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and manner to be prescribed by each re spective Department:
a In accordance with the provisions of 402.302-3 of this subchapter, an an nual report of the total value of all con tracts placed by each Department during each fiscal year with small business con cerns;
b In accordance with the provisions of 402.103 of this subchapter, an annual report of the total value of all Contracts negotiated by each Department during each fiscal year under each of the cirsumstances permitting negotiation enu merated in Subpart B of Part 402 of this1
subchapter;
c In accordance with the provisions of 402.211-4 of this subchapter, a semi annual report of all research and devel opment contracts negotiated by each De partment; and d In accordance with the provisions of 402.216-4 of this subchapter, a semi annual report of all contracts negotiated by each Department in the interest of national defense or industrial mobiliza tion.
400.111 Reports cf suspected crim inal conduct. Reports of possible viola tions of Federal criminal statutes relat ing to procurement shall be made by each respective Department in accord ance with procedures prescribed by that Department.
SUBPART B DEFINITIONS OF TERMS

400.201 D e f i n i t i o n s . As used throughout this subchapter, the following terms shall have the meanings set forth below:
400.201-1 Department. The term Department includes the Department of the Army, the Department of the Navy, and the Department of the Air Force.
400.201-2 Secretary. T h e t e r m Secretary means the Secretary, the Under Secretary, or any Assistant Sec retary of any Department.
400.201-3 Procuring activity.. The term procuring activity includes, for the Army, the technical services, the army areas, the National Guard Bureau, the Military District of Washington, and the oversea commands; for the Navy, each Bureau of the Navy Department, the Office of Naval Research, the Avia tion Supply Office, and the United States Marine Corps; for the Air Force, the Air Matériel Command, and the oversea commands It also includes the Armed Services Medical Procurement Agency, the Armed Services Petroleum Purchas ing Agency, and any other procuring ac tivity hereafter established. The num ber and designation of particular pro curing activities of any Department may be changed by directive of the Secretary of that Department.
400.201-4 Head of a procuring ac tivity. The term head of a procuring activity includes, for the Army, the Chiefs of the technical services, the Army Commanders, the Chief of the Na tional Guard Bureau, the Commanding General of the Military District of Wash ington, and the Commanding Generals of the Oversea Commands; for the Navy,
RULES AND REGULATIONS

the Chief of each Bureau, the Chief of Naval Research, the Aviation Supply Of ficer, and the Commandant of the United States Marine Corps; for the Air Force, the Commanding General of the Air Ma tériel Command, and the Commanding Generals of the Oversea Commands. It also includes the Commanding Officer of the Armed Services Medical Procure ment Agency, the Executive Officer of the Armed Services Petroleum Purchas ing 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.
400.201-5 Contracting officer. The term Contracting Officer means any officer or civilian employee of any De partment who, in accordance with pro cedures prescribed by each respective Department, has been or shall be desig nated a Contracting Officer and whose designation has not been terminated or revoked with the authority to enter into and administer contracts and make de terminations and findings with respect thereto, or any part of such authority, as hereinafter provided.
400.201-6 Contracts. T h e term contracts means all types of agree ments and orders for the procurement of supplies or services. It includes, by way of description and without limitation, awards and preliminary notices of award; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type;
contracts providing for the issuance of job orders, task orders or task letters thereunder; letter contracts, letters of intent, and purchase orders. It also in cludes amendments, modifications, and supplemental agreements with respect to any of the foregoing.
400.201-7 Procurement. The term "procurement includes, by way of de scription and without limitation, pur chasing, renting, leasing, or otherwise obtaining supplies or services.
400.201-8 Supplies. The term sup plies means all property except land or interests in land. It includes, by way of description and without limitation, pub lic works, buildings, cilities; ships, floating equipment, and vessels of every character, type and description, together with parts and accessories thereto; air craft and aircraft parts, accessories, and equipment: machine tools; and the alter ation or installation of any of the fore going.
400.201-9 Sources of supplies. The term sources of supplies shall include only i manufacturers or A regular dealer shall be deemed to be any one of the following:
a A person or firm regularly carrying a stock of the supplies being procured, and having a warehouse or place of b u s i ness from which sales are made;
b A bona fide manufacturers agent regularly employed on a salary or com mission basis by one or more manufac turers of the supplies being procured, pro vided such agent has authority to bind the manufacturer, and provided further
that any procurement of supplies from or through such agent results in a contract issued in the name of the principal;
c In the case of supplies of particular kinds lumber and timber products, coal, machine tools, or hay, grain, feed, and straw a person or firm satisfying the requirements of 41 CFR 201.101 b Article 101 b of the regulations pre scribed by the Secretary of Labor under the Walsh-Healey Public Contracts Act act of June 30,1936; 41 U. S. C. 35.
SUBPART C BASIC POLICIES

400.300 Scope of subpart. This sub part sets forth the general procurement policies of the Departments with respect to a methods of procurement, b sources of supply including govern mental and foreign purchases, c in eligible contractors and disqualified bid ders, d types of contracts, and e specifications.
400.301 Methods of procurement. It shall be the objective of each Depart ment to use that method of procurement which will be most advantageous to the Governmentprice, quality, and other factors considered. The two principal methods of procurement are by means of formal advertising and by means of ne gotiation. Procurement shall generally be effected by advertising for bids and thereafter awarding a contract to the lowest responsible bidder, all-in accord ance with the detailed requirements and procedures set forth in Part 401 of this subchapter. Procurement may be ef fected by negotiation, however, when au thorized by and conducted in accordance with the detailed requirements and pro cedures set forth in Part 402 of this sub chapter. - Procurement may also be ef fected, as provided in Parts 403 and 404
of this subchapter,1 by such means as a coordinated procurement or b in terdepartmental procurement.
400.302 Sources of supplies.
400.302-1 Government agencies. To the extent possible, supplies shall be ob tained from surplus property in the hands of disposal agencies, or from surplus or excess stocks in the hands of any Gov ernment agency. Interpartmental pur chases shall be made in accordance with the provisions of Part 404 of this sub chapter.
400.302-2 Sources outside the Gov ernment. Irrespective of whether the procurement of supplies or services from sources outside the Government is to be effected by formal advertising or by ne gotiation, competitive proposals bids"
in the case of procurement by formal advertising, quotations in the case of procurement by negotiation shall be solicited from all such qualified sources of supplies or services as are deemed nec essary by the Contracting Officer to as sure such full and fr.ee competition as is consistent with the procurement of types of supplies and services necessary to meet the requirements of the Department con cerned, and thereby to obtain for the Government the most advantageous con tractprice, quality, and other factors considered.