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N A L

REGISTER

FEDERAL
VOLUME 5

.

934

NUMBER 34

Washington, Saturday, February 17, 1940
Rules, Regulations, Orders TITLE 10ARMY: WAR DEPARTMENT
CHAPTER VIIIPROCUREMENT AND
DISPOSAL OP EQUIPMENT AND
SUPPLIES
P art 81P rocurement of M ilitary S u p
plies and
A nimals 1

CONTRACTS, FORMAL AND INFORMAL

81.14 Indefinite liability and negli gence. No officer or agent of the Govern ment is authorized to enter into a con tract whereby the United States is made to assume liability in any amount for damage or injury to persons or property that may result during the progress of the work, and such provision in a con tract is null and void, the contracting officer having exceeded his authority in entering into such agreement. The United States is not responsible for the negligence of its officers, employees, or agents, and such liability cannot be im posed upon it by an attempt on the part of a contracting officer to make it a part of the consideration of a contract. See 8 Comp. Gen. 647; 16 id. 803. R.S.
3732; 41 U.S.C. 11 Par. 3b, A.R. 5-200, Jan. 2, 19401
81.15 F o r m s of agreement. All transactions which involve the expendi ture of funds for the procurement of supplies, as defined in A.R. 5-100 see sections 81.1 to 81.9 incl., must be evi denced by a written record as prescribed in paragraphs a and b below.
a Formal contracts. Transactions will be evidenced by formal contracts 1 When the amount involved is more than $25,000.
2 When the amount involved is more than $500 and the delivery or perform ance time is more than 60 days.
3 When otherwise required by law.
b Informal contracts1 Written bid and acceptance. Transactions fall ing in the categories below need not be evidenced by a formal contract, but a 1Section 81.19a is added and sections 81.14
to 81.20 inclusive are superseded.

CONTENTS
complete written agreement, comprising a bid, or, if authorized by A.R. 5-240 see RULES, REGULATIONS, ORDERS
sections 81.32 and 81.33, a written in formal quotation, signed by the contrac T itle 10Arm y : W ar D epart ment :
PaSe tor and an acceptance signed by the con Procurement and disposal of tracting officer, is required: i When the equipment and supplies:
amount involved exceeds $500, does not Contracts, formal and in exceed $25,000, and delivery or perform 701
formal _______________
ance time does not exceed 60 days.
ii When the amount involved doesT itle 14Civil Aviation :
Civil Aeronautics Authority:
not exceed $500 and more than one pay Acrobatics, revision of term 704
ment is involved.
T itle 16 C ommercial P ractices:
2 Oral or written quotation and writ Federal Trade Commission:
ten acceptance. Open-market purchases Milton S. Kronheim & Son, authorized and made in accordance with Inc., et al., cease and de AR 5-240, which do not exceed $500, sist order_____________
705
which are based on an oral quotation, T itle 26I nternal R evenue :
and which involve only one payment, do Bureau of Internal Revenue:
not require a written agreement, but a Strip stamps, mutilated or written acceptance signed by the pur missing, regulations__ _ 707
chasing officer is required. Where such T it l e .29L abor:
purchases are based on a written quota Childrens Bureau:
tion, the form of the agreement will be as State certificates, acceptance, prescribed in subparagraph 1 above;
708
regulations amended___
that is, the agreement will consist of the T itle 33
N avigation and N avi written quotation and the written ac gable W aters:
ceptance. See MS. Comp. Gen. A-14836, Corps of Engineers, War Depart A-28906, April 28, 1938. R.S. 3744;
ment:
sec. 1, 40 Stat. 198; 41 U.S.C. 16; 45 Stat.
Hillsboro River, Fla., bridge 985; 46 Stat. 796; 5 U.S.C. 219 Par. 5, regulations------------------ 708
A.R. 5-200, Jan. 2, 19401
NOTICES
81.16 Use of standard c o n t r a c t formsa Conditions to be included. Department of Labor:
Division of Public Contracts:
Prescribed forms for invitations for bids Blueprint Paper Coating In
either carry within themselves the con dustry, notice__________ 708
ditions of the subsequent contract, as in the case of Standard Form No. 33, or refer to a standard form of contract con taining the conditions, which may be of a formal contract, the following will inspected by the bidder before submitting be shown:
his bid. If no special conditions have 1 In a contract with an individual, been added to an invitation for bids, it the name of the individual.
follows that the standard conditions on 2 In a contract with an individual the contract forms will govern the con trading as a firm, the name of the in tract. If, however, because of paragraph dividual followed by the words an in a 9, section 81.10, War Department dividual trading a s ------------------------Procurement Circulars, or other com 3 In a contract with a partnership petent instructions, it has become neces the names of all the partners with the sary or desirable to add special conditions statement th at they are partners com in the invitation for bids, the resulting posing a firm, which will be named.
4 In a contract with a corporation, contract must incorporate or refer to the name of the corporation.
those special conditions.
b Name of contractor, in filling in c Liquidated damages1 E f f e c t the name of the contractor in the body of this provision. The reason for put701