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. Contracting officers shall neither act as nor perform the duties of a contracting officer with respect to any contractual instrument obligating only non-appropriated funds. However, contracting officers may act in an advisory capacity with respect to the aforementioned instruments. § 1201.402-51 Procedure for closing contracts with inconsequential amounts undelivered. (a) The Procuring Contracting Officer (PCO) is authorized on a case-by-case basis to consider a contract completed when an inconsequential amount not falling within the variation in quantity clause remains undelivered: Provided, all of the following conditions exist: (1) Payment is provided for on a unit price basis, and the contractor advises that no further deliveries will be made; (2) Payment is made for the units actually received; (3) The undelivered portion is inconsequential and the cost of effecting a formal contract modification (including but not limited to taking termination action) is excessive in relation to the benefits to the Government from such action; and (4) The PCO makes a statement in writing showing that the above criteria have been met, referencing the communication from the contractor, and stating the contract is considered complete. This statement shall be issued on a Standard Form 30 as an administrative change to the contract for deobligation of funds and given complete and prompt distribution. (b) This authority shall not be delegated by the PCO. § 1201.403 Requirements to be met before entering into contracts. § 1201.403-50 Legal review. (a) Legal advice and assistance of assigned legal counsel shall 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 shall issue in structions on the legal review of solicitations and contractual documents issued by their activities. § 1201.405 Selection, appointment, and termination of appointment of contracting officers. The authority in 1201.405 of this title has been delegated by the Executive Director, Procurement and Production, HQ DSA (DSAH-PP), to the Commander of each of the following activities: Defense Depot Memphis. Defense Depot Tracy. Defense Industrial Plant Equipment Center. Defense Logistics Service Center. Defense Supply Agency Administrative Support Center. § 1201.405-1 Selection. 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 3 years' specialized experience in procurement and 3 years' experience in related fields. Exceptions to these minimum qualifications may be granted on a caseby-case basis by the head of a procuring activity and the Commanders of the activities enumerated in § 1201.405, where exceptional circumstances necessitate appointment of an individual. § 1201.405-2 Appointment. (a) Contracting Officer Appointment Documentation Sheet, DSA Form 581, as revised, shall be used to facilitate the documentation of recommendations for appointment. This form will be completed by the official recommending an individual for appointment. Properly prepared, the form will make it readily apparent to the appointing authority, normally the HPA, whether or not the nominee is qualified for appointment. Also, it will provide HQ DSA a current profile of contracting officers. (b) One copy of each appointment Documentation Sheet shall be sent to the Dr HQ DSA Attention: DSAH-PPR. § 1201.450 Selection and appointment of contracting officers' representatives. (a) Designation. The selection, appointment, and termination of appointment of Contracting Officers' Rep resentative (COR) shall be made by the contracting officer. Such appointments shall take into consideration the ability, training, and experience of COR designees and shall assure that designees are appropriately qualified to act as an authorized representative of the contracting officer. COR designations shall be in writing and shall define the scope and limitations of the authorized representative's authority. Appointment shall be made by letter substantially in the form set forth in paragraph (d) of this section. Unless the appointment of a COR contains other provisions for automatic termination, the appointment shall be effective, unless sooner revoked, until the COR is reassigned, or his employment is terminated. Revocation of a COR appointment may be effected at any time by the appointing authority, or higher appointing authority, or any successor to either. Revocation shall be made by letter reading substantially as shown in paragraph (e) of this section. (b) Authority. COR's will be responsible to and under direct supervision of the contracting officer, and unless specifically prohibited by the terms of the contractual instrument involved may, at the discretion of the contracting officer, be empowered to take any and all actions which could be lawfully taken by the contracting officer consistent with the scope and limitations of the appointment. Compliance with the Standards of Conduct prescribed in DoD Directive 5500.7 and DSAR 5500.1 will be maintained. (c) Documentation. Supplementing the normal supervision of the COR by the contracting officer, the contracting officer shall maintain an "activity" file on each COR. The purpose of this file is to record and maintain the results of periodic reviews of the COR's procurement activities conducted semiannually by the contracting officer. The contents of the activity file will include but are not limited to: (1) A copy of the COR's letter of appointment; (2) Examples of in-depth reviews of the COR's performance with appropriate identification of the work performed including PO/DOS issued; and (3) Documentation by the contracting officer of the date, substance, and extent of the reviews conducted. (d) Sample form of suggested letter for appointing CORS. Subject: Appointment as Contracting Officer's Representative. To: (Address to Individual, indicating rank or grade, branch, division, activity and location). 1. Under the authority vested in me by the January 1, 1969, subject: Delegation of Authority, you are hereby designated Contracting Officer's Representative with authority conferred by the Contracting Officer. 2. This order shall be in full force and effect until revoked by me or my successor in the same manner as it is hereby granted, or upon your being transferred from the (include branch, division, activity and location). § 1201.452 Review and approval requirements. § 1201.452-1 General. Every proposed contractual document and supporting file must be reviewed by the contracting officer prior to signature of the document and prior to forwarding the file for review by higher authority. The contracting officer is responsible for the completeness and accuracy of the file as well as for the soundness of the contractual action. Each file must contain the applicable information, or cross reference thereto, contemplated by ASPR Supplement No. 2 "Contract File Maintenance, Closeout, and Disposition” in sufficient detail to permit reconstruction of all significant actions by a subsequent reviewer without referrals to the individuals who consummated the procurement. The contracting officer shall signify completeness of the contract file by signature on DSA Form 678, "File Content List" which must accompany the files supporting every contractual action, except those actions plished in accordance with Part 3, Subpart F, of this title. accom § 1201.452-2 Actions requiring HQ review and approval prior to award. (a) The actions listed below require the review and approval of the HQ DSA, with (1) All proposed contracts other than firm fixed-price or fixed-price escalation; (2) All proposed letter contracts; (3) All proposed contracts providing for special performance incentives; (4) All proposed contracts involving— (i) Architectural-engineering services; (ii) Management engineering services; (iii) Management surveys and studies; (iv) Personal or professional services, not covered by applicable civilian personnel instructions; (v) Services for maintenance of or for manufacture in Government-owned, contractor-operated facilities. (Not applicable to the Defense Fuel Supply Center); (vi) Services and materials for the repair, maintenance, rehabilitation, alteration or modification of Government installations and utilities of $25,000 or more; (vii) Proposed lease of Government property for nondefense use; (viii) Acquisition of automatic data processing equipment in accordance with DSAR 4710.1 and; (ix) Acquisition of facilities. (5) Awards from an invitation for bids (including Balance of Payments and Small Business Restricted Advertising types) when award is proposed to a sole responsive, responsible bidder, and the total dollar amount of the sole bid items being awarded is $100,000 or more; (see § 1201.454(b)); (6) Noncompetitive procurements of $100,000 or more; under authority of 10 U.S.C. 2304 (a) (10); (see § 1201.454 (b)); (7) All proposed contracts which involve construction of petroleum facilities; Defense General Supply Center--Defense Industrial Plant Equip. Center Defense Industrial Supply Center_ Clothing and Textiles- Subsistence DSA Administrative Support Defense Supply Center.. 50,000 200,000 50,000 500,000 500, 000 1, 000, 000 2,500 (10) Each proposed exercise of an option and each proposed order under a basic ordering agreement, when the proposed action is in an amount equal to or in excess of that stated in § 1201.452-2 (a) (9) for the activity concerned; (11) Each order under an indefinite quantity contract in which the amount of the order is equal to or in excess of that stated in § 1201.452-2 (a) (9) for the activity concerned, except where the original contract was awarded to a sole source. (b) Orders placed against requirements contracts, other Federal agencies, or the National Industries for the Blind are excluded from this review requirement. The complete contract file of those actions subject to HQ DSA review and approval shall be transmitted for review upon completion of negotiations but prior to award. DSA Form 677, "Contractual Documents Transmittal-Approval/ Disapproval", signed by the contracting officer and by the Commander, his deputy, or the principal officer responsible for procurement shall be used to request review and approval. A copy of the current specification covering the basic items or service shall be included in the file. The file shall be organized in accordance with ASPR Supplement No. 2 and individual documents numbered in accordance with DSA Form 678, "File Content List", which shall be attached to DSA Form 677. All documents shall be securely fastened in the file which shall be assembled so as to permit viewing of each document without disassembling the file. A carbon copy of the DSA Form 677 and 678, together with copies of the proposed contract, review comments of the Procuring Activity Review Office, Memorandum of Negotiation, Determinations and Findings, and Price/Cost Analysis (all assembled as above), shall be furnished for retention by HQ DSA. The purchasing office will be notified immediately by telephone when significant information is missing from the file or the available information in inadequate to permit review. Further review action will be withheld pending receipt of the required information. Where a solicitation results in two or more proposed awards, one or more of which requires approval, the quantities, prices and names of proposed awardees shall be submitted with requests for approval and all awards will be withheld pending advice of required approval. Telephonic notification of approval, qualified approval, or disapproval will be furnished immediately with written approval evidenced on the original of DSA Form 677, "Contractual Documents TransmittalApproval/Disapproval", which shall be made part of the contract file. § 1201.452-4 Release of information. Prospective suppliers are not to be advised that awards have been forwarded to HQ DSA for approval. (a) Proposed shifts in procurements from a competitive to a non-competitive basis. A presolicitation approval of procurements in which it is proposed to shift from a competitive to a noncompetitive basis shall be required as follows: (1) Procurements of more than $1 million shall be approved in advance by the Director, DSA. (2) In addition, procurements of $10 million and over shall be approved in advance by the Assistant Secretary of Defense (Installations and Logistics). (3) Data to support the request for such a presolicitation approval shall be submitted to DSAH-PC and shall inIclude the following (i) Description of the supplies or services required. (ii) The estimated cost and fund availability. (iii) A summary of the purchase plan to include: (a) Performance dates. (b) Proposed dates for issuance of solicitation and award of contract. (c) Synopsis intentions. (d) Type of contract proposed and basis therefor. (e) Any applicable special requirements to be included in the schedule. (f) Any proposed deviations from ASPR or DSPR. (iv) Substantiation for the proposed shift from a competitive to a noncompetitive procurement. (b) Purchases of antibiotics. For pur-chases of antibiotics which contain foreign material, approval may be requested and obtained telephonically from DSAH-PC. § 1201.452-6 Postaward review. Selected contracts will be subject to postaward review. This review may be accomplished by a call for the contract file or during a visit to the applicable purchasing activity by HQ DSA contract review personnel. The results of these reviews and the results of the reviews accomplished prior to award will be utilized to determine future review levels for the activity involved. § 1201.452-7 awarded. Actions approved but not (a) In order to insure that supply discipline and financial stability are not attained at the expense of sound procurement methods and the responsibility of this Agency to its suppliers, the following review system is in effect: (1) Each partial or total cancellation of an Invitation for Bids after opening shall be effected only with the approval of the head of the procuring activity. (2) Reprocurement of an item within 90 days after cancellation under (1) above, where the cancellation was occasioned by a revision of requirements or by funding limitations, shall have the prior approval of HQ DSA, Attention: DSAH-PC. (b) This procedure shall apply to cancellations for any reason other than failure to obtain coverage or unreasonableness of offered prices. (c) This procedure shall not apply to procurements of nonstocked items or to procurements originated by a MIPR. § 1201.453 Review and approval requirements at the procuring activity. (a) Each DSA procuring activity shall establish and maintain requirements and procedures for review and approval of proposed contractual actions to assure conformance with law, regulations, and established policy, and the exercise of good business judgment. The scope and depth of the review will be determined by heads of procuring activities based on workload and available manpower, but as a minimum will encompass a representative number of actions, including sole bids/offers and complex or high dollar value procurements. In addition, randomly selected procurement actions including noncompetitive small purchases will be reviewed after award. A summary record of such post award reviews and the results thereof shall be maintained by the activity. (b) The Contract Review Office, organized in conformance with DSAM 5810.1, shall perform the review function. The review shall be performed as a full-time duty where the workload requires one or more people for the review. The person selected as the chairman of the Contract Review Office, in addition to possessing the qualifications set forth for a contracting officer in § 1.405 of this title and § 1201.405, shall be a strong personality with demonstrated technical proficiency and capability of exercising sound business judgment. Personnel from other areas such as counsel, small business, technical operations, production, etc., may serve in an advisory capacity, as appropriate. Members may be rotated at intervals to ameliorate workload problems and to afford the individuals an opportunity to utilize the experience so gained. (c) In addition to the above requirements for review by the Contract Review Office, all procurements over $10,000 are to be reviewed at a level higher than the contracting officer prior to award. § 1201.454 Review and approval requirements for a procurement Office not designated as a "Procuring Activity" (see § 1201.201-14). (a) All procurements over $10,000 are to be reviewed at a level higher than the Contracting Officer prior to award. (b) The dollar threshold under §§ 1201.452-2(a) (5) and (6) is $25,000. Subpart E [Reserved] Subpart F-Debarment, Ineligibility, and Suspension § 1201.601 Establishment and maintenance of records and lists of firms or individuals, debarred, ineligible, or suspended. § 1201.601-1 General. The Counsel, DSA shall maintain the DSA list which will contain only the names of firms and individuals located in the United States, its territories and its possessions. § 1201.601-3 Joint consolidated list. The Counsel, DSA shall furnish to the Department of the Army a listing of all additions, deletions, or modifications to the Joint Consolidated List resulting from DSA action. § 1201.601-50 Attempted evasions. In some instances, firms or individuals have attempted to evade the prohibitions contained in § 1.604 and § 1.605 of this title and §§ 1201.604 and 1201.605 by change of address or by formation of a new company. In such cases where it can be reasonably established that the suspended or debarred firm or individual has the controlling or active interest in a new company, or that the address is the same as that of the suspended or debarred firm or individuals, a report shall be submitted through channels to the Counsel, DSA. |