Retention4.700 Scope of
subpart.4.701 Purpose.4.702 Applicability.4.703 Policy.4.704
Calculation of retention periods.4.705 Specific retention
periods.4.705-1 Financial and cost accounting records.4.705-2 Pay
administration records.4.705-3 Acquisition and supply records.
Subpart 4.8—Government Contract Files4.800 Scope of
subpart.4.801 General.4.802 Contract files.4.803 Contents of
contract files.4.804 Closeout of contract files.4.804-1 Closeout by
the office administering the contract.4.804-2 Closeout of the
contracting office files if another
office administers the contract.4.804-3 Closeout of paying
office contract files.4.804-4 Physically completed
contracts.4.804-5 Procedures for closing out contract files.4.805
Storage, handling, and contract files.
Subpart 4.9—Taxpayer Identification Number Information
4.900 Scope of subpart.4.901 Definition.4.902 General.4.903
Reporting contract information to the IRS.4.904 Reporting payment
information to the IRS.4.905 Solicitation provision.
Subpart 4.10—Uniform Use of Line Items4.1000 Scope.4.1001
Policy.4.1002 Applicability.4.1003 Establishing line items.4.1004
Establishing subline items.4.1005 Data elements for line items and
subline items.4.1005-1 Required data elements.4.1005-2
Exceptions.4.1006 Modifications.4.1007 Solicitation alternative
line item proposal.4.1008 Solicitation provision.
Subpart 4.11—System for Award Management4.1100 Scope.4.1101
Definition.4.1102 Policy.4.1103 Procedures.4.1104 Disaster Response
Registry.4.1105 Solicitation provision and contract clauses.
Subpart 4.12—Representations and Certifications
4.1200 Scope.4.1201 Policy.4.1202 Solicitation provision and
contract clause.
Subpart 4.13—Personal Identity Verification4.1300 Scope of
subpart.
4-1
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FEDERAL ACQUISITION REGULATION
4.1301 Policy.4.1302 Acquisition of approved products and
services for
personal identity verification.4.1303 Contract clause.
Subpart 4.14—Reporting Executive Compensation and First-Tier
Subcontract
Awards4.1400 Scope of subpart.4.1401 Applicability.4.1402
Procedures.4.1403 Contract clause.
Subpart 4.15—[Reserved]4.1500 [Reserved]4.1501 [Reserved]4.1502
[Reserved]
Subpart 4.16—Unique Procurement Instrument Identifiers
4.1600 Scope of subpart.4.1601 Policy.4.1602 Identifying the
PIID and supplementary PIID.
4.1603 Procedures.
Subpart 4.17—Service Contracts Inventory4.1700 Scope of
subpart.4.1701 Definitions.4.1702 Applicability.4.1703 Reporting
requirements.4.1704 Contracting officer responsibilities.4.1705
Contract clauses.
Subpart 4.18—Commercial and Government Entity Code
4.1800 Scope of subpart.4.1801 Definitions.4.1802 Policy.4.1803
Verifying CAGE codes prior to award.4.1804 Solicitation provisions
and contract clause.
Subpart 4.19—Basic Safeguarding of Covered Contractor
Information Systems
4.1901 Definitions.4.1902 Applicability.4.1903 Contract
clause.
4-2 (FAC 2005-95)
-
SUBPART 4.10—UNIFORM USE OF LINE ITEMS 4.1005-1
FAC 2005–95 JANUARY 13, 2017
4.10-1
Subpart 4.10—Uniform Use of Line Items
4.1000 Scope.This subpart prescribes policies and procedures for
assign-
ing line items and subline items and their identifiers.
How-ever, in order to provide agencies with time to transition
theirinformation systems, agencies have until October 1, 2019,
toapply the requirements of 4.1002 through 4.1008 of this
sub-part.
4.1001 Policy.In order to improve the accuracy, traceability,
and usability
of procurement data, procurement instruments shall identifythe
supplies or services to be acquired as separately identifiedline
items and, as needed, subline items.
(a) Line items are established to define deliverables ororganize
information about deliverables. Each line itemdescribes
characteristics for the item purchased, e.g., pricing,delivery, and
funding information.
(b) Each line item may be subdivided into separate uniquesubsets
(called subline items) to ease administration. If a lineitem has
deliverable subline items, the line item is informa-tional. Subline
items differentiate between or among certaincharacteristics of the
line item, such as colors or sizes, datesof delivery, destinations,
or places of performance. Sublineitems are established to define
deliverables or organize infor-mation about deliverables.
4.1002 Applicability.The policies of this subpart shall apply to
the following
procurement instruments, to include amendments, modifica-tions,
and change orders thereto:
(a) Solicitations.(b) Contracts, including, but not limited to,
Govern-
mentwide acquisition contracts (GWACs), multi-agency con-tracts
(MACs), Federal Supply Schedule (FSS) contracts,indefinite-delivery
contracts, and purchase orders.
(c) Agreements that include pre-priced supplies or
ser-vices.
(d) Task and delivery orders.
4.1003 Establishing line items.Establish separate line items for
deliverables that have the
following characteristics except as provided at 4.1005-2:(a)
Separately identifiable. (1) A supply is separately iden-
tifiable if it has its own identification (e.g., national stock
number (NSN), item description, manufacturer's part num-ber).
(2) Services are separately identifiable if they have nomore
than one statement of work or performance work state-ment.
(3) If the procurement instrument involves a first article(see
subpart 9.3), establish a separate line item for each item
requiring a separate approval. If the first article consists of
alot composed of a mixture of items that will be approved as
asingle lot, a single line item may be used.
(b) Single unit price or total price.(c) Single accounting
classification citation. A single
deliverable may be funded by multiple accounting
classifica-tions when the deliverable effort cannot be otherwise
subdi-vided.
(d) Separate delivery schedule, destination, period of
per-formance, or place of performance.
(e) Single contract pricing type (e.g., fixed-price or
cost-reimbursement).
4.1004 Establishing subline items.Subline items may be used to
facilitate tracking of perfor-
mance, deliverables, payment, and contract funds accountingor
for other management purposes. Subline items may beeither
deliverable or informational. The list of characteristicsat 4.1003
applies to deliverable subline items, but it is notapplicable to
informational subline items. A line item withsubline items shall
contain only that information that is com-mon to all subline items
thereunder. All subline items underone line item shall be the same
contract type as the line item.
(a) Deliverable subline items. Deliverable subline itemsmay be
used for several related items that require separateidentification.
For example, instead of establishing multipleseparate line items,
subline items may be established for–
(1) Items that are basically the same, except for
minorvariations such as–
(i) Size or color;(ii) Accounting classification, but see
also
4.1005-1(a)(4); or(iii) Date of delivery, destination, or period
or place
of performance;(2) Separately priced collateral functions that
relate to
the primary product, such as packaging and handling, or
trans-portation; or
(3) Items to be separately identified at the time of ship-ment
or performance.
(b) Informational subline items. (1) Informational subline items
may be used by agencies for administrative purposes. This type of
subline item identifies information that relates directly to the
line item and is an integral part of it (e.g., parts of an assembly
or parts of a kit).
(2) Position informational subline items within the lineitem
description, not in the quantity or price fields.
4.1005 Data elements for line items and subline items.
4.1005-1 Required data elements.(a) Except as provided in
4.1005-2, each line item or sub-
line item shall include in the schedule (described
at12.303(b)(4), 14.201-2, or 15.204-2, or in a comparable sec-
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FAC 2005–95 JANUARY 13, 2017
4.10-2
tion of the procurement instrument), at a minimum, the
fol-lowing information as separate, distinct data elements:
(1) Line item or subline item number established inaccordance
with agency procedures.
(2) Description of what is being purchased.(3) Product or
Service Code (PSC).(4) Accounting classification citation.
(i) Line items or deliverable subline items. If multi-ple
accounting classifications for a single deliverable apply,include
the dollar amount for each accounting classification inthe schedule
(or a comparable section of the procurementinstrument).
(ii) Informational subline items. An accounting clas-sification
citation is not required. (See 4.1004).
(5)(i) For fixed-price line items:(A) Unit of measure.(B)
Quantity.(C) Unit price.(D) Total price.
(ii) For cost-reimbursement line items:(A) Unit of measure.(B)
Quantity.(C) Estimated cost.(D) Fee (if any).(E) Total estimated
cost plus any fee.
(b) If a contract contains a combination of
fixed-price,time-and-materials, labor-hour, or cost-reimbursable
lineitems, identify the contract type for each line item in
theschedule (or a comparable section of the procurement
instru-ment) to facilitate payment.
(c) Each deliverable line item or deliverable subline itemshall
have its own delivery schedule, destination, period ofperformance,
or place of performance expressly stated in theappropriate section
of the procurement instrument (“asrequired” constitutes an
expressly stated delivery term).When a line item has deliverable
subline items, the deliveryschedule, destination, period of
performance, or place of per-formance shall be identified at the
subline item level, ratherthan the line item level.
(d) Terms and conditions in other sections of the contract(such
as contract clauses or payment instructions) shall alsospecify
applicability to individual line items if not applicableto the
contract as a whole.
4.1005-2 Exceptions.(a) Indefinite-delivery contracts.
(1) General. The following required data elements arenot known
at time of issuance of an indefinite-delivery con-
tract, but shall be provided in each order at the time of
issu-ance: accounting classification, delivery date and
destination,or period and place of performance.
(2) Indefinite-delivery indefinite-quantity (IDIQ)
andrequirements contracts. IDIQ and requirements contracts mayomit
the quantity at the line item level for the base award pro-vided
that the total contract minimum and maximum, or theestimate,
respectively, is stated.
(b) Item description and PSC. These data elements are
notrequired in the line item if there are associated
deliverablesubline items that include the actual detailed
identification.When this exception applies, use a general narrative
descrip-tion for the line item.
(c) Single unit price or single total price. The requirementfor
a single unit price or single total price at the line item
leveldoes not apply if any of the following conditions are
present:
(1) There are associated deliverable subline items thatare
priced.
(2) The line item or subline item is not separately priced.(3)
The supplies or services are being acquired on a
cost-reimbursement, time-and-materials, or labor-hour basis.(4)
The procurement instrument is for services and firm
prices have been established for elements of the total price,but
the actual number of the elements is not known until per-formance
(e.g., a labor-hour contract for maintenance/repair).The
contracting officer may structure these procurementinstruments to
reflect a firm or estimated total amount for eachline item.
4.1006 Modifications.(a) When a new item (such as an increased
quantity) is
added to the procurement instrument, assign a new line
itemnumber.
(b) If the modification relates to existing line items,
themodification shall refer to those items.
4.1007 Solicitation alternative line item proposal.Solicitations
should be structured to allow offerors to pro-
pose alternative line items (see 4.1008 and 52.212-1(e)).
Forexample, when soliciting certain items using units of
measuresuch as kit, set, or lot, the offeror may not be able to
group anddeliver all items in a single shipment.
4.1008 Solicitation provision.Insert the provision at 52.204-22,
Alternative Line Item
Proposal, in all solicitations.
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SUBPART 5.2—SYNOPSES OF PROPOSED CONTRACT ACTIONS 5.207
FAC 2005–95 JANUARY 13, 2017
5.2-3
must synopsize (see 5.201) all subsequent solicitations
forR&D contracts, including those resulting from a
previouslysynopsized advance notice, unless one of the exceptions
in5.202 applies.
(b) Federally Funded Research and Development Centers.Before
establishing a Federally Funded Research and Devel-opment Center
(FFRDC) (see Part 35) or before changing itsbasic purpose and
mission, the sponsor must transmit at leastthree notices over a
90-day period to the GPE and the FederalRegister, indicating the
agency’s intention to sponsor anFFRDC or change the basic purpose
and mission of anFFRDC. The notice must indicate the scope and
nature of theeffort to be performed and request comments. Notice is
notrequired where the action is required by law.
(c) Special notices. Contracting officers may transmit tothe GPE
special notices of procurement matters such as busi-ness fairs,
long-range procurement estimates, prebid or pre-proposal
conferences, meetings, and the availability of draftsolicitations
or draft specifications for review.
(d) Architect-engineering services. Contracting officersmust
publish notices of intent to contract for architect-engi-neering
services as follows:
(1) Except when exempted by 5.202, contracting offi-cers must
transmit to the GPE a synopsis of each proposedcontract action for
which the total fee (including phases andoptions) is expected to
exceed $25,000.
(2) When the total fee is expected to exceed $15,000 butnot
exceed $25,000, the contracting officer must comply
with5.101(a)(2). When the proposed contract action is not
requiredto be synopsized under paragraph (d)(1) of this section,
thecontracting officer must display a notice of the solicitation
ora copy of the solicitation in a public place at the
contractingoffice. Other optional publicizing methods are
authorized inaccordance with 5.101(b).
(e) Public-private competitions under OMB Circular A-76. (1) The
contracting officer shall make a formal publicannouncement for each
streamlined or standard competition.The public announcement shall
include, at a minimum, theagency, agency component, location, type
of competition(streamlined or standard), activity being competed,
incum-bent service providers, number of Government personnel
per-forming the activity, name of the Competitive SourcingOfficial,
name of the contracting officer, name of the AgencyTender Official,
and projected end date of the competition.
(2) The contracting officer shall announce the end of
thestreamlined or standard competition by making a formal pub-lic
announcement of the performance decision. (See OMBCircular
A-76.)
(f) Section 8(a) competitive acquisition. When a nationalbuy
requirement is being considered for competitive acquisi-tion
limited to eligible 8(a) participants under subpart 19.8,the
contracting officer must transmit a synopsis of the pro-posed
contract action to the GPE. The synopsis may be trans-
mitted to the GPE concurrent with submission of the
agencyoffering (see 19.804-2) to the Small Business
Administration(SBA). The synopsis should also include
information—
(1) Advising that the acquisition is being offered
forcompetition limited to eligible 8(a) participants;
(2) Specifying the North American Industry Classifica-tion
System (NAICS) code;
(3) Advising that eligibility to participate may berestricted to
8(a) participants in either the developmental stageor the
developmental and transitional stages; and
(4) Encouraging interested 8(a) participants to request acopy of
the solicitation as expeditiously as possible since thesolicitation
will be issued without further notice upon SBAacceptance of the
requirement for the section 8(a) program.
(g) Notification to the public of rationale for
bundledrequirement. The agency is encouraged to provide
notificationof the rationale for any bundled requirement to the GPE
beforeissuing the solicitation of any bundled requirement
(see7.107-5(b)(2)).
5.206 Notices of subcontracting opportunities.(a) The following
entities may transmit a notice to the GPE
to seek competition for subcontracts, to increase
participationby qualified HUBZone small business, small, small
disadvan-taged, women-owned small business, veteran-owned
smallbusiness and service-disabled veteran-owned small
businessconcerns, and to meet established subcontracting plan
goals:
(1) A contractor awarded a contract exceeding$150,000 that is
likely to result in the award of anysubcontracts.
(2) A subcontractor or supplier, at any tier, under a con-tract
exceeding $150,000, that has a subcontracting opportu-nity
exceeding $15,000.
(b) The notices must describe—(1) The business opportunity;(2)
Any prequalification requirements; and(3) Where to obtain technical
data needed to respond to
the requirement.
5.207 Preparation and transmittal of synopses.(a) Content. Each
synopsis transmitted to the GPE must
address the following data elements, as applicable:(1) Action
Code.(2) Date.(3) Year.(4) Contracting Office ZIP Code.(5) Product
or Service Code.(6) Contracting Office Address.(7) Subject.(8)
Proposed Solicitation Number.(9) Closing Response Date.(10) Contact
Point or Contracting Officer.(11) Contract Award and Solicitation
Number.
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5.207 FEDERAL ACQUISITION REGULATION
FAC 2005–95 JANUARY 13, 2017
5.2-4
(12) Contract Award Dollar Amount.(13) Line Item Number.(14)
Contract Award Date.(15) Contractor.(16) Description.(17) Place of
Contract Performance.(18) Set-aside Status.
(b) Transmittal. Transmissions to the GPE must be inaccordance
with the interface description available via theInternet at
http://www.fedbizopps.gov.
(c) General format for “Description.” Prepare a clear andconcise
description of the supplies or services that is notunnecessarily
restrictive of competition and will allow a pro-spective offeror to
make an informed business judgment as towhether a copy of the
solicitation should be requested includ-ing the following, as
appropriate:
(1) National Stock Number (NSN) if assigned.(2) Specification
and whether an offeror, its product, or
service must meet a qualification requirement in order to
beeligible for award, and identification of the office from
whichadditional information about the qualification requirementmay
be obtained (see subpart 9.2).
(3) Manufacturer, including part number, drawingnumber, etc.
(4) Size, dimensions, or other form, fit or
functionaldescription.
(5) Predominant material of manufacture.(6) Quantity, including
any options for additional
quantities.(7) Unit of issue.(8) Destination information.(9)
Delivery schedule.(10) Duration of the contract period.(11)
Sustainable acquisition requirements (or a descrip-
tion of high-performance sustainable building practicesrequired,
if for design, construction, renovation, repair, ordeconstruction)
(see parts 23 or 36).
(12) For a proposed contract action in an amount esti-mated to
be greater than $25,000 but not greater than the sim-plified
acquisition threshold, enter—
(i) A description of the procedures to be used inawarding the
contract (e.g., request for oral or written quota-tion or
solicitation); and
(ii) The anticipated award date.(13) For Architect-Engineer
projects and other projects
for which the product or service codes are insufficient,
pro-vide brief details with respect to: location, scope of
servicesrequired, cost range and limitations, type of contract,
esti-mated starting and completion dates, and any significant
eval-uation factors.
(14)(i) If the solicitation will include the FAR clause
at52.225-3, Buy American—Free Trade Agreements—IsraeliTrade Act, or
an equivalent agency clause, insert the following
notice in the synopsis: “One or more of the items under
thisacquisition is subject to Free Trade Agreements.”
(ii) If the solicitation will include the FAR clause at52.225-5,
Trade Agreements, or an equivalent agency clause,insert the
following notice in the synopsis: “One or more ofthe items under
this acquisition is subject to the World TradeOrganization
Government Procurement Agreement and FreeTrade Agreements.”
(iii) If the solicitation will include the FAR clause
at52.225-11, Buy American-Construction Materials underTrade
Agreements, 52.225-23, Required Use of AmericanIron, Steel, and
Manufactured Goods-Buy American Statute-Construction Materials
under Trade Agreements, or an equiv-alent agency clause, insert the
following notice in the synop-sis: “One or more of the items under
this acquisition is subjectto the World Trade Organization
Government ProcurementAgreement and Free Trade Agreements.”
(15) In the case of noncompetitive contract actions(including
those that do not exceed the simplified acquisitionthreshold),
identify the intended source and insert a statementof the reason
justifying the lack of competition.
(16)(i) Except when using the sole source authority at6.302-1,
insert a statement that all responsible sources maysubmit a bid,
proposal, or quotation which shall be consideredby the agency.
(ii) When using the sole source authority at 6.302-1,insert a
statement that all responsible sources may submit acapability
statement, proposal, or quotation, which shall beconsidered by the
agency.
(17) If solicitations synopsized through the GPE willnot be made
available through the GPE, provide informationon how to obtain the
solicitation.
(18) If the solicitation will be made available to inter-ested
parties through electronic data interchange, provide anyinformation
necessary to obtain and respond to the
solicitationelectronically.
(19) If the technical data required to respond to
thesolicitation will not be furnished as part of such
solicitation,identify the source in the Government, such as
http://www.fedbizopps.gov/, from which the technical data may
beobtained.
(d) Set-asides. When the proposed acquisition provides fora
total or partial small business program set-aside, or when
theproposed acquisition provides for a local area set-aside
(seesubpart 26.2), the contracting officer shall identify the type
ofset-aside in the synopsis and in the solicitation.
(e) Codes to be used in Synopses to identify services or
sup-plies. Contracting officers must use one of the
classificationcodes identified at http://www.fedbizopps.gov/ to
identify ser-vices or supplies in synopses.
(f) Notice of solicitation cancellation. Contracting officersmay
publish notices of solicitation cancellations (or
indefinitesuspensions) of proposed contract actions in the GPE.
http://www.fedbizopps.govhttp://www.fedbizopps.gov/http://www.fedbizopps.gov/http://www.fedbizopps.gov/
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SUBPART 6.2—FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
6.207
FAC 2005–95 JANUARY 13, 2017
6.2-1
Subpart 6.2—Full and Open Competition After Exclusion of
Sources
6.200 Scope of subpart.This subpart prescribes policy and
procedures for provid-
ing for full and open competition after excluding one or
moresources.
6.201 Policy.Acquisitions made under this subpart require use of
the
competitive procedures prescribed in 6.102.
6.202 Establishing or maintaining alternative sources.(a)
Agencies may exclude a particular source from a con-
tract action in order to establish or maintain an
alternativesource or sources for the supplies or services being
acquiredif the agency head determines that to do so would—
(1) Increase or maintain competition and likely result inreduced
overall costs for the acquisition, or for any
anticipatedacquisition;
(2) Be in the interest of national defense in having afacility
(or a producer, manufacturer, or other supplier) avail-able for
furnishing the supplies or services in case of a nationalemergency
or industrial mobilization;
(3) Be in the interest of national defense in establishingor
maintaining an essential engineering, research, or develop-ment
capability to be provided by an educational or other non-profit
institution or a federally funded research anddevelopment
center;
(4) Ensure the continuous availability of a reliablesource of
supplies or services;
(5) Satisfy projected needs based on a history of highdemand;
or
(6) Satisfy a critical need for medical, safety, or emer-gency
supplies.
(b)(1) Every proposed contract action under the authorityof
paragraph (a) of this section shall be supported by a
deter-mination and findings (D&F) (see subpart 1.7) signed by
thehead of the agency or designee. This D&F shall not be madeon
a class basis.
(2) Technical and requirements personnel are responsi-ble for
providing all necessary data to support their recom-mendation to
exclude a particular source.
(3) When the authority in paragraph (a)(1) of this sec-tion is
cited, the findings shall include a description of the esti-mated
reduction in overall costs and how the estimate wasderived.
6.203 Set-asides for small business concerns.(a) To fulfill the
statutory requirements relating to small
business concerns, contracting officers may set aside
solicita-tions to allow only such business concerns to compete.
This
includes contract actions conducted under the Small
BusinessInnovation Research Program established underPub. L.
97-219.
(b) No separate justification or determination and findingsis
required under this part to set aside a contract action forsmall
business concerns.
(c) subpart 19.5 prescribes policies and procedures thatshall be
followed with respect to set-asides.
6.204 Section 8(a) competition.(a) To fulfill statutory
requirements relating to section 8(a)
of the Small Business Act, as amended by Public Law 100-656,
contracting officers may limit competition to eligible8(a)
participants (see subpart 19.8).
(b) No separate justification or determination and
findingsis