[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 32CFR32.44]



[Page 167-168]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 32_ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH 

INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT 

ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec.  32.44  Procurement procedures.



    (a) All recipients shall establish written procurement procedures. 

These procedures shall provide, at a minimum, that:

    (1) Recipients avoid purchasing unnecessary items;

    (2) Where appropriate, an analysis is made of lease and purchase 

alternatives to determine which would be the most economical and 

practical procurement; and

    (3) Solicitations for goods and services provide for all of the 

following:

    (i) A clear and accurate description of the technical requirements 

for the material, product or service to be procured. In competitive 

procurements, such a description shall not contain features which unduly 

restrict competition.

    (ii) Requirements which the bidder/offeror must fulfill and all 

other factors to be used in evaluating bids or proposals.

    (iii) A description, whenever practicable, of technical requirements 

in terms of functions to be performed or performance required, including 

the range of acceptable characteristics or minimum acceptable standards.

    (iv) The specific features of ``brand name or equal'' descriptions 

that bidders are required to meet when such items are included in the 

solicitation.

    (v) The acceptance, to the extent practicable and economically 

feasible, of products and services dimensioned in the metric system of 

measurement.

    (vi) Preference, to the extent practicable and economically 

feasible, for products and services that conserve natural resources and 

protect the environment and are energy efficient.

    (b) Positive efforts shall be made by recipients to utilize small 

businesses, minority-owned firms, and women's business enterprises, 

whenever possible. Recipients of Federal awards shall take all of the 

following steps to further this goal:

    (1) Ensure that small businesses, minority-owned firms, and women's 

business enterprises are used to the fullest extent practicable.

    (2) Make information on forthcoming opportunities available and 

arrange time frames for purchases and contracts to encourage and 

facilitate participation by small businesses, minority-owned firms, and 

women's business enterprises.

    (3) Consider in the contract process whether firms competing for 

larger contracts intend to subcontract with small businesses, minority-

owned



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firms, and women's business enterprises.

    (4) Encourage contracting with consortiums of small businesses, 

minority-owned firms and women's business enterprises when a contract is 

too large for one of these firms to handle individually.

    (5) Use the services and assistance, as appropriate, of such 

organizations as the Small Business Administration and the Department of 

Commerce's Minority Business Development Agency in the solicitation and 

utilization of small businesses, minority-owned firms and women's 

business enterprises.

    (c) The type of procuring instruments used (e.g., fixed price 

contracts, cost reimbursable contracts, purchase orders, and incentive 

contracts) shall be determined by the recipient but shall be appropriate 

for the particular procurement and for promoting the best interest of 

the program or project involved. The ``cost-plus-a-percentage-of-cost'' 

or ``percentage of construction cost'' methods of contracting shall not 

be used.

    (d) Contracts shall be made only with responsible contractors who 

possess the potential ability to perform successfully under the terms 

and conditions of the proposed procurement. Consideration shall be given 

to such matters as contractor integrity, record of past performance, 

financial and technical resources or accessibility to other necessary 

resources. In certain circumstances, contracts with certain parties are 

restricted by the DoD implementation, in 32 CFR part 25, of E.O.s 12549 

(3 CFR, 1986 Comp., p. 189) and 12689 (3 CFR, 1989 Comp., p. 235), 

``Debarment and Suspension.''

    (e) Recipients shall, on request, make available for the DoD 

Component's pre-award review, procurement documents such as request for 

proposals or invitations for bids, independent cost estimates, etc., 

when any of the following conditions apply:

    (1) A recipient's procurement procedures or operation fails to 

comply with the procurement standards in this part.

    (2) The procurement is expected to exceed the simplified acquisition 

threshold fixed at 41 U.S.C. 403 (11) (currently $100,000) and is to be 

awarded without competition or only one bid or offer is received in 

response to a solicitation.

    (3) The procurement, which is expected to exceed the simplified 

acquisition threshold, specifies a ``brand name'' product.

    (4) The proposed award over the simplified acquisition threshold is 

to be awarded to other than the apparent low bidder under a sealed bid 

procurement.

    (5) A proposed contract modification changes the scope of a contract 

or increases the contract amount by more than the amount of the 

simplified acquisition threshold.