(b) Contracting officers' signature. In the case of formal advertising, the personal signature of the contracting officer on the award and communication of a notice of award to the successful bidder creates a binding agreement. In the case of negotiated contracts, the contracting officer shall personally sign on behalf of the United States after the contractor has signed, except where otherwise required by the particular contract form. In addition, the contracting officer's rank (if military) shall be indicated. Proxy and facsimile signatures shall not be used, except that when DD Form 1155 is used as a purchase order not to exceed $2,500 and reproducible masters are authorized, the contracting officer may sign the reproducible master prior to reproduction. Since each copy reproduced from the master may be regarded as a duplicate original having the same force and effect as any other copy, each copy intended to serve as an original should be marked "Duplicate Original." When reproduced on the required number of copies, the signature carries the same force and effect as a pen and ink signature.

(c) Signature by agents of contractors. Contracts executed on behalf of the contractors by agents must be accompanied by evidence satisfactory to the contracting officer, of the agent's authority.

(d) Contracts with corporations. Contracts with a corporation shall be executed in the official corporate name of the contractor. The amount and type of evidence to be required to determine the authority of a particular corporate officer to bind a corporation is for administrative determination by the contracting officer, subject to the limitation that the interest of the Government shall be protected. The contracting officer need not require that corporations execute a certificate provided he obtains other evidence which satisfactorily shows that the agent is empowered to bind the corporation. However, where a corporate certificate is necessary or desirable, it may be executed on a separate sheet, identified by contract number, and placed in the contract file.

(e) Contracts with partnerships. Contracts entered into with partnerships shall be executed in the partnership name and shall enumerate the names of all the partners. The contract need

be signed by only one partner provided the authority of the particular partner to effectively bind the partnership has been established. The amount and type of evidence to be required to determine the authority of a particular partner to bind a partnership is for administrative determination by the contracting officer, subject to the limitation that the interest of the Government shall be protected.

(f) Contracts subject to approval of award. When approval of award of a contract is required either by DSPR or by instructions of Heads of Procuring Activities or both, no contract shall be entered into or signed by a contracting officer until approval to award the contract has been obtained.

(g) Date of signature. Where contracts, agreements, orders, requiring acceptance amendments and similar documents require one or more signatures in order to constitute a valid obligation of funds, the signature shall be affixed prior to the expiration of the period for obligation of the appropriation of fund involved; and the actual date when each signature is affixed shall be placed adjacent to the signature. However, the date of execution of a notice of award or letter contract shall be the date of obligation of the funds covered thereby, notwithstanding that a definitive contract is issued thereafter and is effective on the date of execution of the notice of award or letter contract. § 1201.356 Contracts required to be numbered.

(a) All contracts involving the payment of $20,000 or more on a single payment voucher shall be numbered and forwarded to the General Accounting Office without delay.

(b) All contracts involving the payment of less than $20,000 on a single payment voucher may or may not be numbered depending upon the needs of the procuring activity, and shall be attached to the related voucher upon which payment is made and accompany such voucher in the regular transmission of the disbursing officer's account to the General Accounting Office.

(c) All multiple payment contracts regardless of amount shall be numbered except as authorized in subparagraph (2) of this paragraph. In case of doubt as to whether more than one payment may be necessary, the contract shall be numbered.

(1) When any related supplemental document, required to be deposited with the General Accounting Office, is transmitted in connection with an unnumbered contract from the category of contracts not required to be numbered, a number will be assigned to the original contract and will be shown on such supplemental document in addition to the voucher citation in the event any payments have been made prior to the issuance of the supplemental document.

(2) Where a later determination is made that more than one payment or collection is involved, payments, not to exceed five in number on any given contract may be made with respect to partial deliveries under unnumbered contracts, provided that the original signed contract is attached to the first payment voucher, and the following information is included on each subsequent payment voucher with respect to all preceding payments under the contract: Name of disbursing officer, period of account, voucher number, amount paid.

is

(3) Where more than five payments or collections become necessary, a number must be assigned to such contract. (4) Where later determination made that the amount to be paid or collected equals $20,000 or more, a number must also be assigned to such contract.

(d) In instances cited in paragraph (c) (1), (3), and (4) of this section, in which payments have been made, a citation as to the name of the disbursing officer, period of account, and number of the disbursement of collection voucher to which the original unnumbered contract was attached shall be furnished promptly to the General Accounting Office by the contracting officer concerned.

(e) Except as required by paragraph (c) (3) of this section, the instructions contained in this paragraph do not apply to DD Form 1155 used in connection with the Small Purchases Procedure (Subpart F of Part 3 and Subpart F of Part 1203 of this title).

§ 1201.357 Contract numbering system.

(a) Contract numbers, when required will be placed in the space provided on the printed contract form, or, if no such space is provided, in the upper right corner of the contract separate from all other information.

(b) An example of the uniform contract numbering system is illustrated as follows: DSA 4-124.

(1) The capital letters "DSA" represents the Defense Supply Agency and is the official symbol designation approved by the Comptroller General of the United States.

(2) The number "4" identifies the Defense General Supply Center writing the contract.

(3) The number "124" represents the number assigned to this contract. Contracts will be numbered by each center in numerical sequence beginning with number 1 and going through 99,999 without regard to Fiscal year. Contracts issued at each center beyond number 99,999 will revert back to number 1, followed by the letter "A", e.g., 1A would represent the first contract issued after number 99,999.

(c) The following identification numbers have been assigned to the Supply Centers and Regional Headquarters:

DSA

1-Defense Clothing and TextileSupply Center.

DSA 2-Defense Medical Supply Center.. DSA 3-Defense Subsistence Supply Center.

DSA 30-Regional Headquarters, DSSC, Chicago, Ill.

DSA 31-Regional Headquarters, DSSC, Columbia, S.C.

DSA 32-Regional Headquarters, DSSC, Ft. Worth, Tex.

DSA 33-Regional Headquarters, DSSC,. Kansas City, Mo.

DSA 34-Regional Headquarters, DSSC, Los Angeles, Calif.

DSA 35-Regional Headquarters, DSSC, New Orleans, La.

DSA 36-Regional Headquarters, DSSC, New York, N.Y.

DSA 37-Regional Headquarters, DSSC, Oakland, Calif.

DSA 38-Regional Headquarters, DSSC, Richmond, Va.

DSA 39-Regional Headquarters, DSSC, Seattle, Wash.

DSA DSA DSA

4 Defense General Supply Center. 5-Defense Industrial Supply Center. 6-Defense Petroleum Supply Center.

DSA 421-Defense Logistics Services Center.

(d) Supplemental agreement and change orders. Supplemental agreements and change orders will bear the same basic contract number as the contract to which it applies. Each supplemental agreement or change order will be assigned a modification number to identify numerically the number of modifications issued under that contract. The same series of consecutive numbers will be used for either supplemental agreements or change orders, e.g., Modification No. 1 Supplemental Agreement, Modification No. 2 Change Order.

(e) Delivery orders. Orders placed against contracts of any activity of the Defense Supply Agency or those executed on DD Form 1155 are exempt from the numbering provisions of § 1201.356. The Heads of Procuring Activities are authorized to establish an office numbering system to provide adequate control of delivery orders issued. Each delivery order issued should make reference to the basic contract against which the order is applied.

(f) Separate numbering system. For the purpose of identification and control, a separate numbering system may be established by the activity concerned. This number shall not be used as an integral part of, or be in conflict with, the numbering system established herein.

(g) Changes and modifications to existing contracts. All changes or modifications shall be numbered in accordance with regulations in effect at time original contract was executed.

§ 1201.358 Notices of intent to purchase (subsistence).

Where Notices of Intent to Purchase are utilized by the regional headquarters of the Defense Subsistence Supply Center the following numbering system will apply:

(a) An alphabetic symbol identifying each regional headquarters, followed by a dash;

(b) The serial number of the NIP, starting with number "1" for each fiscal year, followed by a dash; and

(c) The last two numerals of the fiscal year.

For example, the first NIP issued by the Regional Headquarters, DSSC, New York, N.Y., in the fiscal year 1963 is numbered NY-1-63.

§ 1201.359 Reduction in noncompetitive

procurements.

(a) To keep the number of noncompetitive procurements to an absolute minimum, each DSA Supply Center will establish procedures to insure that adequate and complete drawings, specifications and technical data are available prior to soliciting bids or offers from industry. As an aid in accomplishing this function, every effort must be made to actively participate in advance procurement planning with personnel or agencies engaged in the following: (1) Development; (2) Production; (3) Quality control; (4) Requirements; (5) Engineering; (6) Programming; (7) Supply;

(8) Fiscal; and

(9) Legal, including patents counsel. (b) Each proprietary or sole source item whose estimated procurement requirements exceed $2,500 will be reviewed for possibility of substituting standard items or items already in the supply system. Where such substitution cannot be achieved, the requiring agency will be requested to justify in writing the need for continued supply of the sole source or proprietary items.

(c) Where the DSA Supply Center has exhausted all possibilities of obtaining revisions to specifications, or securing drawings and technical data suitable for competitive procurement, the items may be purchased by negotiation under 10 U.S.C. 2304 (a) (10). (See § 1203.304-50 of this subchapter.)

(d) Each proposed noncompetitive or sole source procurement exceeding $2,500 will be synopsized in the Commerce Business Daily. See § 1.1003-1 of this title. The results of this synopsis will be set forth in the D&F prepared under paragraph (c) of this section.

§ 1201.360 Copies of contractual documents for cognizant audit offices.

§ 1201.360-1 Application.

Examples of cases where contract audit may be required or contemplated include, but are not limited to, the following types of contracts:

(a) Fixed-price contracts providing for price redetermination;

(b) Fixed-price incentive contracts;

(c) Fixed-price contracts with escalation provisions based on the contractor's costs;

(d) Cost-reimbursement type contracts;

(e) Time and material contracts; and (f) Firm fixed-price contracts where Government property is being furnished to the contractor.

§ 1201.360-2 Procedure.

(a) Where contract audit may be required or contemplated, copies of contractual documents shall be promptly furnished to the cognizant audit office as follows:

(1) One copy of the executed contract shall be forwarded at the time of regular distribution.

(2) One copy of letter awards and message awards shall be forwarded when issued.

(3) One copy of all amendments and changes to contracts and other documents shall be forwarded as promptly as practicable after execution.

(4) For cost-reimbursement, fixedprice incentive, and fixed-price with redetermination types of contracts, one copy shall be furnished of all letters from contracting officers to contractors which authorize or approve overtime premiums, subcontracts, or other matters affecting allowable costs.

(b) To avoid delay in the proper distribution of contractual documents and the processing of invoices and/or vouchers because of incorrect designation of the cognizant audit office, contracting officers shall exercise extreme care in obtaining the location of the contractor's principal accounting records related to the contract, particularly if the contractor has manufacturing or administrative divisions in more than one city. The appendices to DSA Regulation Nr. 7600.2 contain the locations and mailing addresses of the field audit offices to which contractual documents should be sent. § 1201.361 Changes in procurement processes or methods.

Whenever a procuring activity contemplates a major change in the method of procurement, such as but not limited to a change in contract type, or the use or nonuse of Government-furnished property, the activity shall promptly notify the Executive Director, Procurement and Production, DSA of such change and the reasons therefor.

Subpart D-Procurement Responsibility and Authority

§ 1201.401 Responsibility of each procuring activity.

(a) The Head of each Procuring Activity (as defined in § 1.201-7 of this title) is responsible for the procurement of all supplies and services under the cognizance of his activity.

(b) The responsibility and authority of Heads of Procuring Activities in connection with applications for relief under the authority of the Act of August 28, 1958, authorizing extraordinary contractual actions to facilitate the national defense (Public Law 85-804; 72 Stat. 972; 50 U.S.C. 1431-1435) and Executive Order 10789, are set forth in Part 17 of this title and Part 1217 of this subchapter.

§ 1201.401-50 Delegation of authority.

Authority conferred upon the Heads of Procuring Activities under any section of the ASPR and DSPR may be delegated with power of redelegation to other officers or civilian officials of DSA except when specifically limited by law or the provisions of the pertinent ASPR or DSPR section.

§ 1201.402 General authority of contracting officers.

Properly designated contracting officers are granted all authority conferred by law, the ASPR, and the DSPR, but only to the extent delegated therein and as that authority may be limited in the orders designating them as contracting officers.

(a) Contracting officers are agents of the Government and must act in accordance with the Law and within their prescribed duties and authority. Contracting officers must insure that their acts are in full accord with their authority. The act of a contracting officer binds the Government only when the action is authorized.

(b) Contracting officers may enter into, amend, modify, and take other action with respect to contracts, provided (1) approval of award has been obtained, if required, and the contract embodies the award as approved, (2) the contract is written on a standard or an approved form of contract, (3) the contract is authorized by law and complies with the provisions of the ASPR and the DSPR with respect to the use of contract clauses

and does not contain any clause or involve matters in conflict with the established policy of higher authority, and (4) compliance has been made with all other requirements of law, the ASPR, the DSPR, and the applicable procuring activity instructions.

§ 1201.402-50 General responsibilities of contracting officers.

(a) Contracting officers are responsible for the safeguarding of the interests of the United States in contractual relationships.

(b) Contracting officers shall personally sign all contracts and modifications entered into by them. This authority cannot be delegated to others. (See § 1201.451(b) with respect to change orders.)

(c) Contracting officers are responsible under law and regulations for their acts as contracting officers.

(d) Contracting officers shall be bound in all their actions to exercise reasonable care, skill, and judgment.

(e) Contracting officers must assure themselves that the contract is authorized by law, that funds are available, and of their authority to subject the Government or its property to any risk.

(f) Contracting officers are responsible for maintaining constant cognizance with respect to contract compliance on the part of the contractor.

(g) Contracting officers are responsible for obtaining the necessary legal, technical, and administrative sufficiency review of the contracts they make.

(h) Contracting officers are responsible for knowing the scope and limitation of their authority.

§ 1201.403 Requirements to be met before entering into contracts.

§ 1201.403-50 Legal review.

(a) Legal advice and assistance of assigned legal counsel will be obtained in the preparation of clauses other than standard clauses which are to be contained in invitations for bids and requests for proposals and on any questionable legal areas in the preparation and/or execution of contractual documents.

(b) Procuring activities within the Defense Supply Agency will issue instructions on the legal review of solicitations and contractual documents issued by their activities.

§ 1201.450

Selection and appointment

of Contracting Officers.

(a) Appointment authority. Contracting Officers, as defined in § 1201-3 of this title, shall be those designated by the Executive Director, Procurement and Production and Heads of Procuring Activities. When so designated, they shall have the authority set forth in § 1201.402 and the general responsibilities set forth in § 1201.402-50.

(b) In selecting an individual for a contracting officer position, consideration should be given, but not limited, to the following areas:

(1) Educational background.

(2) Experience in the field of procurement and other related fields, such as production and industrial mobilization (including business background).

(3) Previous related training through service schools.

In no event, however, should an individual lacking substantial previous purchasing experience be designated as a contracting officer until he has completed the basic core training program course listed in the Defense Procurement Training Register. As contracting officers are assigned greater procurement responsibility they should be required to attend approved courses designed to give advanced or specialized formal training in procurement. Contracting authority should be commensurate with the experience of the individual. High qualification standards must be maintained for the appointment of contracting officers. Authority to execute and administer contracts of $100,000 or greater should be given only to civilian personnel of grade GS-12 or above and to military personnel with at least three years specialized experience in procurement and three years experience in related fields. Exceptions to these minimum qualifications may be granted on a case by case basis by the HPA where exceptional circumstances necessitate the appointment of an individual.

§ 1201.451 Selection and appointment of contracting officers' representatives.

(a) Designation. A contracting officer may designate Government personnel (military or civilian), who are appropriately qualified, to act as his authorized representative. Such designation shall be in writing and shall define the