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Tuesday, February 8, 1949
400.302-3 Small business concerns.
It shall be the policy of each Department to place with small business concerns herein considered to be any concern which employs fewer than 500 persons a fair proportion of the total procurement of supplies and services for that Depart ment. As a means of carrying out this policy, and when not clearly to the dis advantage of the Department, the pro curement of supplies or services shall be divided into such reasonably small lots as will enable and encourage small business concerns to make bids or quotations on such supplies or services or on portions thereof. Each Department shall main tain a record of the total value of all con tracts placed by it during each fiscal year with small business concerns, and shall prepare an annual report thereon, as of the end of each fiscal year and in the form and manner to be prescribed by the Department, to be submitted to the Mu nitions Board in the National Military Establishment for the preparation of a combined Armed Services report to be submitted to the President. To this end, each Department shall, in soliciting com petitive proposals, request any necessary information as to the size of each busi ness concern submitting a proposal.
400.302r 4 Foreign purchases. For eign purchases shall be made in accord ance with the provisions of Part 405 of this subchapter1 and upon compliance with any other applicable provisions of this subchapter.
400.303 Ineligible contractors and disqualified bidders. In accordance with its own procurement procedures, each Department shall maintain, and make available to all procurring activities of that Department, a current list of ineligi ble contractors and disqualified bidders, which list shall a comprise the follow ing different groups of persons and firms, b indicate the reason for placing each person or firm on such list, and c in dicate the extent to which each procur ing activity is restricted in its dealings with any person or.firm on such list:
1 Persons and firms listed by the Comptroller General in accordance with the provisions of section 3 of the WalshHealey Public Contracts Act Act of June 30,1936; 41 U. S. C. 35 which have been found by the Secretary of Labor to have violated any of the agreements or repre sentations required by that act.
2 Persons and firms listed by the Department of Labor which have been held ineligible to be awarded contracts subject to the Walsh-Healey Public Contracts Act that is, any contract for supplies in an amount exceeding $10,000
for the reason th at they do not qualify as manufacturers or regular dealers within the meaning of section 1 a of said act.
3 Persons and firms listed by the Comptroller General in accordance with the provisions of section 3 of the Davis Bacon Act act of March 3, 1931; 40
iU. S. C. 276a found by the Comptroller General to have violated said act.
4 Contractors who have been dis qualified or declared ineligible in accordhce with procedures prescribed by each jrespective Department.
1 To be promulgated at a laer date.

525

FEDERAL REGISTER

400.303-1 Additions to and removals from the list of ineligible contractors and disqualified bidders. The names of contractors or bidders shall be placed on or removed from a Departments list of ineligible contractors and disqualified bidders in accordance with procedures prescribed by that Department.
400.303-2 Exchange of lists. Each Department shall forward a copy of its list to the other Departments, and shall keep the ofher Departments advised of changes therein.
400.304 Types of contracts. Only the fixed-price or lump-sum type of con tract shall be used for procurement by formal advertising. For procurement by negotiation, it shall be the general practice for the fixed-price type of con tract to be used with or without pro vision for price revision, although under such method of procurement it shall be permissible to use any other method of contracting which complies with the ap plicable provisions of Subpart D of Part 402 of this subchapter.
400.305 Specifications. There shall be one system of military specifications to be used by all Departments in accord ance with policies and procedures to be established by the Munitions Board.
Existing or new specifications, and amendments thereto, may be used until superseded or revised. Applicable Fed eral Specifications, as prepared by the Director of the Bureau of Federal Sup ply, Treasury Department, are acceptable for use. If for administrative reasons an applicable Federal specification cannot be used to meet the particular or essen tial needs of a Department, purchase specifications of that Department may then be used: Provided, That such spec ifications shall include in substance all applicable provisions of the related Fed eral specification, and a report showing the need for the use of such purchase specifications whenever the purchase exceeds $1,000 and whenever there is in existence an applicable Federal Specifi cation shall be made to the Director of the Bureau of Federal Supply, which re port shall suffice for all subsequent pur chases of a similar nature.
SUBPART D PROCUREMENT RESPONSIBILITY
AND AUTHORITY

400.400 Scope of subpart. This sub part deals with the procurement respon sibility and authority of a the head of each procuring activity, and b Con tracting Officers; and imposes limitations upon the authority to enter into con tracts.
400.401 Responsibility of each procuring activity. Except as otherwise pre scribed by procedures of each respective Department, the head of each procuring activity, as now or hereafter established, is responsible for the procurement of sup plies and services under or assigned to the procurement cognizance of his activ ity. The head of each procuring activity is authorized, within limits imposed by his Department, to designate such per son or persons as he may select as Con tracting Officers, within the meaning of that term as used throughout this sub chapter.

400.402 General authority of con tracting officers. In accordance with the provisions of 400.401, and sub ject to the requirements prescribed in 400.403, 400.404, and 400.405, any Contracting Officer is hereby authorized to enter into contracts for supplies or services, in accordance with procedures prescribed by the Department concerned, on behalf of the Government and in the name of the United States of America, whether by formal advertising or by ne gotiation or by coordinated or interde partmental procurement as provided herein.
400.403 Requirements to be met be fore entering into contracts. Irrespec tive of whether procurement is to be effected by formal advertising or by ne gotiation, no contract shall be entered into unless:
a All applicable requirements of law, of this subchapter, and of procedures prescribed by each respective Depart ment have been met; and b Such business clearance or ap proval as is prescribed by applicable De partment procedures has been obtained.
400.404 Special requirements to be met before entering into negotiated con tracts. In addition to the requirements set forth in 400.403, no contract shall be entered into as a result of negotiation until such determinations and findings as may be required with respect to the circumstances justifying negotiation, and with respect to the use of a special method of contracting have been made by the persons and in the manner pre scribed in Subparts C and D of Part 402.
P art 4

401P rocurement 4

by
F ormal
A dvertising
Sec.
401.000

Scope of part.

SUBPART A TJSE OF FORMAL ADVERTISING

401.101
401.102
401.103

Meaning of formal advertising.
Use of formal advertising.
General requirements for formal advertising.

SUBPART B SOLICITATION OF BIDS

401.200
401.201
401.202
401.202-1
401.202-2
401.202-3
401.202-4
401.203

Scope of subpart.
Preparation of forms.
Methods of soliciting bids.
Mailing or delivering to prospec tive bidders.
Displaying in public place.
Publishing in trade journals.
Publishing in newspapers.
Office of permanent record.

SUBPART CSUBMISSION OF BIDS

401.301
401.302
401.303

Method of submission.
Time of submission.
Modification or withdrawal bids.

of
SUBPART D----OPENING OF BIDS AND AWARD OF
CONTRACT

401.400
401.401
401.402
401.403
401.404
401.405
401.405-1
401.405-2

Scope of subpart.
Opening of bids.
Recording of bids.
Rejection of bids.
Minor inform alities or irregulari ties in bids.
Mistakes in bids.
Obvious or apparent m istakes of a clerical nature.
Mistakes other than obvious or apparent mistakes of a clerical nature.