con 1215.150 Cost suspended and/or disallowed under cost-reimbursement type tracts; general policy. Subpart B-Principles and Procedures for Use in Cost-Reimbursement Type Supply and Research Contracts With Commercial Organizations [Reserved] Subpart C-Research Contracts With Educational Institutions [Reserved] Subpart D-Construction Contracts [Reserved] Subpart E-Contracts for Industrial Facilities [Reserved] Subpart F-Guidelines for Application in the Negotiation and Administration of Fixed-Price Type Contracts and in the Negotiation of Termination Settlements [Reserved] AUTHORITY: The provisions of this Part 1215 issued under R.S. 161, sec. 2(a), 72 Stat. 514, secs. 2202, 2301, 2314, 70A, Stat. 120, 127, sec. 1, 76 Stat. 528; 5 U.S.C. 22, 171a(c), 10 U.S.C. 2202, 2301-2314; DoD Directive 5105.22, November 6, 1961. SOURCE: The provisions of this Part 1215 appear at 28 F.R. 2662, Mar. 19, 1963, unless otherwise noted. § 1215.000 Scope of part. § 1215.150 Cost suspended and/or disallowed under cost-reimbursement type contracts; general policy. It is DSA policy that contractors will be notified promptly in writing when costs claimed for reimbursement are suspended tentatively as not being properly supported or disapproved as not being allowable to performance of DSA cost-reimbursement type contracts. DD Form 396, "Notice of Costs Suspended" and/or "Disapproved," will be used. It will not be used to notify contractors of decision of the contracting officer under the Disputes clause of the applicable contracts. Subpart B-Principles and Procedures: For Use in Cost-Reimbursement Type Supply and Research Contracts With Commercial Organizations [Reserved] Subpart C-Research Contracts With Subpart E-Contracts for Industrial Subpart F-Guidelines for Application: in the Negotiation and Administration of Fixed-Price Type Contracts. and in the Negotiation of Termination Settlements [Reserved] Subpart H-Miscellaneous Forms 1216.850 Security Agreement (DD Form 441). 1216.851 Report of Excess Personal Property (Standard Form 120). 1216.852 Contractor's Request for Progress Payments (DD Form 1195) (Subpart E, Appendix E, ASPR). 1216.853 Department of Labor Forms PC 12 and PC 13 (Parts 12 and 1214 of this title and this subchapter). Subpart I-Procurement Action Report Forms 1216.901 Individual Procurement Action Reports (DD Form 350). 1216.901-2 Applicability and coverage. 1216.902 Monthly Procurement Summary by purchasing office (DD Form 1057). 1216.902-3 Distribution. 1216.902-50 Memorandum record. AUTHORITY: The provisions of this Part 1216 issued under R.S. 161, sec. 2(a), 72 Stat. 514, secs. 2202, 2301, 2314, 70A Stat. 120, 127, sec. 1, 76 Stat. 528; 5 U.S.C. 22, 171a(c), 10 U.S.C. 2202, 2301-2314; DoD Directive 5105.22, November 6, 1961. SOURCE: The provisions of this Part 1216 appear at 28 F.R. 2662, Mar. 19, 1963, unless otherwise noted. § 1216.000 Scope of part. This part implements Part 16 of this title and prescribes the use of additional forms which are used within the Defense Supply Agency in the procurement of supplies and services. Subpart A-Forms for Advertised Supply Contracts [Reserved] Subpart B-Forms for Negotiated Procurement § 1216.201 Request for (Standard Form 18). Quotation § 1216.201–50 Instructions for use. Pending revision of Standard Form 18, add a provision in the schedule or change paragraph (1) of "Quoter Represents:" on the face of the form to add, in line 1, immediately after "a concern that (1)" the words "is independently owned and operated,". § 1216.202 Negotiated Contract Forms (DD Forms 1261 and 1270). § 1216.202-1 General. Pending revision of DD Form 1261, add a provision to the schedule or change section 1 of "Contractor Represents:" portion the form as follows: (a) Add in line 2, immediately after "a concern that (1)" the words "is independently owned and operated,". (b) Change "Subpart 103" in line 4 to "Subpart 121". § 1216.203 Requests for Proposals, Amendment to Request for Proposals, Proposal and Acceptance (DD Forms 746, 746s, 746-1, 746–2). § 1216.203-1 General. Pending revision of DD Form 746, add a provision in the schedule of change paragraph 12 of the Terms and Conditions on the reverse of the form as follows: Add in line 3, immediately after "a concern that (1)" the words "is independently owned and operated,". Subpart C-Purchase and Delivery Subpart E-Special Contract and Novation agreements. § 1216.505 § 1216.505-50 When a Procuring Activity considers it in the interest of the Government to execute an agreement recognizing a successor in interest to the contractor or a change in the contractor's name, the following procedure shall be followed: (a) Contractors should be advised that they are responsible for preparing and submitting three executed copies of such agreements together with one copy of each of the documents required by § 16.505-2(c) or 16.505-3(b) of this title whichever is appropriate, to the head of the procuring activity having the preponderant interest from the standpoint of contract dollar value. The dollar value of the contracts will be based on the total contract price and not on the residual dollar value of the work to be accomplished. appears. (c) Contractors should be advised that, at least thirty days prior to the completion of legal action resulting in any novation or change of contractor's name, all contracting officers administering the contracts involved should be notified of the proposed novation or change of name. (d) Such agreements shall be executed for the Defense Supply Agency by the head of a procuring activity or his duly authorized representative. An agreement so executed shall be binding upon all affected activities of the Defense Supply Agency. The head of a procuring activity may designate a contracting officer to execute the agreement if all of the contracts involved are solely the responsibility of that contracting officer. If the contracts involved affect more than one contracting officer, the agreement shall be executed by the head of the procuring activity or his duly authorized representative. (e) Should an agreement be submitted which includes substantive deviations from the provisions of ASPR or proposes guarantees considered insufficient, the contractor will be requested to make such revisions in the agreement considered necessary. In the event that accord on such revisions cannot be reached the agreement with recommendations, will be submitted to the Executive Director, Procurement and Production, DSA. Further, the head of the procuring activity receiving the agreement for execution will, if deemed necessary, coordinate directly with heads of other procuring activities affected by the agreement. (f) Maximum use will be made of an administrative notice in lieu of a copy of the agreement to inform those activities which must have knowledge of such an agreement but have no requirement for the full agreement. Such notice shall reflect the effective date of the agree ment; a brief statement of the change effected; the name, title, and office of the individual executing the agreement and a designation of the guarantor or guarantors of performance under the agreement, as appropriate. (g) The following distribution will be made by the official executing the agreement: (1) Novation or change of name agreements. (i) The original signed copy of the agreement will be sent to the United States General Accounting Office, Attention: Audit Branch, Indianapolis 49, Indiana. (ii) The duplicate signed copy will be retained in the office of the head of the procuring activity executing the agreement. Attached to this duplicate signed number will be the supporting documents required by § 16.505-2(c) or § 16.505-3 (b) of this title, whichever is appropriate. (iii) The triplicate signed copy will be furnished to the contractor. (iv) Authenticated copies will be furnished to each of the following: (a) The cognizant audit agency, (b) each contracting officer of the executing procuring activity who is administering a contract affected by the agreement, and (c) to heads of other procuring activities, one copy for each contracting officer administering a contract which is affected by the agreement. (2) Administrative notice. (i) Cognizant disbursing offices. 1. This letter constitutes a contract of the terms set forth herein and signifies the intention of the Defense Supply Agency to execute a formal cost-type contract with you for the delivery of the supplies and the performance of the services as set forth in the attached enclosure, marked Exhibit "A", upon the terms and conditions therein stated. Said formal contract will be in the form used by the Defense Supply Agency for procuring supplies and services of the kind indicated in Exhibit "A". This form will include the clauses required by Federal law, Executive Order, and the procurement regulations and directives applicable to such procurements, which clauses are incorporated herein by reference. Exhibit “A”, including the termination clause set forth therein is also made a part hereof. 2. You are directed, upon your acceptance of this letter, to proceed immediately to procure the necessary materials, and to commence the manufacture of the supplies and performance of the services, called for herein, and to pursue such work with all diligence to the end that the supplies may be delivered or services performed within the time specified in Exhibit "A", or if no time is so specified, at the earliest practicable date. In this connection, you shall give advance notification to the Contracting Officer of any proposed subcontract or purchase order hereunder which is either (a) on a cost-plus-afixed fee basis or (b) on a fixed-price basis exceeding in dollar amount either $25,000 or five per centum of the amount authorized to be expended hereunder. You shall, in addition, obtain such approvals in respect of commitments hereunder as may be specified in Exhibit "A". 3. You shall enter into negotiation of the execution of the formal contract with the Defense Supply Agency without delay. In this connection, you shall submit a quota 91 tion of the estimated cost to the Government including fixed fee for the articles and services covered by this letter. Such quotation shall be supported by a cost break-down reflecting the factors outlined in the suggested form enclosed herewith. 4. Unless otherwise provided in Exhibit "A" no payments to you shall be made under this letter except as provided in paragraph 5 below. 5. In the event of a termination of performance of the work or any part thereof under this letter by notice given pursuant to the Termination clause incorporated herein by reference, or in the event that the formal contract is not executed within the time specified in Exhibit "A", or any extension of such time as may be authorized in writing by the Contracting Officer, you shall be paid in accordance with the provisions of such Termination clause, except that no profit will be allowed if the Contracting Officer finds that you have delayed the execution of a formal contract for an unreasonable period; provided, however, that in no event shall the liability of the Government to you hereunder exceed the amount specified in Exhibit "A" or such other amount as may be authorized in writing by the Contracting Officer. 6. Please indicate your acceptance of the foregoing by signing this letter and the enclosed copies thereof. Retain one copy for your files and return the remainder to this office. 7. This contract is entered into pursuant to the provisions of 10 U.S.C. 2304(a) ( ) and any required determination and findings have been made. tention of the Defense Supply Agency to execute a formal fixed price contract with you for the delivery of the supplies and the performance of the services as set forth in the attached enclosure, marked Exhibit “A”, upon the terms and conditions therein stated. Said formal contract will be in the form used by the Defense Supply Agency for procuring supplies and services of the kind indicated in Exhibit "A". This form will include the clause required by Federal law, Executive Order, and the procurement regulations and directives applicable to such procurements, which clauses are incorporated herein by reference. Exhibit "A", including the termination clause set forth therein, is also made a part hereof. 2. You are directed, upon your acceptance of this letter, to proceed immediately to procure the necessary materials, and to commence the manufacture of the supplies and performance of the services, called for herein, and to pursue such work with all diligence to the end that the supplies may be delivered or services performed within the time specified in Exhibit "A", or if no time is so specified, at the earliest practicable date. 3. You shall enter into negotiation for the execution of the formal contract with the Defense Supply Agency without delay. In (this connection, you shall submit a firm quotation for the articles and services covered by this letter. Such quotation shall be supported by a cost breakdown reflecting the price factors outlined in the suggested form enclosed herewith. 4. Unless otherwise provided in Exhibit "A" no payments to you shall be made under this letter except as provided in paragraph 5 below. 5. In the event of a termination of performance of the work or any part thereof under this letter by notice given pursuant to the Termination clause incorporated herein by reference, or in the event that the formal contract is not executed within the time specified in Exhibit "A", or any extension of such time as may be authorized in writing by the Contracting Officer, you shall be paid in accordance with the provisions of such Termination clause, except that no profit will be allowed if the Contracting Officer finds that you have delayed the execution of a formal contract for an unreasonable period; provided, however, that in no event shall the liability of the Government to you hereunder exceed the amount specified in Exhibit "A" or such other amount as may be authorized in writing by the Contracting Officer. 6. Please indicate your acceptance of the foregoing by signing this letter and the enclosed copies thereof. Retain one copy for your files and return the remainder to this office. 7. This contract is entered into pursuant to the provisions of 10 U.S.C. 2304(a) ( ) and any required determination and findings have been made. Sincerely yours, Contracting Officer Accepted, as of the date of this letter: By (Type above, name and § 1216.551 Service Order for Household Goods (DD Form 1165). (See DOD 4145.16-R.) Subpart F-Forms for Coordinated Procurement [Reserved] Subpart G-Contract Termination Forms [Reserved] Subpart H-Miscellaneous Forms § 1216.350 Security Agreement (DD Form 441). Requirements for use of the Department of Defense Security Agreement (DD Form 441), are set forth in AR 380-130/OPNAV Instruction 5540.8A/AFR 205.4. Under the provisions of DD Form 441, the Industrial Security Manual for Safeguarding Classified Matter, Department of Defense, is made part of the Security Agreement. § 1216.851 Report of Excess Personal Property (Standard Form 120). Material considered for exchange under the provisions of § 13.1502 of this title will be reported for screening in accordance with § 13.1502-2 of this title. § 1216.852 Contractor's Request for Progress Payments (DD Form 1195) (Subpart E, Appendix E, ASPR). § 1216.853 Department of Labor Forms PC 12 and PC 13 (Parts 12 and 1214 of this title and this subchapter). Subpart I Procurement Action Report Forms § 1216.901 Individual Procurement Ac tion Reports (DD Form 350). § 1216.901-2 Applicability and cover age. Procurement actions which have a dollar value of $25,000 or less and which relate to the procurement of perishable |