a particular aspect of the item which may need special protection (e.g., installation, components, accessories, parts, subassemblies and preservation, packaging, and packing, etc.).

(d) Where a warranty clause is used in a supply contract, consideration shall be given to the inclusion of a provision requiring that the warranted items be so marked or that a warranty notice be furnished with the items. The marking or notice need not state the complete warranty; however, a statement noting that a warranty exists, its duration, and whom to notify concerning defects usually will suffice.

(37 FR 22614, Oct. 20, 1972]

§ 5A-1.370-4 Warranty clause for sup ply contracts.

(a) The following sets forth provisions to be used when developing a warranty clause for a specific commodity. These provisions may be modified to accommodate special requirements (but see 5A-1.370-3(a)).

WARRANTY OF SUPPLIES

(a) Notwithstanding inspection and acceptance by the Government of supplies furnished under the contract or any provision of this contract concerning the conclusiveness thereof, the Contractor warrants that for (enter specific warranty period (such as "one (1) year after specified date") or other applicable warranty provision) all supplies furnished under this contract will be free from defects in material or workmanship and will conform with the specifications and all other requirements of this contract. Unless otherwise provided, the warranty period shall begin 60 days after date of shipment.

(b) Unless otherwise provided, this warranty is applicable both within and outside the continental limits of the United States.

(c) Within a reasonable time after discovery of any breach of this warranty, the Contracting Officer or other Government representative shall give written notice to the Contractor and either: (1) Require the prompt correction or replacement of any supplies or part thereof (including preservation, packaging, packing, and marking) that do not conform with the requirements of this contract within the meaning of paragraph (a) of this clause; or (ii) retain such supplies, whereupon the contract price thereof shall be reduced by the Contracting Officer in an amount which is negotiated and agreed upon as being equitable under the circumstances, and the Contractor shall promptly make appropriate repayment.

(d) When return, correction, or replacement is required, the Contracting Oficer or

other Government representative shall return the supplies or part thereof, where feasible, and transportation charges and responsibility for such supplies while in transit shall be borne by the Contractor. However, the Contractor's liability for such transportation charges shall not exceed an amount equal to the cost of transportation by the usual commercial method of shipment between the designated destination point under this contract and the Contractor's plant, and return.

(e) If the Contractor fails or refuses to correct or replace the nonconforming supplies within a period of ten (10) days (or such longer period as the Contracting Officer may authorize in writing) after receipt of notice from the Contracting Officer or other Government representative specifying such failure or refusal, the Contracting Officer may by contract or otherwise correct or replace them with similar supplies and charge to the Contractor the cost occasioned to the Government thereby. In addition, if the Contractor fails to furnish timely disposition instructions, the Contracting Officer may dispose of the nonconforming supplies for the Contractor's account in a reasonable manner, in which case the Government is entitled to reimbursement from the Contractor or from the proceeds for the reasonable expenses of the care and disposition of the nonconforming supplies as well as for excess costs incurred or to be incurred.

(f) Any supplies or parts thereof corrected or furnished in replacement pursuant to this clause shall also be subject to all the provisions of this clause to the same extent as supplies initially delivered.

(g) Failure to agree upon any determination to be made under this clause shall be a dispute concerning a question of fact within the meaning of the "Disputes" clause of this contract.

(h) The word "supplies" as used herein includes related services.

(1) The rights and remedies of the Government provided in this clause are in addition to and do not limit any rights afforded to the Government by any other clause of the contract.

(1) In addition to other marking requirements of this contract, the container of all warranted items shall be clearly marked by the Contractor by affixing a cloth tag or durable label which must set forth the contract number and state; "This item is warranted for days after_------

§ 5A-1.375 Forms for recommending award(s).

(a) GSA Form 1535, Recommendation for Award(s), and GSA Form 1535-A, Recommendation for Award (s)-Continuation Sheet, shall be used to document all proposed awards of more than $10,000 whether resulting from advertised or negotiated procurements. The use of the form for awards of $10,000 or less is at the discretion of the procuring activity. One or more awards may be set forth on each form. All information pertinent to the recommendation shall be furnished on the form. The checklist on the back of the form shall be completed. The forms shall be prepared as instructed in § 5A-16.950-1535-1.

(b) GSA Form 1447, Procurement Case Summary, shall be used to detail the analyses of procurements which require concurrence or approval in accordance with the GSA Delegations of Authority Manual, (ADM P 5450.39A, or FSS P 5450.21).

[41 FR 11023, Mar. 16, 1976]

§ 5A-1.376 Options.

An option clause is a provision in a contract under which, for a specified time, the Government may elect to purchase additional quantities of the supplies or services called for by the contract, or may elect to extend the period of performance of the contract. [36 F.R. 23723, Dec. 14, 1971]

tee that orders will be placed, their improper use could result in prices which are unfair to either the Government or the contractor.

[36 F.R. 23723, Dec. 14, 1971]

§ 5A-1.376-2 Exercise of options.

(a) The exercise of an option by the Government requires the contracting officer's written notification to the contractor within the time period specified in the contract.

(b) Options should be exercised only if it is determined that:

(1) Funds are available;

(2) The requirement covered by the option fulfills an existing need of the Government; and

(3) The exercise of the option is most advantageous to the Government, price and other factors considered.

(c) An "Option to Increase Quantities" clause for use in definite quantity contracts is provided in § 5A-7.103-81.

(d) An "Option to Extend the Term of Contract" clause for use in requirements type contracts is provided in § 5A-7.103-92.

[36 FR 23723, Dec. 14, 1971, as amended at 38 FR 29467, Oct. 25, 1973; 39 FR 16885, May 10, 1974]

Subpart 5A-1.4-Procurement
Responsibility and Authority

§ 5A-1.402 Authority of contracting officers.

(a) Delegations of authority to Federal Supply Service contracting officers are contained in the GSA Delegations of Authority Manual, chapter 7 (ADM P 5450.39).

(b) Contracting officers may enter into, amend, modify, and take other appropriate action with respect to contracts, provided:

(1) The contract is written on a standard or approved contract form;

(2) The contract is authorized by law and complies with the Federal Procurement Regulations and the General Services Procurement Regulations; and

(3) Necessary clearance and approval has been obtained.

139 FR 24362, July 2, 1974]

§ 5A-1.402-70 General responsibility of contracting officers. Contracting officers

shall

exercise

reasonable care, skill, and judgment in all actions.

139 FR 24362, July 2, 1974]

§ 5A-1.402-71 Responsibility for assuring the availability of funds.

(a) GSA revolving funds. Unless otherwise notified, contracting officers may assume that sufficient funds are available for purchases payable from GSA revolving funds upon the receipt of an authenticated requisition citing funds.

(b) GSA funds, other than revolving funds. The receipt of an authenticated requisition shall be considered as evidence that the amount of funds cited is available for purchases payable from GSA funds other than revolving funds. Clearance as to the availability of additional funds shall be obtained from the requisitioning activity prior to issuance of a contract or purchase order when the purchase exceeds (by 10 percent or $50, whichever is greater) the amount cited on the purchase requisition.

(c) On purchases for direct delivery to Federal agencies other than GSA, the receipt of a properly authenticated purchase request shall be considered as sufficient evidence that funds are available. Where, however, the agency's purchase request indicates that a specific dollar amount has been set aside for the procurement, as in the case of a PIO/C from the Agency for International Development, the buying activity shall not exceed the fund limitation except to the extent authorized in supply support agreements. When the funds stated on the purchase request appear to be or are insufficient to cover all applicable costs for the procurement, transportation, export surcharge, and any other pense involved in the delivery of material to designated consignees, additional funds shall be requested from the requiring agency by the activity indicated below:

ex

(1) Requirements submitted by agencies directly to a procurement division in the Central Office (whether the procurement is actually made by the appropriate procurement division in the Central Office or subsequently transmitted, in whole or in part, to one or more regions for procurement) the request for additional funds shall be made by the appropriate Central Office procurement division.

(2) Requirements submitted to a regional procurement division (whether procurement is made by the region, forwarded in whole or in part to another regional procurement division or to a procurement division in the Central Office) the request for additional funds

shall be made by the order processing and control activity in the region initially receiving the requirement.

(d) In requesting additional funds, GSA Form 1774, Request for Additional Funds and/or Information, shall be used where time permits. Where time does not permit, the request may be made by a more expeditious means of communication. GSA Form 1774 may also be used to obtain information concerning specifications, inadequate purchase descriptions, or other data necessary to prepare a solicitation.

139 FR 24362, July 2, 1974, as amended at 40 FR 36011, Oct. 7, 1974]

§ 5A-1.402-72 Aplicable penal stat

utes.

Certain statutes make it a criminal offense for an officer, employee, or agent of the United States to engage in practices or activities which are at variance with the duty which he owes to the United States. Among applicable criminal statutes are:

(a) Acts affecting a personal financial interest (18 U.S.C. 208).

(b) Activities of officers and employees in claims against the Government, and other matters affecting the Government (18 U.S.C. 205).

(c) Compensation to Members of the Congress, officers, and others in matters affecting the Government (18 U.S.C. 203). (d) Fraud in connection with procurements (40 U.S.C. 489 (b)).

[39 FR 24362, July 2, 1974]

§ 5A-1.404 Selection, designation, and termination of designation of contracting officers.

[34 FR. 19504, Dec. 10, 1969] § 5A-1.404-2 Designation.

Contracting officers shall be appointed by the issuance of the appropriate GSA Form 2525A, B, or C, Certificate of Appointment of Contracting Officer. The form shall be signed by the appropriate official (see the following paragraph), and given to the designee for display. GSA Form 2525, Notification of Appointment or Termination of Appointment of Contracting Officer, also signed by the appointing official, shall be forwarded for inclusion in the appointee's personnel record.

(a) Appointing officials for contracting officers of different grades are:

(1) Grades GS-5 through 10, the appropriate Procurement Division Director.

(c) An appointment certificate should be initiated by the immediate supervisor of the nominee and forwarded, through channels, to the appointing official when an employee's eligibility for appointment is established.

[39 FR 24362, July 2, 1974]

§ 5A-1.404-3 Termination of appointment of contracting officer.

(a) Appointments shall be terminated when the contracting officer is reassigned or his employment terminated.

(b) When there is a change in a contracting officer's grade the present appointment shall be terminated and a new Certificate of Appointment of Contracting Officer shall be issued reflecting the new grade and subtitle.

(c) GSA Form 2525, Notification of Appointment or Termination of Appointment of Contracting Officer, shall be prepared in two copies. One copy will be forwarded to the personnel office for inclusion in the employee's personnel record and the second copy will be given to the contracting officer to confirm the termination of the appointment. [39 FR 24363, July 2, 1974]

§ 5A-1.404-70 Contracting officers' representatives.

(a) Appointment. A contracting officer may appoint any Government employee who is qualified to act as his authorized representative. A contracting officer's representative may be designated by name and position title or by position title only. The appointment shall be in writing and shall define the scope and limitations of the representative's authority. The appointment will remain in effect throughout the life of the contract unless revoked. Copies of appointments shall be placed in appropriate contract files. A copy of each appoint

ment, change, or termination shall be furnished to each contractor. This section does not require appointment of individuals for accomplishment of contract administration (e.g., engineering evaluations, testing, quality control, inspection). (Also see § 5A-53.472.)

(b) Authority. A contracting officer's representative may represent the contracting officer with respect to one or more contracts and may take any action which may be taken by the contracting officer, except that the representative may not award or modify a contract. The contracting officer may empower his authorized representative to issue change orders, provided that the orders do not involve changes in unit price, total contract price, quantity, quality, or delivery schedule. Change orders issued by representatives will contain the following statement: "In accepting this change order the contractor agrees that the price and all other terms and conditions of the contract remain unchanged." The contractor will also be instructed not to proceed under the change order until he has accepted the quoted statement, signed it, and returned it to the authorized representative.

(c) Personnel assigned, not appointed, as representatives. A person assigned to and performing duty within a procurement office, under the supervision of a contracting officer, does not require designation as a representative. Persons considered to be subordinate to the contracting officer and who act in his behalf have the inherent authority of the contracting officer. The contracting officer cannot authorize subordinates who are not formally appointed contracting officers (§ 5A-1.404-2) to sign any documents or letters which require the signature of a contracting officer. 139 FR 24363, July 2, 1974]

Subpart 5A-1.5 Contingent Fees § 5A-1.507 Use of Standard Form 119.

Upon receipt of Standard Form 119, the contracting officer shall obtain advice of Counsel as to the legality and general propriety of the relationship disclosed thereon. Also, the contracting officer may request the Office of Investigations to develop further information if the facts available are deemed insufficient for a proper decision. After careful review and evaluation of all the information obtained, the contracting officer shall render a decision in writing which shall be made a part of the contract file. [39 FR 18460, May 28, 1974]

Subpart 5A-1.6-Debarred, Suspended, and Ineligible Bidders SOURCE: 39 FR 18460, May 28, 1974, unless otherwise noted.

§ 5A-1.602 Establishment and maintenance of a list of concerns or individuals debarred, suspended, or declared ineligible.

(a) The Office of Investigations has established and maintains a consolidated list of debarred, suspended, or ineligible concerns and individuals, pursuant to § 1-1.602, designated as the GSA Debarred Bidders List. Its use is mandatory on all GSA procuring activities. That office also is responsible for reproduction and distribution of the GSA Debarred Bidders List.

(b) Entry on the GSA Debarred Bidders List shall be made:

(1) In the case of a GSA administrative debarment or suspension, upon notification of the imposition of debarment or suspension by the Administrator, by & Commissioner, or by a hearing authority; and

(2) In the case of statutory debarments, EEO noncompliance or ineligibility, upon appropriate notification from the Comptroller General, the Secretary of Labor, or the head of the debarring agency.

(c) The GSA Debarred Bidders List is marked "For Official Use Only."

(d) The cause for each entry on the GSA Debarred Bidders List shall be identified in accordance with § 1-1.602. § 5A-1.604-1 Procedural requirements relating to the imposition of debar

ment.

(a) Initiating a debarment action. Administrative debarment will be initiated

by the appropriate Commissioner primarily concerned in accordance with § 1-1.604-1. The notice of proposed debarment shall apprise the concern or individual that if a hearing is desired a request therefor must be made within 20 days following receipt of the notice. The notice shall be sent by registered or certified mail, return receipt requested, to the last known address of the concern or individual. A copy of the notice shall be furnished to the Office of Investigations.

(b) Debarment by other agencies. The basis for each debarment made by another executive agency is reviewed by the Office of Investigations to determine whether similar debarment action should be recommended within GSA. The Office of Investigations shall notify the Commissioner primarily concerned of debarments by another agency and the reasons therefor, who may take similar action to debar. The end of the period of such debarment shall coincide with the original debarment action. GSA debarment action shall not be initiated solely on the basis of a debarment by another agency if the debarment by GSA would not become effective at least 90 days prior to the termination date of the debarment by the other agency. However, in such cases, the Office of Investigations may be requested to include the name of the firm or individual on the Review List of Bidders (see § 5A-1.1205).

(c) Investigations. (1) When a contracting activity suspects the commission of offenses or irregularities which might support debarment or suspension, it shall forward a request for investigation and a statement of pertinent circumstances, to the appropriate Assistant Commissioner, Regional Commissioner, or other equivalent authority, for review and, if appropriate, referral to the Office of Investigations.

(2) The Office of Investigations will investigate the circumstances as expeditiously as possible, and report the results to the service primarily concerned with a recommendation as to whether debarment or suspension should be invoked. All data compiled in support of such reports of investigation shall, upon request, be made available for review by the service primarily concerned.

(d) Hearings. (1) Hearings requested in connection with debarment proceedings shall be conducted before the Administrator or his representative (herein called the hearing authority). An op