[Code of Federal Regulations]
[Title 32, Volume 4]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR644.49]

[Page 142-143]
 
                       TITLE 32--NATIONAL DEFENSE
 
              CHAPTER V--DEPARTMENT OF THE ARMY (CONTINUED)
 
PART 644--REAL ESTATE HANDBOOK--Table of Contents
 
                          Subpart B--Appraisal
 
Sec. 644.49  Contracts.

    (a) Appraisal Reports. (1) Within their contract authority, Division 
and District Engineers may contract with recognized appraisal firms, 
corporations and individuals for necessary appraisal reports on a lump 
sum basis. Following the award of any appraisal contract in excess of 
$5,000 a copy of such contract will be forwarded by the issuing office 
direct to HQDA (DAEN-REE) WASH DC 20314, immediately upon execution.
    (2) Requests from Division and District Engineers to the Chief of 
Engineers for names of appraisers qualified to make particularly complex 
appraisals are invited.
    (3) Division and District Engineers will develop and maintain 
current lists of qualified appraisal firms, corporations and 
individuals, from which contractor selection will be made. These lists 
should be appropriately grouped or rated in accordance with special 
qualifications and experience in connection with various and specific 
types of appraisal problems.
    (4) Prior to receipt of proposals and negotiations with appraisers, 
a target fee (Government estimate) will be developed with due 
consideration to the relative skill and ability required in solving the 
appraisal problem and the appraiser's time and expense required for 
preparing the desired reports.
    (5) In the negotiation of appraisal contracts the following items 
are to be considered:
    (i) The appraisal of real estate is a recognized profession governed 
by a code of ethics prohibiting competition in obtaining appraisal 
assignments. All negotiations for proposals will be conducted on an 
individual basis, with adequately qualified appraisal firms, 
corporations or individuals competent to deliver the required appraisal 
reports on schedule.
    (ii) In view of the technical nature of appraisals, Division and 
District Engineers shall give consideration to designating qualified 
member(s) of their real estate staffs as contracting officer's 
representative(s) with full responsibility for all cost estimates 
involved in contracting for appraisal services and reports. Such 
contracting officer's representative(s) may also, in the designation of 
the contracting officer, be utilized to conduct negotiations with the 
prospective contractors, serve as ordering officer pursuant to the 
contracts, certify invoices and act in any other capacity within their 
authority as contracting officer's representative(s).

[[Page 143]]

    (6) A copy of the narrative, detailed record of contract 
negotiations will be forwarded to DAEN-REE, along with the contract as 
specified above.
    (7) In contracting for appraisal reports, contract forms as set 
forth in Armed Services Procurement Regulations (ASPR) (chapter I of 
this title) and ER 1180-1-1 (Engineer Contract Instructions) will be 
used. An outline of the qualifications of the appraiser employed to 
perform the contemplated services shall be included in the contract 
assembly.
    (b) Expert Appraisal Services. Employment of qualified real estate 
appraisers and consultants may be effected utilizing the pertinent 
provisions of ASPR and ER 1180-1-1.
    (c) Obtaining Appraisal Reports by Purchase Order. (1) Division and 
District Engineers are urged to utilize an authorized type of purchase 
order, such as DD Form 1155, in lieu of long-form contract, provided 
that:
    (i) It is in the best interest of the Government, cost wise, not to 
issue the long-form contract.
    (ii) The contractor has performed satisfactorily on at least one 
contract within the prior three fiscal years.
    (iii) The total order, by such purchase orders, from the contractor 
does not exceed $10,000 for the project during the current fiscal year.
    (iv) The order is accompanied by a brief history of negotiation 
signed by both the contractor and the contracting officer's 
representative(s).
    (2) Care should be exercised to insure that the above provisions are 
used only to order supplementary reports, single appraisals, and other 
``one-time'' reports needed.
    (d) Department of Justice Consultation. Authorized local 
representatives of the Department of Justice will be consulted 
concerning the acceptability of the appraiser(s) prior to negotiating 
any appraisal contract covering tracts proposed for acquisition. The 
local representative must also approve the per diem fee to be utilized 
in the appraisal contract. Where agreement cannot be reached between the 
Division or District Engineer and the local representative of the 
Department of Justice as to the selection of the appraiser(s), a 
complete report will be submitted to DAEN-REE, for resolution with the 
Attorney General.
    (e) Interdepartmental Services. Division Engineers are authorized to 
arrange for interdepartmental services of qualified specialists in the 
regular employ of other Government agencies in connection with special 
problems concerning mineral deposits, water rights, timber cruises, etc. 
Division Engineers are further authorized, in their discretion, to 
redelegate this authority or any part thereof to District Engineers.