forth the reasons for the rejection. This will provide opportunity, where applicable, for the correction of the offending practices prior to future offerings. The contracting officer shall send a copy of the letter, together with a copy of the determination to reject, to the Office of Management Investigations and Review, OAD, through the head of the procuring activity. He shall include a recommendation that the rejected bidder be or not be placed on the Review List in accordance with § 5-1.310-50. The head of the procuring activity shall determine the appropriate action required and advise the Office of Management Investigations and Review, OAD.

(b) The contracting officer shall include in the contract file, in a manner similar to that prescribed in § 1-2.407-7, the reasons for the rejection of a bid or offer.

(c) For determination of responsibility in connection with equal opportunity in employment, see § 5-12.805-50.

(d) Advice and assistance should be obtained from appropriate legal counsel or credit and finance activity in arriving at a determination as to whether from legal or financial considerations a bidder qualifies as responsible under standards set forth in § 1-1.310-5. [33 F.R. 7430, May 18, 1968]

§ 5-1.310-7 Information regarding responsibility.

(a) For any contract of $50,000 or more, or which involves Government financial assistance, the contracting officer shall obtain a financial responsibility report regarding the prospective contractor involved from the appropriate credit and finance activity, except with respect to transportation contracts with regulated common carriers under Government bills of lading which are not subject to special terms, conditions, or specifications. Unless notified otherwise, the information furnished shall be considered current for a reasonable length of time for use in connection with subsequent bids of that prospective contractor. The request for a financial responsibility report shall be submitted, in duplicate, on GSA form 894, Financial Responsibility-Inquiry and Reply (illustrated at § 5-16.950-894).

(b) Contracting officers shall request assistance of appropriate organizational elements of GSA when sufficient information is not readily available upon which determinations of responsibility can be based. Necessary information re

garding the proposed contract shall be furnished with the request for such assistance. The contracting officer shall consider the information and recommendations received in making his determination. Following the determination, the contracting officer shall include such data in the appropriate procurement file.

(1) Requests directed to the appropriate credit and finance activity shall be submitted as in paragraph (a) of this section.

(2) Requests may be directed to the Office of Design and Construction or to the regional Design and Construction Division, PBS, to the Quality Control Division, FSS, or to the Inspection Division, PMDS, as appropriate, for examination of a prospective contractor's production facilities as to suitability, capacity, organization, previous performance, and his technical ability and experience in the type of production or services required to perform the contract. Examinations shall be conducted without delay, and reports rendered to the contracting officer with recommendations as to whether the prospective contractor can reasonably be expected to perform the contract. Reports of examinations made by the Quality Control Division shall be rendered on GSA Form 353, Plant Facilities Report, when applicable (illustrated at § 5-16.950-353).

[33 F.R. 7430, May 18, 1968]

§ 5-1.310-10 Performance records.

Performance records shall include, by contractor, information or data relative to performance, integrity, or judgment. These records shall be consulted by contracting officers of the procuring activity in determining whether prospective contractors meet the responsibility standards prescribed by § 1-1.310-5.

[33 F.R. 7430, May 18, 1968]

§ 5-1.310-50 Review List of Bidders.

The Review List of Bidders is a list of firms or individuals who, because of questionable responsibility, require extraordinary consideration before award of contracts and, if awards are made, require exceptional treatment with respect to contract administration. The List is established as the medium for notification (within GSA) that information exists, pertaining to the listed firms or individuals, which is sufficient to warrant timely inquiry or surveillance

because of questionable responsibility, but is not sufficient in and of itself to warrant debarment.

(a) Establishment and maintenance of the List. (1) The Office of Management Investigations and Review, OAD, shall establish and maintain the List in accordance with this § 5-1.310-50, and arrange for the reproduction and distribution of the List. The List shall be marked "For Official Use Only," and private parties shall not be apprised of it in any way whatsoever.

(2) Distribution of copies of the List shall be made to all GSA officials or employees whose duties require access to the List as determined by the Head of each Service or Staff Office. Copies of the List may be furnished to officials and employees of other Federal agencies by the Office of Management Investigations and Review, OAD.

(b) Bases for inclusion in the List. The names of firms or individuals shall be included in the List under the following circumstances; however, no firm or individual named in the GSA Debarred Bidders List shall, at the same time, be included in the Review List of Bidders.

(1) When, after recommendation by the Office of Management Investigations and Review, OAD, it is determined by the head of a procuring activity that a firm or individual is of questionable responsibility within the purview of § 1-1.310; or

a

(2) When a bid is rejected because of determination by the contracting officer that the bidder does not qualify as responsible and the Office of Management Investigations and Review, OAD, has been notified in accordance with § 5-1.310-6(a); or

(3) When, before investigation of the circumstances of a particular case, the Head of a procuring Service or Staff Office (or his designee) so requests, if such action has the concurrence of the appropriate legal counsel and the Office of Management Investigations and Review, OAD.

(c) Investigations, evaluations, and determinations. (1) The Office of Management Investigations and Review, OAD, shall collect and investigate information developed within GSA or by other agencies to determine whether such information falls within the purview of § 1-1.310. When a procuring activity has reason to doubt the responsibility of a prospective contractor, a request for investigation shall be forwarded to the

Office of Management Investigations and Review, OAD, with a statement of the pertinent circumstances.

(2) The Office of Management Investigations and Review, OAD, shall evaluate the information developed as a result of subparagraph (1) of this paragraph. If this evaluation indicates adequate justification, the Office of Management Investigations and Review, OAD, shall recommend to the head of the appropriate procuring activity that the firm or individual be included in the List. The Office of Management Investigations and Review, OAD, files compiled in support of such recommendations may be reviewed by the procuring activity upon request.

(3) The head of the procuring activity, after consultation with appropriate legal counsel (and Office of Management Investigations and Review, OAD, representatives, if necessary) shall determine whether the facts warrant placing the prospective contractor on the List and so notify the Office of Management Investigations and Review, OAD.

(d) Removal from the List. (1) Removal of a firm or individual from the List may be accomplished at any time when it is determined that sufficient reason no longer exists for retention. When it is so determined, a recommendation for removal shall be forwarded, through channels, to the Office of Management Investigations and Review, OAD, for coordination, or the Office of Management Investigations and Review, OAD, may initiate the recommendation. In either case, the Office of Management Investigations and Review, OAD, shall coordinate the recommendation, supported by all new evidence received, with the office that originally approved the listing. The head of that procuring activity, after consultation with appropriatives, if necessary) shall determine ate legal counsel, shall request the Office of Management Investigations and Review, OAD to delete or retain the firm or individual in the List.

(2) The List shall be screened periodically (at least every 2 years) by the Office of Management Investigations and Review, OAD. Firms and individuals listed 12 months or more prior to the date of screening shall be reported to the initiating office with a recommendation for removal or retention based on the seriousness of the original cause for listing and the presence or absence of derogatory information received subse

quent to the determination for inclusion in the List. These firms and individuals shall be retained in the List unless the initiating office, within 30 working days of the reporting date, requests removal.

(e) Treatment to be accorded listed firms or individuals. (1) The inclusion of a firm or individual in the List must not itself be interpreted to mean that the listed firm or individual will not be given an opportunity to bid or quote on a proposed procurement; that negotiations cannot be carried on with that firm or individual; or that an award cannot be made to such firm or individual.

(2) No contract shall be awarded to a listed firm or individual until the contracting officer determines the bidder to be responsible, based on all available information. Inquiry shall be made of such elements of the Central Office and the regional office as the contracting officer may see fit, to support such a determination or to support rejection for failure to qualify as a responsible prospective contractor. The extent or scope of the inquiry is for determination by the contracting officer.

(3) If rejection is made, the contracting officer shall comply with § 5-1.310-6 (a). The List shall not be cited as a reason for or factor contributing to the rejection.

(4) If award is made to a listed firm or individual, the contracting officer shall, as appropriate, solicit the aid of such elements of GSA as may be of assistance in maintaining close surveillance over the performance of the contract. If derogatory information is developed during the life of the contract, the information shall be transmitted to the contracting officer and the appropriate Office of Management Investigations and Review, OAD, representative. [33 F.R. 7430, May 18, 1968]

§ 5-1.315 Use of liquidated damages provisions in procurement contracts.

§ 5-1.315-2 Policy.

(a) Before a liquidated damages provision is included in a supply or service contract, other than construction, approval is required of the Head of the Service or Staff Office involved, or his designees.

(b) A liquidated damages provision shall be included in all construction contracts, except where a justification to omit such provision is approved by the Head of the Service or Staff Office in

volved or his designees. For purpose of this section, the term "construction" includes repair, alteration, and improvement.

[28 F.R. 4561, May 7, 1963, as amended at 28 F.R. 13840, Dec. 19, 1963]

§ 5-1.317 Noncollusive bids and proposals.

Authority to determine that a disclosure was not made with collusive intent under paragraph (d) of the certification prescribed in § 1-1.317 is vested in the Head of the Central Office Service or Staff Office concerned, with authority to redelegate to officials not below the level of head of a procuring activity, and Regional Administrators. All determinations require concurrence by the Office of General Counsel at the level of Assistant General Counsel or above.

[29 F.R. 231, Jan. 9, 1964] § 5-1.350

award.

Advance notices of contract

§ 5-1.350-1 Circumstances which warrant advance notice.

Advance notices of contract award may be issued by contracting officers under any one or more of the circumstances listed in this § 5-1.350-1 and § 5-1.350-3.

(a) A bid or offer is about to expire and it is necessary to issue an award notice promptly.

(b) Prompt action is necessary to afford the contractor an opportunity to secure necessary materials.

(c) Delivery or performance is urgent and cannot await release of formal contract documents.

(d) Contract involves work of an urgent nature and it is essential that the contractor rush all preliminaries prior to actual starting of work.

(e) Prompt action is necessary to secure advance predelivery samples on contracts.

(f) Prompt action is necessary to permit contractors to proceed with preparation of necessary catalogs and other Federal Supply Schedule data.

(g) A prospective contractor requests advice, orally or in writing, as to whether he is to receive the award, and gives good and sufficient reasons to the satisfaction of the contracting officer, why advance notice is desirable.

(h) Other compelling circumstances exist, but only with the approval of the head of the procuring activity. [26 F.R. 10354, Nov. 3, 1961]

§ 5-1.350-2 Telegraphic notices.

When justified, contracting officers may issue telegraphic notices. Such notices shall contain in addition to the requirements set forth in § 5-1.350-4, a statement that written confirmation will follow. Such confirmation shall be issued without delay.

[26 F.R. 10354, Nov. 3, 1961]

§ 5-1.350-3 Oral notices.

Oral notices shall not be used, except as authorized in this § 5-1.350-3. Such notices shall include a statement that written confirmation will follow, and such confirmation shall be issued without delay.

(a) Oral notices may be issued by DMS in negotiating the procurement of rubber and cordage fibers.

(b) Oral notices may be issued by TCS in negotiating the procurement of transportation and related services when the exigencies of the situation will not admit of delay, and when security regulations preclude telegraphic notice of award.

[27 F.R. 10354, Nov. 3, 1961]

§ 5-1.350-4 Content of notice.

The content of advance notices of award may vary, but shall contain all of the essential elements to identify the award, such as: identification of invitation, description of item, quantity and price, and contract number assigned. Care should be taken to avoid the use of language which might in any way vary from the terms of the offer.

[26 F.R. 10354, Nov. 3, 1961]

§ 5-1.352 Contract numbering. [27 F.R. 6830, July 19, 1962]

§ 5-1.352-1 Contracts required to be numbered.

For identification and control, all contracts involving the payment of $20,000 or more in a single payment and all multiple-payment contracts, regardless of amount, shall be numbered. Contracts

involving the payment of less than $20,000 in a single payment may or may not be numbered depending upon the needs of the procuring activity. In case of doubt whether the amount to be paid under a contract is more or less than $20,000 or whether more than one payment may be necessary, the contract shall be numbered.

[27 F.R. 6830, July 19, 1962]

§ 5-1.352-2 System of numbering.

(a) Contract numbers shall be placed in the space provided therefor on the contract form, or, if no such space is provided, in the upper right corner of the contract separate from all other information and identified as such.

(b) Each series of contract numbers shall be assigned by the procuring activity in numerical sequence beginning with number 1 and going through 99,999 without regard to the fiscal year. Contracts beyond 99,999 shall be assigned a new series of numbers beginning with number 1. A separate series of numbers shall be used for each type of contract or procurement program where the use of a single series of numbers by the procuring activity is impractical. Records shall be maintained by the procuring activity to insure the continuity and control of numbers assigned.

(c) Each contract number shall be prefixed by use of the symbol "GS", followed by a dash and the approprate location and procuring activity designation set forth in paragraphs (d) and (e), of this section.

(d) The following designations shall be used to identify the Central Office or GSA region in which the procuring activity is located:

T Transportation and Communications Service

U Utilization and Disposal Service

R National Archives and Records Service

(f) An example of the general system of numbering is set forth below:

GS02S-1

(1) The capital letters "GS" denote the General Services Administration.

(2) The designation "02" represents the location of the procuring activity (Region 2).

(3) The capital letter "S" represents the procuring service (FSS).

(4) The figure "1" represents the first contract made by the procuring activity.

(g) Each negotiated contract shall contain the symbol "NEG" inserted immediately above the contract number. Additional identification not inconsistent with that prescribed in this § 5-1.352-2 may be used if necessary for the internal control and routing of contracts and related documents. Such additional identification, if needed, should be held to the minimum consistent with adequate control of such contracts. When such additional identification is adopted by a procuring activity, notificaion of such action shall be furnished to the Office of Financial Management, OFA, or Office of Regional Financial Management, as appropriate. [27 F.R. 6830, July 19, 1962]

Subpart 5-1.5-Contingent Fees SOURCE: The provisions of this Subpart 5-1.5 appear at 25 F.R. 13217, Dec. 22, 1960. § 5-1.508

Enforcement.

§ 5-1.508-2 Failure or refusal to furnish Standard Form 119.

The name of each indicated successful bidder or proposed contractor who fails or refuses to furnish a completed Standard Form 119 (or a statement in lieu thereof as provided in § 1-1.507-2) shall be submitted, together with pertinent information, to the Compliance Division for appropriate action. If the contract has been awarded or offer accepted, consideration shall be given to the feasibility of terminating the contract, the future eligibility as a bidder or contractor of the concern in question, or other appropriate action.

Subpart 5-1.6-Debarred, Suspended, and Ineligible Bidders

SOURCE: The provisions of this Subpart 5-1.6 appear at 31 F.R. 709, Jan. 19, 1966, unless otherwise noted.

§ 5-1.600 Scope of subpart.

This subpart, which implements and supplements FPR Subpart 1-1.6, prescribes policies and procedures relating to the debarment, suspension, or ineligibility of bidders.

§ 5-1.602 Establishment and maintenance of a list of concerns or individuals debarred, suspended, or declared ineligible.

(a) The Compliance Division shall establish and maintain a list of debarred, suspended, or ineligible concerns and individuals pursuant to § 1-1.602. This list shall be designated at the GSA Debarred Bidders List, and its use is mandatory on all GSA procuring activities.

(b) The Compliance Division shall arrange for the reproduction and distribution of the GSA Debarred Bidders List.

(1) Entry on the GSA Debarred Bidders List shall be made:

(i) In the case of a GSA administrative debarment or suspension, upon notification of the imposition of debarment or suspension by the Administrator, by a Commissioner, or by a hearing authority;

(ii) In the case of statutory debarments including debarments imposed under the Buy American Act (41 U.S.C. 10(b)), upon appropriate notification from the Comptroller General, the Secretary of Labor, or the head of the debarring agency;

(iii) In the case of debarment for noncompliance with the Equal Opportunity