ally beneficial in terms of better planning for procurement action and more timely, efficient, and economical procurement.

(c) Personnel not delegated contracting authority may not commit the Government, formally or informally to any type of contractual obligation (see § 3-1.405). However, program personnel who must use the contracting process to accomplish their programs, must support the contracting officer in ensuring that: (1) Requirements are clearly defined and specified; (2) competitive sources are solicited, evaluated, and selected; (3) quality standards are prescribed and met; (4) performance or delivery is timely; (5) prices, estimated costs, and fees are reasonable; (6) contract provisions, procurement regulations, and applicable laws are complied with; and (7) files are documented to substantiate the judgments, decisions, and actions taken. (See § 1-3.801-3.)

(d) A pamphlet entitled "The Negotiated Contracting Process-A Guide for Project Officers" prepared by the Office of the Secretary, is available for use by all DHEW project officers. The purpose of this pamphlet is to describe the role of the project officer in procurement planning, solicitation and evaluation of proposals, award and administration of contracts. Requests for copies of the pamphlet should be directed to the headquarters office responsible for Administration in the operating agency.

§ 3-1.452-2 Planning for procurement.

(a) Program and project plans should include a plan for procurement as an integral part of program or project development.

(b) Program and project managers should solicit the advice and assistance of procurement personnel in developing the procurement element of program and project plans so that the following factors can be considered early in the planning process:

(1) Definition of requirements in terms of specifications or work statement for use in invitations for bids, requests for proposals, and contract provisions.

(2) Development of "in-house" estimates for the cost of property or services to be procured, and identification of appropriated funds available for the contract.

(3) Identifications of factors which require special consideration, i.e., sub

contracting;

contractor

financing; source evaluation criteria; providing facilities and equipment; quality control; product qualification testing and acceptance; patents and copyright reporting requirements; and other approvals or clearances, etc.

(4) Development of lead-time necessary to complete the procurement process, i.e., prepare and process the purchase request, prepare and process the determination and findings, locate and evaluate sources, receive and evaluate bids or proposals, conduct preaward surveys or conferences, and negotiate and/or award the contract or contracts.

(c) It is incumbent upon initiators of procurement requirements to obtain timely approvals from higher authority whenever such approvals are required by regulations of this Department or other Government agencies; e.g., procurement of data processing resources; procurement of management consultant services; clearances by Office of Management and Budget; Government Printing Office, Treasury Department, General Services Administration, etc.

§ 3-1.452-3 Precontract support.

(a) After submission of the requirement to the procurement activity, program personnel must continue to support the procurement process by providing advice and assistance to the contracting officer in activities such as:

(1) Formulation of procurement plans.

(2) Conduct preaward or preproposal briefing of prospective contractors.

(3) Conduct of preaward surveys to determine contractor responsibility in accordance with § 1-1.310 of this title. (4) Evaluation of technical and business proposals submitted by contractors, including requests for Governmentfurnished facilities and equipment.

(5) Development or evaluation of plans, procedures, and contract provisions relating to quality control, inspection, test and acceptance of products or services.

(6) Establishment of contract requirements concerning packing, packaging, marking, and shipment of products.

§ 3-1.452-4 Postaward contract administration.

(a) Upon execution of the contract by the contracting officer and the contractor, the mutual obligations of the Government and the contractor are estab

lished by and limited to the written stipulations in the contract instrument. Unless authorized by the contracting officer, HEW personnel shall not direct or request the contractor to assume any obligation or take any action not specifically stated in the contract. Only the contracting officer may impose on the contractor any requirement which will result in a change to the contract. All contract changes must be directed in writing or confirmed in writing by the contracting officer.

(b) The role of program, technical, and other personnel in postaward administration of the contract is to assist or advise the contracting officer (or act as his representative when so designated by the contracting officer) in activities such as:

(1) Conduct of conferences to ensure mutual understanding between the Government and the contractor as to scope of the contract, technical and business requirements, and the rights and obligations of the parties.

(2) Technical direction during contract performance and matters relating to product delivery, acceptance, or rejection.

(3) Evaluation of contractor performance, including inspection and testing of products, evaluation of reports and data, subcontract management, utilization of facilities and equipment, cost control, etc.

(4) Contractor systems and procedures evaluation; including accounting policies and procedures, purchasing policy and practices, property accounting and control, wage and salary plans and rate structures, personnel policies and practices, etc.

(5) Modification, renewal, or termination of the contract.

(6) Processing of disputes under the disputes clause and appeals therefrom. Subpart 3-1.6-Debarred, Suspended, and Ineligible Bidders

SOURCE: 38 FR 6391, Mar. 9, 1973, unless otherwise noted.

§ 3-1.600 Scope of subpart.

This subpart prescribes the policy and procedures of the Department of Health, Education, and Welfare (HEW) for (a) the establishment, use, maintenance, and distribution of a debarred, suspended, and ineligible bidders list, (b) the debarment and suspension of bidders for cause and (c) the placement of bidders in in

(a) The Director, Office of Procurement and Materiel Management, OSOASAM, is responsible for establishment and maintenance of a master consolidated list or file of firms and individuals who are administratively or legally debarred from HEW contracting and subcontracting and from whom bids and proposals will not be solicited as provided in FPR 1-1.603. This list will be known as the HEW Debarred Bidders List.

(b) Collectively, the following documents shall constitute the HEW Debarred Bidders List:

(1) Consolidated List of Current Administrative Debarments by Executive Agencies, and amendments thereto, compiled and published by the Office of Investigation-OA, General Services Administration (GSA). This publication is a combined list of debarred, suspended, and ineligible bidders, compiled from notifications furnished to GSA by executive agencies of the Federal Government.

(2) Consolidated List of Persons or Firms Currently Debarred for Violations of Various Public Contracts Acts Incorporating Labor Standards Provisions, and amendments thereto, compiled by the Comptroller General of the United States.

(3) Consolidated List of Concerns and Individuals Debarred, Suspended, or Declared Ineligible by the Department of Health, Education, and Welfare to participate in its procurement program under one or more of the bases set forth in FPR 1-1.602-1 and in accordance with the regulations in this Subpart.

(4) Contract, Ineligible List of persons and firms declared ineligible by the Office of Federal Contract Compliance (OFCC) of the Department of Labor to participate in Government contracting or subcontracting by reason of noncompliance with the Equal Opportunity clause.

(c) The Director, Office of Procurement and Materiel Management, OSOASAM, will effect direct distribution of the consolidated GSA, GAO, OFCC, and HEW lists among holders of the HEW Procurement Regulations in this Department.

§ 3-1.602-1 Bases for entry on the HEW debarred, suspended, and ineligible list.

The Director, Office of Procurement and Materiel Management, OS-OASAM, makes the administrative debarment determinations prescribed in FPR 1-1.6021 (d), (f), and (g).

(a)-(d) [Reserved]

(e) The Department Contract Compliance Officer directs that action prescribed by FPR 1-1.602-1(e) be taken. § 3-1.603 Treatment to be accorded firms or individuals in debarred, suspended, or ineligible status.

(a) Total restrictions. The Director, Office of Procurement and Materiel Management, OS-OASAM, makes the essential determinations required by FPR 11.603 (a) and (e).

§ 3-1.604 Causes and conditions applicable to determination of debarment. Determination to debar or take other action concerning a firm or individual for a cause or condition for a specified period of time as provided in § 1-1.604 of this title shall be made by the Director, Office of Procurement and Materiel Management, OS-OASAM. Whenever cause for debarment becomes known to any contracting officer, he may submit recommendations for debarment to the Director, Office of Procurement and Materiel Management, OS-OASAM, through administrative channels. Such recommendations shall be accompanied by the documented file of the case. § 3-1.604-1 Procedural

requirements relating to the imposition of debar

ment.

(a) Initiation of debarment action. The Director, Office of Procurement and Materiel Management, OS-OASAM, after consultation with the Office of General Counsel, shall determine whether the facts are sufficient to warrant debarment. If the decision is not to debar, he will notify the contracting officer recommending the action. If he decides to institute debarment proceedings, he shall send a letter by certified mail (return receipt requested) to the firm or individual proposed for debarment. The letter shall (1) state that debarment is being considered, (2) set forth the reasons for the proposed debarment, and (3) state that such party will be accorded an opportunity for a hearing

within 30 days from the date of receipt of such letter.

(b) Hearings. Hearings requested in connection with debarment proceedings shall be conducted before the Director, Office of Procurement and Materiel Management, OS-OASAM, or his designee. An opportunity shall be afforded to the firm or individual to appear with witnesses and counsel to present facts or circumstances showing cause why such firm or individual should not be debarred. If the firm or individual elects not to appear, the reviewing authority will make its decision based on the facts on record and such additional evidence as may be furnished by the parties involved. After consideration of the facts, the reviewing authority shall notify the firm or individual of the final decision. § 3-1.605 Suspension of bidders. Causes § 3-1.605-1 and conditions under which HEW may suspend con

tractors.

Any contracting officer may recommend suspension of bidders for the causes and conditions set forth in FPR 1-1.6051. These recommendations shall be accompanied by the documented file of the case and be submitted through administrative channels to the Director, Office of Procurement and Materiel Management, OS-OAȘAM, for a determination of suspension.

§ 3-1.605-4 Notice of suspension.

The Director, Office of Procurement and Materiel Management, OS-OASAM, or his designee, is responsible for notifying bidders of suspensions in accordance with the provisions of FPR 11.605-4.

§ 3-1.606 Departmental procedure.

The Director, Office of Procurement and Materiel Management, OS-OASAM, is responsible for complying with the provisions of FPR 1-1.606.

Subpart 3-1.7-Small Business Concerns

SOURCE: § 3-1.704 to 3-1.708-3 appear at 39 FR 22265, June 21, 1974, unless otherwise noted.

§ 3-1.704 Agency program direction and operation.

§ 3-1.704-1 HEW headquarters.

The Office of Grants and Procurement Management, OASAM, is responsible for the general supervision of the HEW small business program. Within the Office of Grants and Procurement Man

agement (OGPM), the Director of Business Affairs is responsible for developing and managing the HEW small business program, advising the Deputy Assistant Secretary for Grants and Procurement Management and other HEW officials on small business programs,1 and representing HEW before other Government agencies on matters primarily affecting small business.

[39 FR 22265, June 21, 1974; 39 FR 24010, June 28, 1974]

§ 3-1.704-2 Other procuring activities. The head of the procuring activity (see § 3-75.101) or his designee shall appoint a qualified individual as a small business specialist, directly responsible to him, to serve as small business coordinator for the activity to provide a central point of contact to which small business concerns may direct inquiries concerning participation in the procurement program and small business matters. As deemed necessary, additional small business specialist shall be appointed in principal procurement offices. The principal small business specialist, through the appointing authority, shall be directly responsible to the Director of Business Affairs (OGPM) for policies, technical guidance and assistance and in the resolution of complex matters involving higher echelons and other Government agencies. The small business specialist shall also perform such other functions as he is specifically directed to perform by this Subpart 3-1.7 and any additional functions which the head of the procuring activity may prescribe for the purpose of implementing the small business program. A copy of each appointment and termination of appointment of small business specialists shall be forwarded to the Director of Business Affairs, OGPM.

§ 3-1.704-3 Small business specialists.

The small business specialist appointed pursuant to § 3-1.704-2 shall perform the following duties as determined appropriate by the head of the procuring activity or his designee:

(a) Maintain a program designed to locate capable small business sources for current and future procurements, through SBA or other methods.

1 The Director of Business Affairs is not responsible for matters pertaining to the minority business programs of the Department.

(b) Coordinate inquiries and requests for advice from small business concerns on procurement matters.

(c) Prior to issuance of solicitations (or contract modifications for additional supplies or services) in excess of $2,500, determine that small business concerns will receive adequate consideration including initiation of set-asides (see

§ 1-1.706). This determination may be made jointly with the contracting officer or may be in form of a recommendation to him. Disagreements between the small business specialist and the contracting officer on proposed set-aside actions shall be resolved by the head of the procuring activity or his designee, whose decision shall be final except in those cases where an SBA representative intervenes as an interested party (see §§ 1-1.706-2 and 3-1.706-2).

(d) Review procurement programs for possible breakout of items suitable for procurement from small business

concerns.

(e) Advise small business concerns with respect to the financial assistance available under existing law and regulations and assist such concerns in applying for financial assistance, assuring that requests by small business concerns for proper assistance are not treated as a handicap in securing the award of contracts.

(f) Participate in determinations concerning responsibility of a prospective contractor (see § 1-1.310) whenever small business concerns are involved and shall provide advice to the contracting officer concerning responsibility determinations of small business concerns.

(g) Participate in the evaluation of a prime contractor's subcontracting program (see § 3-1.710).

(h) Assure that participation of small business concerns is accurately reported (see § 3-1.709).

(i) Make available to SBA copies of solicitations when so requested.

(j) Act as liaison between the contracting officer and SBA field offices and representatives in connection with setasides, certificates of competency, and other matters in which the small business program may be involved. Procurements estimated to cost $100,000, or more, in which certificates of competency are requested, shall be reported to the Director of Business Affairs, OGPM. The report shall contain a description of the requirement, a list of the bidders or proposers, and the contract prices speci

fied in the bids or proposals submitted and the reason for the proposed rejection of an otherwise acceptable small business bid or proposal. Pertinent dates such as the required date for the completion of the procurement, the date of the request for the certificate of competency, etc., shall also be furnished.

(k) In cooperation with the contracting officer and technical personnel, seek and develop information on the technical competence of small business concerns for research and development contracts. Regularly bring to the attention of the contracting officers and technical personnel descriptive data, brochures, and other information as to small business concerns that are apparently competent to perform research and development work in fields which the operating agency is interested in.

§ 3-1.706-2 Review of SBA set-aside proposals.

(a) (1) The recommendation of the small business specialist that an individual procurement or class of procurements, or portion thereof, be set aside, shall be in writing, setting forth the rationale therefor. Upon receipt of such recommendation, the contracting officer shall promptly (i) concur in the recommendation, or (ii) disapprove, stating in writing his reasons for disapproval. If the contracting officer disapproves the recommendation of the small business specialist, the case shall be promptly referred to the SBA representative (if one is assigned and available) for his review. The SBA representative will either con

cur in the decision of the contracting officer or appeal the case to the head of the procuring activity (see § 1-1.706-2 (a)). No further appeal action will be taken by the small business specialist. If an SBA representative is not assigned or available, and the contracting officer notifies the small business specialist of his disagreement, the small business specialist may appeal, in writing, to the head of the procuring activity for decision. A memorandum of the decision of the head of the procuring activity shall be placed in the contract file. After receipt of a decision of the head of the procuring activity, which shall be final, and if the decision approves the action. of the contracting officer, the small business specialist shall forward for information and management purposes complete documentation of the case to the Director of Business Affairs, OGPM. Documentation transmitted shall include as a minimum, (i) a copy of the IFB or RFP, (ii) a list of sources solicited, indicating if the invites is small or large business by SBA definition, (iii) copies of the reasons for or against set-aside submitted by the small business specialist and the contracting officer, (iv) a copy of the head of the procuring activity's decision, and (v) a complete abstract of bids or proposals received indicating the successful bidder together with any other material considered by the head of the procuring activity in arriving at his decision. The small business specialist's transmittal letter shall contain an affirmative statement that the enclosures constitute the complete file reviewed and considered by the head of the procuring activity in making his decision.

§ 3-1.706-3 Withdrawal or modification of set-asides.

(a) [Reserved]

(b) Concurrent with notification to the SBA representative or liaison, telephonic notification regarding all setaside withdrawals will be furnished to the Director of Business Affairs in the Office of Grants and Procurement Management, OASAM.

§ 3-1.706-50 Small Business class setaside for construction, repair, and alteration work.

A class set-aside for small business is considered to have been made for each proposed procurement for construction, repair, and alteration work in an estimated amount ranging from $2,500 to