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Thursday, August 8, 1957
CODIFICATION GUIDE Con.

FEDERAL REGISTER
Air Force, the Air Matériel Command.
It also includes the Military Medical Sup ply Agency, the Military Petroleum Sup ply Agency, and any other procuring ac tivity hereafter established. The number and designation of particular procuring activities of any Department may be changed by directive of the Secretary of that Department.
1.201-4 Head of a procuring activity.
The term Head of a Procuring Activity includes, for the Army, the chiefs of the technical services, the continental army commanders, the Chief of the National Guard Bureau, the Commanding Gen eral of the Military District of Washing ton, and the commanding generals of the major oversea commands; for the Navy, the Chief of each Bureau, the Chief of Naval Research, the Aviation Supply Officer, the Commander, Military Sea Transportation Service, and the Commandant of the United States Marine Corps; for the Air Force, the Commanding General of the Air Matériel Command. It also includes the Execu tive Director of the Military Medical Supply Agency, the Executive Director of the Military Petroleum Supply Agency, and the head of any other procuring activity hereafter established.
The number and designation of Heads of Procuring Activities within any Depart ment may be changed,by directive of the Secretary of that Department.

Tille 32 Continued Pas Chapter IContinued Part 5_____________ _________ 6324
Part 7 2 documents ____ 6325, 6334
Part 9 2 documents____ 6325,6335
Part 11_____
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Part 12____________
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Part 13____________
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Part 16______________________ 6334
Part 56______ L______________ 6337
Title 39
Chapter I:
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Part 123_____ __________ ___ 6338
Title 43
Chapter I :
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Part 181____ _______
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Title 47
Chapter I:
Part 2_____________ _______ 6342
Part 3 3 documents _ 6342, 6344, 6345
Proposed rules____ _____ ___ 6363
Part 4 proposed__ _________ 6364
Part 7_____________
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Part 8 2documents_____ 6342,6346
Part 16________________
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Part 18___________
Part 19_____________
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Title 49
Chapter I:
Part 72 proposed __________ 6349
Part 73 proposed_______ 1___ 6349
SUBPART C GENERAL POLICIES
Part 74 proposed___________ 6352
1.
Section 1.300 has been revised by Part 77 proposed__________
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Part 78 proposed___!________ 6353 adding paragraphs g, h and i.
Section 1.300, as revised, reads as follows:
1.300 Scope of subpart. This sub of adherence to prescribed policy. Basic part sets forth general policies with re to the preparation of all these regular spect to a methods of procurement, and special reports, so far as they affect b sources of supply including govern individual contracting officers, is DD mental and foreign sources, c types Form 350 Individual Procurement Ac of contracts, d specifications, e tion Report 16.807. Each item of transportation costs, f responsible this form enters into the preparation of prospective contractors, fg priorities, reports furnished the President, the allocations, and allotments, h prefer Congress, and other Federal agencies, ence for United States-flag privately and is used for management purposes owned ocean carriers, and i procure within the Department of Defense. The ment by barter.
accuracy, completeness, and timeliness of 2. Section 1.302-3 has been revised by these reports are fully dependent on the careful preparation and prompt submis the deletion of the phrase in parentheses in the first sentence; the deletion of the sion of DD Form 350.
annual report requirement, and insertion ST7BPART B----DEFINITION OF TERMS .
of references to 1.110 and 16.807 re In further implementation of the garding report requirements. Section Single Manager Plans, the Military Sup 1.302-3, as revised, reads as follows:
ply Agencies for Petroleum 21 F. R.
1.302-3 Small business concerns.
6577 and Medical Supplies 21 F. R. It shall be the policy of each Department 4362 have each been designated by the to place with small business concerns a Department of the Navy as Procuring Ac fair proportion of the total procurement tivities and the Executive Directors have of supplies and services for that Depart been designated as Heads of Procuring ment. As a means of carrying out this Activities within the meaning of 1.201- policy, and when not clearly to the disad 3 and 1.2ibl-4, which have been amended vantage of the "Department, the procure accordingly. Sections 1.201-3 and 1.201- ment of supplies or services shall be 4, as revised, read as follows:
divided into such reasonably small lots 1.201-3 Procuring activity. The as will enable and encourage small busi term procuring activity includes, for ness concerns to make bids or proposals the Army, the technical services, the con on such supplies or services or on portions tinental armies, the National Guard Bu thereof. Each Department is required reau, the Military District of Washing to maintain a record of the total value of ton, and the major oversea commands; all contracts placed by it during each for the Navy, each Bureau of the Navy fiscal year with small business concerns.
Department, the Office of Naval Re These records, and reports based thereon, search, the Aviation Supply Office, the are maintained through the Department Military Sea Transportation Service and of Defense procurement reporting system, the United States Marine Corps; for the described in 1.110 and 16.807 of this
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subchapter. To this end, each Depart ment shall, in soliciting bids or proposals, request any information needed to de termine whether the bidder or offeror is a small business concern.
3.
Section 1.304 Types of contracts has been deleted, and 1.304 is now Reserved.
P art 2P rocurement by F ormal Advertising SUBPART A USE OF FORMAL ADVERTISING

1. A new 2.104 has been added to this Subpart A, as follows:
2.104 Types of contracts. Custom arily, contracts for supplies or services awarded after formal advertising will be of the firm fixed-price type. However, at times, some flexibility will be necessary and feasible; thus, alternative types of contracts are described below.
2.104-1 Firm fixed-price contracts.
See 3.403-1 of this subchapter.
2.104-2 Fixed-price contracts with escalation. See 3.403-2 of this sub chapter. Where escalation is desirable in connection with a formally-advertised procurement, a fixed-price contract with escalation may be entered into if a the applicable escalation clause, with an es calation ceiling identical for all bidders, is set forth in the invitation for bids, and b each bidder is afforded an equal op portunity to bid on the escalation basis.
However, the absence of an escalation clause in the invitation for bids will not preclude consideration of a bid providing for escalation with a ceiling; provided, in evaluating-such a bid, the maximum escalation is added to the bid price.
2.104-3 Indefinite delivery type con tracts a Definite quantity contract.
See 3.405-5 a, of this subchapter;
however, price redetermination will not be used.
b Requirements c o n t r a c t . See 3.405-5 b of this subchapter; how ever, price redetermination will not be used.
c Indefinite quantity contract. See 3.405-5 c of this subchapter; how ever, price redetermination will not be used.
SUBPART B SOLICITATION OF BIDS

2. Section 2.201 has been amended as follows; Paragraph c 14 has been revised, and a new 15 has been added.
Section 2.201, as revised, reads as follows:
2.201 Preparation of forms. The form or forms to be used in the solicita tion of bids see Part l, Subpart A, of this subchapter should contain substan tially the following information and any other information required by procedures prescribed by each respective Depart ment.
a Invitation for bids. 1 Invitation number.
2 Name and address of issuing ac tivity.
3 Date of issuance.
4 Date, hour, and place of opening.
, b Bid. Bid blanks are to be filled in by the bidder, and each bid is to be exe cuted in accordance with instructions to bidders.
c Schedule. 1 Number of pages.