[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: 32CFR644.63]

[Page 147-149]
 
                       TITLE 32--NATIONAL DEFENSE
 
              CHAPTER V--DEPARTMENT OF THE ARMY (CONTINUED)
 
PART 644--REAL ESTATE HANDBOOK--Table of Contents
 
                         Subpart C--Acquisition
 
Sec. 644.63  Contracting for title evidence.

    (a) Survey of Area and Source of Title Evidence. Contemporaneously 
with the preparation of the real estate design memorandum, or real 
estate planning report, the Division or District Engineer is requested 
to:
    (1) Give careful consideration to the problems involved to determine 
the most acceptable type of title evidence, its source, availability of 
title plants, costs, and time of procurement, so that the most 
advantageous bid(s) may be received and accepted and the acquisition 
schedule maintained. In considering costs of abstracts of title versus 
certificates of title or title insurance, the workhours involved in the 
examination of abstracts of title by both Corps and Department of 
Justice personnel should be considered.
    (2) Determine the total number of tracks in the project area. In 
major projects, it may be desirable to invite bids for title evidence 
for each county or other specified areas, in addition to the entire 
project, in order to maintain the acquisition schedule.
    (3) Determine the names and addresses of title companies and 
abstractors available to furnish title evidence and whether such 
companies or abstractors

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have been approved by the Attorney General as acceptable companies or 
abstractors. Current information on approved title companies and 
abstractors may be obtained direct from the Land and Natural Resources 
Division, Department of Justice, WASH DC 20530.
    (b) Selection Procedure. (1) Normally selection of persons or firms 
to perform title evidence services will be based upon formal advertising 
in accordance with the Armed Services Procurement Regulation (ASPR) 
(chapter I of this title).
    (2) In those States where the furnishing of title evidence is held 
to constitute the practice of law and the State canons of legal ethics 
prohibit attorneys from engaging in competitive bidding for such 
services, contracts for title evidence services must necessarily be 
negotiated. In such cases, negotiations shall be conducted with 
attorneys or law firms duly authorized to practice law in the 
jurisdiction within which the real property is located. Division and 
District Engineers shall notify HQDA (DAEN-REA-P) WASH DC 20314 before 
negotiating for title evidence, and submit the list of attorneys with 
whom negotiations may be conducted. Selections shall be in accordance 
with the procedures set forth below:
    (i) A contract for title services shall be based upon, but not 
limited to, consideration of the following professional qualifications 
necessary for the satisfactory performance of the services required:
    (A) Professionally trained for type of work;
    (B) Specialized experience in the type of work required;
    (C) Capacity to accomplish the work in the required time;
    (D) Past experience, if any, with respect to performance on Corps of 
Engineers contracts;
    (E) Location in the general geographical area of the project to 
which the services relate: Provided, That there is an appropriate number 
of qualified attorneys or law firms therein for consideration; and
    (F) Volume of work previously awarded, with the objective of 
effecting an equitable distribution of title evidence contracts among 
qualified attorneys and law firms.
    (ii) A preselection list of qualified attorneys and law firms shall 
be prepared by a preselection board from data submitted by interested 
attorneys and law firms and from other pertinent information which may 
be available. The list shall be approved by the District Engineer or his 
designee.
    (iii) A selection board shall review the qualifications of each of 
the attorneys or law firms on the preselection list, in accordance with 
the procedure established in paragraph (b)(2)(i) of this section and 
shall recommend to the District Engineer, in order of preference, a 
minimum of three for approval for contract negotiations.
    (iv) Upon approval of the selections by the District Engineer and 
such approval as may be required by paragraph (b)(2)(vi) of this 
section, negotiations shall be initiated with the first selected 
attorney or law firm. If the negotiations result in a price which 
exceeds the Government estimate, revised to correct errors of fact or 
judgment, if any, by more than ten percent, the Contracting Officer 
shall terminate the negotiations and request a proposal from the 
attorney or law firm next in order of preference.
    (v) Preparation of preselection lists and selections for contracts 
estimated to cost more than $10,000, shall be accomplished by formally 
constituted boards consisting of at least three members, one of whom 
shall be the District Counsel or an attorney on his staff, and one of 
whom shall be the Chief, Real Estate Division, or a member of his staff.
    (vi) Special approval shall be required for certain selections as 
indicated below:
    (A) When the estimated cost of a contract to be negotiated exceeds 
$100,000, the selection shall require the approval of the Division 
Engineer.
    (B) When an attorney or law firm, to which the District has awarded 
contracts totalling over $100,000 during the current fiscal year, has 
been selected by the District for additional negotiations, the selection 
shall require the approval of the Division Engineer.
    (C) When the estimated cost of a contract to be negotiated exceeds 
$200,000,

[[Page 149]]

the selection shall require the approval of the Director of Real Estate, 
OCE, or his designee, with the concurrence of the Chief Counsel or his 
designee.
    (c) Forms to be Used. When purchasing title evidence, Standard Form 
33, Solicitation, Offer, and Award, which form embraces an invitation, 
bid, and acceptance, should be used with copies of ENG Form 1012 or ENG 
Form 1016, depending upon the type of title evidence to be obtained. 
Standard Form 33 will state that time is of the essence; that ability to 
comply with delivery requirements is mandatory; that the specifications 
attached thereto constitute a part of the proposed contract; the 
quantity and description of the supplies by item to be furnished; the 
time, place, and method of delivery; and the primary period of contract 
and extensions. Bids must be submitted in the form required by the 
invitations for the bids, so that the successful bid can be accepted on 
Standard Form 33 and a formal contract consummated thereby. The contract 
must incorporate all the covenants, terms, and conditions which are 
contemplated.
    (d) Base Price vs. Per-Item Basis. The invitation will call for the 
furnishing of an approximate number of certificates of title, abstracts 
of title, or preliminary binders and title guarantee (insurance) 
policies, as the case may be, at a stated price per certificate of 
title, abstract, or preliminary binder and title guarantee (insurance) 
policy. If this basis of payment is not possible, payment for abstracts 
may be made on a per-item or per-page basis and certificates of title 
and interim binders and title guarantee (insurance) policies may be paid 
for in accordance with an established rate schedule based on the cost of 
the property. Where necessary, alterations in the payment paragraphs of 
the specifications may be made in order to comply with local practices, 
State statutes, or other special requirements.
    (e) Specifications. The specifications for title service will follow 
ENG Form 1012 for abstracts, ENG Form 1016 for certificates of title and 
ENG Form 1014 for interim binders on owner's title guarantee (insurance) 
policies. Additional provisions may be added as circumstances require, 
but basic requirements will not be changed.
    (f) Several Contracts for Title Evidence. To meet the acquisition 
schedule, it may be necessary to enter into several contracts for title 
evidence to lands within a designated project area. In such cases, the 
portions of the projects to be covered by each contract will be defined 
according to established political subdivisions, such as districts, 
townships, counties, or any specified part thereof.