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AC 150/5900-1B
<br />Appendix 3
<br />(5) Formal advertising, with adequate
<br />purchase description, sealed bids, and
<br />public openings, shall• be the required
<br />method- of procurement unless negotia-
<br />tion pursuant to paragraph (6) below is
<br />necessary to accomplish sound procure-
<br />ment. However, procurements of $10,000
<br />or less need not be so advertised unless
<br />otherwise required by State or local law
<br />or regulations. Where such advertised
<br />bids are obtained the awards shall be
<br />made to the responsible bidder whose bid
<br />is responsive to the invitation and is most
<br />advantageous to the grantee, price and
<br />other factors considered. (Factors such
<br />as discounts, transportation costs, taxes
<br />may be considered in determining the
<br />lowest bid.) Invitations for bids shall
<br />clearly set forth all requirements which
<br />the bidder must flr)fltl in order for his
<br />bid to be evaluated by the grantee. Any
<br />or all bids may be rejected when it is in
<br />the grantee's interest to do so, and such
<br />rejections are In accordance with appli-
<br />cable State and local law, rules, and
<br />regulations.
<br />(6) Procurements may be negotiated
<br />1f it is impracticable and unfeasible to
<br />use format advertising., Generally, Pro.;
<br />curements may be negotiated by the
<br />grantee lit
<br />(a) The public exigency will not per-
<br />mit thie delay incident to advertising;
<br />(b) The material or service to be pro-
<br />cured is available from only one person
<br />or firm: (All contemplated sole source
<br />procurements where the aggregate ex-
<br />penditure is expected to exceed $5,000
<br />shall be referred to the grantor agency
<br />for prior approval.)
<br />(c) The aggregate amount involved
<br />does -lot exceed $10,000;
<br />(d) The contract is for personal or
<br />professional services, or for. any service
<br />to be rendered try a university, college, or
<br />other educational institutions;
<br />(e) The material or services are to be
<br />procured and used outside the limits of
<br />the United States and its possessions;
<br />(f) No acceptable bids have been re-
<br />ceived after formal advertising:
<br />(g) The purchases are for highly per-
<br />ishable materials or medical supplies, for
<br />material or services where the prices are
<br />established by law, for technical items
<br />or equipment requiring standardization
<br />and interchangeability' of parts with ex-
<br />isting, for experimental, developmental
<br />or research work, for supplies purchased
<br />for authorized resale, and for technical
<br />or specialized supplies requiring substan-
<br />tial initial investment fox manufacture
<br />eh) Otherwise authorized by law, rules,
<br />or regulations.
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<br />1/31/79
<br />Notwithstanding the existence of circum-
<br />stances justifying negotiation. competi-
<br />tion shall be obtained to the maximum
<br />extent practicable.
<br />(7) Contracts shall be made only with
<br />responsible contractors who possess the
<br />Potential ability to perform successfully
<br />under the terms and conditions of a pro-
<br />posed procurement. Consideration shall
<br />be given to such matters as contractor
<br />integrity, record of past performance,
<br />fhianctal and technical resources. or ac-
<br />cessibility to other necessary resources,.
<br />(8) Procurement records or files for
<br />purchases in amounts In excess of $10,-
<br />000 shall provide at least the following
<br />pertinent information: justification for
<br />the use of negotiation in lieu of advertis-
<br />ing, contractor selection, and the basis
<br />for the cost or price negotiated.
<br />(9) A system for contract administra-
<br />tion shall be maintained to assure con-
<br />tractor conformancewith terms, condi-
<br />tions, and specifications of the contract
<br />or order, and to assure adequate and
<br />timely fofowup of all purchases,
<br />4. The grantee shall include, In addi-
<br />tion to provisions to define a sound and
<br />complete agreement, the following pro-
<br />visions in all contracts and subgranta:
<br />(a) Contracts shall contain such con-
<br />tractual provisions or conditions which
<br />will allow for administrative. contractual,
<br />or legal remedies in instances where con-
<br />tractors violate or breach contract terms,
<br />and provide for such sanctions and
<br />penalties as may be appropriate.
<br />(b) All contracts, amounts for which
<br />are in excess of $10,000, shall contain
<br />suitable provisions for termination by
<br />the grantee including the manner by
<br />which it will be effected and the basis
<br />for settlement. In addition, such con-
<br />tracts shall describe conditions under
<br />which the contract may be terminated
<br />for default as well as conditions where
<br />the contract may be terminated because
<br />of circumstances beyond the control of
<br />the contractor.
<br />(c) All contracts awarded by grantees
<br />and their contractors or subgrantees hav-
<br />ing a value of more than $10,000 shall
<br />contain a provision requiring compliance
<br />with Executive Order 11246, entitled,
<br />"Equal Employment Opportunity; es
<br />amended by Executive Order 11375, and.
<br />as supplemented in Department of Labor
<br />regulations (41 CFR Part 60).
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