Interim revisions are issued only in urgent cases to give advance distribution prior to the incorporation of the subject matter substantially in the same form in the printed revisions of ASPR or DSPR. Also included are some policy statements of general interest to all users of DSPR. The interim revisions are numbered and the notes and filing instructions accompanying each regular revision will indicate which "interims" are current and which are superseded. § 1201.104-52 Procurement letters.

Numbered procurement letters include procurement information of a temporary nature. They are directed to procurement staff levels within the Defense Supply Centers (DSCs) and generally do not require implementation below that level. Normally they will be canceled within 6 months. In any event that cancellation date will be shown on each letter.

§ 1201.104-53 Multiple address letters.

Unnumbered multiple address letters will be issued for one-time requests for comments or reports, announcements of Procurement and Production Directors' Conferences and other meetings, etc. No implementation beyond the action requested is contemplated. They are selfcanceling when they have served their purpose.

§ 1201.105 Amendment of subchapter.

Recommendations for revision of ASPR and DSPR shall be submitted, through channels, to the Executive Director, Procurement and Production, Defense Supply Agency, Cameron Station, Alexandria, Va. 22314, Attention: DSAHPPR.

the date of issuance thereof (as indicated by the page revision date) and shall be mandatory effective 30 days thereafter, unless otherwise provided in such revision.

§ 1201.108

Departmental procurement instructions and ASPR implementations.

(a) Implementations of ASPR and DSPR may be issued by heads of procuring activities provided they are consistent with § 1.108 of this title. In addition, the Executive Director, Procurement and Production, has delegated this authority to the Commander, Defense Industrial Plant Equipment Center (DIPEC). Implementations will not duplicate or paraphrase ASPR or DSPR, modify or revise the policy expressed in ASPR or DSPR, or contain deviations to ASPR or DSPR unless authorized by the procedures of § 1.109 of this title and 1201.109. The format, general plan, and numbering system of implementations will be the same as ASPR/DSPR.

(b) Heads of Procuring Activities shall furnish the HQ DSA, Attention: DSAHPPR, one copy of each implementing instruction properly referenced to the ASPR or DSPR section to which it pertains.

§ 1201.109 Deviations from ASPR, DSPR, and other Department of Defense publications governing pro

curement.

§ 1201.109-1

Applicability.

Actions which constitute deviations from ASPR of Department of Defense publications governing procurement as set forth in § 1.109-1 of this title shall also constitute deviations from the provisions of DSPR.

§ 1201.109-2 Deviations affecting one

contract or transaction.

Deviations from ASPR, a Department of Defense Directive, or the DSPR which affects only one contract or transaction, will be made only after prior approval by the Executive Director, Procurement and Production, DSA, or his designee. § 1201.109-50 Submission of requests for deviations (Dev).

(a) Requests for authority to deviate from the provisions of ASPR, Department of Defense Directives, or the DSPR will be submitted (in original and four copies) to the HQ DSA, Attention: DSAH-PPR.

(b) For those deviations which have originated in any DSA field activity, it will be the responsibility of the originator to initiate action for renewal or extension, where appropriate, at least 90 days prior to the expiration date. In the event no request is received in DSAHPPR, it will be assumed the need for the deviation no longer exists and the deviation will automatically expire. § 1201.109-51 Control of deviations.

Separate registers shall be maintained by the Executive Director, Procurement and Production of the deviations granted from ASPR and DSPR. Each deviation shall be recorded in its appropriate register and shall be assigned a control number as follows; an abbreviation of the regulation involved and the word deviation; fiscal year; and the serial number assigned to the particular deviation; e.g., ASPR Dev 70-1, DSPR Dev 70-1. The control number shall be embodied in the document authorizing the deviation and shall be cited in all references to the deviation.

(a) Data on all proposed contract awards of $1 million or more will be submitted to the HQ DSA contact point by telephone at least 48 hours (2 full working days) prior to 1,100 hours of the date the Center proposes to make the contract award. Mandatory orders to be placed with the Federal Prison Industries and the Industries for the Blind are not included in this reporting requirement. However, nonmandatory orders to be placed with the Industries for the Blind are included. This report will be known as "Contract Announcement" and will carry Reports Control Symbol DD-DSA (AR) 183 (P).

(b) Definitions:

(1) Contract awards as used herein include any contractual instrument that obligates funds where the total amount of the contract is $1 million or is expected to reach or exceed $1 million. Requirements contracts that do not obligate funds at the time of award are not "contract awards" for the purpose of this paragraph. Delivery orders in the amount of $1 million or more issued against these requirements contracts are "contract awards." Where a requirements contract does obligate an amount

of less than $1 million at the time of award and it is estimated that the cumulative amount of the contract will exceed $1 million, such type of requirements contract is a "contract award."

(2) Contractual instrument includes but is not limited to notices of award, definitive contracts, letter contracts, orders placed against requirements or indefinite delivery type contracts, supplemental agreements, change orders, provisioning orders, contract modifications, letters of intent, and funding action.

(c) The HQ DSA contact point is DSAH-PC, OX 4-6461.

(d) Data submitted to the HQ DSA contact point shall be verified for accuracy by a responsible DSA field activity official prior to submission to HQ DSA. This data is used to provide information outside the Department Defense, therefore, accuracy is of paramount importance.

of

(e) The following data shall be provided (in this sequence) to the HQ DSA contact point:

(1) Name and address of purchasing activity;

(2) Proposed release date;
(3) Contract number;

(4) Amount;

(5) Name and location of proposed contractor (include street address, zip code and county and size of business, i.e., large or small);

(6) Item and quantity to be awarded; (7) Name and location of facility to perform contract, indicating if a division or affiliate of contractor in subparagraph (5) of this paragraph (include street address, zip code, county and labor surplus area designation);

(8) Type of contract;

(9) Amount previously obligated (if this announcement is a modification to an existing contract);

(10) Number of concerns solicited and number of concerns submitting bids/ proposals;

(11) Using Military Service;

(12) Name of official in field activity familiar with award; and

(13) Information as to any proposed local press release or any local congressional interest.

(f) Awards and release of information on contract awards of $1 million or more shall not be made before the date and time agreed upon by the DSA contact point and the field activity. Any proposed local press release should also be with

held. If for any reason clearance is not received by HQ DSA, the Defense Supply Center will be notified promptly to withhold award until clearance has been obtained. If following agreement as to date and time of contract award announcement, the award will not be made, the HQ DSA contact point shall be notified by telephone immediately. § 1201.110-51 Advance notification of proposed contract terminations.

At least 10 working days prior to any contract termination action which will result in the discharge (reduction-inforce) of 100 or more contractor employees (or a lesser number in a labor surplus area), notification of such termination action will be telephoned to the HQ DSA contact point listed in § 1201.110-50 (c). This notification is required in order to provide advance information on the proposed termination action to the Office of the Secretary of Defense OSD. The formal termination action will be withheld pending receipt of instructions from HQ DSA to proceed with the proposed termination action. § 1201.111 Reports of suspected criminal conduct, noncompetitive practices, kickbacks, and other procurement irregularities.

Reports of possible violations of Federal criminal statutes in connection with procurement and related matters, including reports of possible fraud or violation of antitrust laws, will be made in accordance with Part I, Subpart F of this title and Subpart F of this part. § 1201.115

posals.

Noncollusive bids and pro

§ 1201.201-14 Procuring activity/referral of actions.

The Executive Director, Procurement and Production, HQ DSA, shall exercise the functions, not otherwise delegated, of head of procuring activity for any DSA Supply Centers or Activities not under an HPA and not designated as "Procuring Activities" pursuant to 1.201-14 of this title. This includes the: (a) Defense Industrial Plant Equipment Center;

(b) Defense Logistics Services Center;
(c) Defense Depot Memphis;
(d) Defense Depot Ogden;
(e) Defense Depot Tracy; and

(f) Defense Supply Agency Administrative Support Center.

Actions required by the Armed Services Procurement Regulation, this subchapter, or other directives involving the functions, not otherwise delegated, of the head of procuring activity shall be referred to the HQ DSA, Attention: DSAH-P.

Subpart C-General Policies

§ 1201.310 Liquidated damages. Recommendations concerning the remission of liquidated damages shall be transmitted to the Counsel, HQ DSA. § 1201.312 Voluntary refunds.

Voluntary refunds will be accepted and processed in accordance with instructions issued by the heads of procuring activities.

§ 1201.314 Disputes and appeals.

(d) All appeals will be presented to the Armed Services Board of Contract Appeals by trial attorneys of the DSA Defense Supply Center involved. Direct communication with the Board is authorized. The charter and rules of the Armed Services Board of Contract Appeals are set forth in Appendix A, ASPR.

All official correspondence with the Board will be addressed to the Recorder, Armed Services Board of Contract Appeals, Washington, D.C. 20025. At the time of filing with the Board or receipt by the trial attorney, a copy of each Notice of Appeals, Complaint, Answer, Rule 4 Memorandum (without enclosures), Brief, and Motion for Reconsideration, if any, shall be forwarded to the Counsel, HQ DSA.

(e) In all cases except those to be disposed of under Rule 12, the trial attorney shall forward to the Counsel, HQ DSA, copies of the Trial Memorandum, documents that have been filed under Rule 4 or are to be introduced in evidence at the hearing, and if not included in the Trial Memorandum, a summary of the testimony of proposed witnesses. This information shall be forwarded 10 days prior to date set for the hearing.

(f) If, after review of a Board decision on contracts of his procuring activity, Counsel for the activity is of the opinion that the decision is erroneous, a Motion for Reconsideration should be filed. If the Board denies the motion or sustains its previous decision and a decision by the Comptroller General is desired prior to payment, the request for such a decision shall be forwarded to the Counsel, HQ DSA.

§ 1201.318

Contracts conditioned upon the availability of funds.

It is recognized that there may be instances, other than those described in § 1.318 of this title, where it will be necessary to initiate a procurement prior to the availability of funds. In such instances, the action will only be taken after the facts concerning the proposed solicitation are presented to DSAH-P for review as to the necessity for such action and the obtaining of the required ASPR deviation permitting use of the provision set forth in § 1.318 of this title. § 1201.350 Changes in procurement processes, techniques or methods.

§ 1201.350-1 General.

Whenever a procuring activity contemplates a significant change in a procurement process, technique or method which may reasonably be expected to have a substantial impact on industry and/or the Government, the activity shall notify promptly HQ DSA Attention: DSAH-PPR of the contemplated change and the reasons and bases therefor.

36-078-70- -2

§ 1201.350-2 Concept of notification.

Headquarters, DSA requires notification of contemplated changes which are of significant nature prior to initiation of action to accomplish such changes. This prior notification is necessary in order that Headquarters may become conversant with the matter in the event there is any reaction from industry, the Congress, or the using Military Departments. In addition, Headquarters has access to, and knowledge of, information which may not be available at the field level and, as such, is in a position to evaluate the significance of the proposed action to the Agency as a whole. Accordingly, it is essential that HQ DSA know what is contemplated before the initiation of a significant change is publicized. This requires that all notifications be submitted as far in advance of public disclosure as possible, in order that HQ DSA clearance may be obtained, and the intended purpose of this requirement be served.

§ 1201.350-3 Examples of significant changes.

Representative types and categories of contemplated changes which are of a significant nature and which necessitate prior notification to HQ DSA are (but not limited to) a change in:

(a) A longstanding inspection requirement or procedure;

(b) The method of providing and/or accounting for Government-furnished property;

(c) A type of contract which constitutes a significant departure from the procurement technique previously utilized;

(d) Solicitation techniques and the elements used in evaluation of offers;

(e) The region/area from which procurement of an item has been previously accomplished;

(f) The location of a buying/purchasing office; or

(g) Item specification which prompts a major change in manufacturing and/ or processing techniques. § 1201.350-4

Data to support request.

In order that the impact of a contemplated change in procurement method may be determined, requests for approval of a proposed change in a procurement method should contain the following information:

(a) A description of the present and proposed procurement methods;

(b) A statement of the difficulties encountered in the use of the presented method and/or the improvements foreseen as the result of a change;

(c) A statement as to the degree of impact of the change expected on industry and/or the Government; and

(d) A statement as to the net benefits accruing to the Government as a result of the change.

§ 1201.351 Delivery status information on procurements for the international logistics program (ILP).

Contracts and purchase orders awarded in support of requisitions from the Navy International Logistics Control Office, Bayonne, N.J., for the ILP shall:

a

(a) Identify the requirement as separate contract line item or subline item in accordance with 20.304-2 of this title. In the event the purchase request does not contain this information, the contracting officer shall contact the originator to obtain the necessary data. The applicable requisition number shall be entered immediately under the line or subline item. (ILP requisitions are identified by the letter P or K preceding the requisition number.)

(b) Provide for the designated contract administration services component to distribute to the Navy International Logistics Control Office (Bayonne, N.J.), a copy of any report or document which indicates an anticipated or actual delay in delivery of line or subline items for the ILP. Copies of such reports distributed to Navy International Logistics Control Office shall include the requisition number applicable to the line or subline item involved and shall be in addition to any other distribution required by the contract or directives applicable to the contract administration services component. Subpart D-Procurement Responsibility and Authority

§ 1201.401 Responsibility of each procuring activity.

§ 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 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 action 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 ASPR and 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,

(1) The safeguarding of the interests of the United States in contractual relationships;

(2) Their acts as contracting officers under law and regulations;

(3) Maintaining constant cognizance with respect to contract compliance on the part of the contractor;

(4) Obtaining the necessary legal, technical, and administrative review of the contracts they make; and

(5) Knowing the scope and limitation of their authority.

(b) Contracting officers shall personally sign all contracts and modifications entered into by them. This authority cannot be delegated to others.

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