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					   Business Services Department Procurement Policies and Procedures

                                                                      Page No.

THOMAS JEFFERSON NATIONAL
  ACCELERATOR FACILITY


BUSINESS SERVICES DEPARTMENT




 PROCUREMENT POLICIES AND
       PROCEDURES




                          Jefferson Lab

              Managed and Operated By
         The Southeastern Universities Research
                  Association (SURA)



                          Original Issue: Feb 1997
                     Compilation of Changes 1-9: Jan 2001
                    Business Services Department Procurement Policies and Procedures

                                                                                       Page No.
FOREWORD                                                                                  i


PART 1 – PURCHASING SYSTEM                                                                1-1
1.1    GENERAL ………………………………………………………………………………                                             1-1
1.2    CONTRACTUAL AUTHORITY ………………………………………………………. 1-2
1.3    PROCUREMENT GUIDANCE MEMORANDUMS ………………………………….. 1-3
1.4    DOE APPROVAL ………………………………………………………………………. 1-3
1.5    COMMONWEALTH OF VIRGINIA FUNDED PROCUREMENT ACTIONS ………                            1-3
1.6    QUALITY ASSURANCE ………………………………………………………………. 1-3
1.7    ADMINISTRATIVE MANUAL ………………………………………………………… 1-3


PART 2 – ACQUISITION PLANNING                                                             2-1
2.1    GENERAL ………………………………………………………………………………. 2-1
2.2    ADVANCE PROCUREMENT PLANNING …………………………………………… 2-1
2.3    PROCUREMENT CYCLE TIMES ……………………………………………………..                                     2-1
2.4    BUDGETARY INFORMATION ……………………………………………………….. 2-1
2.5    MAKE-OR-BUY PLANS ……………………………………………………………….. 2-2


PART 3 – PURCHASE REQUISITIONS AND WORK STATEMENTS                                        3-1
3.1    GENERAL ………………………………………………………………………………. 3-1
3.2    COST AND PRICE ESTIMATES ………………………………………………………. 3-1
3.3    DELIVERY OR PERFORMANCE PERIOD …………………………………………… 3-2
3.4    FIRST ARTICLE TESTING AND APPROVAL ……………………………………….. 3-2
3.5    OPTIONS ………………………………………………………………………………… 3-3
3.6    EMERGENCY REQUIREMENTS ……………………………………………………… 3-4
3.7    CONSOLIDATION OF REQUIREMENTS ……………………………………………. 3-5
3.8    CANCELLATION OF PURCHASE REQUISITIONS …………………………………. 3-5
3.9    ALLOWABLE COSTS …………………………………………………………………... 3-5
3.10   METRIC REQUIREMENTS …………………………………………………………….. 3-5


PART 4 – SOURCING
4.1    GENERAL ……………………………………………………………………………..                                            4-1
4.2    COMPETITIVE SOURCING ………………………………………………………….                                       4-1
4.3    COMMERCIAL ITEM SOURCING ………………………………………………….                                      4-1


                                                   Page toc-i
                                           Original Issue: Feb 1997
                                      Compilation of Changes 1-9: Jan 2001
                    Business Services Department Procurement Policies and Procedures


4.4    MICRO-PURCHASING SOURCING …………………………………………………                                   4-4
4.5    SIMPLIFIED PURCHASES ……………………………………………………………                                    4-5
4.6    DIRECTED SOURCING FOR NONCOMPETITIVE PURCHASES …………………                          4-7
4.7    SURA AFFLIATED SOURCES ………………………………………………………..                                  4-9
4.8    GOVERNMENT SOURCES …………………………………………………………… 4-9
4.9    FOREIGN SOURCES …………………………………………………………………..                                     4-10
4.10   QUALIFIED SOURCES ………………………………………………………………..                                    4-11
4.11   PARTNERING WITH VENDORS …………………………………………………….                                   4-12
4.12   OBTAINING INFORMATION FROM VENDORS …………………………………… 4-13
4.13   FREEDOM OF INFORMATION ACT (FOIA) REQUESTS ………………………….                          4-14
4.14   PROTESTS ……………………………………………………………………………… 4-14
4.15   CONFLICTS OF INTEREST …………………………………………………………… 4-14
4.16   VENDOR PRESENTATIONS AT SURA/JLAB ………………………………………. 4-16


PART 5 – NEGOTIATED SUBCONTRACTS                                                       5-1
5.1    GENERAL ………………………………………………………………………………. 5-1
5.2    EVALUATION OF OFFERORS ……………………………………………………….. 5-2
5.3    SOURCE SELECTION OFFICIAL (SSO) ……………………………………………… 5-4
5.4    UNSOLICITED PROPOSALS ………………………………………………………….. 5-4
5.5    NOTIFICATION TO UNSUCCESSFUL OFFERORS …………………………………. 5-5
5.6    DEBRIEFING UNSUCCESSFUL OFFERORS ………………………………………… 5-6


PART 6 – COMMERCIAL ITEM SOURCING TECHNIQUES (>$1,000,000)                             6-1
6.1    GENERAL ………………………………………………………………………………. 6-1
6.2    DESCRIBING/SPECIFYING REQUIREMENTS ……………………………………… 6-2
6.3    SOLICITATION AND EVALUATION OF OFFERS …………………………………. 6-2
6.4    QUALITY ASSURANCE ………………………………………………………………. 6-2
6.5    WARRANTIES …………………………………………………………………………                                         6-2
6.6    TECHNICAL DATA ……………………………………………………………………                                       6-2
6.7    TERMINATION ………………………………………………………………………… 6-3


PART 7 – MISTAKES                                                                      7-1
7.1    GENERAL ………………………………………………………………………………. 7-1
7.2    MISTAKES DISCOVERED BEFORE AWARD ………………………………………. 7-1


                                                   Page toc-ii
                                           Original Issue: Feb 1997
                                      Compilation of Changes 1-9: Jan 2001
                   Business Services Department Procurement Policies and Procedures


7.3    MISTAKES DISCOVERED AFTER AWARD ………………………………………… 7-2
7.4    FILE DOCUMENTATION ……………………………………………………………… 7-2


PART 8 – SOLICITATION AND SUBCONTRACT PROVISIONS                                      8-1
8.1    GENERAL ………………………………………………………………………………. 8-1
8.2    STANDARDIZED FORMATS …………………………………………………………. 8-1
8.3    NUMBERING SOLICITATION AND SUBCONTRACT INSTRUMENTS ………….. 8-1
       Figure 1 – Identification Code for Procurement Instruments …………………………… 8-3
8.4    ENVIRONMENTAL HEALTH AND SAFETY PROVISIONS ……………………….. 8-3
8.5    BUSINESS MANAGEMENT PROVISIONS ………………………………………….. 8-6
8.6    COMMERCIAL TERMS AND CONDITIONS ………………………………………… 8-10
8.7    GOVERNMENT PROPERTY PROVISIONS ………………………………………….. 8-10
8.8    PAYMENT PROVISIONS ……………………………………………………………… 8-11
8.9    DATA AND PATENT PROVISIONS ………………………………………………….. 8-11
8.10   LABOR PROVISIONS AND STANDARDS …………………………………………..                              8-13
8.11   MISCELLANEOUS SITE PROVISIONS ……………………………………………… 8-15
8.12   TERMINATION PROVISIONS ………………………………………………………..                                 8-16
8.13   SOCIOECONOMIC PROVISIONS …………………………………………………….                                 8-16
8.14   VIRGINIA SALES TAX ………………………………………………………………..                                  8-17
8.15   CLASSIFIED WORK …………………………………………………………………..                                    8-17


PART 9 – COST AND PRICING                                                             9-1
9.1    GENERAL ………………………………………………………………………………                                         9-1
9.2    ADEQUATE PRICE COMPETITION …………………………………………………. 9-1
9.3    ESTABLISHED CATALOG OR MARKET PRICES AND COMMERCIAL ITEMS… 9-2
9.4    PRICE ANALYSIS ……………………………………………………………………                                      9-3
9.5    COST ANALYSIS …………………………………………………………………….                                      9-3
9.6    TECHNICAL EVALUATION OF COST DATA …………………………………….                              9-5
9.7    PRICE AND COST AUDITS …………………………………………………………                                   9-5
9.8    SUBMISSION OF CERTIFIED COST AND PRICING DATA ……………………..                       9-6
9.9    INFORMATION OTHER THAN COST OR PRICING DATA ………………………                          9-7
9.10   BUYING-IN …………………………………………………………………………….                                       9-8
9.11   UNBALANCED PRICING …………………………………………………………….                                    9-8




                                                  Page toc-iii
                                          Original Issue: Feb 1997
                                     Compilation of Changes 1-9: Jan 2001
                Business Services Department Procurement Policies and Procedures


PART 10 – BONDS AND INSURANCE                                                      10-1
10.1   PERFORMANCE BONDS ……………………………………………………………..                                 10-1
10.2   PAYMENT BONDS ……………………………………………………………………                                    10-1
10.3   BID BONDS …………………………………………………………………………….                                    10-1
10.4   SOLICITATION REQUIREMENTS …………………………………………………… 10-2
10.5   SURETIES ………………………………………………………………………………. 10-2
10.6   INSURANCE ……………………………………………………………………………. 10-2


PART 11 – ENVIRONMENT, HEALTH, AND SAFETY                                          11-1
11.1   GENERAL ………………………………………………………………………………. 11-1
11.2   ACQUISITION AND USE OF ENVIRONMENTALLY PREFERABLE PRODUCTS
       AND SERVICES ………………………………………………………………………… 11-1
11.3   SUBCONTRACTOR EH&S REQUIREMENTS ………………………………………. 11-1
11.4   MATERIAL SAFETY DATA SHEETS (MSDS) ……………………………………… 11-2
11.5   WHISTLEBLOWER NOTIFICATION TO SUBCONTRACTORS …………………… 11-2


PART 12 – COST ACCOUNTING STANDARDS                                                12-1
12.1   GENERAL ………………………………………………………………………………. 12-1
12.2   EXEMPTIONS TO CAS ………………………………………………………………… 12-1
12.3   REQUIRED CAS PROVISIONS ……………………………………………………….. 12-2
12.4   REPORTING REQUIREMENTS ………………………………………………………                                12-2


PART 13 – GOVERNMENT PROPERTY                                                      13-1
13.1   GENERAL ………………………………………………………………………………. 13-1
13.2   GOVERNMENT FURNISHED PROPERTY ………………………………………….                             13-1
13.3   REAL PROPERTY ……………………………………………………………………..                                  13-1


PART 14 – SUBCONTRACT INSTRUMENTS                                                  14-1
14.1   GENERAL ………………………………………………………………………………                                      14-1
14.2   FIRM FIXED PRICE SUBCONTRACTS ……………………………………………… 14-1
14.3   COST REIMBURSEMENT SUBCONTRACTS ………………………………………. 14-2
14.4   TIME AND MATERIAL SUBCONTRACTS ………………………………………….                            14-2
14.5   LABOR-HOUR SUBCONTRACTS ……………………………………………………                                14-3
14.6   LETTER SUBCONTRACTS …………………………………………………………… 14-3



                                               Page toc-iv
                                       Original Issue: Feb 1997
                                  Compilation of Changes 1-9: Jan 2001
                  Business Services Department Procurement Policies and Procedures


14.7    INDEFINITE DELIVERY SUBCONTRACTS ………………………………………… 14-4
14.8    BASIC AGREEMENTS ………………………………………………………………… 14-5
14.9    BASIC ORDERING AGREEMENTS ………………………………………………….. 14-6
14.10   MULTI YEAR SUBCONTRACTS …………………………………………………….. 14-7
14.11   INTERCONTRACTOR PURCHASING AGREEMENTS …………………………….. 14-8


PART 15 – SERVICE SUBCONTRACTS                                                       15-1
15.1    GENERAL ……………………………………………………………………………….. 15-1
15.2    NONPERSONAL SERVICES ………………………………………………………….. 15-1
15.3    PERSONAL SERVICES ………………………………………………………………… 15-1
15.4    CONTRACT LABOR …………………………………………………………………… 15-2
15.5    CONSULTANT AGREEMENTS ………………………………………………………. 15-2


PART 16 – ARCHITECT-ENGINEER SUBCONTRACTS                                            16-1
16.1    GENERAL ………………………………………………………………………………. 16-1
16.2    EVALUATION BOARDS ………………………………………………………………. 16-1
16.3    EVALUATION BOARD FUNCTIONS ………………………………………………… 16-1
16.4    DESIGN COMPETITION ………………………………………………………………. 16-2
16.5    SELECTION CRITERIA ……………………………………………………………….. 16-2
16.6    APPRAISING FIRMS QUALIFICATIONS …………………………………………..                           16-4
16.7    SELECTION AUTHORITY (SOURCE SELECTION OFFICIAL) ………………….                     16-4
16.8    COST ESTIMATE …………………………………………………………………….                                    16-5
16.9    NEGOTIATIONS ………………………………………………………………………                                     16-6


PART 17 – CONSTRUCTION SUBCONTRACTS                                                  17-1
17.1    GENERAL ………………………………………………………………………………. 17-1
17.2    NOTICE OF AWARD …………………………………………………………………..                                  17-1
17.3    PRE-BID CONFERENCE AND SITE VISITS ………………………………………… 17-1
17.4    PRE-CONSTRUCTION CONFERENCE ………………………………………………. 17-2
17.5    LIQUIDATED DAMAGES …………………………………………………………….. 17-2




PART 18 – LEASE AND RENTAL AGREEMENT                                                 18-1
18.1    GENERAL ………………………………………………………………………………. 18-1


                                                 Page toc-v
                                         Original Issue: Feb 1997
                                    Compilation of Changes 1-9: Jan 2001
                Business Services Department Procurement Policies and Procedures


18.2   LEASE-PURCHASE ANALYSIS ……………………………………………………… 18-1


PART 19 – ACQUISITION OF AUTOMATED DATA PROCESSING EQUIPMENT                       19-1
19.1   GENERAL ………………………………………………………………………………. 19-1
19.2   PURCHASE OPTIONS WHEN LEASING ADPE …………………………………….. 19-1
19.3   ACQUIRING COMMERCIAL SOFTWARE ………………………………………….. 19-1
19.4   ACQUISITION APPROACH …………………………………………………………… 19-1
19.5   APPROVAL REQUIREMENTS ………………………………………………………… 19-2


PART 20 – SUBCONTRACTOR RESPONSIBILITY                                             20-1
20.1   GENERAL ………………………………………………………………………………                                      20-1
20.2   DETERMINATION OF RESPONSIBILITY …………………………………………..                          20-1
20.3   GENERAL STANDARDS OF RESPONSIBILITY ……………………………………                          20-2
20.4   EEO CLEARANCE ……………………………………………………………………..                                  20-3


PART 21 – REVIEW AND APPROVAL OF SOLICITATIONS, PURCHASE ORDERS, AND SUBCONTRACTS
21.1   GENERAL ………………………………………………………………………………. 21-1
21.2   LEGAL REVIEW ………………………………………………………………………                                    21-2


PART 22 – SUBCONTRACT ADMINISTRATION                                               22-1
22.1   GENERAL ………………………………………………………………………………. 22-1
22.2   RECORDS AND REPORTS ……………………………………………………………. 22-2
22.3   CHANGE OF NAME (NOVATION) AGREEMENTS ………………………………… 22-2
22.4   SUBCONTRACT MODIFICATIONS ………………………………………………….. 22-2
22.5   LATE DELIVERY OR PERFORMANCE ……………………………………………… 22-4
22.6   INVOICE AND PAYMENT PROCESSING …………………………………………… 22-4
22.7   SOTR RESPONSIBILITY ……………………………………………………………… 22-4
22.8   EVALUATION OF SUBCONTRACTOR PERFORMANCE …………………………                          22-5
22.9   CLAIMS AND DISPUTES ……………………………………………………………..                               22-5




PART 23 – INSPECTION, ACCEPTANCE, AND WARRANTIES                                   23-1
23.1   GENERAL ………………………………………………………………………………. 23-1
23.2   INSPECTION REQUIREMENTS ………………………………………………………. 23-1


                                               Page toc-vi
                                       Original Issue: Feb 1997
                                  Compilation of Changes 1-9: Jan 2001
                Business Services Department Procurement Policies and Procedures


23.3   ACCEPTANCE …………………………………………………………………………. 23-1
23.4   WARRANTIES …………………………………………………………………………                                     23-3


PART 24 – TERMINATION OF PURCHASE ORDERS AND SUBCONTRACTS                          24-1
24.1   GENERAL ………………………………………………………………………………                                      24-1
24.2   TERMINATION FOR CONVENIENCE ……………………………………………….                             24-1
24.3   TERMINATION FOR DEFAULT OR CAUSE ………………………………………..                          24-4
24.4   DEFINITIONS …………………………………………………………………………..                                  24-4
24.5   MUTUAL CANCELLATION …………………………………………………………..                                24-5


PART 25 – CLOSEOUT OF PURCHASE ORDERS AND SUBCONTRACTS                             25-1
25.1   GENERAL ………………………………………………………………………………. 25-1
25.2   CRITERIA ………………………………………………………………………………. 25-1
25.3   CLOSE OUT PROCEDURE ……………………………………………………………                                 25-2
25.4   SUBCONTRACT AUDIT REQUIREMENTS …………………………………………                             25-3
25.5   RETENTION AND DISPOSAL OF RECORDS ……………………………………..                          25-3


PART 26 – SOCIOECONOMIC PROCUREMENT PROGRAMS                                       26-1
26.1   GENERAL ………………………………………………………………………………                                      26-1
26.2   SMALL BUSINESS REPRESENTATIVE ……………………………………………..                           26-1
26.3   REQUIRED REPRESENTATIONS ……………………………………………………. 26-1
26.4   SMALL BUSINESS PLAN ……………………………………………………………..                               26-2
26.5   SMALL BUSINESS REPORTS ………………………………………………………..                              26-2
26.6   SMALL BUSINESS SET-ASIDE PROGRAM ………………………………………… 26-2


PART 27 – MEMORANDUM INSTRUMENTS                                                   27-1
27.1   GENERAL ………………………………………………………………………………. 27-1
27.2   MEMORANDUMS OF UNDERSTANDING (MOU’S) ……………………………….. 27-1
27.3   MEMORANDUM PURCHASE ORDERS (CASH TRANSFERS) ……………………. 27-1


PART 28 – COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS                          28-1
28.1   GENERAL ………………………………………………………………………………. 28-1
28.2   JOINT WORK STATEMENTS …………………………………………………………. 28-1
28.3   RESPONSIBILITIES ……………………………………………………………………. 28-2


                                               Page toc-vii
                                       Original Issue: Feb 1997
                                  Compilation of Changes 1-9: Jan 2001
                 Business Services Department Procurement Policies and Procedures


28.4   PROCEDURES ………………………………………………………………………….. 28-3




PART 29 – USER FACILITY AGREEMENTS                                                  29-1
29.1   GENERAL ……………………………………………………………………………….. 29-1
29.2   RESPONSIBILITIES ……………………………………………………………………. 29-1
29.3   PROCEDURES ………………………………………………………………………….. 29-2


PART 30 – WORK FOR OTHERS (WFO)                                                     30-1
30.1   GENERAL ………………………………………………………………………………. 30-1
30.2   RESPONSIBILITIES …………………………………………………………………… 30-1
30.3   PROCEDURES …………………………………………………………………………. 30-2




                                               Page toc-viii
                                        Original Issue: Feb 1997
                                   Compilation of Changes 1-9: Jan 2001
                         Business Services Department Procurement Policies and Procedures


                                                    FOREWORD

This Policies and Procedures Manual (hereinafter referred to as the “Manual”) has been revised in its entirety, and
supersedes all previous revisions. The Manual establishes the basis by which the Southeastern Universities Re-
search Association (SURA) conducts its operations under performance based Contract No. DE-AC05-84ER40150
(or successor) with the U.S. Department of Energy (DoE), hereinafter referred to as the “Contract” or “M&O Con-
tract”. The terms “JLab”, “Laboratory” and “Jefferson Lab”, refer to the Thomas Jefferson National Accelerator
Facility and are used throughout this Manual to indicate the SURA personnel and facilities responsible for execu-
tion of the policies and procedures referenced herein. The term “Department” wherever referenced in this Manual
shall mean that part of the JLab Business Services Department staff dedicated to acquisition functions.


        This Manual adheres to the highest ethical principles and environmental, health, and safety standards em-
bodied in Federal law and regulations. Further, the Department promotes efficient and effective operations through
annual self assessments that are focused on customer service and performance based outcomes.


        Certain FAR and DEAR clauses have been incorporated in this Manual to satisfy the requirements of the
M&O Contract and/or U.S. statutes and regulations. In such cases, the clauses are modified to indicate “SURA”
instead of the “Government” or “DoE” as appropriate. However, the incorporated clauses are substantially the
same as the referenced FAR or DEAR clause (see definitions at FAR 52.101 (a)). In addition, the alternate varia-
tion(s) of the cited FAR or DEAR clause (as defined in FAR 52.105) are used when the applicable FAR/DEAR pre-
scription requires its use.) Also, the applicable revision date for each FAR and DEAR clause used in this policies
and procedures Manual is the revision date in effect at the time this policies and procedures Manual was approved
for use, unless: (i) a later revision is required by operation of law; (ii) a later revision is required by terms of the
M&O Contract; or (iii) a later revision is approved for use by the Director of Business Services.


        This Manual is required to be used by Business Services personnel in the execution of duties related to
acquisition of supplies, services and construction and support of the Laboratory’s Technology Transfer Program.


        Deviation from the policies and procedures set forth herein requires written authorization from the Director
of Business Services. Any substantive changes to the policies herein must be approved by the Associate Director
for Administration and the DoE Site Office Contracting Officer prior to issuance.




                                                             Page - i
                                                   Original Issue: Feb 1997
                                              Compilation of Changes 1-9: Jan 2001
                     Business Services Department Procurement Policies and Procedures


                                   PART 1 – PURCHASING SYSTEM
1.1 GENERAL
      SURA/JLab has developed the policies and procedures contained in this Manual pursuant with the M&O
      Contract, DEAR Part 970.71, applicable statutes, and the dictates of best business practice.


      1.1.1   The Department’s policies and procedures contained in this Manual are aligned with the Feder-
              al Acquisition Guiding Principles1 listed below:
              a) Acquisition of quality products and services at fair and reasonable prices,


              b) Use of capable and reliable subcontractors who either: a) have track records of successful
                  performance; or b) can demonstrate a current superior ability to perform,


              c) Minimization of acquisition lead time and administrative costs of processing,


              d) Use of effective competitive techniques,


              e) Implement subcontractor quality relationships through teaming relationships to achieve re-
                  duction of performance risks,


              f) Support continuous improvement in purchasing through the use of self-assessment and
                  bench-marking techniques,


              g) Maintenance of the highest professional and ethical standards,


              h) File documentation appropriate to the value of the purchase and which is adequate to estab-
                  lish the propriety/price and other factors of the transaction.


      1.1.2   All assigned Manual holders are responsible for conforming to the requirements stated In this
              Manual.




1
    Reference FAR part 1.102

                                                        Page 1-1
                                               Original Issue: Feb 1997
                                          Compilation of Changes 1-9: Jan 2001
                    Business Services Department Procurement Policies and Procedures


    1.1.3   Revisions to this Manual are coordinated with Associate Directors, the Quality Assurance Of-
            ficer, Legal Counsel, and other technical and administrative personnel as necessary. Revisions
            can only be authorized by the Director of Business Services.


            1.1.3.1 The Policies and Procedures Manual Control Form will be maintained by the Depart-
                    ment Secretary and will list the Manual holders


            1.1.3.2 The Control form will list the Manual revisions and will provide a brief summary of
                    each revision.


    1.1.4   Pursuant with M&O Contract Article 65, Procurement Integrity - Service Contracting (Sep 1990)
            52.203-13,, the Director of Business Services shall ensure Department staff and other SURA/JLab
            staff having duties and responsibilities commensurate with that of a procurement official are knowl-
            edgeable of proper ethics and standard of conduct associated with procurement responsibilities.


1.2 CONTRACTUAL AUTHORITY-
The President of SURA has delegated authority to the Director Of SURA/JLab to enter into subcontracts on
behalf of SURA/JLab in fulfillment of SURA/JLab's work under Contract No. DE-AC05-84ER40150, (or
successor) and this authority may be re-delegated to selected procurement or other Laboratory Staff as
deemed in the best interest of the Laboratory.


    1.2.1   The Director of Business Services is authorized to ratify an unauthorized purchase and take
            action as necessary and reasonable to eliminate unauthorized purchases within the Laboratory.
            The cognizant subcontracting officer shall make a determination and findings of the events
            contributing to unauthorized actions.


            1.2.1.1 Ratification of an unauthorized action shall ensure that:
                    a) ordered supplies or services are necessary and consistent with Laboratory quality
                        standards,
                    b) funds are available,
                    c) the price/cost is fair and reasonable, and
                    d) the resultant purchase order/subcontract would have otherwise been proper,




                                                      Page 1-2
                                             Original Issue: Feb 1997
                                        Compilation of Changes 1-9: Jan 2001
                   Business Services Department Procurement Policies and Procedures


    1.2.2   Each contractual obligation shall clearly indicate that the Southeastern Universities Research
            Association, Inc. is the contracting party.


    1.2.3   Pursuant with M&O Contract Article 114, Restrictions of Subcontractor Sales to the Govern-
            ment (JUL 1985) 52.203-6, SURA/JLab shall not enter into any agreement with an actual or
            prospective subcontractor, nor otherwise act in any manner, which has or may have the effect
            of restricting sales by such subcontractor(s) directly to the Government (or SURA/JLab) of any
            item or process (including computer software) made or furnished by the subcontractor under
            the prospective subcontract or any follow-on production subcontract.


1.3 PROCUREMENT GUIDANCE MEMORANDUMS-
The Director of Business Services issues Procurement Guidance Memorandums (PGM’s) to Department
staff to provide guidance or instructions concerning implementation of procurement practices and policies.
PGM’s are sequentially numbered and copies are maintained in the Department library.


1.4 DOE APPROVAL-
DoE approval and reporting requirements are contained in the M&O Contract.


1.5 COMMONWEALTH OF VIRGINIA FUNDED PROCUREMENT ACTIONS-
Pursuant with M&O Contract Article 53, Advance Understanding on Costs, SURA/JLab may purchase
supplies, services, and construction requirements with Commonwealth Of Virginia funds, and administer
those purchase/subcontract actions through completion. The Department’s acquisition policies and proce-
dures may be used to process such state funded requirements; however, the resulting transaction (purchase
order, subcontract, etc.) shall not be subject to DoE/Government review or approval.


1.6 QUALITY ASSURANCE-
The Business Services Department Specific Quality Assurance Plan (SQAP) provides guidance and re-
quirements concerning the Department’s quality assurance program.


1.7 ADMINISTRATIVE MANUAL-
The SURA/JLab Administrative Manual provides procurement guidance that is intended for use by the
general Laboratory population.




                                                      Page 1-3
                                             Original Issue: Feb 1997
                                        Compilation of Changes 1-9: Jan 2001
                    Business Services Department Procurement Policies and Procedures


                             PART 2. ACQUISITION PLANNING

2.1 GENERAL-
It is the policy of SURA/JLab that acquisitions will be sufficiently planned to accomplish SURA/JLab's
mission and obligations under the M&O Contract in a timely and cost effective manner. (See Administra-
tion Manual for specific guidance regarding planning procurement needs.)


    2.1.1   Group Managers shall annually review repetitive purchases to determine if a more efficient
            acquisition approach (e.g., Blanket Agreements or multiple year type subcontracts) is possible.


2.2 ADVANCE PROCUREMENT PLANNING-
The cognizant Group Manager shall develop a procurement plan at the beginning of each fiscal year that
provides a list of planned actions that will exceed $100,000 and a brief description of the probable basis for
award and contract type.


2.3 PROCUREMENT CYCLE TIMES-
The Director of Business Services shall notify key users of the procurement system of estimated lead times
to complete procurement actions for various dollar thresholds.


2.4 BUDGETARY INFORMATION-
Procurement and technical staff may initiate vendor contacts when routine technical information and cost
data is needed for planning future acquisitions..


    2.4.1   Since a request for a budgetary quote provides vendors with some advance information con-
            cerning SURA/JLab's procurement plans, care must be taken to avoid preferential treatment to
            a particular vendor.


    2.4.2   When issuing Requests For Information (RFI), the buyer/subcontracting officer should include
            a statement on the front page of the request that notifies potential vendors that this information
            is for planning purposes only and that SURA/JLab will not make an award in response to this
            request.
                                                           Example:
                "This RFI is issued for budgeting or planning purposes only. SURA/JLab will not make an
                award based on responses to this RFI, and SURA/JLab will not reimburse subcontractors for
                any costs related to providing the information requested."


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   2.4.3   A quotation received in response to SURA/JLab's RFI is not an offer and cannot be accepted
           by SURA/JLab to create a binding subcontract.


2.5 MAKE-OR-BUY PLANS-
Refer to the M&O Contract (Appendix I) for details and requirements concerning make or buy decisions.




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     PART 3. PURCHASE REQUISITIONS AND WORK STATEMENTS

3.1 GENERAL-


    3.1.1   A completed Purchase Requisition (PR) form is necessary to initiate a procurement action that
            may require SURA/JLab to obligate funds. A PR form is also required for Changes or Modifi-
            cations to awarded subcontracts/purchase orders that may result in the obligation of funds. A
            PR is not required for circumstances defined in (1) paragraph 3.1.3 below; (2) section 3.6,
            Emergency Requirements; and (3) section 22.4.7 for nonsubstantive modifications or changes.


    3.1.2   It is the requisitioner’s responsibility to fully complete the PR form and secure the necessary
            approvals to process the requisition for a procurement action. At a minimum the PR form must
            fully describe the item(s) or work to be acquired, the quantity required, the date required, the
            funding total, the Project/Organization/Account, and the estimated cost or price.


    3.1.3   PR Letter of Increase. It is the requisitioner’s responsibility to process a PR Letter of Increase
            when the anticipated award amount is more than $100.00 or 10% higher than the approved PR
            funding limitation; whichever is greater. While approval of additional funds is not necessary if
            the award amount is within the above range, the buyer shall document coordination with the
            requisitioner when the award amount increases by more than $100.00.


3.2 COST AND PRICE ESTIMATES-
Before soliciting offer(s) or directing a change pursuant with the changes clause, buyers/subcontracting
officers shall obtain the estimated price/cost of the supplies, services or construction from the originator of
the requirement.


    3.2.1   The cost/price rationale should consider one or more of the following cost/price concepts: his-
            torical pricing; published catalog prices; commercial pricing; detailed cost breakdown based
            on technical expertise; life-cycle costs; design-to-cost; or should-cost, based on the type and
            complexity of the requirement.


            3.2.1.1       The cost/price rationale for commodities and fabrications < $100,000 may be
                          based on the estimated amount referenced in the Purchase Requisition document.


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3.3 DELIVERY OR PERFORMANCE PERIOD-
Purchase requisitions should specify the date the supplies/services are required by the requesting department.


    3.3.1   Buyers/subcontracting officers shall coordinate and annotate agreement with the requester
            when: the delivery period cannot be met or unnecessarily restricts competition, or the delivery
            period can only be achieved by addition of a cost premium.


    3.3.2   Purchase Requisitions containing only the notation "As Soon As Possible (ASAP)" to indicate
            the date supplies/services are required at JLab, should be clarified with the requester to deter-
            mine the latest actual date acceptable.


3.4 FIRST ARTICLE TESTING AND APPROVAL-
“First article” includes preproduction models, initial production samples, test samples, first lots, pilot mod-
els, and pilot lots. “Approval” involves testing and evaluating the first article for conformance with speci-
fied subcontract requirements before or in the initial stage of production under a subcontract.


    3.4.1   First article testing and approval is designed to assure that the Seller can furnish a product that
            conforms to subcontract requirements. In determining whether first article testing and approval
            are to be required, consideration shall be given to increased cost and time of delivery by reason
            of the test, risk to SURA/JLab of foregoing such tests, and the availability to SURA/JLab of
            other less costly methods of achieving the desired quality.


    3.4.2   First article testing and approval may be appropriate when the product to be purchased:
            a) Has not been previously furnished by the Seller;


            b) Has been previously furnished by the Seller but there have been subsequent changes in pro-
                cesses or specifications, or production has been discontinued for an extended period of time;
                or


            c) Is described by a performance specification.


    3.4.3   Normally, first article testing and approval are not recommended in subcontracts for:
            a) Research or development;



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            b) Supplies normally sold in the commercial market; or


            c) Supplies covered by complete and detailed technical specifications, unless the technical or
                performance requirements are so novel or exacting that it cannot reasonably be anticipated
                that such supplies will meet the technical or performance requirements without first article
                testing and approval.


3.5 OPTIONS-
As used herein, an option clause is a provision in a purchase order or a subcontract under which, for a
specified time, SURA/JLab may elect to purchase additional quantities of the supplies or services called
for by the order, or may elect to extend the period of performance thereof.


    3.5.1   The exercise of an option by SURA/JLab requires written notification to the subcontractor
            within the time period specified in the order.


            3.5.1.1       Where the order provides for price escalation and the subcontractor requests revi-
                          sion of price pursuant to such provision or the provision applies only to the option
                          quantity, the effect of escalation on prices under the option must be ascertained be-
                          fore the option is exercised.


            3.5.1.2       Options should be exercised only if it is determined that:
                          a) Funds are available;


                          b) The requirement covered by the option fulfills an existing need of SURA/JLab; and


                          c) The exercise of the option is most advantageous to SURA/JLab, price and other
                              factors considered.


                          3.5.1.2.1   Insofar as price is concerned, the determination under (c) above shall
                                      be made on the basis of one of the following:
                                      a) A new solicitation fails to produce a better price than that offered by
                                           the option. This method of testing the market is not recommended
                                           and methods in (2), (3), or (4), are generally preferred to determine
                                           price factors.

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                                      b) An informal investigation of prices or other examination of the mar-
                                           ket indicates that the option price is the best obtainable;


                                      c) The time between the award of the order containing the option and
                                           the exercise of the option is so short that it indicates that the option
                                           price is the lowest price obtainable, considering such factors as mar-
                                           ket suitability and a comparison of the time since award with the
                                           usual duration of orders for such supplies and services; or


                                      d) Established prices are readily ascertainable and clearly indicate that
                                           another solicitation action is not justified.


                          3.5.1.2.2   Insofar as the “other factors” mentioned above are concerned, the de-
                                      termination should take into account SURA/JLab's need for continuity
                                      of operations and potential costs to SURA/JLab of disrupting opera-
                                      tions, including the cost of relocating necessary SURA/JLab-furnished
                                      property as, for example, in certain repair and overhaul orders for
                                      complex equipment.


            3.5.1.3       When it has been determined that an option may be properly exercised, such de-
                          termination shall be set forth in writing and included in the file. Written notifica-
                          tion to the subcontractor of the exercise of the option and any modification result-
                          ing therefrom shall cite the option clause contained in the order as authority for the
                          procurement of the option quantity.


    3.5.2   Refer to guidance under FAR 43.103 when using modifications for options.


3.6 EMERGENCY REQUIREMENTS-
Any situation that poses a danger to the environment, health or safety of personnel; or could interrupt criti-
cal facility operations; or cause serious damage to major equipment; or any Emergency, Unusual Occur-
rence, or Off-Normal occurrence as defined by SURA/JLab's Emergency Management Plan, is considered
an emergency requirement. Department staff shall respond immediately to an Emergency Requirement
based on a verbal request from SURA/JLab Staff. However, it is the responsibility of the requesting de-

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partment to provide an approved requisition (including all required supporting documentation) within three
(3) working days following the emergency request.


    3.6.1    The Department provides guidance for processing emergency procurement needs (see applica-
             ble Procurement Guidance Memorandum.)


3.7 CONSOLIDATION OF REQUIREMENTS
Requisitions with similar or like requirements should be consolidated into a single procurement action to
the extent practical and economically feasible. Requirements should not be consolidated if urgent delivery
requirements are delayed.


3.8 CANCELLATION OF PURCHASE REQUISITIONS
Purchase requisitions may be canceled at any time prior to award with reasonable justification. Buy-
ers/subcontracting officers should annotate the basis for the cancellation to include coordination with the
requester.


3.9 ALLOWABLE COSTS-
Buyers/subcontracting officers should refer questions concerning allowable costs to the Director of Busi-
ness Services.


3.10 METRIC REQUIREMENTS-
Use of metric system requirements is encouraged for SURA/JLab procurements to the maximum extent
practicable; however, this Manual does not authorize payment of direct additional costs for metric products
unless required by the requesting department for technical reasons. Further, metric requirements should not
be used when such use is impractical or is likely to cause significant inefficiencies or loss of markets to
U.S. firms. (The terms "impractical" and "significant inefficiencies" relate to major difficulties that would
be suffered by U.S. firms if metric measurements were used in SURA/JLab procurements and other instru-
ments described in this manual.)




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                                           Part 4. Sourcing
4.1 GENERAL-
SURA/JLab's procurement practices are dedicated to achieving maximum competition. Although the
Competition in Contracting Act (Pub. L 98-369) does not apply to SURA/JLab procurement actions, sub-
contractors should be selected on a competitive basis to the maximum practical extent.


4.2 COMPETITIVE SOURCING-
In accordance with- M&O Contract Article 116, Competition in Subcontracting (Apr 1984), 52.244-5,
SURA/JLab shall select subcontractors on a competitive basis to the maximum practical extent.


    4.2.1   Normally price/cost will be the primary award criteria for most routine requirements; however,
            technical factors and past performance should also be included when appropriate for the specif-
            ic requirement.


    4.2.2   A minimum of two vendors should be solicited in competitive procurements.


    4.2.3   Vendors wanting to bid on SURA/JLab acquisitions should complete a Bidders Mailing List
            Application.


            4.2.3.1 A vendor may be excluded or removed from the Bidders Mailing List if determined in
                    the best interest of SURA/JLab. In such cases, the buyer/subcontracting officer shall
                    document the file and obtain approval from the Director of Business Services.


    4.2.4   A copy of each competitive solicitation exceeding $25,000 shall be publicly posted on a bulle-
            tin board established for such purpose, until the time for receipt of offers has expired.


            4.2.4.1 Other public notices such as newspaper advertisements, Commerce Business Daily
                    (CBD) announcements World Wide Web (WWW) postings, notifications to local trade
                    organizations, pre-bid conferences, or market surveys may be also be utilized as neces-
                    sary to optimize competition for the instant procurement.


4.3 COMMERCIAL ITEM SOURCING-
SURA/JLab encourages the acquisition of commercial or nondevelopmental end items (both supplies and ser-
vices) and components to the maximum practicable extent in order to further streamline the procurement pro-

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cess and minimize unique technical and business requirements. Generally the items that SURA/JLab procures,
including supplies, equipment, ADP, software packages and most support services, will fit within the defini-
tion of “Commercial Items” detailed in section 4.3.2. Sourcing Techniques and Simplified Purchase Methods
that may be followed for actions not exceeding $1,000,000 are addressed in Sections 4.5 and 6 of this manual.


    4.3.2   The assigned Group Manager determines when the Commercial Item Sourcing Techniques for
            procurements in excess of $100,000 authorized in this Manual are followed. The following
            definitions of commercial items are based on guidance in FAR 2.101:
            a) Any item, other than real property, that is of a type customarily used for non governmental
                purposes and that (1) Has been sold, leased, or licensed to the general public; or (2) Has
                been offered for sale, lease, or license to the general public;


            b) Any item that evolved from an item described in paragraph (a) of this definition through
                advances in technology or performance and that is not yet available in the commercial
                marketplace, but will be available in the commercial marketplace in time to satisfy the de-
                livery requirements under a SURA/JLab solicitation;


            c) Any item that would satisfy a criterion expressed in paragraphs (a) or (b) of this definition,
                but for (1) Modifications of a type customarily available in the commercial marketplace; or
                (2) Minor modifications of a type not customarily available in the commercial marketplace
                made to meet SURA/JLab requirements (“Minor modifications” means modifications that
                do not significantly alter the non governmental function or essential physical characteris-
                tics of an item or component, or change the purpose of a process). Factors to be considered
                in determining whether a modification is minor include the value and size of the modifica-
                tion and the comparative value and size of the final product. Dollar values and percentages
                may be used as guideposts, but are not conclusive evidence that a modification is minor;


            d) Any combination of items meeting the requirements of paragraphs (a), (b), (c), or (e) of this def-
                inition that are of a type customarily combined and sold in combination to the general public;


            e) Installation services, maintenance services, repair services, training services, and other ser-
                vices if such services are procured for support of an item referred to in paragraphs (a), (b),
                (c), or (d) of this definition, and if the source of such services (1) Offers such services to
                the general public and SURA/JLab contemporaneously and under similar terms and condi-

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    tions; and (2) Offers to use the same work force for providing SURA/JLab with such ser-
    vices as the source uses for providing such services to the general public;


f) Services of a type offered and sold competitively in substantial quantities in the commercial
    marketplace based on established catalog or market prices for specific tasks performed un-
    der standard commercial terms and conditions. This does not include services that are sold
    based on hourly rates without an established catalog or market price for a specific service
    performed;


g) Any item, combination of items, or service referred to in paragraphs (a) through (f),


h) A nondevelopmental item, if SURA/JLab determines the item was developed exclusively
    at private expense and sold in substantial quantities, on a competitive basis, to multiple
    State and local governments.


4.3.2.1 Commercial component means any component that is a commercial item. Component
        means any item supplied to SURA/JLab as part of an end item or of another component.


4.3.2.2 Market research means collecting and analyzing information about capabilities within
        the market to satisfy JLab needs.


4.3.2.3 Nondevelopmental item means:
        a) Any previously developed item of supply used exclusively for governmental pur-
            poses by a Federal agency, a State or local government, or a foreign government
            with which the United States has a mutual defense cooperation agreement;


        b) Any item described in paragraph (a) of this definition that requires only minor
            modification or modifications of a type customarily available in the commercial
            marketplace in order to meet the requirements of SURA/JLab, or


        c) Any item of supply being produced that does not meet the requirements of para-
            graph (a) or (b) solely because the item is not yet in use.




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            4.3.2.4 In order for services to be considered a “commercial item” pursuant to the definition
                    above, the services must meet the criteria of paragraphs (e) or (f) of the commercial
                    items definition above. Additionally, if the services being acquired meet the criteria
                    of the first sentence of paragraph (f) above, the services must be priced on the basis of
                    the “specific task performed” to be considered a “commercial item”. Further, the last
                    sentence of paragraph (f) of the commercial items definition means that services that
                    are priced and provided on an hourly basis (e.g., a labor hour contract) do not consti-
                    tute a “commercial item” pursuant to the definition, because an hour of labor is not a
                    “specific task performed”. Rather, an hour of labor is component of a “specific task”.


            4.3.2.5 Only firm fixed price instruments may be used for the acquisition of commercial items.


4.4 MICRO-PURCHASE SOURCING-
A Micro-purchase is any purchase of supplies, or services that does not exceed $2,500, or a construction
requirement that does not exceed $2,000. The following conditions apply to micro-purchase actions:
    a) Micro-purchases may be made without competition.
    b) Micro-purchases are exempt from the Buy American Act and Small Business Act.
    c) Quotations may be solicited orally.
    d) Procedures for the use of credit cards are issued under a Procurement Guidance Memorandum.
    e) Representations and Certifications are not required for Micro-purchases.


    4.4.1   The following award information should be documented:
            a) Price of item
            b) Fob point and shipping method
            c) Invoice terms
            d) Delivery date


            4.4.1.1 Buyers and subcontracting officers shall not make an award without approval of the
                    Director of Business Services when the price is not considered reasonable.


    4.4.2   SURA/JLab may utilize not-to-exceed purchase orders for purchase of low cost items ($100 Or Less).




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4.5 SIMPLIFIED PURCHASES-
The following simplified purchase procedures may be used for actions that are above the micro-purchase
threshold but that do not exceed $100,000; and for commercial items that do not exceed $1,000,000.
   a) Request For Quotations (RFQ) should allow reasonable time for competition whenever practicable.


   b) Price quotes may be solicited orally .


   c) Facsimile and electronic solicitations and quotations (e.g., via a computer network such as “Inter-
        net”) are acceptable as written documentation.


   d) Representations and Certifications are required for Simplified purchases greater than $10,000. For
        Simplified Purchases < $10,000 the Buyer/Subcontracting Officer shall obtain written or verbal
        verification of the vendor’s size and socioeconomic status and a determination if the goods/services
        are of domestic origin.


   e) The Buyer shall ensure that responses are handled in a manner to assure fairness and impartiality
        and communicate when necessary to issue clarifications to all prospective firms;


   f) The Buyer may conduct negotiations or seek clarification, amplification, or correction of a quota-
        tion as appropriate to promote competition and enhance the understanding of all parties involved;


   g) The Buyer shall determine that the proposed prices are reasonable before awarding a subcontract or
        purchase order; and


   h) The Buyer shall make an affirmative responsibility determination for every action; however, writ-
        ten file documentation is not required for simplified actions awarded pursuant with this Part.


   i)   The authority to issue Simplified Purchase solicitations for commercial items and components ex-
        ceeding $100,000 expires on 1 Jan 2002 under the conditions of FAR 13.500(d).


   4.5.1    Quotes may be evaluated based on price alone or price and other factors such as past perfor-
            mance and/or quality. Formal evaluation plans, conduct of discussions, and scoring of quotes
            or offers are not required. The RFQ shall include evaluation factors.



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4.5.2   Documentation should be the minimum necessary to support the purchase. The following
        guidelines should be followed:
        a) Reasonableness of Price       Include information regarding how the price was determined to
            be reasonable. Comparison of quotes, comparison of the proposed price with prices found
            reasonable on previous purchases, current price lists, catalogs, advertisements, similar
            items in related industry, value analysis, the Buyer’s personal knowledge, or any other rea-
            sonable basis. Evaluations shall consider transportation charges.


        b) Award Decision. When other than price related factors are considered in selecting the
            subcontractor, the Buyer shall document the file to support the final award decision.


        c) Directed Source. File shall be documented in accordance with the requirements under part 4.6.


        d) Oral Solicitations. Informal records or notes of oral price quotations should be included in
            the file to reflect clearly the propriety of placing the order at the price to be paid with the
            supplier concerned. Normally, this will merely include names of the suppliers contacted
            and prices and other terms and conditions quoted by each.


        e) Written Solicitations. Records may be limited to notes or abstracts to show prices, delivery, ref-
            erences to printed price lists used, the supplier or suppliers contacted, and other pertinent data.


4.5.3   A simplified purchase action above the micro purchase threshold is generally documented by a
        Jefferson Lab executed Purchase Order. Orders issued in response to a contractor’s quotation
        resulting from a Request for Quotations (RFQ) are legally considered as an offer and are not
        binding until accepted by the contractor. Contractor acceptance of Jefferson Lab Purchase Or-
        ders may be conveyed as follows for simplified purchase actions.


        4.5.3.1 exceeding $2,500 to $100,000 – Contractor may simply undertake performance on the
                awarded Purchase Order or sign and return the Jefferson Lab signed (awarded) Pur-
                chase Order document.


        4.5.3.2 exceeding $100,000 to $1,000,000 – In order to ensure the Contractor’s compliance
                with Purchase Orders exceeding $100,000 the Contractor shall be required to sign and
                return the awarded Purchase Order.

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    4.5.4    In the event the final price exceeds $100,000, the resulting Purchase Order shall include the
             applicable requirements established under Negotiated Subcontracts terms and conditions for
             actions exceeding $100,000.


4.6 DIRECTED SOURCING FOR NON COMPETITIVE PURCHASES-
A “directed” source is any procurement action other than “Micro-purchases” or change within the scope of work
of the subcontract (“Changes” clause), that was contemplated to be awarded (or was awarded) without obtaining
competitive quotations, bids or proposals. Directed source procurement awards are normally used when formal
competition is not reasonably available or practical, or it is otherwise justified as being in the best interest of
SURA/JLab. In such cases it is the buyer’s responsibility to ensure that prices are fair and reasonable.


    4.6.1    The buyer/subcontracting officer shall document the basis for each directed source action based
             on the criteria discussed below.
             a) The directed source is set aside to a Section 8A (Small Business Act) or to a partnering
                 protégé small business (P.L. 101-510 Section 831 as amended).


             b) The Directed Source is the result of a competitive action issued by another DoE Laborato-
                 ry, or Government agency such as a GSA schedule contract or leveraged purchase subcon-
                 tract made available to JLab. In such cases, it is the buyer’s responsibility to ensure that
                 prices/costs to be paid by SURA/JLab are fair and reasonable.


             c) The directed source is the only reasonable source to satisfy the requirement based on one
                 or more of the following criteria as supported and documented by the Requester and Divi-
                 sion purchase requisition approving officials:
                 1. Only one responsible source and no other supplies or services will reasonably satisfy
                     SURA/JLab's requirements (based on a vendor’s unique capability, the need to main-
                     tain system continuity through compatibility/standardization, or proprietary data).


                 2. Timely and efficient performance is a critical element of the selection decision, and an
                     award to the directed source is determined to be in the best interest of SURA/JLab
                     based on the proposed subcontractor’s performance history, capabilities, quality, and
                     anticipated price reasonableness.



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        3. The requirement is estimated to cost $25,000 or less ($50,000 or less if the directed
            source is a Small Business) and award to the directed source is found to be in the best
            interest of SURA/Jlab based on the proposed subcontractors performance history, ca-
            pabilities, quality and anticipated price reasonableness.


        4. There is unusual and compelling urgency for the supplies or services such that
            SURA/JLab or the Government would be seriously injured unless the number of sources
            was limited, e.g. (1) threat to the environment, or safety and health of individuals; (2)
            immediate threat to the environment; (3) unforeseeable adverse impact to the
            SURA/JLab critical path milestone schedule; or (4) potential serious financial injury.


        5. When it is necessary to award to a particular source in order to establish or maintain an es-
            sential engineering, research, or development capability to be provided by an educational in-
            stitution or a federally funded research and development centers. [Note: This includes
            awards to other DoE Laboratories, collaborating educational institutions, or federally funded
            research and development centers that have established Memorandum of Understandings
            with SURA/JLab to provide essential engineering, research, or development work.]


        6. Modification of a purchase order/subcontract when schedule, quality and/or cost effi-
            ciencies may be realized by using an incumbent contractor to provide additional quan-
            tities of items under a current purchase order/subcontract.


        7. When authorized by an international agreement or treaty between the U.S. and foreign
            Government or international organization.


        8. When authorized or required by statute.


        9. When the public disclosure of SURA/JLab's requirements would compromise national
            security or the confidential interests of the Government.


        10. As directed by the DoE Contracting Officer.


4.6.1.1 The buyer/subcontracting officer shall ensure the file is properly documented with the ba-
        sis for all directed source procurements which exceed $2,500 and obtain approval of

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                his/her immediate supervisor when the requirement exceeds $25,000 ($50,000 if award is
                to be made to a small business).


4.7 SURA AFFILIATED SOURCES-
Institutions identified as SURA/JLab Affiliated Institutions, represent the consortium of SURA/JLab univer-
sities that are considered "member universities." A current list of these “Affiliated Institutions” is main-
tained by the Department.


    4.7.1   SURA/JLab may subcontract to member universities in the same manner as from other sources,
            provided:
            a) SURA is independent of the member institution;


            b) The same terms and conditions apply as if the member institution were a third party;


            c) Award is made in accordance with policies and procedures designed to permit effective
                competition that are consistent with this manual.


            d) Acquisition of technical requirements is made from SURA/JLab affiliated institutions
                where those entities have a special expertise and the basis therefor is documented; and


            e) The award is legally enforceable where the entities are separately incorporated.


4.8 GOVERNMENT SOURCES-
A "Government Supply Source" is the General Services Administration (GSA), Federal Prison Industries
(UNICOR), another Government agency, private vendor under contract with GSA, or Government Excess
Property.


    4.8.1   Except as provided in subpart 4.8.4, below, use of Government Supply Sources is not mandatory.


    4.8.2   Buyers/subcontracting officers may use Government excess personal property as the first
            source of supply when deemed practicable.


    4.8.3   Requirements for Government Excess Property shall be referred to the SURA/JLab Property Officer.



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  4.8.4   Provide “Printing” in accordance with M&O Contract Article 21, Printing (Apr 1984) 97-.5204-
          19. The following printing requirements apply to SURA/JLab requirements:
          a) Insert the provision at DEAR 970.5204-19, Printing in all subcontracts thereunder that re-
              quire printing (as that term is defined in Title I of the U.S. Government Printing and Bind-
              ing Regulations).


4.9 FOREIGN SOURCES-


  4.9.1   It is the policy of SURA/JLab to give preference to domestic end products consistent with the
          DoE Acquisition Regulation requirements pertaining to M&O Contractors.


          4.9.1.1 Actions < $2,500 (micro-purchases) are exempted from the Buy American Act.


  4.9.2   Pursuant with M&O Contract Article 122, Restrictions on Certain Foreign Purchases (May
          1992) 52.225-11, SURA/JLab shall not purchase supplies or services from restricted foreign
          sources without approval of the DoE Contracting Officer:


  4.9.3   Pursuant with M&O Contract Article 122, Restrictions on Certain Foreign Purchases (May
          1992) 52.225-11, insert the substance of the clause at FAR 52.225-11, Restrictions on Certain
          Foreign Purchases (May 1992).


  4.9.4   The cognizant acquisition Group Manager and Director of Business Services shall approve all
          foreign acquisitions subject to the Buy American Act.


  4.9.5   Foreign acquisitions should be priced in U.S. Dollars to the maximum extent practical.


  4.9.6   Pursuant with M&O Contract Article 82, Preference For U.S.- Flag Air Carriers (APR 1984)
          52.247-63, insert the clause at FAR 52.247-63 Preference For U.S. - Flag Air Carriers in all
          applicable solicitations and subcontracts that may involve international air transportation.


  4.9.7   Pursuant with M&O Contract Article 83, Preference For Privately Owned U.S. Flag Commer-
          cial Vessels (APR 1984) 52.247-64, insert the clause at FAR 52.247-64 Preference For Pri-
          vately Owned U.S. Flag Commercial Vessels in all applicable solicitations and subcontracts
          exceeding the simplified purchase limitation.

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    4.9.8   Solicitations/subcontracts involving foreign firms should require all documentation submittals
            to be in English.


4.10 QUALIFIED SOURCES-
The buyer/subcontracting officer should refer to the SURA/JLab Specific Quality Assurance Plan for Substand-
ard Material And Products when purchasing critical application fasteners or circuit breakers referenced below.


    4.10.1 Requisitions specifying special critical high strength fasteners or circuit breakers for critical use
            should contain technical guidance describing the basis for qualifying vendors on an acceptable
            industry standard. (Also refer to the SURA/JLab Administrative Manual for additional guidance.)


            4.10.1.1 Qualification can be obtained through audits coordinated with SURA/JLab's quality
                       assurance organization, or by accepting evidence of qualification from another DoE
                       facility, DoE contractor, Supplier Quality Information Group, or other nationally
                       recognized organization.


            4.10.1.2 Critical components involving high strength fasteners, critical use circuit breakers,
                       and other critical items that have been subject to counterfeiting, should not be placed
                       with manufacturers/suppliers that have supplied substandard or counterfeit parts to
                       the Government. Any lists supplied by the Government of these suppliers will be
                       maintained in the Department library.


            4.10.1.3 The purchase order/subcontract involving possible suspect/counterfeit items shall
                       identify product verification test(s), if any, that will be performed on the delivered
                       product. The suppliers/manufacturers should be notified that failure to meet a receipt
                       inspection verification test will be cause for rejection of the shipment at the expense
                       of the supplier/manufacturer. The supplier/manufacturers should also be advised that
                       the Office of the Inspector General will be notified for possible investigation, if de-
                       livered products fail to pass receipt inspection tests.


            4.10.1.4 Unless otherwise specified in the purchase order/subcontract, all items being sup-
                       plied must be new, not reconditioned or repaired.



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            4.10.1.5 During receipt inspection of items subject to counterfeiting, the end User (technical
                        person accepting the parts/materials) should provide for verification testing on a
                        sampling basis either at SURA/JLab or by a qualified independent test laboratory.


            4.10.1.6 Appropriate verification testing (e.g., electrical, chemical, and mechanical) should be
                        addressed in the technical specification or statement of work issued by the User.


            4.10.1.7 Buyers/subcontracting officers should advise bidders/offerors of suspect/counterfeit
                        parts material problems.


            4.10.1.8 Buyers/subcontracting officers shall document and notify the Director of Business
                        Services of any suspected or actual occurrence of counterfeit parts.


            4.10.1.9 Buyers/subcontracting officers should advise cognizant technical personnel to report
                        any actual or suspected non-conformance to the Department.


            4.10.1.10     The buyer/subcontracting officer should develop a Qualified Suppliers List when
                          deemed necessary to support the procurement mission.


4.11 PARTNERING WITH VENDORS-
Partnerships may be necessary and advantageous to SURA/JLab to ensure an exchange of information vital
to planning and initiating a procurement requirement. In such cases, vendors (or potential vendors) may be
requested to provide business sensitive information regarding technological innovations and capability, and
SURA/JLab may likewise share information strategic to a particular procurement requirement. The buy-
er/subcontracting officer shall obtain the approval of the Director of Business Services who shall coordi-
nate with the DoE Contracting Officer prior to initiating any partnering arrangement.


4.12 OBTAINING INFORMATION FROM VENDORS-
The Business Services Department has the responsibility for fully developing and maintaining supplier
relationships that are favorable and beneficial to SURA/JLab.


    4.12.1 The Department is normally the point of contact between SURA/JLab and its suppliers. As
            such, it is expected that suppliers will contact the Department, and that representatives of other
            SURA/JLab departments will keep procurement officials fully informed of requirements that

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            may eventually result in purchases being made as well as changes required to existing purchase
            orders and subcontracts. Vendors requesting to place equipment at SURA/JLab for the purpose
            of testing its use, should complete a Contractor Release Letter - (Equipment). .


    4.12.2 When information relevant to future procurements is needed, (e.g., sources, delivery, or pricing
            data) the Department should be used as the information channel to the potential supplier, alt-
            hough technical personnel (requisitioners, engineers, etc.) may contact vendors directly for es-
            timating and budgeting purposes.


    4.12.3 The Department staff should refer supplier representatives to other SURA/JLab personnel as
            necessary to make full use of the information and services offered by suppliers.


    4.12.4 Procurement personnel have responsibility to issue all Requests for Information (RFI's), Re-
            quest for Quotations (RFQ's), Request for Proposals (RFP's), and Invitation for Bids (IFB's).


    4.12.5 Negotiations are the responsibility of the procurement professionals within the Business Ser-
            vices Department.


    4.12.6 Purchase commitments shall be made only as authorized in section 1.2.




4.13 FREEDOM OF INFORMATION ACT (FOIA) REQUESTS-
SURA is not subject to the statutory requirements of FOIA, but buyers/subcontracting officers should en-
deavor to provide the requested information when the interest of SURA or competition will not be adverse-
ly impacted.


Buyers/subcontracting officers shall notify the Director of Business Services regarding any FOIA request.


4.14 PROTESTS-
All protests (or conditions which may lead to a protest) regarding the award of a procurement, whether re-
ceived before or after award, shall be immediately referred to the Director of Business Services.


    4.14.1 Where a written protest against the making of an award is issued to SURA/JLab, satisfactory
            disposition of the protest should normally precede the making of an award.

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            4.14.1.1 The Director of Business Services may decide not to defer the award if warranted by
                       the circumstances of the protest: In such event, the protester shall be advised of the
                       decision and the basis upon which it is made.


    4.14.2 If it appears that a protest may not be resolved before the expiration date of offers, and the Di-
            rector of Business Services has elected to withhold award, each offeror should be informed that
            there has been a protest and requested to extend the time for acceptance of its offer, with con-
            sent of surety, if any, until a date set by the Director of Business Services. If the firm that has
            been tentatively selected for award refuses to extend its bid, the Director of Business Services
            may decide it is in the best interest of SURA/JLab to proceed with the award.


    4.14.3 If a protest cannot be resolved and probability of litigation exists, SURA/JLab may utilize the
            Alternative Disputes Resolution process outlined in section 22.9.


4.15 CONFLICTS OF INTEREST-
A procurement official must refrain from any situation that could lead to, or have the appearance of, a "con-
flict of interest" with a specific procurement action, solicitation, or subcontractor. Any situation which could
involve a conflict of interest situation shall be reported to the Director of Business Services, or cognizant As-
sociate Director, or to DoE. Examples of potential conflict of interest situations include but are not limited to
the following:
    a) Providing (or attempt to provide), soliciting (or attempt to solicit) or accepting any gratuity, mon-
        ey, loan, gift, entertainment, or favor that would influence a procurement decision.


    b) Soliciting (or accepting) an offer of employment from a competing company.


    c) Disclosing source selection or proprietary information to unauthorized personnel.


    d) Pursuing private business or professional relationships that are in conflict with the best interests of
        the Laboratory.


    4.15.1 Procurement Officials shall treat all parties equitably and fairly, be guided by ethical considera-
            tions, and maintain a professional, objective, and credible commitment to the goals, priorities,
            and requirements imposed by statute, the M&O Contract, and this Manual.

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4.15.2 It is the responsibility of Procurement Officials to promptly report: (i) violations of law; (ii)
        any threat to the health and safety of individuals, (iii) any threat to the environment; (iv) mat-
        ters involving mismanagement; gross waste of funds; or (v) abuse of authority.


4.15.3 A Procurement Official shall promptly report to the Director of Business Services any situation
        where a gift or other such gratuity was accepted, or not promptly returned to the vendor after
        receipt through the mail or other such means.


4.15.4 It is the policy of SURA/JLab to identify and avoid or mitigate organizational conflicts of interest
        (OCI) before entering into subcontracts, agreements, or other arrangements. An Organizational Con-
        flict of Interest is defined as the inability of a subcontractor to provide SURA/JLab with impartial or
        objective assistance or advice; and/or the subcontractor obtains an unfair competitive advantage be-
        cause of performance under past or present JLab subcontracts. Accordingly, an OCI may result when
        factors create an actual or potential conflict of interest on a current subcontract, or when the nature of
        the work to be performed on the current subcontract creates an actual or potential conflict of interest
        on a future procurement. It is the policy of JLab to systematically identify and avoid or mitigate OCI
        before entering into Advisory or Assistance Services subcontracts that are expected to exceed
        $100,000. These are subcontracts where the services furnish support to or improve: Laboratory or-
        ganization policy development; Laboratory decision-making; management and administration of La-
        boratory functions, or certain research and development activities (this definition does not include
        JLab Personal Services subcontracts for faculty or student research support services).


        4.15.4.1 Buyers\subcontracting officers shall review new or planned acquisitions as defined
                   above for potential conflict of interest situations and if appropriate, obtain from po-
                   tential subcontractors a disclosure statement and take the necessary steps with the re-
                   quiring office to avoid, mitigate or neutralize any disclosed conflict. Some of the
                   steps that may be appropriate are:
                   a) revise statement of work,


                   b) allow offerors to propose the exclusion statement of work task areas that create
                       the conflict,


                   c) ask the offeror to submit an OCI management plan for review and approval,

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                      d) make all information available to all offerors in order to level the playing field and/or,


                      e) include provisions in the solicitation that would allow for the resolution of any
                          conflicts during the acquisition process.


            4.15.4.2 If the conflicts cannot be avoided or neutralized and a subcontract award is required,
                      the Director of Business Services shall obtain the approval of the DoE Contracting
                      Officer prior to award of the subcontract.


4.16 VENDOR PRESENTATIONS AT SURA/JLAB-
A Contractor Release Of Information form should be completed by each vendor that requests to provide a
formal presentation at SURA/JLab. If the purpose of the meeting is for technical discussions on an active
SURA/JLab solicitation or subcontract, the form is not required, but the meeting should be coordinated
with the cognizant buyer/subcontracting officer.




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                                Part 5. Negotiated Subcontracts

5.1 GENERAL-
Negotiation means contracting through the use of either competitive or other-than-competitive proposals.
A proposal received in response to a Request for Proposal (RFP) is an offer that can be accepted by
SURA/JLab to create a binding subcontract, either following negotiations or without negotiations.


    5.1.1   A record of all negotiations should be maintained in the subcontract file including any changes
            to terms and conditions, the final price agreed on by the parties, the personnel involved in the
            negotiations, and the date negotiations were completed.


    5.1.2   Negotiations shall be held with all offerors that have a reasonable chance of award.


    5.1.3   When an offeror because of price and/or technical reasons does not have a reasonable chance
            for award, the buyer/subcontracting officer shall inform the offeror that they are no longer be-
            ing considered for the procurement action.


    5.1.4   The content and extent of negotiations is a matter of the buyer/subcontracting officer's judgment:
            a) All offerors shall be treated fairly and equitably,


            b) Negotiations shall be meaningful such that offerors are advised of proposal deficiencies (or
                other issues) and given the opportunity for clarification, amplification, or modification.


            c) All issues and uncertainties should be resolved to the maximum extent possible prior to
                closing negotiations.


            d) Any suspected mistakes shall be resolved by calling them to the offeror's attention, as spe-
                cifically as possible without disclosing information concerning other offeror's proposals or
                the evaluation process.


            e) Price/cost negotiations should be conducted in accordance with a negotiation plan.


    5.1.5   SURA/JLab shall not engage in "Technical Leveling" (i.e. helping an offeror to bring its pro-
            posal up to the level of other proposals through successive rounds of negotiations, such as by

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            pointing out weaknesses resulting from the offeror's lack of diligence, competence, or inven-
            tiveness in preparing the proposal).


    5.1.6   SURA/JLab shall not disclose technical information pertaining to a proposal that results in im-
            provement of a competing proposal (Technical Transfusion).


    5.1.7   SURA/JLab shall not engage in auctioning techniques, such as:
            a) Indicating to an offeror a cost or price that it must meet;


            b) Advising an offeror of its price standing relative to another offeror; however, it is permis-
                sible to inform an offeror that its cost or price is considered to be unrealistic; or


            c) Otherwise furnishing information about other offeror's prices.


    5.1.8   Selection may be made on the initial offer received when:
            a) Prices are fixed by law or regulation; or


            b) It can be clearly demonstrated that acceptance of the most favorable initial proposal would
                result in a fair and reasonable price provided that: (i) The solicitation notified all offerors
                of the possibility that a selection might be made on the initial offer and (ii) the selection is
                in fact made without any substantive change in the offeror’s initial proposal.


    5.1.9   Buyer/Subcontracting Officers have the authority to negotiate final terms and conditions with
            the selected offeror prior to award providing the final negotiated terms do not adversely affect
            the basis of selection.


5.2 EVALUATION OF OFFERORS-
It is SURA/JLab's policy to have proposals evaluated by the most competent persons available. This will
be accomplished by having proposals evaluated in-house, and aided by consultants, or other contractor per-
sonnel, as necessary. Source evaluation may be coordinated when specific evaluation criteria are devel-
oped to assess relative technical, business, managerial, or cost aspects of competitive proposals.


    5.2.1   SURA/JLab shall evaluate offers in strict accordance with the selection criteria stated in the
            solicitation.

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   5.2.2      For most requirements the evaluation team will prepare a summary of strengths and weakness-
              es for each evaluation factor.


   5.2.3      A Formal Source Evaluation Board (SEB) appointed by the Director of Business Services shall
              be considered when the procurement is estimated to exceed $500,000 and award will be based
              on evaluation and scoring/rating of the technical and management aspects of offers.


              5.2.3.1 A formal SEB is generally not conducted when the evaluation scheme is based on
                         technical acceptability (i.e. "go, no-go") and price is the controlling factor for the
                         award decision.


              5.2.3.2 A Conflict of Interest Certificate shall be completed by each SEB member and the
                         Source Selection Official whenever a formal SEB is appointed.


              5.2.3.3 When formal SEB is utilized a source selection plan shall be approved by the Source
                         Selection Official.


   5.2.4      Evaluation by other than SURA/JLab personnel (which includes contract labor personnel at
              SURA/JLab) is allowable based on the following.
              a) A decision to use outside evaluators shall consider the requirements for avoidance of or-
                   ganizational conflicts of interest.


              b) The selection official must approve the need for outside evaluation of offers.


              c) Agreement with the outside evaluator(s) shall be obtained based on the following agreement:
                                           "CONDITIONS FOR EVALUATION OF PROPOSALS
  Whenever SURA/JLab furnishes a proposal for evaluation, I, the recipient, agree to use the information contained in the proposal only
  for SURA/JLab evaluation purposes and to treat the information obtained in confidence. This requirement does not apply to information
  obtained from any source, including the proposer, without restriction. Any notice of restriction placed on the proposal by either
  SURA/JLab or the originator of the proposal shall be conspicuously affixed to any reproduction or abstract thereof and its provisions
  strictly complied with. Upon completion of the evaluation, it is agreed all copies of the proposal and abstracts, if any, shall be returned to
  the SURA/JLab Business Services Department. Unless authorized by the Subcontracting Officer, it is agreed that the recipient shall not
  contact the originator of the proposal concerning any aspect of its contents.
                   RECIPIENT:____________________________
                   DATE:_________________________________"


5.3 SOURCE SELECTION OFFICIAL (SSO)-


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The Director of Business Services shall appoint the Source Selection Official (SSO) to serve as the presid-
ing selection official responsible for accepting or rejecting the recommendations of the formal SEB.


    5.3.1   The SSO has authority to rescore proposals if the SSO disagrees with the judgment of the SEB
            evaluation provided the reasons for rescoring are fully explained.


    5.3.2   The SSO may solicit and obtain advice from any source deemed appropriate in order to reach a
            selection decision.


    5.3.3   The SSO's final decision should not be based on numeric, adjectival, or other scores alone; ra-
            ther it should be based upon the relative strengths and weaknesses of all offerors proposals, re-
            sulting in the best value to SURA.


    5.3.4   The SSO's final decision must follow and be based on the evaluation scheme set forth in the
            solicitation.


    5.3.5   When a potential for an organizational conflict of interest exists, the SSO shall review the rec-
            ommendation of the subcontracting officer and make the finding that a potential for OCI does
            exist or that little or no likelihood of a conflict exists.


            5.3.5.1 If the SSO finds that a potential for OCI does exist, then a plan for mitigating or elimi-
                     nating the OCI shall be implemented.


5.4 UNSOLICITED PROPOSALS-
An unsolicited Proposal is a written proposal that is submitted to SURA/JLab on the initiative of a firm for
the purpose of obtaining a subcontract with SURA/JLab, and which is not in response to a formal or infor-
mal request (other than a publicized general statement of needs).


    5.4.1   SURA/JLab encourages submission of unsolicited offers as a valuable means to obtain innova-
            tive or unique methods or approaches to accomplishing its mission.


    5.4.2   Unsolicited proposals will be given to all interested SURA/JLab personnel for evaluation.


    5.4.3   If the decision is to support a proposal, the following factors will be addressed concerning its merits:

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            a) Unique or innovative methods and approaches or concepts demonstrated by the proposal;


            b) Overall scientific, technical, or socioeconomic merits of the proposal;


            c) Potential contribution of the effort to SURA/JLab or DoE;


            d) The offeror's capabilities, related experience, facilities, techniques, or unique combinations
                 of these which are integral factors for achieving the proposal objectives; and


            e) The qualifications, capabilities, and experience of the proposed principal investigator, team
                 leader, or key personnel who are critical in achieving the proposal objectives.


    5.4.4   If the decision is to support award of a subcontract from the unsolicited proposal, the procure-
            ment will be authorized as a directed source (see subpart 0 ) and the buyer/subcontracting of-
            ficer should initiate negotiations.


    5.4.5   If the decision is to not support an unsolicited proposal, the cognizant technical representative
            shall prepare a report setting forth the basis for rejection and the buyer/subcontracting officer
            shall promptly notify the offeror of SURA/JLab's rejection of the unsolicited proposal.


5.5 NOTIFICATION TO UNSUCCESSFUL OFFERORS-
Notifications shall be issued to each offeror whose proposal is determined to be unacceptable or whose of-
fer is not selected for award.


    5.5.1   In the event the that procurement action is subject to DoE approval, notification to unsuccessful
            offeror(s) should not be given until SURA/JLab's recommended awardee is approved by the DoE.


    5.5.2   Postaward notices to unsuccessful offerors (including firms selected under A-E procedures)
            shall at least provide the name and address of the successful offeror and the total amount of the
            award. Additional information, such as the number of offerors solicited, number of proposals
            received, unit pricing, and the reason why the offeror's proposal was not accepted, may be pro-
            vided at the discretion of the buyer/subcontracting officer. All other information shall be kept
            confidential unless explicitly allowed to be released by the Director of Business Services.



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            5.5.2.1 Post-award notices shall not divulge commercial or financial information, trade secrets,
                    manufacturing processes and techniques, or other confidential or business sensitive in-
                    formation.


5.6 DEBRIEFING UNSUCCESSFUL OFFERORS-
The buyer/subcontracting officer may debrief unsuccessful offeror(s) within a reasonable time period
(normally 15 working days) after the selection announcement.


    5.6.1   Debriefing should include SURA/JLab's evaluation of the significant weak or deficient factors
            in the proposal. Debriefing should not discuss specific information of other offerors, e.g., a
            point-by-point comparison with other proposals; the relative merits or technical standing of
            competitors, or technical scoring; information that is not releasable under FOIA; or information
            not releasable under other parts of this Manual.




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               Part 6. Commercial Item sourcing techniques (>$1,000,000)

6.1 GENERAL-
Other General Policies and Procedures covering purchases of commercial items are found in Section 4.3,
4.5, and 8 of this manual.


    6.1.1   Some form of Market Research must be conducted by the Buyer/Subcontracting Officer and
            the Requester before soliciting offers to ensure the item can be purchased by Commercial Item
            Sourcing Techniques. This step must be more thorough prior to procuring commercial items
            using the streamlined techniques authorized in this section. Market Research considers:
            a) whether SURA/JLab’s needs can be met by items customarily available in the commercial
                marketplace;


            b) customary practices, including warranty, financing, discounts under which commercial
                sales of products are made;


            c) the distribution and support capabilities of potential suppliers;


            d) the size and status of potential sources.


            6.1.1.1 Some recognized methods of conducting Market Research are:
                    a) personal contact with knowledgeable individuals regarding market capabilities;
                    b) review of results of recent research for similar items;
                    c) publishing formal requests for information and review of responses;
                    d) review of catalogs and other generally available product literature;
                    e) meetings, conferences, trade shows, etc.


    6.1.2   Purchase actions conducted under this part for Commercial Items (Supplies or Services) as de-
            fined under this manual are not required to include any provision or clause other than:
            a) Equal Opportunity
            b) Affirmative Action for Special Disabled and Vietnam Era Veterans
            c) Affirmative Action For Handicapped Workers




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    6.1.3   The Buyer/Subcontracting Officer shall utilize the applicable Commercial Item Solicita-
            tion/Subcontract format.


6.2 DESCRIBING/SPECIFYING REQUIREMENTS
The Buyer/Subcontracting Officer and Requester should ensure that SURA Specifications or Statements of
Work for Commercial Items include only those restrictive provisions/conditions necessary to satisfy mini-
mum needs or as may be required by law. Requirements should be stated in terms of functions to be per-
formed, performance required, or essential physical characteristics in order to enable and encourage offe-
rors to supply commercial or non developmental items. The Specification or Statement of Work should
describe the product or service to be acquired, and explain how SURA intends to use the product or service
in terms of the function to be performed, performance requirements or essential physical characteristics.


    6.2.1   Whenever practicable potential offerors should be given the opportunity to comment or to rec-
            ommend application and tailoring of requirements documents and alternative approaches to en-
            courage commercial practices.


6.3 SOLICITATION AND EVALUATION OF OFFERS-
In order to reduce technical proposal submission requirements the Buyer/Subcontracting Officer should re-
quest existing product literature from offerors of commercial items to use in the technical evaluation.


    6.3.1   Past performance should be utilized as an important element in the evaluation of commercial
            item proposals.


6.4 QUALITY ASSURANCE-
The Buyer/Subcontracting Officer and SOTR should maximize reliance on the subcontractors existing
quality assurance systems for the acceptance of commercial items in lieu of specified detailed inspection
and testing procedures. In process inspection of commercial items is acceptable if it is consistent with cus-
tomary market practices.


6.5 WARRANTIES-
To the maximum extent practicable solicitations should require offerors to offer at least the same warranty
terms offered to the general public in customary commercial practice.


    6.5.1   Express warranties may be included in the subcontract.

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6.6 TECHNICAL DATA-
Only technical data and rights in such data as are customarily provided to the public for a particular com-
mercial item or process should normally be acquired in a Commercial Item subcontract.


6.7 TERMINATION-
The termination of subcontracts for the acquisition of commercial items are subject to special termination
clauses which are included in the Commercial Item Format. SURA may terminate a subcontract for con-
venience or cause when such a termination would be in the best interests of SURA.




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                                              Part 7. Mistakes

7.1 GENERAL-
The buyer/subcontracting officer shall examine all offers for mistakes. In cases of apparent mistakes in-
cluding informalities, irregularities or clerical errors and in cases where the buyer/subcontracting officer
has reason to believe that a mistake may have been made, the buyer/subcontracting officer shall take ac-
tions to resolve the matter prior to award.


7.2 MISTAKES DISCOVERED BEFORE AWARD-
Mistakes are generally resolved in the normal conduct of discussions or negotiations. In cases where award
without discussions or negotiations is contemplated the buyer/subcontracting officer should comply with
the following procedures:
    a) If a mistake in a proposal is suspected, the buyer/subcontracting officer shall advise the offeror
        (pointing out the suspected mistake or otherwise identifying the area of the proposal where the sus-
        pected mistake is) and request verification. If the offeror verifies its proposal, award may be made.


    b) If an offeror alleges a mistake in its proposal, the buyer/subcontracting officer shall advise the offeror
        that it may withdraw the proposal or seek correction in accordance with subparagraph (c) below.


    c) If an offeror requests permission to correct a mistake in its proposal; the buyer/subcontracting of-
        ficer may make a written determination permitting the correction; provided, that both the existence
        of the mistake and the proposal actually intended are established by clear and convincing evidence
        from the solicitation and the proposal.


    d) If the determination under subparagraph (c) above can not be made, and the buyer/subcontracting
        officer still contemplates award without discussion, the offeror shall be given a final opportunity to
        withdraw or to verify its proposal.


    e) Verification, withdrawal, or correction under subparagraphs (a) through (d) above is not considered
        discussion or negotiation. If, however, correction of a mistake requires reference to documents,
        worksheets, or other data outside the solicitation and proposal in order to establish the existence of
        the mistake, the proposal intended, or both, the mistake may be corrected only through discussions
        or negotiations.


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                       Business Services Department Procurement Policies and Procedures


    7.2.1   Minor informalities, irregularities or clerical mistakes may be corrected through communica-
            tions with the offeror that are not considered discussions or negotiations.


7.3 MISTAKES DISCOVERED AFTER AWARD-
Mistakes may be corrected by modification of the subcontract or purchase order after award, when correct-
ing the mistake would be favorable to SURA/JLab


    7.3.1   Mistakes discovered after award which are unfavorable to SURA/JLab may be processed as
            follows:
            a) Rescind the subcontract;


            b) Reform the subcontract (i) to delete the items involved in the mistake or (ii) to increase the
                    price if the contract price, as corrected, does not exceed that of the next lowest acceptable
                    bid under the original invitation for bids; or


            c) Keep the subcontract unchanged if the evidence does not support action under (a) or (b) above.


            d) Determinations under (a) and (b) above should be made only on the basis of clear and con-
                    vincing evidence that a mistake was made. In addition, it must be clear that the mistake
                    was (i) mutual or (ii) unilaterally made by the subcontractor so apparent as to have charged
                    the buyer/subcontracting officer with notice of the probability of the mistake.


    7.3.2   All actions concerning alleged or actual mistakes after award shall be fully documented in the
            subcontract file.


7.4 FILE DOCUMENTATION-
Corrections of mistakes or other remedial actions taken pursuant to this subpart shall be documented by a
written statement setting forth the circumstances and basis for such action and shall be made a part of the
subcontract file.




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                        Part 8. Solicitation and Subcontract Provisions

8.1 GENERAL-
Procurement actions will be processed in full compliance with the M&O Contract and requisite Federal statutes.
FAR and DEAR clauses do not apply to SURA/JLab procurements unless specifically included or referenced in
this Manual. However, FAR and/or DEAR clauses not specifically referenced in this Manual may be included
in SURA/JLab procurements (solicitations, purchase orders and subcontracts) to tailor the instant procurement.


    8.1.1   The use of any FAR or DEAR clause must be generally consistent with the FAR or DEAR pre-
            scription for use in Federal procurements.


    8.1.2   The FAR and/or DEAR clause should be modified as appropriate to indicate SURA/JLab in-
            stead of the Government, but the substance of the clause shall be essentially the same as the
            FAR or DEAR clause.


            8.1.2.1 Modification, deviation or deletion of a required FAR or DEAR clause must be ap-
                    proved by DoE.


                    8.1.2.1.1    A change/modification that is administrative in nature and does not alter
                                 the basic requirement of the clause does not require DoE approval but
                                 must be documented in the file as to the reason for the change.


8.2 STANDARDIZED FORMATS-
The standard formats which contain the terms and conditions SURA/JLab uses to solicit and purchase sup-
plies, services and construction, i.e. RFQ's, RFP's, PO's, and Subcontracts, are maintained and controlled in
the Department. These formats incorporate all clauses required by the M&O Contract, applicable statutes,
and best business practices, and are referenced in the applicable parts of this Manual. Standardized formats
may incorporate all standard clauses, and terms and conditions by reference.


8.3 NUMBERING SOLICITATION AND SUBCONTRACT INSTRUMENTS-
All solicitations, agreements, subcontracts, purchase orders, and amendments, modifications and changes
thereto, shall begin with the word “SURA” and shall be sequentially numbered beginning with the first in-
strument of each fiscal year numbered “0001” as indicated below, e.g., SURA 97-C0001.


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8.3.1   At the beginning of each fiscal year, the procurement Instrument Identification (PII) numbering
        system for solicitations shall restart for each type of solicitation issued, e.g. 97-Q0001; 97-R0001,
        etc. Each solicitation shall be designated with an “I”, “Q”, or “R” consistent with the instrument
        numbering scheme shown in Figure 1, Identification Code for Procurement Instruments.


8.3.2   The numbering system for purchase orders, agreements and subcontracts shall also be sequential-
        ly numbered at the start of each fiscal year, except that the numbers will not restart for each type
        of action, e.g. 97-C0001; 97-A0002; 97-P0003, etc.


8.3.3   Each instrument number shall consist of alphanumeric digits positioned as follows:
        a) 1st and 2nd positions are the last two digits of the fiscal year in which the PII is assigned,
            e.g. FY 1997.


        b) 3rd and 4th positions shall be a dash and the capital letter assigned to indicate the type of
            instrument utilized.


        c) 5th through the 8th positions shall be the basic serial number of the instrument (the first in-
            strument numbered "0001" for each fiscal year).


        d) 9th through 11th positions are reserved for amendments to solicitations, or changes, modi-
            fications and releases to the purchase orders, subcontracts, or agreements.


        8.3.3.1 Blanket Purchase Agreement call numbers, task and delivery orders (such as A&E ser-
                vices), modifications to contractual instruments and change orders shall be sequentially
                numbered by use of a three position numeric serial number supplementary to the basic
                PII number, commencing with 001, e.g. SURA 97-C6789-001.


        8.3.3.2 Alternatively, for task orders and delivery order releases, the first number (PII Position
                9) may be used to designate the fiscal year in which the task or delivery order is
                placed, and the next two numbers (PII Positions 10 and 11) may represent the serial
                number of the delivery release/task order, beginning with “01” for the first order
                placed for that fiscal year, e.g., SURA 97-A6789-701.




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                  Figure 1, Identification Code For Procurement Instruments
-A Agreements (Basic purchase/ordering agreements; lease agreements; Consultant Agreements,
   Preventative Maintenance Agreements, etc.).

-C Subcontracts (Construction, A&E, Services, Supplies and other such bilateral subcontracts).

-F Inter contractor Memorandum Purchase Orders (Cash Transfers-Funds Out).

-I Request For Information (RFI- utilized to solicit information on costs or availability preceding
   a formal solicitation request)

-M Micro Purchase Order (Actions < $2,500)

-P Purchase Orders (unilateral actions normally less than $100,000).

-Q Request for Quotation (RFQ- normally utilized to request price quotations for various simplified
   and micro purchases).

-R Request for Proposals (RFP- utilized to solicit proposals/offers for moderate to complex ser-
   vices, construction and supply requirements).

-S Cooperative Research and Development Agreements (CRADA's)

-T User Facility Agreements (Funds In).

-V Commonwealth of Virginia Funded PO's and Subcontracts.

-W Work For Others (issued by SURA, or by DoE to enable tracking of the DoE issued action).


  8.4 ENVIRONMENTAL HEALTH AND SAFETY PROVISIONS-


      8.4.1   Pursuant with M&O Contract Article 72, Safety and Health (Government Owned or Leased)
              (Apr 1984) (Deviation) 970.5204-2,, ensure all purchase orders and subcontracts involving per-
              formance of work at the SURA/JLab site, contain appropriate provisions requiring subcontrac-
              tors to comply with JLab’s safety and health requirements. The following clauses should be
              included in SURA/JLab subcontracts as indicated.


      8.4.2   The clause at DEAR 970.5204-2, Safety and health (Government-owned or leased facility)
              shall be inserted in all purchase orders/subcontracts for work performed at the SURA/JLab site.


                      8.4.2.1 Buyers/subcontracting officers may use a more comprehensive clause than
                              DEAR 970.5204-2 when deemed in the best interest of SURA/JLab and DoE.


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8.4.3   Buyers/subcontracting officers shall insert the clause at DEAR 970.5204-41, Preservation of
        individual occupational radiation exposure records, when using the clause at DEAR 970.5204-2.


8.4.4   Pursuant with M&O Contract Article 63, Workplace Substance Abuse Programs at DOE Sites
        (Aug 1992) 970.5204-58, insert the clause at DEAR 970.5204-58, “Workplace Substance
        Abuse Programs At Doe Sites”, in all applicable SURA/JLab subcontracts. exceeding $25,000.


        8.4.4.1 The clause shall be inserted in all SURA/JLab subcontracts (at any tier) that are subject to
                the provisions of 10 CFR Part 707 Workplace Substance Abuse Programs at DoE Sites, e.g.,
                that: (i) require access to or handling of classified information or special nuclear materials;
                (ii) involve high risk of danger of life, the environment, public health and safety or national
                security; or (iii) require transportation of hazardous materials to or from a DoE site.


                8.4.4.1.1   Buyers/Subcontracting Officers should contact the Administration Division
                            EH&S Officer for additional guidance when determining the applicability of
                            10 CFR Part 707 Workplace Substance Abuse Programs at DoE Sites.


                8.4.4.1.2   All subcontractors subject to the provisions of this subpart shall develop and
                            implement a workplace substance abuse program that complies with the re-
                            quirements of 10 CFR Part 707, “Workplace Substance Abuse Programs at
                            DoE Sites” as a condition of award of the subcontract. SURA/JLab shall
                            review and approve each subcontractor’s program, and shall periodically
                            monitor each subcontractor’s implementation of the program for effective-
                            ness and compliance with 10 CFR Part 707.


8.4.5   The following clauses related to EH&S shall be included in solicitations and subcontracts for
        construction.
        a) Environmental, Safety and Health and Fire Protection (In Lieu of FAR 52.236-13, Acci-
            dent Prevention).


        b) 100% Percent Eye Protection,




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        c) On Site Work and Work in Restricted Areas (When project will require the subcontractor to
             work in restricted access areas such as where an oxygen deficiency hazard or radiation
             hazard may exist.)


        d) Use of SURA/JLab Owned Cranes or Lifting Equipment (When use is authorized by the
             specifications).


        e) Safety Enforcement and Incentive (Where project is determined of sufficient size and de-
             gree of risk to make the provision effective.)


        f) Preservation of Individual Radiation Exposure Records


        g) Whistleblower Protection For Subcontractor Employees


        h) Workplace Substance Abuse Programs At DoE Sites- when applicable (see subpart 8.4.4).


8.4.6   The following provisions shall be inserted in solicitations and subcontracts for services per-
        formed at the SURA/JLab site:
        a) Telephone Service
        b) Inspection Services
        c) Environment, Health, and Safety and Fire Protection
        d) 100 Percent Eye Protection
        e) Supervision
        f) Use of SURA/JLab-owned cranes or Lifting Equipment
        g) Smoking-Restricted Workplace
        h) On-site Work in Restricted Access Areas
        i)   Preservation of Individual Occupational Radiation Exposure Records
        j)   Whistleblower Protection for Subcontractor Employees


8.4.7   Pursuant with M&O Contract Article 75, Clean Air and Water, insert the certification at FAR
        52.223-1, Clean Air and Water Certification, in all solicitations and subcontracts containing
        the clause at FAR 52.223-2, Clean Air and Water.




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          8.4.7.1 Insert the certification at FAR 52.223-2, Clean Air and Water, in all solicitations and
                  subcontracts expected to exceed $100,000.


  8.4.8   Pursuant with M&O Contract Article 70, Nuclear Hazards Indemnity Agreement (DEAR 952.250-
          70), insert the substance of this clause in any subcontract that may involve the risk of public liabil-
          ity, as that term is defined in the Act and further described in Article 70 (paragraph d2). However,
          this clause shall not be included in subcontracts described under paragraph (k) of Article 70.


  8.4.9   Subcontractors shall submit an Integrated Safety Management System Plan for work on JLab
          site that meets the following criteria:
          a) $20 million;
          b) Renewable subcontracts > $5 million per year
          c) Other subcontracts that have a scope of work not fully covered by JLab Final Assessment
              Safety document.


          8.4.9.1 The required elements of the Plan shall be the same as those required of the Laboratory.
                  Schedules and guidance for providing the Plan shall be provided to potential subcontrac-
                  tors at the time the request for proposals (or request for bids) are issued for the work.


          8.4.9.2 The subcontracting officer’s technical representative (SOTR) shall be responsible for
                  approving the Plan.


8.5 BUSINESS MANAGEMENT PROVISIONS-


  8.5.1   Pursuant with M&O Contract Article 57, Organizational Conflicts Of Interest, insert the clause
          at DEAR 952.209-72 Organizational Conflicts Of Interest- that involve performance of evalu-
          ation services or activities or technical consulting and management support services as defined
          at 48 CFR (DEAR) 909.570-3.


  8.5.2   Pursuant with best business practice, Insert the clause at FAR 52.203-3, Gratuities, in solicita-
          tions and subcontracts, except those for personal services.


  8.5.3   Pursuant with M&O Contract Article 60 Anti-kickback Procedures, insert the clause at FAR
          52.203-7, Anti-Kickback Procedures in all solicitations and subcontracts.

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8.5.4   Pursuant with M&O Contract Article 61 Limitation on Payments to Influence Certain Federal
        Transactions, insert the clause at FAR 52.203-12, Limitation on Payments to Influence Certain
        Federal Transactions in all solicitations and subcontracts exceeding $100,000.


        8.5.4.1 Insert the certification at FAR 52.203-11, Certification and Disclosure Regarding Pay-
                ments to Influence Certain Federal Transactions in all solicitations exceeding $100,000.


8.5.5   Pursuant with M&O Contract Article 132, Whistleblower Protection for Contractor Employees
        (Dec 1992)(Modified) 970-5204-59, insert the notice "Whistleblower Protection for Employ-
        ees" found at 10 CFR Part 708, "DoE Contractor Employee Protection Program,” in all subcon-
        tracts involving work performed at the SURA/JLab site.


8.5.6   Pursuant with M&O Contract Article 114, Restrictions on Subcontractor Sales to the Govern-
        ment (Jul 1985) 52.203-6, insert the clause at FAR 52.203-6 Restrictions of Contractor Sales to
        the Government shall be inserted in all purchase orders and subcontracts.


8.5.7   Pursuant with M&O Contract Article 55, Covenant Against Contingent Fees, insert the clause
        at DEAR 970.5203-1 (FAR 52.203-5, Covenant against contingent fees), Covenant Against
        Contingent Fees (APR 1984) in all purchase orders and subcontracts.


8.5.8   In accordance with M&O Contract Article 81, Project Control System (Jul 1993) (Modified)
        952.212-73, incorporate project control system criteria and related subcontract provisions for
        those acquisitions identified by the DoE Contracting Officer.


8.5.9   In accordance with M&O Contract Article 118, Priorities and Allocations, buyers/subcontracting
        officers should follow Defense Priorities and Allocation System (DPAS) 15 CFR Part 700- when
        obtaining controlled materials and other products and materials needed for contract performance.


8.5.10 In accordance with M&O Contract Article 24, Workmanship and Materials (Apr 1984) (Devia-
        tion) 970.5204-25, insert the clause at DEAR 970.5204-25, Workmanship and Materials in all
        purchase orders and subcontracts.




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8.5.11 Insert the clause at DEAR 970.5204-9, Accounts, Records, and Inspection in all applicable
       subcontracts and purchase orders.


8.5.12 Pursuant with M&O Contract Article 90,. Privacy Act, when the design, development, or oper-
       ation of a system of records on individuals is required, the buyer/subcontracting officer shall
       insert the following FAR clauses in solicitations and subcontracts: FAR 52.224-1, Privacy Act
       Notification, and FAR 52.224-2, Privacy Act.


8.5.13 Pursuant with M&O Contract Article 94, Ownership of Records, insert the clause at DEAR
       970-5204-AL 92-8R (as modified) in all on-site subcontracts that are of a cost reimbursement
       type if any of the following factors is present:
       a) the value of the subcontract exceeds $2M


       b) the contracting officer determines that the subcontract is, or involves, a critical task related
           to the contract, or


       c) the subcontract included any of the following, or similar, clauses:
                    970.5204-2, Safety and Health (Gov. owned or leased facility)
                    970.5204-26 Nuclear facility safety applicability
                    970.5204-41, Preservation of individual occupational radiation exposure records

8.5.14 In accordance with M&O Contract Article 50, Contractor Contributions, when using Com-
       monwealth of VA funds insert the following clause in all purchase orders and subcontracts:
           “The procurement process is subject to the SURA/JLab Procurement Policies and Procedures for
           the Free Electron Laser Project and not subject to the DoE approved Procurement Manual for DoE
           related acquisitions”.


8.5.15 Pursuant with M&O Contract Article 79, Acquisition of Real Property, insert the clause at
       DEAR 952.217-70, Acquisition of Real Property in any subcontract under which property de-
       scribed in Article 79 will be acquired.


8.5.16 Pursuant with M&O Contract Article 126, Walsh-Healy Public Contracts Act, insert the fol-
       lowing provision in purchase orders and subcontracts equipment exceeding $10,000 (unless
       exempted under FAR 22.604):
           “If this purchase order/subcontract is for the manufacture or furnishing of materials, supplies, arti-
           cles, or equipment in an amount which exceeds or may exceed $10,000 and is otherwise subject to
           the Walsh-Healy Public Contract Act, as amended (41 U.S. Code 35-45), there are stipulations re-


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               Business Services Department Procurement Policies and Procedures


           quired by said Act and regulations issued thereunder by the Secretary of Labor, such representa-
           tions and stipulations being subject to all applicable rulings and interpretations of the Secretary of
           Labor which are now or may hereafter be in effect.”


8.5.17 Pursuant with M&O Contract Article 128, Equal Opportunity, insert the clause at FAR 52.222-
       26, Equal Opportunity, in all solicitations and subcontracts over $10,000 unless exempted un-
       der FAR 22.807.


8.5.18 Pursuant with M&O Contract Article 115, Equal Opportunity Preaward Clearance of Subcon-
       tracts, SURA/JLab shall not enter into a first-tier non-construction subcontract for an estimated
       or actual amount of $10 million or more without obtaining in writing from the Department of
       Labor a clearance that the proposed subcontractor is in compliance with equal opportunity re-
       quirements and therefore is eligible for award.


8.5.19 Pursuant with M&O Contract Article 105 Subcontractor Cost and Pricing Data, insert the
       clause at DEAR 970.5204-24, Subcontractor Cost or Pricing Data in applicable subcontracts
       exceeding $500,000, and in applicable modifications exceeding $500,000 even though the orig-
       inal subcontract did not exceed $500,000.


       8.5.19.1 Pursuant with FAR subpart 15.804-2, the subcontractor shall execute a Certificate of
                  Current Cost or Pricing Data pursuant with FAR 15.804-4.


       8.5.19.2 The buyer/subcontracting officer shall document to what extent certified cost or pric-
                  ing data was relied on in conducting negotiations.


       8.5.19.3 Pursuant best business practice (see FAR 43.205(f)), buyer/subcontracting officer
                  may insert the clause at FAR 52.243-6, Change Order Accounting in subcontracts of
                  technical complexity where numerous changes are contemplated.


8.5.20 Pursuant with M&O Contract Article 37, Accounts Records, and Inspection, insert the clause at
       DEAR 970.5204-9, Accounts, Records, and Inspection in all subcontracts (including fixed-price,
       unit price, or purchase orders) of any tier entered into thereunder where, under the terms of the
       subcontract, costs incurred are a factor in determining the amount payable to the subcontractor.




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    8.5.21 Insert the clause at FAR 52.215-2, Audit-Negotiation in each subcontract which does not include
            the provisions of subpart 8.5.20 but which contains a "defective cost or pricing data" clause.


    8.5.22 In accordance with M&O Contract Article 30, Cost Avoidance and Reduction Program, buy-
            ers/subcontracting officers, subject to the approval of the Director of Business Services, may
            include cost saving measures in purchase orders and subcontracts similar to the clause con-
            tained in the M&O Contract.


    8.5.23 Subcontract quality requirements higher than those in standard terms and conditions for inspec-
            tion may properly be imposed by specifications. Such requirements are appropriate in solicita-
            tions and subcontracts when JLab’s technical requirements are such as to require:
            a) Control of such things as work operations, in-process controls, and inspection and test
                procedures;


            b) Attention to such factors as organization, planning, work instructions, documentation con-
                trol, and advanced metrology; or


            c) Reviews and approvals of Subcontractors’ designs before release for fabrication.


8.6 COMMERCIAL TERMS AND CONDITIONS-
Clauses for commercial terms and conditions are contained in applicable formats approved by the Director
of Business Services.


8.7 GOVERNMENT PROPERTY PROVISIONS-
In accordance with best business practice, utilize guidance under FAR subpart 45.105 when inserting the
clauses substantially the same as the following:


    8.7.1   FAR 52.245-2, Government Property (Fixed Price Contracts) in solicitations and subcontracts
            when a fixed price subcontract is contemplated that will acquire or utilize Government property.


    8.7.2   FAR 52.245-4, Government-Furnished Property (Short Form) in solicitations and subcontracts
            when a fixed-price, time and materials, or labor-hour subcontract is contemplated and the ac-
            quisition cost of all Government furnished property is $100,000 or less; unless the subcontract
            is contemplated with an educational or non profit organization.

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8.8 PAYMENT PROVISIONS-
Consistent with best business practice, the clauses substantially the same as those referenced below may be
used as appropriate for the specific type of purchase order/subcontract:
    a) FAR 52.232-1, Payments in solicitations and subcontracts when a fixed price supply contract is
        contemplated.


    b) FAR 52.232-8, Discounts for Prompt Payments when a fixed price supply contract is contemplated.


    c) FAR 52.232-3, Payments Under Personal Services Contracts in solicitations and subcontracts when
        a personal services contract is contemplated.


    d) FAR 52.232-5, Payments under Fixed Price Construction Contracts, in solicitations and contracts
        for construction when a fixed price contract is contemplated.


    e) Refer to FAR 32.111 for guidance concerning use of other specialized payment clauses.


8.9 DATA AND PATENT PROVISIONS-


    8.9.1    To protect against inadvertent release of offeror’s confidential data, the following notice may
             be affixed to a cover sheet attached to each proposal upon receipt by SURA/JLab:
                                        “SURA/JLab NOTICE FOR HANDLING PROPOSALS
                  This proposal shall be used and disclosed for evaluation purposes only, and a copy of this notice
                  shall be applied to any reproduction or abstract thereof. Any authorized restrictive notices that the
                  submitter places on this proposal shall also be strictly complied with. Disclosure of this proposal
                  outside the Government or SURA/JLab for evaluation purposes shall be made only to the extent au-
                  thorized by the Director of Business Services.”


    8.9.2    Pursuant with best business practice, Insert the following clause in all purchase orders and sub-
             contracts where the subcontractor may be given access to business sensitive information:
                                                     “Business Sensitive Information
        (a) To the extent that the work under the subcontract requires that the subcontractor be given access to confidential or
            proprietary business, technical, or financial information belonging to SURA/JLab/Government or other compa-
            nies, the subcontractor shall after receipt thereof, treat such information as confidential and agrees not to appropri-
            ate such information to its own use or to disclose such information to third parties unless specifically authorized
            by the Subcontracting Officer in writing. The foregoing obligations, however, shall not apply to:
            1. Information which, at the time of receipt by the subcontractor, is in public domain;
            2. Information which is published after receipt thereof by the subcontractor or otherwise becomes part of the
                  public domain through no fault of the subcontractor;
            3. Information which was in the subcontractor's possession at the time of receipt thereof and was not acquired
                  directly or indirectly from the SURA/JLab, or the Government or other companies;


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          4.    Information which was received by the subcontractor from a third party who did not require the subcontractor
                to hold it in confidence.
    (b)    The subcontractor shall obtain the written agreement, in a form satisfactory to the Subcontracting Officer, of each
          employee permitted access, whereby the employee agrees that he will not discuss, divulge, or disclose any such in-
          formation or data to any person or entity except those persons within SURA/JLab, DoE or the subcontractor's or-
          ganization directly concerned with the performance of the subcontract.
    (c)    The subcontractor agrees, if requested by SURA/JLab, to sign an agreement identical, in all material respects, to
          the provisions of this clause, with each company supplying information to the subcontractor under this subcon-
          tract, and to supply a copy of such agreement to the Subcontracting Officer. From time to time upon request of
          the Subcontracting Officer, the subcontractor shall supply SURA/JLab with reports itemizing information received
          as confidential or proprietary and setting forth the company or companies from which the subcontractor received
          such information.
    (d)   The subcontractor agrees that upon request by SURA/JLab, it will execute a SURA/JLab approved agreement with
          any party whose facilities or proprietary data it is given access to or is furnished, restricting use and disclosure of
          the data or the information obtained from the facilities. Upon request by DoE, such an agreement shall also be
          signed by Subcontractor personnel.
    (e)   The subcontractor shall obtain written permission of the Subcontracting Officer before proprietary business, tech-
          nical or financial information of private sector organizations is utilized in the subcontract.
    (f)   The subcontractor shall insure that any technical data which qualifies as limited rights data or restricted computer
          software as defined in the RIGHTS IN DATA clause are subject to the provisions of the RIGHTS IN DATA clause.
    (g)   This clause shall flow down to all [sub]subcontracts where the [sub]subcontractor may be given access to confi-
          dential information.”


8.9.3     Pursuant with M&O Contract Article 95, Patent Indemnity, SURA/JLab shall require subcon-
          tractors to indemnify the Government, Government's officers, agents, and employees for liabil-
          ity, including costs, for the infringement of any United States letters patent.


8.9.4     Pursuant with M&O Contract Article 96, Authorization and Consent, include the substance of
          FAR 52.227-1, Authorization and Consent, in all solicitations, purchase orders, and subcon-
          tracts exceeding $25,000.


8.9.5     Pursuant with M&O Contract Article 97, Notice and Assistance Regarding Patent and Copyright
          Infringemen , include the substance of FAR 52.227-2, Notice and Assistance Regarding Patent
          and Copyright Infringement in all solicitations and subcontracts expected to exceed $100,000.


8.9.6     Pursuant with M&O Contract Article 98, Royalty Information, SURA/JLab shall follow the
          procedures of 48 CFR 204 in all subcontracting.


8.9.7     Pursuant with M&O Contract Article 99, Patent Rights- Special, appropriate Patent Right pro-
          visions are required in all subcontracts, regardless of tier, for experimental, developmental, or
          research work to be performed by a small business firm or domestic non profit organization
          except subcontracts which are subject to exceptional circumstance.




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                 Business Services Department Procurement Policies and Procedures


  8.9.8   Pursuant with M&O Contract Article 100, Classified Inventions, include the substance of the
          clause in all subcontracts that cover or are likely to cover classified subject matter.


  8.9.9   Pursuant with M&O Contract Article 103 Rights In Data Technology Transfer Activities (Acqui-
          sition letter No. 91-7), it is the responsibility of SURA/JLab to use a Rights in Data clause as di-
          rected by the Contracting Officer in subcontracts having as a purpose the conduct of research,
          development, and demonstration work and in subcontracts for supplies where needed.


  8.9.10 When the purpose of the work is research, development, and demonstration or in subcontracts
          for supplies (where data rights are appropriate), the buyer/subcontracting officer should utilize
          an appropriate rights in data clause consistent with M&O Contract Article 103, Rights in Data
          Technology Transfer Activities.


8.10 LABOR PROVISIONS AND STANDARDS-


  8.10.1 Solicitations and subcontracts in excess of $2,000 for construction, alteration or repair of pub-
          lic buildings and public works, including painting and decorating, shall include the below listed
          clauses, pursuant with M&O Contract Article 121, Subcontracts (Labor Standards)(Feb
          1988)(Modified) 52.222-11.


          8.10.1.1    Applicability of Davis-Bacon Act provisions will be determined by the ORO Labor
                      Standards Committee. A description of the work will be provided to the ORO Labor
                      Standards Committee for review and determination. The description will be in suffi-
                      cient detail for the committee to understand the scope of the project and judge what
                      labor standard should be applicable to the project. Include in the description the esti-
                      mated price of the project, classification of laborers required to perform the work and
                      breakout of estimated amount of cost that will be for labor and material/equipment.
                      a) 52.222-6, Davis Bacon;
                      b) 52.222-7, Withholding of Funds;
                      c) 52.222-8, Payrolls and Basic Records;
                      d) 52.222-9, Apprentices and Trainees;
                      e) 52.222-10, Compliance With Copeland Act Requirements;
                      f) 52.222-11, Subcontracts (Labor Standards);
                      g) 52.222-12, [Sub]Contract Termination-Debarment;

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                   h) 52.222-13, Compliance With Davis Bacon and Related Act Regulations;
                   i)   52.222-14, Disputes Concerning Labor Standards; and
                   j)   52.222-15, Certification of Eligibility


       8.10.1.2    Pursuant with M&O Contract Article 125, Contract Work Hours and Safety Stand-
                   ards Act (Overtime Compensation) (Mar 1986), include the clause at FAR 52.222-
                   4, Contract Work Hours and Safety Standards Act--Overtime Compensation, in all
                   solicitations and subcontracts as prescribed in FAR 22.305.


8.10.2 In accordance with M&O Contract Article 123, Service Contract Act (SCA), this subpart ap-
       plies to all subcontracts, the principle of which is to furnish services in the United States
       through the use of service employees. Subcontracts awarded by SURA/JLab shall be subject
       to the SCA except as exempted below.


       8.10.2.1    The following types of actions are exempt from Service Contract Act requirements:
                   a) Any subcontract for construction, alteration, or repair of public buildings or
                        public works, including painting and decorating;


                   b) Any work required to be done in accordance with the provisions of the Walsh-
                        Healey Public Contracts Act;


                   c) Any subcontract for transporting freight or personnel by vessel, aircraft, bus, truck,
                        express, railroad, or oil or gas pipeline where published tariff rates are in effect;


                   d) Any subcontract for furnishing services by radio, telephone, telegraph, or cable
                        companies subject to the Communications Act of 1934;


                   e) Any subcontract for public utility services;


                   f) Any employment subcontract providing for direct services to a Federal Agency
                        by an individual or individuals; or


                   g) Any subcontract for operating postal contract stations for the U.S. Postal Service; or



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                           h) Subcontracts entered into with common carriers for the carriage of mail by rail,
                                air (except air star routes), bus, and ocean vessel where such carriage is per-
                                formed on regularly scheduled runs over regularly established routes and ac-
                                counts for an insubstantial portion of the revenue therefrom.


            8.10.2.2       Pursuant with M&O Contract Article 133, Collective Bargaining Agreements-
                           Management and Operating Contracts (Aug 1993) 970.5204-63, insert the sub-
                           stance of the clause at DEAR 970.5204-63 in all subcontracts for protective ser-
                           vices or other services performed on the DoE-owned site which will affect the con-
                           tinuity of operation of SURA/JLab.


            8.10.2.3       Pursuant with M&O Contract Article 124, Notice to the Government of Labor Dis-
                           putes (Apr 1984) 52.222-1, insert the following provision in all subcontracts that may
                           involve a labor dispute that may delay the timely performance of the subcontract:
                                                           “Notice of Labor Dispute
                  If the subcontractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay
            the timely performance of this subcontract, the subcontractor shall immediately give notice, including all relevant
            information to the cognizant SURA/JLab buyer/subcontracting officer.
                  In the event that performance is delayed or threatens to be delayed by any actual or potential labor dispute, the
            subcontractor shall immediately notify the next higher tier subcontractor or SURA/JLab, as the case may be, of all
            relevant information concerning the dispute.”


8.11 MISCELLANEOUS SITE PROVISIONS


    8.11.1 The following clauses shall also be inserted in solicitations and subcontracts for work at the
            SURA/JLab site:
            a) FAR 52.237-1, Site Visit
            b) FAR 52.237-2, Protection of Government Buildings, Equipment, and Vegetation


    8.11.2 The clause at FAR 52.237-3, Continuity of Services may be inserted in solicitations and sub-
            contracts pursuant to FAR subpart 37.110 (c).


8.12 TERMINATION PROVISIONS-
In accordance with best business practice, it is the policy of SURA/JLab to include termination clauses
(convenience and default) in most solicitations and purchase orders/subcontracts. These clauses normally
follow FAR subpart 49.5 and are contained in the Department’s standard formats.



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8.13 SOCIOECONOMIC PROVISIONS-


  8.13.1 Pursuant with M&O Contract Article 109, Small Business and Small Disadvantaged Business
         Subcontracting Plan (Feb 1995) 52.219-5, insert the clause at FAR 52.219-8, Utilization of
         Small Business Concerns and Small Disadvantaged Business Concerns in solicitations and
         subcontracts that offer further subcontracting opportunities.


         8.13.1.1    The clause at FAR 52.219-8 is not applicable when:
                     a) A personal services subcontract is contemplated; or


                     b) The subcontract, together with all its subcontracts, is to be performed entirely
                         outside any State, territory, or possession of the United States, the District of
                         Columbia, and the Commonwealth of Puerto Rico;


  8.13.2 In accordance with M&O Contract Article 109, Small Business and Small Disadvantaged
         Business Subcontracting Plan (Feb 1995) 52.219-5, the buyer/subcontracting officer, when
         contracting by negotiation, shall insert the clause at FAR 52.219-9, Small Business and Small
         Disadvantaged Business Subcontracting Plan, when the proposed procurement (i) offers sub-
         stantial subcontracting opportunities, (ii) is estimated to exceed $500,000 ($1M construction),
         and (iii) the clause Utilization of Small Business Concerns and Small Disadvantaged Business
         Concerns is required for the procurement.


  8.13.3 Pursuant with M&O Contract Article 129 Affirmative Action for Handicapped Workers, in-
         clude the clause at FAR 52.222-36, Employment of the Handicapped, in all subcontracts over
         $2,500 except as waived by the Secretary of Labor.


  8.13.4 Pursuant with M&O Contract Article 130, Affirmative Action for Special Disabled and Vietnam
         #Era Veterans (Apr 1984) 52.222-35, insert the clause FAR 52.222-35, Affirmative Action for Spe-
         cial Disabled and Vietnam Era Veterans, in solicitations and purchase orders and subcontracts when
         the purchase order/subcontract is for $10,000 or more or is expected to amount to $10,000 or more.


  8.13.5 Pursuant with M&O Contract Article 131, Employment Reports on Special Disabled Veterans of
         the Vietnam Era (Jan 1988) 52.222-37, Insert the clause at FAR 52.222-37, Employment Reports



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            on Special Disabled Veterans and Veterans of the Vietnam Era, in solicitations and subcontracts
            of $10,000 or more unless exempted by the rules, regulations, or orders of the Secretary.


8.14 VIRGINIA SALES TAX-
SURA/JLab acquisitions that support operations of the Laboratory are normally subject to Virginia Sales and
Use Taxes. Tangible personal property items such as equipment, unique tools, computers, instrumentation,
and other such components utilized in the accelerator, or equipment to be used directly and exclusively in
basic research or in research and development (in the experimental or laboratory sense as described in the tax
regulations) are normally not subject to Virginia Sales Tax. Buyers/subcontracting officers should contact
the Finance Department when guidance is required concerning applicability of Virginia Sales and Use taxes
for SURA/JLab requirements.


8.15 CLASSIFIED WORK
In the event the purchase order/subcontract involves the orgination or generation of classified documents,
material, or equipment- the purchase instrument shall include a provision as prescribed in M&O Contract
Article 74B- 952.204-70 (Classification) and M&O Contract Article 74C 952.204-74 Foreign Ownership,
Control or Influence (FOCI) over Contractor.




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                                       Part 9. Cost and Pricing

9.1 GENERAL-
The buyer/subcontracting officer shall determine that prices (or costs) are fair and reasonable for every pro-
curement action.


    9.1.1   Buyers/subcontracting officers shall document the file establishing the basis for this determina-
            tion for actions exceeding $5,000.


            9.1.1.1 The buyer/subcontracting officer should consult with the Department’s price/cost re-
                    source person when needing assistance to determine price (or cost) reasonableness.


    9.1.2   Price Fairness and Reasonableness can be determined on several general bases depending upon
            the particular circumstances of the procurement action: adequate price competition, estab-
            lished pricing, price analysis and cost analysis. It is necessary that sufficient pricing infor-
            mation be available to the Buyer/Subcontracting Officer to make the determination that the
            awarded pricing structure is fair and reasonable.


    9.1.3   Cost or Pricing Data are all facts that prudent buyers and sellers would reasonably expect to
            significantly affect price and cost negotiations for procurements valued in excess of $500,000
            which requires the subcontractors certification as current, accurate and complete. Information
            Other Than Cost or Pricing Data, on the other hand, means any type of cost information which
            is necessary for the Buyer/Subcontracting Officer to determine price reasonableness or cost re-
            alism and that is not required to be certified.


9.2 ADEQUATE PRICE COMPETITION


    9.2.1   A proposed price is deemed to be based on adequate price competition in the following three
            instances:
            a) Where two or more responsible offerors, competing independently, submit priced offers re-
                sponsive to the requirement and award will be made to an offeror whose proposal offers ei-
                ther: (a) the greatest value and price is a substantial factor in source selection; or (b) the
                lowest evaluated price. In this instance, there must be no finding that the price of the oth-
                erwise successful offeror is unreasonable;

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            b) Where there was a reasonable expectation, based on market research or other assessment, that
                 two or more responsible offerors, competing independently, would submit priced offers re-
                 sponsive to the solicitation's expressed requirement, even though only one offer is received,
                 provided that the Subcontracting Officer can reasonably conclude that the offer received was
                 submitted with the expectation of competition. When only one offer is received in response to
                 a solicitation, the determination that the proposed price is based on adequate price competition
                 and is reasonable must be approved at a level above the buyer/subcontracting officer.


            c) Where price analysis clearly demonstrates that the proposed price is reasonable in compari-
                 son with current or recent prices for the same or similar items purchased in comparable
                 quantities, under comparable terms and conditions under subcontracts that resulted from
                 adequate price competition.


    9.2.2   Whether adequate price competition exists for a given procurement is a matter of judgment to
            be based on evaluation of whether each of the foregoing conditions is satisfied.


9.3 ESTABLISHED CATALOG OR MARKET PRICES AND COMMERCIAL ITEMS-
A catalog or market price of an item sold to the general public is a price included in a catalog, price list,
schedule, or other form that: (1) is regularly maintained by the manufacturer or suppliers; (2) is either pub-
lished or otherwise available for inspection by customers; and (3) states prices at which sales are currently,
or were last, made to a significant number of buyers constituting the general public. An established market
price is a current price, established in the usual and ordinary course of trade between buyers and sellers free
to bargain, which can be substantiated from sources independent of the manufacturer or vendor.


    9.3.1   Section 6 of this manual contains the definition of commercial items. Generally, the items that
            SURA/JLab procures will fit within the definition to include; supplies, equipment, ADP, software and
            many support services. It is a very broadly based definition that allows the Buyer/Subcontracting Of-
            ficer to use commercial practices (i.e. Market or Catalogue Pricing or obtaining Price Information
            Other Than Cost or Pricing Data) to determine fairness and reasonableness of the offered pricing; re-
            gardless of the total value of the procurement. In other words, Cost or Pricing Data is not required
            when acquiring commercial items. There will be instances where the acquisition does not clearly fit
            within the definition (i.e. Research and Development, certain personal services, highly specialized
            equipment that is not derivative from nor will lead to a commercial item. The Buyer/Subcontracting

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            Officer should coordinate questionable acquisitions with the Cost/Price Resource Person to determine
            the appropriate level of Cost and Pricing Data to request and analysis required.


9.4 PRICE ANALYSIS-
Price analysis is the process of examining and evaluating a proposed price without evaluating its separate
cost elements and profit. Price analysis is the least complex method of determining price reasonableness,
and may be based on any combination of the following indicators:
    a) Competitive prices
    b) Market prices/Price lists
    c) Historical pricing
    d) Estimating yardsticks (such as dollars/pound, dollars/foot, etc.)
    e) Prices set by law or regulation
    f) Market research
    g) Comparison to technical estimates


    9.4.1   Price analysis may be used solely to document price reasonableness unless such analysis will
            not provide an adequate basis for making the award.


            9.4.1.1 Details of the price analysis must be documented in the purchasing file to support the
                     determination of price reasonableness.


            9.4.1.2 Competitive prices from independent sources are the preferred method of determining
                     price reasonableness, since it can generally be established that competitive market
                     pressures provide the greatest incentive for vendors to offer the lowest price.


            9.4.1.3 For simplified purchase actions, the analysis should be shown on the part of the pur-
                     chase order file designed for that documentation or by separate memorandum.


9.5 COST ANALYSIS-
Cost analysis is the review and evaluation of: (1) the separate cost elements and proposed profit of an offe-
ror's cost or pricing data or other related data and (2) the judgmental factors applied in projecting from the
data to the estimated costs in order to form an opinion on the degree to which the proposed costs represent
what the cost of the procurement should be, assuming reasonable economy and efficiency.



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9.5.1   A cost analysis is required in any situation where the indicators required for price analysis are
        not present, or are not adequate to assess contending proposals because of differences in tech-
        nical approach among vendors (such as competition based primarily on technical or manage-
        ment factors). In such cases, only a detailed cost analysis with supporting technical evaluation
        of material and labor elements, together with an audit of supporting cost detail, can provide the
        basis for a determination of reasonableness.


9.5.2   A cost analysis is not required when:
        a) Prices are based on adequate price competition


        b) Prices are established catalog or market prices; historical known pricing, valid yard-
            sticks/benchmarks,


        c) Prices are set by law or regulation, or,


        d) Commercial items are procured.


9.5.3   The buyer/subcontracting officer should verify the cost data, evaluate the specific elements of cost,
        and project this data to determine the effect on price. Reasonable efforts, in keeping with the size
        of the procurement, should be made to break the price down into its component elements such as:
        a) Purchased parts, raw materials, and scrap allowances, if any;


        b) Direct engineering labor, including preproduction and production hours with indication of
            basis of rates. Special tooling, if any, will be treated as a separate cost item;


        c) Engineering overhead as a percentage of direct engineering labor;


        d) Direct manufacturing labor, including preproduction and production hours with indication
            of basis of rates;


        e) Manufacturing overhead as a percentage of direct manufacturing labor;


        f) General and administrative expenses - percentage and base allocation;



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            g) Contingencies and other allowances, if any;


            h) Profit - amount, percentage and base of allocation;


            i)   Computer time; and


            j)   Travel.


    9.5.4   Each cost analysis should include a summary comparison of the vendor's proposed cost ele-
            ments and profit with the SURA/JLab's objective cost and profit. The SURA/JLab position
            should include the technical evaluation, audit report, memo to file documenting verification of
            overhead rates, etc.


    9.5.5   The buyer/subcontracting officer shall consult with the Department’s Cost/price Resource per-
            son whenever the procurement action will involve analysis of cost factors.


9.6 TECHNICAL EVALUATION OF COST DATA-
The technical evaluation of an offeror's cost proposal should be made in writing by the cognizant SURA/JLab
Technical Representative (generally the requisitioner) and should address: (1) whether or not the materials
and equipment proposed by the offeror are necessary or appropriate; (2) whether or not the types and levels of
labor proposed are suitable; (3) whether or not the hours of each type proposed are acceptable; and (4) if
known, whether or not the direct material and labor costs, as proposed, are representative of the industry.


9.7 PRICE AND COST AUDITS-
When a subcontract price will be based on cost or pricing data submitted by the offerors, the buy-
er/subcontracting officer should consider requesting a review by the cognizant Federal audit agency, an
external auditor or by qualified SURA/JLab personnel prior to the negotiation of any fixed price subcon-
tract or modification, with an estimated value exceeding $500,000 or $1,000,000 for other type actions.


    9.7.1   A Pricing Audit is required prior to negotiation of a subcontract or modification when cost or
            pricing data is required for any type of proposal in excess of $5,000,000.


            9.7.1.1 The requirement for auditor reviews of proposals may be waived by the Director of
                    Business Services when there is adequate data to support reasonableness of price.

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  9.7.2   The request for audit (issued to DoE) should reference the SURA/JLab RFP/subcontract/
          amendment number and the following information should be provided:
          a) A statement that, "the pricing proposal should be audited for conformance with Part 31 of
              the FAR as supplemented and modified by DOE"


          b) The technical review of quantities and qualitative aspects of the cost proposal. (The cogni-
              zant audit agency should be advised if technical data will not be available.)


          c) The cost estimate issued by the Technical Representative.


          d) A request to obtain the Subcontractor's consent for DoE to release the audit report to the
              cognizant SURA/JLab representative.


          e) If the audit is to be performed by a Government audit agency, include a statement showing
              the appropriate DoE account to charge.


  9.7.3   All letters to the Defense Contract Audit Agency (DCAA) requesting audit assistance must
          include the following standard approval block and text:
                  "This request approved by:
                  ___________________________________
                  < name >
                  Contracting Officer
                  U.S. Department of Energy
                  SURA/JLab Site Office"


9.8 SUBMISSION OF CERTIFIED COST AND PRICING DATA-


  9.8.1   The threshold for requiring cost or pricing data is $500,000, unless an exception applies or, if the
          Buyer/Subcontracting Officer has sufficient information available to determine price reasona-
          bleness, a waiver for exceptional cases can be granted by the Director of Business Services.


  9.8.2   Offerors are required to submit cost or pricing data for acquisitions exceeding the threshold
          unless an exception applies such as a commercial item procurement. Notwithstanding the pref-
          erence against requiring the submission of cost or pricing data and the hierarchical order of
          preference for the types of information to be used in determining price reasonableness, cost or


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          pricing data shall be obtained for acquisitions which exceed the threshold and for which no
          waiver or exception applies.


  9.8.3   If cost or pricing data are requested and submitted, but an exception is later found to apply, the
          data shall not be considered cost or pricing data and shall not be certified.


9.9 INFORMATION OTHER THAN COST OR PRICING DATA-


  9.9.1   General - This classification of data is essentially the same as cost or pricing data except that it
          does not have to be certified. When cost or pricing data is not required because an exception ap-
          plies or because the value of the acquisition is under the threshold, the Buyer/Subcontracting Of-
          ficer may require the submission of information other than cost or pricing data, but only to the
          extent necessary to determine price reasonableness or cost realism. The contractor's format for
          submitting such information shall be used unless the Buyer/Subcontracting Officer determines
          that use of a specific format is essential.


          If it is determined that additional information is necessary to determine price reasonableness for
          acquisitions determined to be based on adequate price competition, the Buyer/Subcontracting
          Officer shall, to the maximum extent practicable, obtain the additional information from
          sources other than the offeror. Buyer/Subcontracting Officers may also request information
          other than cost or pricing data to determine the cost realism of competing offers or to evaluate
          competing approaches.


          When cost or pricing data are not required because the acquisition is below the threshold, in-
          formation requested shall include, as a minimum, appropriate information on prices and quanti-
          ties at which the same or similar items have previously been sold, that is adequate for evaluat-
          ing the reasonableness of the proposed price.


  9.9.2   Acquisition of Commercial Items - When acquiring commercial items for which an exception
          may apply, Buyer/Subcontracting Officers shall seek to obtain information on prices at which
          the same or similar items have been sold in the commercial marketplace that is adequate for
          evaluating, through price analysis, the reasonableness of price.




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            If required information is not available from the offeror, the information shall be sought from
            another source or sources (e.g., other Government agencies; trade journals).


            Requests for sales data relating to commercial items shall be limited to data for the same or
            similar items during a relevant period of time.


            To the maximum extent practicable, information requested shall be limited to only information
            that is in the form regularly maintained by the offeror in commercial operations.


9.10 BUYING-IN-
Buying-in may decrease competition or result in poor subcontractor performance. Buyers/subcontracting
officers must take appropriate action to ensure buying-in losses are not recovered by the subcontractor.
The opportunity of this practice can be minimized by seeking a price commitment covering as much of the
entire program concerned as is practical by using multiyear contracting, or priced options for additional
quantities. Refer to FAR subpart 3.501-2 for additional guidance.


9.11 UNBALANCED PRICING-
Unbalanced pricing is the practice of offering high on some items and low on other items. Award may be
made on the basis of an unbalanced bid as long as it is not “materially” unbalanced.


    9.11.1 A bid is not materially unbalanced unless there is a reasonable doubt that award to the bid-
            der/offeror submitting a mathematically unbalanced bid will not result in the lowest ultimate
            cost to SURA/JLab. Consequently, only a bid/offer found to be materially unbalanced may not
            be accepted.




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                                   Part 10. Bonds and Insurance

10.1 PERFORMANCE BONDS-
A performance bond shall be required for all fixed price and unit-price construction subcontracts exceeding
$100,000 and subcontracts under cost-reimbursement type subcontracts. The penal amounts shall be as
specified at FAR 28.102-2.


    10.1.1 Exceptions for foreign procurements are defined at FAR 28.102-


    10.1.2 Performance bonds may be utilized in other conditions as described at DEAR 970.5204-22 (f).


    10.1.3 The buyer/subcontracting officer must determine the subcontractor's responsibility even though
            a bond has been or can be obtained (see subpart 20.2).


10.2 PAYMENT BONDS-
A payment bond is required for all fixed price and unit-price construction subcontracts in excess of
$100,000. The penal amounts shall be as specified at FAR 28.102-2.


    10.2.1 For construction subcontracts greater than $25,000 but not greater than $100,000 the subcontract-
            ing officer shall require the subcontractor to furnish one of the following payment protections:
            i) A payment bond
            ii) An irrevocable letter of credit (ILC).
            iii) A certificate of deposit.

    10.2.2 Payment bonds may be utilized in other than construction subcontracts when the buy-
            er/subcontracting officer determines that it is necessary on an individual subcontract to require
            payment bonds in connection with the work (i.e. credit standing).


10.3 BID BONDS-
The buyer/subcontracting officer shall determine a bid guarantee amount that is adequate to protect
SURA/JLab from loss should the successful bidder fail to execute further contractual documents and bonds
as required. The bid guarantee amount shall be at least 20 percent of the bid price but shall not exceed $3
million. When the penal sum is expressed as a percentage, a maximum dollar limitation may be stated




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    10.2.2 When a bid guarantee is required, the solicitation shall contain a statement to that effect, and
             provide sufficient details for bidders to determine the amount of the bid guarantee.


    10.2.3 Non-compliance with a solicitation requirement for a bid guarantee requires rejection of the bid.


10.4 SOLICITATION REQUIREMENTS-
When performance, payment bonds or alternate payment protections are required, the solicitation shall specify:
    a) The requirements for the bond(s) or alternate payment protections;


    b) The sum of each bond or alternate payment protection (expressed either as a fixed sum or percent-
         age of the contract price) or coverage required; and


    c) The deadline for submitting acceptable bonds or alternate payment protection.


    10.4.1 The subcontractor shall furnish all bonds, including any necessary reinsurance agreements, be-
             fore receiving a notice to proceed with the work or being allowed to start work.


10.5 SURETIES-
Acceptable forms of surety or security to protect SURA from financial losses are:
    i)   Corporate surety for the bond or alternate payment protection.
    ii) Irrevocable letter of credit (See FAR 28.204-3 for guidance.)
    iii) A deposit of a certified or cashier’s checks, bank drafts, money orders, or currency in an amount
         equal to the penal sum of the bond or alternate payment protection.


10.6 INSURANCE-


    10.6.1 Work on the JLab Site - When work is being performed on the JLab site, appropriate insurance
             provisions should be included in solicitations and subcontracts. For solicitations and subcon-
             tracts which are expected to exceed $25,000, a certificate of insurance, as prescribed in the ap-
             plicable insurance provision, shall be obtained from the subcontractor’s insurer(s) before the
             subcontractor is permitted to commence work on site. The certification for purchase orders or
             subcontracts equal to or less than $25,000 may be made by the subcontractor on the RFQ form,
             or may be provided verbally for micro-purchases or emergency procurements.



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10.6.2 Types of Insurance and Minimum Amounts- When the subcontractor is required to provide
       insurance coverage, the following types with minimum coverage shown shall be specified in
       the solicitations and subcontracts:


       10.6.2.1    Federally Funded Subcontracts
                   a) Workers’ Compensation and Employer’s Liability - Subcontractors must comply
                       with applicable Federal and State workers’ compensation and occupational dis-
                       ease statutes. If occupational diseases are not compensated under those statutes,
                       they shall be covered under the employer’s liability section of the insurance poli-
                       cy, except when the subcontract operations are so commingled with the subcon-
                       tractor’s commercial operations that it would not be practical to require this cov-
                       erage. Employer’s liability coverage of at least $100,000 shall be required.


                   b) General Liability - Bodily injury liability insurance coverage written on the
                       comprehensive form of policy of at least $500,000 per occurrence.


                   c) Automobile Liability - Automobile liability insurance written on the compre-
                       hensive form of policy, providing for bodily injury and property damage liabil-
                       ity covering the operation of all automobiles used in connection with perform-
                       ing the subcontract. The policy shall provide for coverage of at least $200,000
                       per person and $500,000 per occurrence for bodily injury, and $20,000 per oc-
                       currence for property damage.


                   d) Property Insurance - Under federally funded fixed price subcontracts, the sub-
                       contractor assumes the risk of loss of Government furnished property and most
                       probably will build that risk (insurance) into the fixed price. SURA, as a mat-
                       ter of policy, should not require subcontractors to insure Government property
                       unless unusual circumstances prevail and coordination of all parties including
                       DoE is obtained.


       10.6.2.2    Non-federally Funded Contracts (e.g. State of Virginia or SURA) - Contractors
                   shall be required to have the same types of insurance listed above with the mini-
                   mum coverage for General Liability increased to $1,000,000 per occurrence and
                   for Automobile Liability for property damage increased to $100,000 per occur-

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           rence. Additionally, for non-federally funded construction contracts the contractor
           shall be required to provide property insurance in the amount of the initial contract
           sum as well as subsequent modifications thereto for the entire work at the site on a
           replacement cost basis without voluntary deductibles.


10.6.2.3   Cost type subcontracts - Under cost type subcontracts, no insurance is to be re-
           quired/maintained covering the risk of loss or destruction of, or damage to gov-
           ernment property; the cost of which SURA will seek reimbursement from DoE,
           unless specifically approved by DoE.


10.6.2.4   Unusual insurance requirements - Coordination of unusual insurance requirements
           will be coordinated with legal counsel prior to issuance of any solicitation.


10.6.2.5   Cancellation or material change - When the subcontractor is required to provide
           insurance coverage, the policies shall contain an endorsement that any cancellation
           or material change in the coverage adversely affecting the interest of JLab shall not
           be effective unless the insurer or the subcontractor gives written notice of cancella-
           tion or change to the Department.


10.6.2.6   Additional Requirements - Policies provided in accordance with 11.6.2.1 (b) or
           (c) should include SURA and the Government as named insured. Whenever this
           inclusion cannot be obtained, policies should include a waiver of subrogation
           against SURA and the Government.




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                            Part 11. Environment, Health and Safety

11.1 GENERAL-
Environment, health, and safety considerations (EH&S) are essential elements of all activities conducted at
Jlab. It is JLab policy to follow environmental health, and safety laws, regulations, and JLab-adopted prac-
tices. No activity can be considered so urgent or so important that safety may be compromised. Line man-
agers can meet their responsibility for safety of their people by ensuring that staff are well trained, conduct
themselves in a safe manner, correct hazardous conditions, and report injuries immediately. All staff mem-
bers are responsible for maintaining a complete understanding of the safety requirements of their work
place and assignments.


    11.1.1 All JLab and subcontractor personnel have a right to a safe workplace and a right to inform line
            management when he or she considers a condition unsafe. Chapter 2310, “EH&S Concern Reso-
            lution” in the JLab EH&S Manual, explains the way staff and subcontractor personnel can resolve
            environmental, health, or safety concerns through the use of a JLab EH&S Concern Report.


    11.1.2 The JLab is accountable for the EH&S performance of its subcontractors. Buyers/Subcontracting
            Officers should refer Requisitioners to the SURA/JLab EH&S Manual Section 3410, “EH&S As-
            pects of Material Acquisitions”, when purchasing materials with EH&S implications, or Section
            3420, “EH&S aspects of Procured Services and Construction”, when purchasing services and
            construction with EH&S implications.


    11.1.3 Buyers/subcontracting officers may seek additional guidance from the Administration Division En-
            vironment, Health, and Safety Officer regarding important EH&S aspects affecting procurement.


11.2 ACQUISITION AND USE OF ENVIRONMENTALLY PREFERABLE PRODUCTS AND SERVICES
Acquisition and Use of Environmentally Preferable Products and Services shall be accomplished in accord-
ance with M&O Contract Article 20, Acquisition and Use of Environmental Preferable Products and Ser-
vices 97-.5204-YY.


11.3 SUBCONTRACTOR EH&S REQUIREMENTS
Pursuant with M&O Contract Article 72, Environmental Protection, Safety and Health, SURA shall in-
clude in all of its subcontracts involving performance of work at the site, provisions requiring subcontrac-


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tors to comply with SURA’s Environment, Safety and Health standards when such standards are mandated
by law, regulation, or the M&O Contract.


    11.3.1 SURA/JLab shall provide notice to the DoE Contracting Officer reasonably in advance of, but
            not later than 30 days prior to, the award of any subcontract SURA/JLab believes to be subject
            to 10 CFR Part 707 (see part 8.4.4).


    11.3.2 The buyer/subcontracting officer should be careful to include appropriate requirements in the
            purchase order/subcontract terms and conditions for the following list of activities that charac-
            teristically require special specifications:
               Work aloft (over 16 feet from ground level)
               Confined-space entry
               Excavation
               Hot Work
               Work on energized equipment
               Use of cranes and rigging equipment, forklifts, and aerial platforms, etc.
               Use of flammable or toxic materials inside buildings

    11.3.3 SURA/JLab shall not enter into, renew, or extend subcontracts with firms proposing to use facili-
            ties listed by EPA (40 CFR Part 15) as violating facilities under the Air Act or the Water Act.


            11.3.3.1     Subcontracts are not subject to the restriction if they are (i) $100,000 or under; or
                         (ii) for indefinite quantities and the buyer/subcontracting officer believes that the
                         amount ordered in any year under the subcontract will not exceed $100,000.


            11.3.3.2     If the facility to be used is on the EPA List of Violating Facilities for a conviction
                         under the Air Act or the Water Act, the above exemption does not apply.


11.4 MATERIAL SAFETY DATA SHEETS (MSDS)-
MSDS shall be specified when purchasing hazardous materials or when subcontracted work involves use of
hazardous materials on site. A listing of hazardous materials is referenced in the Laboratory's EH&S Manual.


11.5 WHISTLEBLOWER NOTIFICATION TO SUBCONTRACTORS-
All SURA/JLab staff and subcontractors (including consultants, contract labor, etc.) performing work on the
SURA/JLab site are subject to DoE regulations at 10 CFR Part 708, "DoE Contractor Employee Protection
Program."

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                               Part 12. Cost Accounting Standards

12.1 GENERAL-
In accordance with M&O Contract Article 42, Cost Accounting Standards, procurement actions are subject
to Cost Accounting Standards (CAS) unless otherwise exempted.


12.2 EXEMPTIONS TO CAS-
The following categories of subcontracts are exempt from all CAS requirements:
   a) Sealed bid subcontracts;


   b) Negotiated subcontracts $500,000 or less;


   c) Subcontracts with small businesses;


   d) Subcontracts with foreign governments, their agents or instrumentality, or, insofar as the require-
        ments of CAS other than 48CFR9904.401 and 402 are concerned, any subcontract awarded to a
        foreign concern;


   e) Subcontracts in which the price is set by law or regulation;


   f) Subcontracts when the price is based on established catalog or market prices of commercial items
        sold in substantial quantities to the general public;


   g) Subcontracts awarded to a United Kingdom contractor for performing substantially in the United
        Kingdom;


   h) Subcontracts under the NATO PHM Ship program to be performed outside the United States by a
        foreign concern;


   i)   Subcontracts to be executed and performed entirely outside the United States, its territories, and
        possessions; and


   j)   Firm-fixed price subcontracts awarded without submission of any cost data.


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    12.2.1 The following categories have special rules as described in 48CFR 9903-201-1(c),(d) and (e):
            a) Educational Institutions
            b) Federally Funded Research & Development Center (FFRDC)
            c) Foreign Concerns


12.3 REQUIRED CAS PROVISIONS-
Pursuant with M&O Contract Articles 42 and 43 Cost Accounting Standards, and Administration of Cost Ac-
counting Standards, insert the following FAR clauses in solicitations and subcontracts unless otherwise exempted:
    a) 52.230-2, Cost Accounting Standards, unless subject to modified coverage pursuant to Paragraph
        (c), below;


    b) 52.230-5 Administration of Cost Accounting Standards;


    c) 52.230-3 Disclosure and Consistency of Cost Accounting Practices shall be used in lieu of 52.230-2,
        Cost Accounting Standards, when the subcontract amount is less than $10 million, and the offeror
        certifies that it is eligible for and elects to use modified CAS coverage (unless the clause prescribed
        directly below is used; and


    d) 52.230-4, Consistency in Cost Accounting Practices if exempt from CAS for substantial perfor-
        mance in the United Kingdom.


    12.3.1 Pursuant with M&O Contract Article 44, Liability with Respect to Cost Accounting Standards
            (Special)- include language as indicated below in the subcontract that makes subcontractors lia-
            ble to the Government for increased costs or interest resulting from the subcontractor’s failure
            to comply with applicable CAS clauses (Cost Accounting Standards, and Administration of
            Cost Accounting Standards).


                                            “Failure to Comply With CAS Requirements
                In the event subcontractor fails to comply with the Cost Accounting Standard clauses set forth in
                this subcontract, the subcontractor shall be liable to the Government for increased costs, or interest
                resulting from the subcontractor’s failure to comply with applicable CAS clauses (Cost Accounting
                Standards, and Administration of Cost Accounting Standards).”


12.4 REPORTING REQUIREMENTS-
Within 30 days after award of a subcontract subject to Cost Accounting Standards the buyer/subcontracting
officer shall report the following information to the DoE Contracting Officer:

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               Business Services Department Procurement Policies and Procedures


a) Subcontractor’s name and subcontract number,


b) Dollar amount and date of award,


c) Any changes the subcontractor has made or proposes to make to cost accounting practices that af-
   fect prime contracts or subcontracts containing the CAS clause or Disclosure and Consistency of
   Cost Accounting Practices clause, unless these changes have already been reported. If award of the
   subcontract results in making one or more CAS effective for the first time, this fact shall also be re-
   ported.




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                                  Part 13. Government Property

13.1 GENERAL-
Buyers/subcontracting officers are responsible to ensure that Subcontractors properly account for Govern-
ment property either furnished or acquired by subcontractors, or produced by subcontractors during per-
formance of the work.


    13.1.1 Buyers/subcontracting officers shall coordinate acquisitions involving Government property
            with the SURA/JLab Property Officer.


            13.1.1.1    A copy of all applicable portions of subcontracts or purchase orders which involve
                        furnishing or acquisition of Government property shall be provided to the
                        SURA/JLab Property Officer.


            13.1.1.2    The Department’s Data Entry Form shall be annotated in the blank which states
                        “Subcontractor to Acquire (or be furnished) Government Property”.


13.2 GOVERNMENT FURNISHED PROPERTY-


    13.2.1 The buyer/subcontracting officer shall coordinate all shipments and returns of Government
            furnished property with the SURA/JLab Property Officer.


    13.2.2 The buyer/subcontracting officer will ensure that a current list of all SURA/JLab and Govern-
            ment furnished property is maintained in the purchase order/subcontract file. The condition of
            property shall also be documented upon return to SURA/JLab. The SURA/JLab Property Of-
            ficer shall be advised of any returned property that is damaged, or that has not been returned in
            a fully useable condition.


    13.2.3 Contractor acquired Government Property should be identified in the SURA/JLab data base to
            ensure proper tracking and control of the property.


13.3 REAL PROPERTY-
In accordance with M&O Contract Article 79, Acquisition of Real Property, acquisition of real property
requires DoE approval and shall be acquired in accordance with the M&O Contract.

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                                  Part 14. Subcontract Instruments
14.1 GENERAL-
The term "subcontracts" includes all those bilaterally executed contractual instruments SURA/JLab uses to
meet its procurement responsibilities under the M&O Contract; except that the term does not include Mem-
orandum Agreements, Cooperative Research and Development Agreements, User Facility Agreements,
Work For Others Agreements or Memorandums Of Understanding.


The term "purchase order" generally means a unilaterally executed purchase action that normally does not
exceed $100,000.


The selection of the type of subcontract to be used should be based on consideration of the nature of the
supplies and services required and other circumstances surrounding the purchase. The policy of the De-
partment is to use firm fixed-price purchase orders/subcontracts, unless another type is determined to be
more appropriate for the instant procurement.


    14.1.1 The following subcontract relationships should be avoided unless approved by the Director of
            Business Services :
            a) A subcontract or combination of subcontracts for A-E and construction services on the
                same construction project. However, this shall not preclude the award of a single subcon-
                tract for the delivery of a discrete facility, turnkey subcontract, so long as the subcontractor
                assumes all liability for defects in design and construction and consequential damages; or


            b) Both a cost-reimbursement subcontract and fixed price subcontract for different projects if
                any portion of the work will be performed concurrently in the same location.


    14.1.2 Cost-plus percentage-of-cost type shall not be used.


14.2 FIRM FIXED PRICE SUBCONTRACTS-
A firm fixed-price subcontract places the maximum risk and responsibility upon the subcontractor and af-
fords the greatest incentive for efficient performance. It also imposes a minimum administrative burden on
both contracting parties. The fixed-price subcontract is particularly suitable in the purchase of standard or
modified commercial items or any other items for which sound prices can be developed.




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    14.2.1 Where adjustable pricing arrangements based upon the occurrence of an event or contingency
            are appropriate in fixed-price contracting, the subcontract may fix a ceiling price, target price,
            or minimum price. The subcontract must set forth the necessary conditions for the price ad-
            justment to be applicable and the formula for determining the final price.


14.3 COST REIMBURSEMENT SUBCONTRACTS-
This type of subcontract shall provide for payment to the subcontractor of all allowable costs in accordance
with the cost principles defined in FAR Part 31, appropriate for the type of organization to which the sub-
contract is to be awarded. The subcontract establishes an estimate of total cost for purposes of obligating
funds and establishes a ceiling that the subcontractor may not exceed without prior approval. This type of
subcontract is suitable for use only when the uncertainties involved in subcontract performance are of such
magnitude that cost of performance cannot be estimated with sufficient reasonableness to permit use of a
fixed-price subcontract.


    14.3.1 There are a number of variations of cost-type subcontracts. Among these are cost-sharing under
            which the subcontractor bears a portion of the cost and receives no fee; cost reimbursement under
            which the subcontractor is reimbursed all costs but receives no fee; cost-plus-incentive fee, under
            which the fee is adjusted by formula in accordance with the relationship which total allowable
            costs bear to target costs; cost-plus-a-fixed fee which provides for the reimbursement of allowa-
            ble costs and the payment of a fixed fee; and subcontracts with performance incentive such as
            cost-plus-award fee, which provides a base fee that does not vary with performance coupled with
            an award fee sufficient to encourage attainment of excellent performance by the subcontractor
            and paid in whole or in part after an evaluation of the subcontractor's performance against estab-
            lished criteria. SURA/JLab shall not pay fees under subcontracts with educational institutions or
            when the subcontract involves a cost sharing arrangement with a non profit organization.


14.4 TIME AND MATERIAL SUBCONTRACTS-
This type subcontract provides for the procurement of supplies and services on the basis of direct labor
hours at specified fixed hourly rates, and material at actual cost plus an agreed on fixed indirect cost. Time
and material subcontracts do not afford the subcontractor any positive profit incentive to control the cost of
materials or to manage his labor force effectively. This type is to be used only where it is not possible at the
time of placing the order to estimate the extent or duration of the work or to anticipate costs with any rea-
sonable degree of confidence. Provisions for adequate controls should be made, such as:
    a) Establishing a ceiling price for the subcontract.

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    b) Providing for surveillance by SURA/JLab personnel.


    c) Limiting the number of hours worked to which the rate, including profit, will be applicable and re-
        imbursing the subcontractor at a rate which does not include profit for all hours worked in excess
        of such limit.


    d) Applying material handling cost, if any, to the direct material cost and excluding material handling
        costs from the overhead rate applied to direct labor.


14.5 LABOR-HOUR SUBCONTRACTS-
This is a variant of the time and material subcontract in which no materials are involved. This type subcon-
tract is generally appropriate for the procurement of engineering and design services, repair or mainte-
nance, consultant services, and certain emergency situations.


14.6 LETTER SUBCONTRACTS-
A letter subcontract is a written preliminary contractual instrument that authorizes immediate commence-
ment of work.


A letter subcontract may be utilized when there is a potential schedule or cost impact as a result of completing
a fully definitized subcontract. The letter subcontract must be approved by the Director of Business Services.


    14.6.1 Letter subcontracts must be superseded by a fully definitized subcontract within 180 days of
            award or upon completion of 40% of the work, whichever occurs first.


    14.6.2 Letter subcontracts should be limited to 50% of the total value of the work.


    14.6.3 Letter subcontracts shall include as a minimum:
            a) A definitized work statement to allow immediate commencement of work,


            b) Terms of payment in the event of a termination,


            c) A maximum liability for expenditures,



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            d) The type of subcontract to be issued, including all terms and conditions thereof to the ex-
                tent known,


            e) The subcontractor's obligation to provide specific cost information and certifications when
                required, and


            f) Clearly understood delivery schedule.


14.7 INDEFINITE DELIVERY SUBCONTRACTS-
This type of subcontract may be used for procurements where SURA/JLab's precise delivery requirements
are not known at the time of contracting, although it is known that there will be a need for the product or
service during the period covered by the subcontract. Indefinite delivery subcontracts are subject to the
same SURA/JLab procedures on competition, approvals, and content as any other type of subcontract.


A release is issued to order supplies or services against an indefinite delivery subcontract.


There are variations to this subcontract type as described below:


    14.7.1 Definite quantity subcontract: The quantity of the product or scope of the service to be fur-
            nished during the subcontract period is definite, with deliveries or performance to be arranged
            by the issuance of releases against the order. Where this type of subcontract is for inventory
            items, it permits stocks to be maintained at minimum levels. Since there is a definite commit-
            ment on the part of SURA/JLab to order a specified quantity of supplies or services, funds are
            committed when the subcontract is placed.


    14.7.2 Indefinite quantity subcontract: This type of subcontract provides for furnishing an indefinite
            quantity, within stated minimum and maximum limits, of specific supplies or services, during a
            specified period of time, with deliveries scheduled by the placement of releases against the
            subcontract. This type of subcontract may be used where it is impossible to determine in ad-
            vance the precise quantities that will be needed during a specified period of time. Advantages
            of this type of subcontract are that flexibility is provided with respect to both quantities and de-
            livery scheduling, property or services need not be ordered until actual needs have material-
            ized, and stocks can be maintained at minimum levels. Funds are committed for the minimum
            quantity specified at the time the subcontract is placed.

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    14.7.3 Requirements Subcontracts, a requirements subcontract provides for filling all actual purchase
            requirements of designated SURA/JLab activities for specific supplies or services during a speci-
            fied subcontract period, with deliveries to be scheduled by placing orders with the subcontractor.
            A requirements subcontract may be used when SURA/JLab anticipates recurring requirements
            but cannot predetermine the precise quantities of supplies or services that SURA/JLab will need
            during a definite period. For the information of offerors and subcontractors, the buyer/ subcon-
            tracting officer shall state a realistic estimated total quantity in the solicitation and resulting sub-
            contract. This estimate is not a representation to an offeror or subcontractor that the estimated
            quantity will be required or ordered, or that conditions affecting requirements will be stable or
            normal. The subcontracting officer may obtain the estimate from records of previous require-
            ments and consumption, or by other means, and should be the estimate on the most current infor-
            mation available. The subcontract should state if, feasible, the maximum limit of the subcontrac-
            tor's obligation to deliver, and SURA/JLab's obligation to order. The subcontract may also speci-
            fy maximum or minimum quantities that SURA/JLab may order under each individual order and
            the maximum that it may order during a specified period of time.


            14.7.3.1     These subcontracts may authorize SURA/JLab Users to place calls against the sub-
                         contracts subject to the following:
                         a) The Buyer advises the subcontractor in writing of the individual's authority to
                             make calls against the subcontract.


                         b) Only items listed in the requirements subcontract may be purchased.


                         c) The User must issue a release for each call and send copies of the release to
                             the, and Shipping and Receiving.


14.8 BASIC AGREEMENTS-
A basic agreement is a written instrument of understanding between SURA/JLab and a subcontractor which
sets forth the subcontract clauses which will be applicable to future procurements entered into between the par-
ties during the term of the basic agreement. The use of a basic agreement contemplates the coverage of each
particular procurement by the execution of a formal contractual document which will provide for the scope of
work, price, delivery, and any additional matters peculiar to the requirement of the specific procurement in-
volved and which will incorporate by reference the subcontract clauses agreed upon in the basic agreement.

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    14.8.1 Basic agreements are appropriate when past experience and future plans indicate that a substantial
            number of separate subcontracts will be entered into with the same firm during the term of the basic
            agreement or when substantial recurring negotiating problems exist with a particular subcontractor.


    14.8.2 Basic agreements cannot be modified or superseded by individual subcontracts or purchase orders
            entered into under and subject to the terms of such agreement, but they are to be amended only by
            an amendment to the basic agreement itself.


            14.8.2.1     The wording of any such amendment must be definite as to its applicability to ex-
                         isting subcontracts which incorporate the basic agreement by reference.


    14.8.3 Basic agreements must be reviewed and revised to conform with current requirements no less
            frequently than when they are being renewed.


    14.8.4 Basic agreements must provide for discontinuance of their future application upon 30 days written
            notice by either party, on the understanding that such discontinuance will not affect any individual
            subcontract referencing the basic agreement entered into prior to the effective date of discontinuance.


    14.8.5 Basic agreements do not commit funds. They must neither provide for nor imply any agreement on
            the part of SURA/JLab to place any future orders or subcontracts with the subcontractor involved.


14.9 BASIC ORDERING AGREEMENTS-
A basic ordering agreement is similar to a basic agreement except that it also includes a description, as spe-
cific as practicable, of the supplies to be furnished or services to be performed when ordered, and it either
specifies the prices or includes a description of the method for determination of the prices to be paid to the
subcontractor for such supplies or services. Likewise, either the specific terms and conditions of delivery or
a description for the method of their determination are set forth in the basic ordering agreement. Basic or-
dering agreements are not used to commit funds.


    14.9.1 The basic ordering agreement may be used where specific items, quantities, and/or prices are
            not known at the time of execution of the agreement, but where past experience or future plans
            indicate that a substantial number of requirements for items or services of the type covered by



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            the basic ordering agreement will result in procurements from the subcontractor during the term
            of the agreement.


    14.9.2 Prices, persons, or items to be supplied, delivery period, and other details must be established
            prior to authorizing a subcontractor to perform work under a basic ordering agreement, and no
            individual order issued thereunder shall modify or supersede the basic ordering agreement. As
            in the case of basic agreements, conditions of basic ordering agreements shall also be reviewed
            and revised to conform with current requirements at such time as they are being renewed. All
            amendments shall be specific as to their applicability to open orders that were issued under the
            basic ordering agreement.


    14.9.3 Each order (release) issued under a basic ordering agreement is subject to the same reviews,
            signatures, approvals, determinations, findings, etc., as would be applicable if the order were a
            new procurement entered into apart from the basic ordering agreement.


14.10 MULTI YEAR SUBCONTRACTS-
A multi year subcontract means a subcontract covering performance for more than one (1) year. Normally
multi year subcontracts will not exceed five (5) years. Total subcontract quantities and annual quantities
are planned for a particular level and type of funding. Each Program Year (1 through 5) is budgeted and/or
funded based on the funds necessary for performance for that fiscal year, although additional funding may
be included based on program needs.


    14.10.1 The multi-year subcontracting method may be used for the acquisition of services or supplies,
            including, but not limited to systems, subsystems, major equipment, components, parts, materi-
            als, supplies and the advanced acquisition thereof, and commercial and non-commercial items.


    14.10.2 Pursuant with best business practice, Insert the substance of the clauses Limitation Of Price
            and Contractor Obligations, and Cancellation of Items, in solicitations and subcontracts when
            a multi-year requirement is contemplated.


    14.10.3 If funds are not available to support the succeeding years' requirements, SURA/JLab will can-
            cel the subcontract. Multi year subcontracts may contain a subcontract term allowing reim-
            bursement of unrecovered non recurring costs included in prices for canceled items to protect
            the subcontractor against loss resulting from cancellation.

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    14.10.4 Use of multi-year subcontracting is encouraged to take advantage of one or more of the following:
               a) Lower costs.


               b) Enhancement of standardization.


               c) Reduction of administrative burden in the placement and administration of subcontracts.


               d) Substantial continuity of production or performance, thus avoiding annual start-up costs,
                   pre-production testing costs, make-ready expenses, and phase-out costs.


               e) Avoidance of the need for establishing and proving out quality control techniques and pro-
                   cedures for a new subcontractor each year.


               f) Broadening the competitive base with opportunity for participation by firms not otherwise will-
                   ing or able to compete for lesser quantities, particularly in cases involving high start-up costs.


               g) Providing incentives to subcontractors to improve productivity through investment in capi-
                   tal facilities, equipment, and advanced technology.


14.11 INTERCONTRACTOR PURCHASING AGREEMENTS
Consistent with efficient business practice, buyers/subcontracting officers shall utilize Intercontractor pur-
chasing agreements (agreements issued by other DoE Contractors for such purpose) to the maximum extent
practicable.




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                                    Part 15. Service Subcontracts

15.1 GENERAL-
Service contract means a contract that directly engages the time and effort of a contractor whose primary pur-
pose is to perform an identifiable task rather than to furnish an end item of supply. A service contract may be
either nonpersonal or personal. Examples of service subcontracts include but are not limited to the following:
    a) Maintenance, overhaul, repair, etc.
    b) Housekeeping
    c) Advisory and assistance services
    d) Communications
    e) Operation of Government/JLab owned equipment
    f) Transportation
    g) Research Support
    h) Engineering Support

15.2 NONPERSONAL SERVICES-
A subcontract under which the personnel rendering the services are not subject either by the subcontract’s
terms or by the manner of its administration, to the supervision and control usually prevailing in relation-
ships between SURA/JLab and its employees.


15.3 PERSONAL SERVICES-
A Personal Services subcontract is characterized by the unique relationship created between the subcontrac-
tor’s employees and SURA/JLab. A Personal Services relationship occurs when the subcontractors’ person-
nel are subject to relatively continuous supervision and control of SURA/Jlab. Such subcontracts are typical-
ly used in narrow circumstances at SURA/JLab where Memoranda of Understanding have been executed be-
tween SURA/JLab and selected educational institutions (such as members of the Virginia Physics Consorti-
um) which obligate the institution to furnish SURA/JLab the research support of Graduate Student Research
Assistants (GSRA’s) matriculated in the institutions’ course of study, Joint or Bridged Faculty, or similar uni-
versity professional. In return SURA/JLab agrees to fund a stipulated portion of the individuals’ salary, bene-
fits, travel and/or overhead in special instances. Generally, these subcontracts are marked by (1) on-site per-
formance; (2) services furnished are directly applied in furtherance of the SURA/JLab mission; (3) services
are generally expected to be in excess of 1 year in duration; (4) the services reasonably require direct or indi-
rect SURA/JLab direction or supervision of the subcontractors employees; and (5) services received are gen-
erally described in terms of a stipulated percentage of a JLab full time employee (FTE).

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15.4 CONTRACT LABOR-
Contract labor personnel may be subcontracted through temporary employment agencies to augment regular
SURA/JLab staff on an as needed basis; however, these services normally should be for a period not to exceed
one full year. Services furnished by temporary help firms should not be regarded or treated as personal services.


    15.4.1 Contract labor personnel may be subject to the Service Contract Act, and therefore, prior to pro-
            curing contract labor services, the Buyer should obtain a notice of wage determination through
            the DoE when procuring non-professional services (refer to FAR 22.1102 for a definition of pro-
            fessional services and FAR 37.101 for a definition of personal and non personal services).


            15.4.1.1       It is Laboratory policy that individual contract labor agreements should not exceed
                           12 consecutive months. Requests that exceed 12 consecutive months (including
                           contract labor agreements that through incremental changes exceed 12 consecutive
                           months) shall be brought to the attention of the Director of Business Services.


            15.4.1.2       Contract labor agreements may be executed prior to receipt of wage determinations
                           if the instant procurement requires the services prior to the receipt of the Depart-
                           ment of Labor Wage Determination. The agreement shall state that any applicable
                           wage determination shall apply retroactively.


15.5 CONSULTANT AGREEMENTS-
Consultant agreements are issued for specialized expert and advisory professional personal services not readi-
ly available at SURA/JLab, and as such, are generally not subject to Service Contract Act requirements.


    15.5.1 SURA/JLab's travel policies shall be used to reimburse consultants for approved travel and
            subsistence.


    15.5.2 See the M&O Contract (Appendix G) for the specified daily rate requiring DoE approval.


    15.5.3 Consultant agreements are subject to an Organizational Conflict of Interest (OCI) review for
            values in excess of $100,000.




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                            Part 16. Architect-Engineer Subcontracts


16.1 GENERAL-
This part describes policies and procedures peculiar to subcontracts for architect-engineer services as de-
fined in FAR 36.102. Subcontracts will be negotiated for these services based on the demonstrated compe-
tence and qualifications of prospective contractors to perform the services at fair and reasonable prices.
While the Brooks Act (Public Law 92-582) is not applicable to SURA/JLab's procurement practices regard-
ing selection of A-E subcontractors, SURA/JLab's selection approach would reflects the essence of the Act,
but cost and price factors may be considered in addition to factors related to competence and qualifications.


    16.1.1 Buyers/Subcontracting Officers should avoid potential conflict of interest situations when
            awarding A-E services (see Organizational Conflict of Interest).


16.2 EVALUATION BOARDS-
Formal architect-engineer evaluation boards shall be used for the selection of professional architect-engineer
services when the estimated cost of the subcontract exceeds $500,000. Less formal procedures and practices
may be followed for subcontracts estimated to be $500,000 or less than $500,000, with the specific evaluation
procedures and practices being adapted to the size, type and complexity of the project. As a minimum, the
following individuals will be appointed to evaluate sources for award of architect-engineer subcontracts.


    16.2.1 Formal evaluation boards for actions that exceed $500,000 should include:
            a) Buyer/Subcontracting Officer (Chairperson/Non-voting)
            b) Plant Engineering Director (Voting)
            c) Associate Engineer (Designated by the Plant Engineering Director/Voting)

    16.2.2 Evaluation boards for $500,000 or less may only include:
            a) Buyer/Subcontracting Officer (Chairperson/Non-voting)
            b) Engineer (Designated by the Plant Engineering Director/Voting)
                 1. If the services are for other than Plant Engineering, the appropriate department director
                     will fulfill the function described for the Plant Engineering Director.


16.3 EVALUATION BOARD FUNCTIONS-
Under the general direction of the assigned Group Manager, the Evaluation Board shall perform the follow-
ing functions:

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    a) Review the current data files on eligible firms and responses to a public notice (if applicable) con-
        cerning the particular project.


    b) Evaluate the firms in accordance with the applicable criteria in subpart 16.5 below.


    c) Hold discussions with at least three of the most highly qualified firms regarding capabilities, con-
        cepts and the relative utility of alternative methods of furnishing the required services.


    d) Prepare a selection report for the SSO that includes, in order of preference, at least three firms that
        are considered to be the most highly qualified to perform the required services. The report shall in-
        clude a description of the discussions and evaluations conducted by the board to allow the SSO to
        review the considerations upon which the recommendations are based.


16.4 DESIGN COMPETITION-
When the use of design competition is approved by the Director of Business Services, evaluation of firms
on the basis of their conceptual design of the project may be made when:
    a) Unique situations exist involving prestige projects, such as the design of memorials and structures
        of unusual significance;


    b) Sufficient time is available for the production and evaluation of conceptual designs; and


    c) The design competitions, with its costs, will substantially benefit the project.


16.5 SELECTION CRITERIA-
The following criteria may be considered for applicability in selecting an A-E subcontractor.
    a) Reputation and standing of the firm and its principal members.


    b) Experience and technical competence of the firm in comparable work.


    c) Past record in performing work for DoE, other Government agencies, and private industry, includ-
        ing projects or contracts implemented with no overruns; performance from the standpoint of cost
        including cost overruns (last 5 years); the nature, extent, and effectiveness of contractor's cost re-
        duction program; quality of work; and ability to meet schedules including schedule overruns (last 5
        years) where applicable.

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d) The volume of past and present workloads.


e) Interest of company management in the project and expected participation and contribution of top
     officials.


f) Adequacy of central or branch office facilities for the proposed work, including facilities for any
     special services that may be required.


g) Geographic location of the home office and familiarity with the locality in which the project is located.


h) Specific experience and qualifications of personnel proposed for assignment to the project for vari-
     ous phases of the work.


i)   Technical skills and abilities in planning, organizing, executing, and controlling.


j)   Abilities in overall project coordination and management.


k) Experience in working together as a team.


l)   Proposed project organization, delegations of responsibility, and assignments of authority.


m) Availability of additional competent, regular employees for support of the project, and the depth and
     size of the organization so that any necessary expansion or acceleration could be handled adequately.


n) Experience and qualifications of proposed consultants and subcontractors.


o) Ability to assign adequate qualified personnel from the proposed organization (firm's own organi-
     zation, joint-venture organizations, consulting firms, etc.), including key personnel and a compe-
     tent supervising representative.


16.5.1 Additional (or special) criteria developed for the specific project shall be considered and evalu-
         ated as may be appropriate.



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16.6 APPRAISING FIRMS QUALIFICATIONS-
To be considered for architect engineer subcontracts, a firm must submit Standard Form 254 "Architect-
Engineer and Related Services Questionnaire", and when applicable, Standard Form 255 "Architect-
Engineer and Related Services Questionnaire for Specific Project", or SURA/JLab Form 62 "SURA/JLab
Architect-Engineer-Construction Questionnaire" to the Department.


    16.6.1 The Department will maintain an architect-engineer qualifications data file for future procurements.


    16.6.2 Every opportunity and encouragement shall be given to small business, small disadvantaged
            businesses and women-owned small business concerns. Toward this end, groups that propose
            to form a joint venture or engage the services of small consulting firms for portions of the ef-
            fort, shall be given full consideration by the Evaluation Board and the Selection Official of
            their combined qualifications.


    16.6.3 Prior to selection firms may be asked to submit rate information, but firms shall not be asked to
            submit price proposals. Request for supplemental information shall be used only to obtain in-
            formation that will enable SURA/JLab to select the best qualified contractor. When a request
            for supplemental information is made, some wording should be included to identify it with the
            discussion phase of the selection process similar to the following:
                    "As a result of our evaluation of material on file with this office and Standard Forms 254
                    and/or 255 submitted, we have selected your firm for further consideration for selection and
                    award of a subcontract to perform the architect-engineer services which are described below.
                    The principal purpose of this request is to obtain additional specific qualification and perfor-
                    mance data concerning your firm."




16.7 SELECTION AUTHORITY (SOURCE SELECTION OFFICIAL)-


    16.7.1 The final selection decision shall be made by the Director of Business Services for subcontracts esti-
            mated to exceed $500,000, and by the assigned Group Manager for subcontracts $500,000 or less.


    16.7.2 The Source Selection Official (SSO) will review the recommendations of the Evaluation Board and
            will, with the advice of appropriate technical and staff representatives, make the final selection. The
            final selection shall be a listing, in order of preference, of the firms considered most highly quali-
            fied to perform the work. If the firm listed as the most preferred is not the firm recommended as the
            most highly qualified by the Evaluation Board, the SSO shall provide a written determination for


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           the reason for the preference. All firms on the final selection list are considered "selection firms"
           with which the buyer/subcontracting officer may negotiate in accordance with this Manual.


   16.7.3 The SSO will not add firms to the selection report. If the firms recommended in the report are
           not deemed to be qualified or the report is considered inadequate for any reason, the SSO will
           record the reasons and return the report to the Evaluation Board for appropriate revision.


   16.7.4 The Evaluation Board will be promptly informed of the final selection.


   16.7.5 A short selection process will be used for subcontracts <$25,000. For these actions, the Evalua-
           tion Board will review and evaluate architect-engineer firms and submit the selection report,
           which will serve as the final selection list, directly to the buyer/subcontracting officer. The report
           shall serve as an authorization for the buyer/subcontracting officer to commence negotiations.


16.8 COST ESTIMATE-


   16.8.1 Prior to the initiation of negotiations for architect-engineer services valued over $25,000, an
           independent SURA/JLab estimate of the cost of the required architect-engineer services will be
           prepared based on a detailed analysis of the costs expected to be generated by the work. Con-
           sideration shall be given to the estimated value of the services to be rendered, and to the scope,
           complexity, and nature of the project.


   16.8.2 The independent SURA/JLab estimate shall be revised as required during negotiations to re-
           flect changes in or clarification of the scope of the work to be performed by the architect-
           engineer.


   16.8.3 On construction projects, a fee estimate based on the application of percentage factors to pro-
           ject cost estimates of the various segments of the work involved may be developed for compar-
           ison purposes, but such a cost estimate shall not be used as a substitute for the independent
           SURA/JLab estimate.


   16.8.4 A written statement should be included which gives the extent to which the services of the ar-
           chitect-engineer include any of the services such as Conceptual Design, Title I, Title II, Title
           III (for definitions of each refer to DEAR 936.603).

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16.9 NEGOTIATIONS-


   16.9.1 Negotiations will be conducted in accordance with Part 0 of this Manual, beginning with the
           most preferred firm in the final selection.


   16.9.2 The buyer/subcontracting officer should ordinarily request a proposal from the firm, ensuring that the
           solicitation does not inadvertently preclude them from proposing the use of modern design methods.


   16.9.3 The buyer/subcontracting officer shall inform the firm that no construction contract may be
           awarded to the firm that designed the project.


   16.9.4 During negotiations, the buyer/subcontracting officer should seek advance agreement on any
           charges for computer-assisted design. When the firm's proposal does not cover appropriate modern
           and cost-effective design methods (e.g., computer-assisted design), the buyer/subcontracting of-
           ficer should discuss this topic with the firm.


   16.9.5 Because selection of firms is based upon qualifications, the extent of any subcontracting is an
           important negotiation topic. The clause at FAR 52.244-4 Subcontractors and Outside Associ-
           ates and Consultants clause, should be utilized in the solicitation proposal package.


   16.9.6 The buyer/subcontracting officer shall request the selected architect-engineer firm to submit its
           price proposal with supporting cost or pricing data in accordance with this manual. Revisions
           of the price and supporting cost or pricing data may be made as required during negotiations to
           reflect changes in or clarification of the scope of work to be performed by the architect-
           engineer or findings derived from preaward audits conducted pursuant to this manual.


   16.9.7 The buyer/subcontracting officer shall negotiate a price considered fair and reasonable based on
           a comparative study of the independent SURA/JLab estimate and the architect-engineer's pro-
           posal. Significant differences between elements of the two figures and between the overall fig-
           ures shall be discussed and the buyer/subcontracting officer shall ascertain the reasons therefor.


   16.9.8 Promptly at the conclusion of each negotiations, a memorandum setting forth the principal el-
           ements of the negotiation shall be prepared for inclusion in the contract file. The memorandum

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        shall contain sufficient detail to reflect the significant considerations controlling the establish-
        ment of the price and other terms of the contract.


16.9.9 If a mutually satisfactory subcontract cannot be negotiated, the buyer/subcontracting officer
        shall obtain a written best and final offer from the firm and notify the firm that negotiations
        have been terminated. The buyer/subcontracting officer shall then initiate negotiations with the
        next firm on the final selection list. This procedure shall be continued until a mutually satisfac-
        tory subcontract has been negotiated. If negotiations fail with all selected firms, the buy-
        er/subcontracting officer shall refer the matter to the SSO who, after consulting with the buy-
        er/subcontracting officer as to why a subcontract cannot be negotiated, may direct the Evalua-
        tion Board to recommend additional firms.




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                                 Part 17. Construction Subcontracts
17.1 GENERAL-
The term “construction” means construction, alteration, or repair (including dredging, excavating, and
painting) of buildings, structures, or other real property.


    17.1.1 The buyer/subcontracting officer shall determine and document Davis-Bacon Act applicability
            prior to award of all construction requirements exceeding $2,000.


    17.1.2 Potential conflict of interest situations, especially if it involves award of a construction subcon-
            tract to the firm (including its subsidiaries or affiliates) that was awarded a separate subcontract to
            design the project, should be avoided or mitigated. (Also see Organizational Conflict of Interest).


17.2 NOTICE OF AWARD-
A notice of award may be used prior to formal award of the subcontract when necessary to expedite the
commencement of work. The notice of award shall be in writing and contain the following:
    a) Identify the solicitation;


    b) Identify the subcontractor's bid;


    c) State the award price;


    d) Advise the subcontractor that any required payment and performance bonds must be promptly exe-
        cuted and returned to the buyer/subcontracting officer.


    e) Specify the date of commencement of work, or advise that a notice to proceed will be issued.


    17.2.1 When a notice of award is issued, it shall be followed as soon as possible by a formal award.


17.3 PRE-BID CONFERENCE AND SITE VISITS-
Pre-bid conferences and site visits are mandatory for work that is to be done in, or in close proximity to any
operational area at SURA/JLab. Conferences and site visits will also be held for projects that will involve
close interface with SURA/JLab personnel or will affect the working environment during construction.




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17.4 PRE-CONSTRUCTION CONFERENCE-
Subcontracting Officers shall conduct pre-construction conferences prior to the start of work on all con-
struction projects exceeding $100,000. Conferences should also be held on smaller projects when the work
involves an operational area or may affect the working environment during construction. The conference
should be conducted by the cognizant buyer/subcontracting officer, and attended by the Project Engineer.


    17.4.1 Projects that include significant environmental, health or safety (EH&S) considerations or exceed
            $100,000, the appropriate EH&S representative should also be requested to attend the conference.


    17.4.2 The Conferences will include discussions of the project specifications, labor standards clauses
            of the subcontract and EH&S requirements of the subcontract, A Pre-construction Meeting
            Subcontract Checklist will also be addressed.


17.5 LIQUIDATED DAMAGES-
The buyer/subcontracting officer may include liquidated damages in construction subcontracts.




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                             Part 18. Lease and Rental Agreements

18.1 GENERAL-
Lease and rental agreements are the responsibility of the Department. The difference between rental and
lease agreements is generally duration and complexity. Lease agreements are normally for one year or
longer and may involve penalties for early termination.


    18.1.1 Purchase vs. lease analyses are normally required when acquiring copy machines. Buy-
            ers/subcontracting officers should refer to FPMR 41 CFR 101-25.5 for additional guidance.


18.2 LEASE-PURCHASE ANALYSIS-
A lease-purchase analysis must be prepared prior to leasing the following items:
    a) Copiers, facsimile machines, or other office equipment if the purchase value exceeds $5,000.
    b) All Automatic Data Processing Equipment (ADPE).
    c) Capital equipment (equipment with a purchase value of  $5,000 and expected life of  two years);
    d) Real property; and
    e) Other equipment as deemed necessary by the buyer/subcontracting officer.


    18.2.1 The requisitioner is responsible for completing the lease/purchase analysis. Buy-
            ers/subcontracting officers should provide guidance in preparing the analysis.




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             Part 19. Acquisition of Automated Data Processing Equipment
19.1 GENERAL-
This Part establishes policies and procedures for the acquisition of Automatic Data Processing Equipment
(ADPE). The term “Automated Data Processing Equipment” means any equipment or interconnected sys-
tem or subsystems of equipment that is used in the automated acquisition, storage, manipulation, manage-
ment, movement, control, display, switching interchange, transmission, or reception, of data or information.
Such term includes computers; ancillary equipment; software, firmware, and similar procedures; services,
including support services; and related networking resources involved with computer and data communica-
tions. The term does not include any of the above hardware, software, or services that are embedded in any
non ADPE system or component (see subpart 0 for examples of non ADPE requirements).


19.2 PURCHASE OPTIONS WHEN LEASING ADPE-


    19.2.1 When SURA/JLab leases ADPE or when leased ADPE is used on SURA/JLab subcontract
            work and the total cost of leased ADPE is paid by SURA/JLab under the M&O Contract funds,
            the Buyer shall require the Subcontractor to include a provision in the lease stating that
            SURA/JLab and the Government will have the right to exercise any purchase option and real-
            ize any other benefits earned through lease payments.


    19.2.2 When SURA/JLab leases ADPE or when leased ADPE is used on SURA/JLab work under a cost-
            reimbursement subcontract and less than 100 percent of the cost of the equipment is absorbed by
            SURA/JLab, the Buyer should attempt to obtain provisions similar to part 19.2.1 above.


19.3 ACQUIRING COMMERCIAL SOFTWARE-
When acquiring commercial software, the Buyer should consider the following:
    a) Avoid restrictive clauses that limit the use of the software to a specific ADP system, installation, or
        organization; and


    b) Subcontractor’s long term support and maintenance capability.


19.4 ACQUISITION APPROACH-
There are various procurement alternatives to procure ADP materials and services for the Laboratory, see
below. The approach selected should offer the best value for the Laboratory when considering the cost,
technical requirements and system life of the ADP item.

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   19.4.1 The normal acquisition approaches to procure ADP equipment (ADPE), proprietary software,
           and maintenance services are as follows:
           a) ADPE:
               1. Purchase;
               2. Lease to ownership;
               3. Lease with option to purchase;
               4. Straight lease; and
               5. Trade-in
           b) Proprietary Software:
               1. Perpetual license to use;
               2. License to use for more than 12 months
               3. License to use on a monthly basis.
           c) Maintenance Services:
               1. On-site maintenance capability;
               2. On-call maintenance; and
               3. Time and materials.


   19.4.2 When the value of the ADP requirement is expected to exceed $100,000, the cognizant buy-
           er/subcontracting officer shall coordinate the method of acquisition (approach) with the Com-
           puter Center’s technical representative.


19.5 APPROVAL REQUIREMENTS-
The Computer Center reviews various ADP/EDP requirements prior to receipt of the purchase requisition
in the Business Services Department.


   19.5.1 Components that are embedded in other systems or subsystems do not normally require ADP
           approval by the Computer Center, e.g., control computers in air conditioning systems; control
           computers in power supplies; and hardware, software, or services embedded in major magnet
           systems, etc.




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                    PART 20. SUBCONTRACTOR RESPONSIBILITY

20.1 GENERAL-
Purchases shall be made from and subcontracts shall be awarded to responsible prospective subcontractors only.


20.2 DETERMINATION OF RESPONSIBILITY-
No purchase or award shall be made unless the buyer/subcontracting officer makes an affirmative determi-
nation of responsibility. In the absence of information clearly indicating that the prospective subcontrac-
tor is responsible, the buyer/subcontracting officer shall make, sign, and place in the subcontract file a de-
termination of non-responsibility that shall state the basis of the determination.


    20.2.1 The Buyer/Subcontracting officer's signing of a purchase order/subcontract for actions
             $100,000 constitutes a determination that the prospective subcontractor is responsible with
            respect to that award.


    20.2.2 When an offer on which an award would otherwise be made is rejected because the prospective
            subcontractor is found to be non-responsible, the buyer/subcontracting officer shall make, sign,
            and place in the subcontract file a determination of non-responsibility which shall state the ba-
            sis for the determination.


            20.2.2.1     The non-responsibility determination shall be approved by the appropriate acquisi-
                         tion group manager and the Director of Business Services.


    20.2.3 Documentation used to support the determination shall be maintained in the subcontract file.


            20.2.3.1     Written support documentation is not required for actions $100,000 and under.


    20.2.4 When sufficient information is not available to allow the making of a determination as to the
            responsibility of a prospective subcontractor, the buyer/subcontracting officer should perform a
            formal pre-award survey covering the following criteria as appropriate for the determination:
            (i) technical capability; (ii) production capability; (iii) plant facilities and equipment; (iv) ac-
            counting procedures; (v) financial capability; (vi) quality assurance; (vii) safety and security
            capabilities; (viii) labor resources, (ix) performance record and ability to meet schedule, and (x)
            any other special performance requirements anticipated in a prospective subcontract award.

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20.3 GENERAL STANDARDS OF RESPONSIBILITY-
The following general standards of responsibility must be considered for each procurement action:
    a) Adequate financial resources to perform the subcontract or the ability to obtain such resources;


    b) Ability to comply with the required or proposed delivery or performance schedule;


    c) Satisfactory performance record;


    d) Demonstrated record of integrity and business ethics;


    e) Display necessary organization, experience, accounting and operational controls and technical
        skills, or the ability to obtain them;


    f) Possess the required production, construction, or technical equipment and facilities, or the ability to
        obtain them; and


    g) Be otherwise qualified and eligible to receive an award under applicable laws and regulations (e.g.
        not debarred, suspended, or ineligible pursuant with FAR subpart 9.1).


    20.3.1 Pursuant with M&O Contract Article 119, Protecting the Government’s Interest When Subcon-
            tracting with Debarred, Suspended or Proposed for Debarment (Nov 1992) 52.209-6, SURA/JLab
            shall not make an award exceeding $50,000 to any firm or individual on the GSA Consolidated
            List of Debarred, Suspended, Ineligible, and Voluntarily Excluded Contractors (or proposed for
            debarment) unless there is compelling reason to do so.


            20.3.1.1     Any award to a firm determined to be debarred, on the GSA list of suspended, inel-
                         igible, or proposed for debarment, shall be approved by the DoE.


    20.3.2 Prior to distribution of any solicitation or subcontract action exceeding the dollar threshold set
            forth above, all companies on the proposed mailing list shall be checked against the GSA de-
            barred, ineligible and suspended contractor list prior to issuing the solicitation or award. The
            file should indicate that the list was checked by the Department.



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20.4 EEO CLEARANCE-
Other than construction awards, SURA/JLab shall not enter into a covered first tier subcontract for an
amount (estimated or actual) of $10,000,000 or more without obtaining in writing from the DoE, a clear-
ance that the proposed subcontractor is in compliance with equal opportunity requirements and therefore is
eligible for award.




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PART 21. REVIEW AND APPROVAL OF SOLICITATIONS, PURCHASE OR-
                  DERS AND SUBCONTRACTS

21.1 GENERAL-
All new award actions >$2,500 ($2,000 for construction) are subject to a documented quality review pro-
cess completed and documented by the buyer.


     21.1.1 The following actions are subject to an independent quality review process which will be con-
            ducted and documented by at least 1 reviewer other than the buyer, normally this review is
            conducted by an Acquisition Group Manager:
            a) All solicitations >$100,000
            b) All award actions, change orders, and modifications >$25,000
            c) All actions submitted to DOE for advance notification


   21.1.2 The following actions are subject to a documented quality review by a Quality Review Com-
            mittee which normally consists of 2 reviewers other than the buyer:
            a) All award actions >$100,000
            b) All actions issued to DOE for prior advance approval


            21.1.2.1    An independent Acquisition Group Manager shall act as Chairperson of the Quali-
                        ty Review Committee.


   21.1.3 The above thresholds are the minimum under which quality reviews are required for various
            actions; however the cognizant group manager may impose more stringent thresholds when
            deemed necessary to ensure the quality of any procurement action.


   21.1.4 Actions subject to DOE advance notification or prior advance approval should not be released
            to DOE until the quality review is satisfactorily completed.


   21.1.5 Award of funding actions and prepriced delivery orders, task orders or calls that do not require
            negotiation of costs/prices are exempt from the quality review process.


   21.1.6 All actions subject to a quality review will utilize the appropriate review checklist and/or re-
            view memorandum.


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    21.1.7 The buyer shall document final disposition of all findings, recommendations, and suggestions
            of the reviewer(s).


            21.1.7.1    Buyers may request an advance review of the procurement action by any profes-
                        sional procurement staff member before submission to the Quality Review Com-
                        mittee. It is not necessary to document comments or recommendations identified
                        in an advance review; however, the file should document that an advance review
                        was accomplished.


21.2 LEGAL REVIEW
Legal review shall be obtained as needed to ensure the integrity, propriety and quality of the procurement
process. Legal review should be considered when:
    a) A Termination for Default or Cause is under consideration


    b) Resolving a Mistake as defined in Section 7 of when the amount of the mistake exceeds $25,000


    c) Denying a claim when the claim exceeds $25,000


    d) Submitting a highly complex action for DOE prior advance approval


    e) Considering the award of Cooperative Research and Development Agreements, Work for Others
        Contract, User Facility Agreements and similar business mechanisms




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                               Part 22. Subcontract Administration
22.1 GENERAL-
Subcontract administration is the responsibility of designated procurement professionals within the Business
Services Department. If necessary, the buyer/subcontracting officer may authorize the buyer/subcontracting
officer's Technical Representative (SOTR) to perform various subcontract administration tasks. In this case,
the SOTR's authority shall be strictly limited to technical direction within the scope of the subcontract, in-
cluding: interpretation and clarification of technical requirements as well as acceptance. Purchase Order and
Subcontract changes/modifications must be directed by the buyer/subcontracting officer.


The buyer/subcontracting officer should review assigned procurement actions exceeding the simplified
purchase threshold to determine which actions may require close monitoring to ensure timely delivery of
supplies, construction, and services. The buyer/subcontracting officer should also review procurement sta-
tus reports with cognizant technical personnel to determine which purchase orders/subcontracts should be
closely monitored.


    22.1.1 Critical program requirements not withstanding dollar values should also be monitored to en-
            sure timely supplier performance.


    22.1.2 Inclusion of a milestone schedule should be considered for complex procurements involving
            numerous Subcontractor activities and/or submittal/approval cycles.


    22.1.3 The Buyer/Subcontracting Officer and SOTR shall work together to encourage timely deliveries.


    22.1.4 Any direction which potentially impacts cost or schedule must be authorized by the buy-
            er/subcontracting officer and normally should not be delegated to the SOTR.


    22.1.5 Technical correspondence issued by the SOTR or vendor should be copied to the cognizant
            buyer/subcontracting officer.


    22.1.6 Buyers/subcontracting officers shall ensure SOTR's are adequately notified of the extent and
            limitations of their authority.




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    22.1.7 Buyers/subcontracting officers should utilize guidance in FAR 42.3 as guidance in conducting sub-
            contract administration activities. In conjunction with this responsibility, buyers/subcontracting of-
            ficers should ensure that each purchase/subcontract action adequately documents:
            a) Administration follow-up in response to issues cited in the file correspondence;
            b) Evidence of delivery and date delivered;
            c) Administrative actions addressing late deliveries and consideration from delinquent vendors;
            d) Required subcontract documentation (technical reports, drawings, cost data, etc.), and
            e) Notification to exercise options.


22.2 RECORDS AND REPORTS-
SURA/JLab shall maintain subcontract files that present an accurate and adequate record of all purchasing
transactions. All documentation generated for Federal Government funded purchase orders and subcon-
tracts are considered official Government records.


22.3 CHANGE OF NAME (NOVATION) AGREEMENTS-
A change of name agreement means a legal instrument executed by the subcontractor and SURA/JLab that
recognizes the legal change of name of the subcontractor without disturbing the original contractual rights
and obligations of the parties.


22.4 SUBCONTRACT MODIFICATIONS-
Subcontract modifications are any written change in the terms of the subcontract. The types of subcontract
modifications are:


    22.4.1 Unilateral: A unilateral modification is a subcontract modification that is signed by the buy-
            er/subcontracting officer. Unilateral modifications are used, for example, to:
            a) Make administrative changes;


            b) Issue change orders;


            c) Make changes authorized by clauses other than a change clause (e.g. property clause, op-
                 tions clause, suspension of work clause, etc.);


            d) Issue termination notices in writing that do not affect the substantive rights of the parties; or



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        e) Reflect other modifications in situations when there is written evidence of the subcontrac-
            tor’s agreement.


22.4.2 Bilateral: A bilateral modification or supplemental agreement is a subcontract modification
        that is signed by the contractor and the buyer/subcontracting officer. Bilateral modifications
        are used to:
        a) Make negotiated equitable adjustments resulting from the issuance of a change order;
        b) Definitize letter subcontracts; and
        c) Reflect other agreements of the parties modifying the terms of the subcontract.


22.4.3 Change orders are written orders, signed by the buyer/subcontracting officer, directing the
        subcontractor to make a change that the Changes Clause authorizes the buyer/subcontracting
        officer to order without the subcontractor's consent.


22.4.4 The Department may execute change orders and modifications consistent with the level of au-
        thority specifically delegated.


        22.4.4.1       Procedure. Upon notification of a change to an existing subcontract, the buyer/
                       subcontracting officer will evaluate the alleged change and confirm that it is in fact
                       a change, direct the mode of further performance, and obtain funding, if required,
                       for the change or countermand the change. In all cases, the buyer/subcontracting
                       officer will notify the vendor and the appropriate SURA/JLab technical and finan-
                       cial personnel of his or her decision relative to said change.


        22.4.4.2       Changes should be priced prior to issuance whenever practical.


22.4.5 Coordination. The buyer/subcontracting officer will inform the User of any pending subcon-
        tract modifications that will impact cost or schedule.


22.4.6 FAR Guidance, Buyers/subcontracting officers should use FAR Part 43- Contract Modifica-
        tions as guidance when processing changes.


        22.4.6.1       Pursuant with best business practice, insert a Changes clause in solicitations and
                       subcontracts as appropriate.

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    22.4.7 Documentation and Funds for Non Substantive Modifications. A Payment/Expediting Memo-
            randum (PEM) form signed by the buyer/subcontracting officer or a Modification of Subcon-
            tract/Purchase Order form may be used to support administrative changes and correct minor
            discrepancies between a vendor’s invoice and the subcontract/purchase order when the amount
            does not exceed $500.00 over the total subcontract/purchase order amount. A funded PR is re-
            quired for such modifications when the amount exceeds $100.00. The procurement file should
            be documented to at least show the vendor’s understanding of the change.


22.5 LATE DELIVERY OR PERFORMANCE-
The buyer/subcontracting officer shall take such action as deemed necessary to preserve the right to termi-
nate the subcontractor for default. If the subcontractor is permitted to continue performance a revised de-
livery schedule should be established with the vendor and incorporated in a modification to the subcon-
tract/purchase order.


    22.5.1 When practicable, the buyer/subcontracting officer should protect the interest of SURA/JLab and at-
            tempt to obtain consideration for the delay in those instances where SURA/JLab is adversely affected.


22.6 INVOICE AND PAYMENT PROCESSING-
The Buyer/subcontracting officer shall promptly process invoices received from the Finance Department.


    22.6.1 The purchase order/subcontract shall require the original invoice to be sent to the SURA/JLab
            Finance Department.


    22.6.2 The Buyer/subcontracting officer should normally approve invoices for subcontracts exceeding
            $100,000 and shall obtain technical concurrence from cognizant technical personnel regarding
            acceptability of the supplies, construction, or services provided.


22.7 SOTR RESPONSIBILITY-
For subcontracts exceeding the simplified purchase threshold, the subcontracting officer shall insure an
SOTR is designated to monitor technical performance and report any potential or actual problems to the
subcontracting officer. Before the subcontractor begins work, the subcontracting officer shall inform the
SOTR of specific responsibilities as JLab’s SOTR (See Administrative Manual for list of responsibilities).



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22.8 EVALUATION OF SUBCONTRACTOR PERFORMANCE-
After completion of any subcontract exceeding the simplified purchase threshold, the SURA/JLab SOTR
shall document the subcontractor’s performance and forward a copy of the completed evaluation to the
cognizant buyer/subcontracting officer.


22.9 CLAIMS AND DISPUTES-
Resolution of controversies through some means of alternative dispute resolution (ADR) is preferred by
SURA/JLab over litigation.


    22.9.1 Alternative dispute resolution means any procedure or combination of procedures voluntarily
            used to resolve issues in controversy without the need to resort to litigation. These procedures
            may include, but are not limited to, assisted settlement negotiations, conciliation, facilitation,
            mediation, fact-finding, mini trials, and arbitration.


    22.9.2 The primary purpose of ADR is to increase the opportunity for relatively inexpensive and ex-
            peditious resolution of issues in controversy. ADR procedures are designed to reduce the costs
            associated with formal adjudication; and reduce the time necessary to reach a decision.


    22.9.3 Essential elements for ADR include:
            a) Existence of an issue in controversy that continues after issuance of a final decision of the
                Subcontracting Officer that is approved by the Director of Business Services.


            b) A voluntary election by both parties to participate in the ADR process.


            c) An agreement on alternative procedures and terms to be used in lieu of formal litigation.


            d) Participation in the process by officials of both parties who have the authority to resolve
                the issue in controversy.


     22.9.4 ADR procedures may be introduced into an issue in controversy at any point in its development,
            including before, during, and after discovery. However, it is preferable that ADR be considered
            as early as possible in the life-cycle of a contractual issue in controversy.




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22.9.5 Subcontracting Officers are empowered to creatively resolve issues in controversy without re-
        sort to formal litigation at the lowest level possible. Appropriate ADR procedures shall be de-
        veloped by the Subcontracting Officer to accomplish this objective.


        22.9.5.1    Development of the ADR procedures to be used in controversies will be coordinat-
                    ed with the SURA/JLab Legal Counsel.


22.9.6 When appropriate, a neutral person may be used to facilitate resolution of the issue in contro-
        versy using the procedures chosen by the parties. Use of a neutral person will be coordinated
        with SURA/JLab Legal Counsel and approved by the Director of Business Services.




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                        Part 23. Inspection, Acceptance and Warranties

23.1 GENERAL-
The type and extent of subcontract quality requirements needed depends on the particular acquisition and
may range from routine inspection by SURA/JLab after delivery of off-the-shelf supplies to a requirement
that the Subcontractor implement a comprehensive program for controlling quality.


    23.1.1 SURA/JLab may rely on the Subcontractor to accomplish inspection and testing needed to en-
            sure that standard commercial supplies conform to subcontract quality requirements before
            they are tendered to SURA/JLab


            23.1.1.1     SURA/JLab specifications and subcontracts may appropriately describe such in-
                         spection and tests and require that their results be forwarded to SURA/JLab for re-
                         view before acceptance.


            23.1.1.2     This general reliance may be inappropriate if SURA/JLab has a need to test the
                         supplies in advance of their request for acceptance, or to evaluate the adequacy of
                         the Subcontractor’s internal work processes.
23.2 INSPECTION REQUIREMENTS-
In accordance with M&O Contract Article 23, Inspection of Research ad Development (Short Form) (Apr
1984) 52.246-9, buyers/subcontracting officers shall ensure that purchase orders/subcontracts contain pro-
visions for SURA/JLab’s and/or Government’s inspection of subcontractor facilities and to require subcon-
tractors to furnish all reasonable facilities and assistance for the safe and convenient performance of
SURA/JLab and Federal Government’s inspections.


23.3 ACCEPTANCE-
Acceptance constitutes acknowledgment by SURA/JLab that the supplies delivered (or services performed)
by the Subcontractor conform with the Laboratory requirements. The effects of acceptance are that:
    a) Except as indicated in the applicable Inspection clause, the Subcontractor is no longer responsible
        for correcting defects discovered in the supplies or services;


    b) SURA/JLab becomes obligated to pay the Subcontractor for the accepted supplies or services (or to
        make “final” payment when, for example progress payments have been made); and


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c) When supplies have been delivered f.o.b. destination, the Subcontractor generally no longer bears
    the risk of loss of or damage to the delivered supplies.


23.3.1 Each purchase order/subcontract shall specify the place of acceptance.


        23.3.1.1    Purchase orders/subcontracts that provide for SURA/JLab inspection and testing at
                    source shall ordinarily provide for acceptance at source.


        23.3.1.2    Purchase orders/subcontracts that provide for SURA/JLab inspection and testing at
                    destination shall ordinarily provide for acceptance at destination.


        23.3.1.3    Supplies accepted at a place other than destination shall not generally be reinspect-
                    ed at destination for acceptance purposes, but should be examined at destination
                    for quantity, damage in transit, and possible substitution or fraud.


23.3.2 Acceptance by SURA/JLab may occur in the following ways:
        a) Acceptance may take place before delivery, at the time of delivery, or after delivery, de-
            pending on the provisions of the subcontract.


        b) Through a process similar to that specified above, by the issuance of a receiving report in-
            dicating completion of the Subcontractor’s obligations;


        c) Receipt of and payment for supplies and services;


        d) Unreasonable delays in rejecting nonconforming supplies or services;


        e) Altering supplies before rejecting them; or


        f) Using delivered supplies without inspecting or paying for them.


 23.3.3 The “Inspection of Supplies” clause in the terms and conditions provides that acceptance is
        “conclusive” (i.e., the Subcontractor is no longer liable for defects in the supplies) except for:




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        a) “Latent defects” (i.e., defects that existed at the time SURA/JLab accepted the supplies but that
            could not have been discovered by a reasonable inspection);


        b) “Fraud” (i.e., circumstances when a Subcontractor deliberately misrepresents or conceals mate-
            rial facts with the intention of inducing acceptance of defective supplies or services);


        c) “Gross mistakes amounting to fraud” (i.e., serious misrepresentations of material facts, made
            without the intention to deceive, but which induce SURA/JLab to accept nonconforming sup-
            plies or services); and


        d) Liabilities “otherwise provided in the subcontract” (for example, under the warranty clause of
            the terms and conditions).


23.4 WARRANTIES-
The use of warranties is not mandatory. In determining whether a warranty is appropriate for a specific
acquisition, the buyer/subcontracting officer shall consider the nature and use of the supplies or services
and ensure the requisitioner concurs. This includes such factors as: complexity and function, degree of de-
velopment, state of the art, end use, difficulty in detecting defects before acceptance, cost, the extent that
the item is commercialized, and other potential harm to SURA/JLab, if the item is defective, etc.


    23.4.1 The buyer/subcontracting officer, prior to the inclusion of a nonstandard warranty clause in a
            solicitation or subcontract, shall document the file to support the necessity of said clause.


    23.4.2 Buyers/subcontracting officers may use FAR subparts 46.703 through 46.710 as guidance in
            determining use of applicable warranty provisions.


    23.4.3 Standard commercial warranties offered by suppliers should be documented in the purchase
            order/subcontract file when practicable.




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                Part 24. Termination of Purchase Orders and Subcontracts

24.1 GENERAL-
SURA/JLab's standard termination clauses (default and convenience) provide four (4) different bases for
termination of subcontracts: (1) failure to deliver the product or complete the work or service within the
stated time period, (2) failure to make progress in prosecuting the work which endangers timely comple-
tion, (3) breach of other terms and conditions of the subcontract, and (4) for the convenience of
SURA/JLab and/or the Government.


    24.1.1 The buyer/subcontracting officer is responsible for issuing all terminations and Stop Work orders.


24.2 TERMINATION FOR CONVENIENCE-
Subcontracts and purchase orders may be terminated for the convenience of SURA/JLab when it is deter-
mined that such action is in the best interests of SURA/JLab and the Government. When it has been deter-
mined that termination, in whole or in part, is in the best interest of SURA/JLab and the Government, noti-
fication and settlement shall be processed by the buyer/subcontracting officer in accordance with the terms
and conditions of the subcontract. In a termination for convenience, the subcontractor is entitled to recover
reasonable costs incurred and reasonable settlement cost incurred as a result of the termination. Prior to
any action regarding termination for convenience, the buyer/subcontracting officer will advise the appro-
priate group manager and Director of Business Services of the pending situation. For additional guidance,
consult FAR Part 49.


    24.2.1 A formal notice to the subcontractor is required to terminate the subcontract for convenience.
            The notice shall specify that the subcontract is terminated for the convenience of SURA/JLab
            and cite the subcontract clause that authorizes such action. Also, the following information
            shall be included in the notice:
            a) The effective date of the termination


            b) The extent of termination


            c) Any special instructions, and




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        d) The steps the subcontractor should take to minimize the impact on personnel if the termi-
            nation, together with all other outstanding terminations, will result in a significant reduc-
            tion in the subcontractor’s work force.


24.2.2 The buyer/subcontracting officer should furnish the subcontractor with copies of Settlement
        Proposal forms and Inventory Schedules. (These forms are set forth in FAR 53.301-1434
        through -1438 and require the subcontractor to use these forms in making his submittals.)


24.2.3 The buyer/subcontracting officer must follow through on the termination notice and ensure that
        all work is stopped as stated in the notice in order to avoid the possibility that costs incurred
        thereafter will be disallowed. (Certain costs may not be able to be stopped on the day of the
        notice despite all reasonable efforts to do so, and certain costs for storing and protecting inven-
        tory items may be required after termination.) By prompt and clear communications with the
        supplier, smooth transition of termination should be accomplished.


24.2.4 At the outset, there should be an immediate inventory verification and screening to determine
        the serviceable and usable property in the hands of the subcontractor and its lower tier suppli-
        ers and subcontractor. Then, with the approval of property management, the following order of
        priority should be agreed to:
        a) SURA/JLab will acquire inventory that it chooses.


        b) The subcontractor will purchase or retain at cost the items that it will accept.


        c) The subcontractor will return items to suppliers for full credit less the supplier’s normal re-
            stocking charge.


        d) The subcontractor will sell or make other disposition of items as agreed to. Proceeds from
            sales, retention or restocking will be credited to the subcontract. Sales will generally re-
            quire competitive bids.


24.2.5 At the earliest reasonable date following termination, the buyer/subcontracting officer shall initi-
        ate a meeting with the subcontractor. In preparation for the meeting, the buyer/subcontracting of-
        ficer should become thoroughly familiar with the termination for convenience clause of the sub-
        contract. A checklist of topics for discussion at the meeting should include the following:

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      a) General principles relating to the settlement of any termination claim


      b) Obligations of the subcontractor under the termination clause of the subcontract


      c) Extent of termination and the point at which the work is stopped


      d) Status of plans, drawings and other data that were to be delivered under the subcontract


      e) Status of any work that was not terminated, if any


      f) Names of lower tier suppliers and subcontractors and dates when termination notices were sent
           to them


      g) Subcontractor’s method of review and settlement of lower tier subcontractor claims


      h) General principles and procedures to be followed to protect, preserve and dispose of inventory
           in the hands of the subcontractor and his lower tier suppliers and subcontractors


      i)   The format in which settlement proposals, inventory schedules and accounting data will be
           submitted


      j)   Tentative time schedules for submitting proposals, inventory schedules and other data.


  24.2.6 It is the subcontractor’s responsibility to settle lower tier supplier claims, and lower tier suppli-
           ers may not make direct claims against SURA/JLab.


  24.2.7 All termination claims shall be submitted on either the inventory or total cost basis (refer to
           FAR 49.206-2 for an explanation of these terms), and the total amount payable to the subcon-
           tractor on a fixed price termination settlement shall not exceed the total subcontract price, ex-
           clusive of settlement costs.


24.3 TERMINATION FOR DEFAULT OR CAUSE-




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   24.3.1 When a subcontractor does not comply with the terms and conditions of the subcontract and
            the mission of SURA/JLab will be impacted by either non-performance or non-delivery, the
            subcontract may be terminated for default, or cause if the subcontract is for a commercial item.
            Prior to any action regarding such termination, the buyer/subcontracting officer will advise the
            appropriate group manager and Director of Business Services of the pending situation. The
            buyer/subcontracting officer will review the proposed action with legal counsel and coordinate
            with the Director of Business Services of the actions to be taken. Situations that may lead to
            termination for default or cause (for additional guidance, consult FAR Part 49) include:
            a) “if the subcontractor fails to make delivery of the supplies or to perform the services within
                the time specified herein or any extension thereof;” or


            b) “if the subcontractor fails to perform any of the other provisions of this subcontract, or so
                fails to make progress as to endanger performance of this subcontract.


   24.3.2    Before terminating a subcontract for default or cause, the buyer/subcontracting officer should
             consider the following matters:
            a) The specific reason(s) for the subcontractor’s failure(s) and/or nonperformance


            b) Whether the supplies/services are available from other sources


            c) The urgency of the need and the lead time required to obtain the materials or services from
                another source


            d) The degree to which the subcontractor is essential to JLab’s procurement program and the
                effect of the termination on the subcontractor.


24.4 DEFINITIONS-


   24.4.1 Complete termination - The complete cessation of all remaining work contracted, on the effec-
            tive date of termination.


   24.4.2 Partial termination - The termination of a portion of the work contracted for, on the effective
            date of termination.



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    24.4.3 Termination inventory - Any property purchased, supplied, manufactured, furnished, or other-
            wise acquired for the performance of a subcontract subsequently terminated and properly alloca-
            ble to the terminated portion of the subcontract. It includes government furnished property.


    24.4.4 A temporary stoppage of work due to a stop work order from the buyer/subcontracting officer
            is not a termination. A reduction in the scope of work resulting from a programmatic change
            and settled under a bilateral agreement is not a termination.


24.5 MUTUAL CANCELLATION-
Before issuing a formal Notice of Termination, the buyer/subcontracting officer shall, whenever possible,
undertake to negotiate a settlement with the subcontractor. This will accommodate the relatively simple
“walk away” agreement that can be accomplished in many cases. Once a formal Notice of Termination is
issued, the formal termination process may have to be followed to its conclusion.




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                   Part 25. Closeout of Purchase Orders and Subcontracts

25.1 GENERAL-
All buyers/subcontracting officers are responsible for the timely close out of all completed purchase orders
and subcontracts, in accordance with the criteria and procedure herein. To close out a subcontract or pur-
chase order means to transfer it from active to inactive status by taking the necessary administrative action,
after delivery and/or performance have been completed, to assure that (1) all contractual obligations have
been met, (2) no pending items remain unresolved, and (3) final payment has been made.


    25.1.1 Buyers/subcontracting officers shall document all instances of poor performance or excellent
            performance in the purchase order/subcontract.


            25.1.1.1     Vendors graded not acceptable should be documented as to the basis of the unsat-
                         isfactory determination and a copy issued to the appropriate group acquisition
                         manager for concurrence. A copy of the performance report should be placed in
                         the purchase order/subcontract file, and the Department Vendor Performance Sta-
                         tus file.
25.2 CRITERIA-


    25.2.1 Purchase Orders. Simplified purchases will be considered closed upon expiration of the deliv-
            ery date and forwarded to records storage.


            25.2.1.1     Simplified purchases will not be closed if notified by SURA/JLab User that the
                         supplies are not acceptable.


    25.2.2 Fixed-Price Subcontracts. Close out of fixed-price subcontracts should commence within six
            (6) months after items are fully accepted; and final payment is made.


            25.2.2.1     Cost-Reimbursement-Type Subcontracts. Close out of cost-reimbursement-type
                         subcontracts should commence as soon as possible after completion of the subcon-
                         tract. Close out of this type subcontract can take thirty-six months or longer, de-
                         pending upon the dollar value of the subcontract and the size of the subcontract.




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  25.2.3 Subcontracts Containing a Patent Rights Clause. For all subcontracts containing a Patent
          Rights Clause, the Subcontract Administrator must obtain a Final Patents Certification from the
          subcontractor. This properly completed final certification must be forwarded to the DoE Patent
          Counsel, who will provide a letter clearance to proceed with close-out. Final payment may not
          be made until DoE patent clearance is received.


  25.2.4 Subcontracts Containing Special Warranty Clause. In cases where the effective warranty peri-
          od exceeds the time required for retention of the subcontract file, buyer/subcontracting officers
          shall ensure preservation of the subcontract record through the effective warranty period.


25.3 CLOSE OUT PROCEDURE-


  25.3.1 For actions exceeding the Simplified Purchases threshold review the receiving reports(s)
          against the purchase order/subcontract to determine that all ordered material has been received,
          inspected and accepted, or that all work has been performed, inspected and accepted.


          25.3.1.1    Simplified Purchase actions will be considered closed upon expiration of the re-
                      quired delivery date and no further action taken unless deemed necessary by the
                      buyer/subcontracting officer.


  25.3.2 If Government or SURA/JLab property was in the subcontractor's possession, determine that it
          has been returned or otherwise disposed of in accordance with the buyer/subcontracting officer's
          directions. All property matters shall be coordinated with the SURA/JLab Property Officer.


  25.3.3 If the subcontractor was obligated by the terms of the purchase order/subcontract to include
          such deliverables as reports, operating manuals, etc., with the item(s) being furnished, ascertain
          that all deliverables have been received.


  25.3.4 Review the file to ensure that the sequence of events from receipt of requisition through receipt
          of goods or services is completely documented.


  25.3.5 Complete the appropriate checklist for the action to be closed out.




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25.4 SUBCONTRACT AUDIT REQUIREMENTS-
In accordance with M&O Contract Article 37, Accounts, Records, and Inspection, the cognizant Subcon-
tracting Officer should conduct or arrange for a close out audit on all cost type contracts and fixed price or
unit priced subcontracts where under the terms of the subcontract (or purchase order) costs incurred are a
factor in determining the amount payable to the subcontractor of any tier. This should be completed as
soon as practicable following completion of work.


    25.4.1 Audit requests should be issued through the DoE Contracting Officer or conducted internally
            by SURA/JLab.


    25.4.2 Final audit requests should include a copy of the subcontract document, copy of the final
            voucher, and summary settlement statement.


    25.4.3 Submission of audit requests should be coordinated through the Department’s Cost/Price Re-
            source Person,


    25.4.4 The Cost/Price Resource Person is responsible for tracking all audit requests issued by the De-
            partment


    25.4.5 The Subcontracting Officer is responsible for resolution of audit report findings relating to the
            specific subcontract. JLab’s internal auditor or the Department’s cost/price resource person
            should be consulted on audit report findings.


25.5 RETENTION AND DISPOSAL OF RECORDS-


    25.5.1 Closed purchase order files for the current and preceding year will be kept in the Department
            file room. After the second year, they will be transferred to the SURA/JLab records storage.


    25.5.2 Subcontract files will be kept in the Department file room for one year following close out and
            then transferred to the SURA/JLab records storage.




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                    Business Services Department Procurement Policies and Procedures


                        Part 26. Socioeconomic Procurement Programs

26.1 GENERAL-
It is SURA/JLab's policy to take affirmative action to support and advance the employment of qualified handi-
capped individuals in its procurement actions; to comply with the rules, regulations, and relevant orders of the
Secretary of Labor issued under the Vietnam Era Veteran’s Readjustment Assistance Act of 1972; and to ad-
vance procurement opportunities to the maximum extent practicable for small business concerns, women-
owned business concerns, and small business concerns owned and controlled by socially and economically
disadvantaged individuals, considering efficient contract performance and achievement of its mission.


26.2 SMALL BUSINESS REPRESENTATIVE-
The Director of Business Services shall designate a person responsible to establish effective programs and
procedures to promote these activities and to act as liaison for related concerns.


    26.2.1 The Small Business Representative has authority to dissolve all small business setasides, and
            must approve such actions if valued > $25,000.


    26.2.2 The Small Business Representative shall review all solicitations prior to issuance that are not set
            aside for small business firms where the estimated cost of the requirement exceeds $100,000.


    26.2.3 The Small Business Representative shall manage the Mentor Protégé Program including estab-
            lishment and administration of the agreement, obtaining DOE approval, coordinating develop-
            mental assistance and submitting all required reports.


26.3 REQUIRED REPRESENTATIONS-
To be eligible for award as a small business, an offeror must represent in good faith that it is a small business at
the time of written self certification. An offeror may represent that it is a small business concern in connection
with a specific solicitation if it meets the definition of a small business concern applicable to the solicitation and
has not been determined by the Small Business Administration (SBA) to be other than a small business.


    26.3.1 The buyer/subcontracting officer shall accept an offeror's representation in a specific bid or
            proposal that it is a small business unless (i) another offeror or interested party challenges the
            concern's small business representation, or (ii) the buyer/subcontracting officer has a reason to
            question the representation. Challenges shall be referred to the DoE.

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26.4 SMALL BUSINESS PLAN-
SURA/JLab will submit a Small Business Plan to DoE that defines the measures it will take to promote
procurement opportunities to Small Business, Small Disadvantaged Business, and Women-owned Busi-
ness, and includes small business goals.


26.5 SMALL BUSINESS REPORTS-
SURA/JLab shall provide reports on utilization of small business, small disadvantaged business, and wom-
en-owned small business as follows:
    a) Periodic reports in order to allow the Government to determine the extent of compliance by
        SURA/JLab or any of its subcontractors with an approved subcontracting plan,


    b) SF 294, Subcontracting Report for individual subcontracts,


    c) SF 295, Summary Subcontract Report


26.6 SMALL BUSINESS SET-ASIDE PROGRAM-
The entire amount of an acquisition or class of acquisitions, including subcontracts for architect-engineer
services, research, development, test and evaluation, maintenance repair, and construction except small
business-simplified purchase set-asides, may be set aside for exclusive small business participation if the
Subcontracting Officer or Buyer determines there is a reasonable expectation that (i) offers will be obtained
from at least two responsible small business concerns offering the products of different small business con-
cerns and (ii) awards will be made at fair market prices. Total set-asides shall not be made unless such a
reasonable expectation exists.


    26.6.1 Micro purchases are not subject to the small business set aside program and are not included in
            the base dollars to determine socioeconomic goals or to calculate percentage accomplishments.


    26.6.2 Purchases $100,000 or less (excluding micro-purchases) and construction estimated to cost
            $3,000,000 or less (including repair and alteration of structures and new construction) shall be
            reserved exclusively for small business firms where there is an expectation that offers, com-
            petitive as to price, quality, and delivery will be obtained from two or more responsible small
            business firms consistent with efficient contract performance.



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       26.6.2.1    The cognizant buyer/subcontracting officer may dissolve the Small Business Set
                   Aside when the action does not exceed $25,000.


26.6.3 Buyers/Subcontracting Officers may award purchase orders/subcontracts with a value not to ex-
       ceed $3,000,000 or $5,000,000 or less for construction, on a non-competitive basis to firms certi-
       fied as participants in the Small Business Administration 8(a) program and firms that are partici-
       pating in the “Mentor-Protégé Program”. Such awards shalls be made at fair market prices.


26.6.4 The Mentor-Protégé Program – The Mentor-Protégé Program assists small disadvantaged, 8(a),
       historically black colleges and universities, or any other minority institution of higher learning,
       and women-owned small businesses in enhancing their business and technical capabilities to
       ensure full participation in the mission of DOE. The management and administrative require-
       ments of this program are established by Procurement Guidance Memorandum issued in ac-
       cordance with subpart 1.3 of this manual.




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                                Part 27. Memorandum Instruments

27.1 GENERAL-
This part defines memorandums of understanding (MOU’s) and memorandum purchase orders (MPO’s),
two unrelated instruments, utilized by the Laboratory.


27.2 MEMORANDUMS OF UNDERSTANDING (MOU’S)-
A MOU is a written agreement broadly stating basic understandings and describing a mechanism for coor-
dinating activities to be engaged in by SURA/JLab and other signatory authorities. A memorandum of un-
derstanding is not to be used to embody enforceable agreements; nor shall it be used to obligate or commit
funds or as the basis for the transfer of funds from one party to another. If a commitment, obligation, or
transfer of funds is required, a specific contractual agreement, or other reimbursable arrangement shall be
developed between SURA/JLab and the participating organization to provide specific funding, obligation,
and billing data.


27.3 MEMORANDUM PURCHASE ORDERS (CASH TRANSFERS)-
A Memorandum Purchase Order (cash transfer) is a special method for obtaining supplies and services
from DoE cost type contractors (primarily Laboratories), including research activities associated with col-
laborating educational institutions.


    27.3.1 Memorandum purchase orders are considered cash transfers between DoE cost type contrac-
            tors pursuant to DoE's cash transfer policy contained in the DoE Accounting Practices and
            Procedures Handbook, and as such are not considered subcontracts within the meaning of the
            term defined in this manual.


            27.3.1.1     Because MPO’s are strictly cash transfers between DoE cost type contractors they
                         are not subject to comprehensive cost analyses or responsibility determination or
                         most other support documentation normally required for SURA/JLab subcontracts
                         and purchase orders.


            27.3.1.2     Although primarily intended for interlaboratory work and educational institution
                         collaborators, memorandum purchase orders may be issued to any DoE cost type
                         contractor.


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               Business Services Department Procurement Policies and Procedures


27.3.2 MPO’s are generally performed on a cost reimbursement basis. A standard clause will be in-
       cluded (see below) which provides the basis for transferring costs to SURA/JLab by direct
       cash billing (i.e. the submission of invoices by the performing party and the issuance of checks
       by SURA/JLab) rather than through the use of accounting documents.
             "This document is not a [sub]contract. It is a memorandum purchase order issued for services,
             equipment, or materials which are necessary and required in connection with Government contract
             #DE-AC05-84ER40150 to be performed under _____________________ (name of other DoE
             contractor) #____________________ (insert other DoE contract number). Billing shall be in ac-
             cordance with DoE Accounting Practices and Procedures Handbook - Chapter III - 2."


27.3.3 To initiate a memorandum purchase order, SURA/JLab users must complete a purchase requi-
       sition which names the collaborating institution and DoE contract number, and includes a
       statement of work to be performed. In addition, the User shall provide justification for the
       noncompetitive action and a brief statement as to the reasonableness of the total amount re-
       quired. The following documentation does not apply to Memorandum Agreements:
       a) Cost and Pricing Data


       b) Preaward or Postaward Audits


       c) Representations and Certifications


       d) SURA/JLab terms and conditions and other SURA/JLab clauses normally applied to fixed
           price or cost type purchase orders/subcontracts


       e) Cost Accounting Standards




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              Part 28. Cooperative Research and Development Agreements

28.1 GENERAL-
SURA/JLab encourages the establishment of special contractual mechanisms with non-federal partners
(such as commercial firms, not-for-profit laboratories, educational institutions) to jointly conduct the de-
velopment of laboratory technology in order to strengthen U.S. manufacturing capabilities and increase
trade by bringing new products or processes to the marketplace.


It is SURA/JLab policy to develop Joint Work Statements (JWS's) and execute Cooperative Research and
Development Agreements (CRADA's) subject to DoE approval when the participating parties agree to
jointly conduct R&D. The CRADA is an agreement entered into between SURA/JLab as operator of the
Laboratory and one or more parties, including at least one non-federal party under which the Government,
through its laboratory, provides personnel, services, facilities, equipment, and other resources with or
without reimbursement (but not funds to non-federal parties). The non-federal parties provide funds, per-
sonnel, services, facilities, equipment, or other resources toward the conduct of specified research or de-
velopment efforts which are consistent with the missions of the laboratory, except that such terms do not
include a procurement contract, grant, or cooperative agreement as those terms are used in sections 6303,
6304, and 6305 of Title 31 of the United States Code. SURA/JLab utilizes the most current DoE Model
CRADA Terms and Conditions as the basis for its contractual agreements.


28.2 JOINT WORK STATEMENTS-
The Joint Work Statement (JWS) is a proposal submitted on a standard SURA/JLab CRADA/JWS form from
the Laboratory Director, or his designated representative, to the DoE Oak Ridge Operations Office through
the DoE SURA/JLab Site Office Contracting Officer describing the purpose and scope of the proposed
CRADA and broadly assigning rights and responsibilities among the parties. It is intended to provide suffi-
cient information to the DoE to permit their prompt review and approval of the proposed project in principle.


    28.2.1 Purpose: A brief introduction to the proposed cooperation, describing the parties and providing
            background or contextual information, the expected goals or accomplishments, and reasons for
            cooperation; a clear statement of the desired result or what the product of the effort should be.


    28.2.2 Scope: A summary of the desired work program in concise form, describing the proposed di-
            vision of responsibilities among the parties and tasks, if known; an outline of the phases of the


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            project, technical objectives, deliverables, level of effort, and any known limitations on time or
            resources.


    28.2.3 Estimated Cost and Source of Support: Estimated costs to each party and projected sources of
            funds and other resources. Summary totals are sufficient for contributions from external, pri-
            vate participants to be spent inside their organizations. Any funds into the Laboratory should
            be listed in sufficient detail to identify the DoE funding sources (programs and B&R codes), if
            available, and other sources such as internal supporting research funds.


    28.2.4 Benefits/Impacts to Parties: What each party expects to receive from the cooperation and how
            it is expected to impact them. This should include intangible benefits such as experience and
            knowledge how, as well as tangible products and intellectual property rights provisions, if
            known. Benefits to DoE programs should be identified. Impact to the DoE Sponsor's Program
            should be described including slippage, if any, to milestones and/or deliverables agreed upon in
            existing work authorizations.


    28.2.5 Special Considerations: Information on other subjects likely to arise in negotiation, such as
            small business preference, domestic location and manufacture preference (or justification, if
            foreign), any health, safety, and environmental issues, and potential conflict of interest; any in-
            ventions, background rights, or previously existing information that is to be specifically carved
            out or excluded from the CRADA; any known relationship of the proposed CRADA to other,
            similar work funded by the Government; any expected use of proprietary information, protect-
            ed CRADA information, and plans or special conditions for publication of results of work per-
            formed under the CRADA. Also, any special provisions of the approved CRADA guidelines
            that are known or expected in advance should be identified. The purpose of this section is to
            alert DoE to any special or unusual elements of the interaction.


28.3 RESPONSIBILITIES-
The Office of Technology Applications within the Business Services Department supports the SURA/JLab
Technology Transfer Manager in the overall accomplishment of the Laboratory's technology transfer mis-
sion to include but not limited to: outreach activities, attendance at various technology transfer related
workshops and conferences, development and submission of JWS's, negotiation and administration of
CRADA's, intellectual property and Work for Others coordination.



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SURA/JLab JWS's are coordinated with the appropriate Associate Director and Legal Counsel prior to
submission to the DoE SURA/JLab Site Office Contracting Officer by the Laboratory Director or designat-
ed representative.


28.4 PROCEDURES-


    28.4.1 Submittal of JWS to DoE. The Laboratory Director, or authorized representative, submits the
            fully coordinated JWS to the DoE SURA/JLab Site Office Contracting Officer for approval.
            Per statute, DoE has 90 days to approve, request specific modifications, or disapprove the JWS.


    28.4.2 Resubmittal of JWS to DoE. If DoE requests modifications to the JWS and the Laboratory Di-
            rector concurs, the revised JWS may be resubmitted to DoE, who will complete the review
            procedure within 30 days of the resubmittal date or within 90 days of the original submittal
            date, whichever occurs later.


    28.4.3 Negotiation of the CRADA and Changes to the JWS. The CRADA formalizes the intent of the
            JWS, describing the detailed obligations of each party. Formal approval of the JWS authorizes
            the Laboratory to make commitments consistent with the terms of the JWS. The Laboratory
            and DoE should maintain close, informal communication, as negotiations of the CRADA pro-
            ceed in order to facilitate final approval of the CRADA.


    28.4.4 Submittal of the CRADA. The final form of the negotiated CRADA should follow the model
            CRADA and the approved DoE guidelines, except where indicated in the approved JWS. The
            Laboratory Director or designated representative, submits the negotiated CRADA to DoE,
            along with a restatement of the JWS, reflecting any changes resulting from the completed ne-
            gotiation. A revised JWS is only required if there have been substantial changes or new infor-
            mation generated during the negotiations. If terms are unchanged, the original JWS should suf-
            fice. The DoE review should be accomplished within 30 days.


    28.4.5 Simultaneous Submittal of the JWS and the CRADA. It is expected that in many cases, the JWS
            and the CRADA can be negotiated quickly and be submitted to DoE simultaneously. In this
            case, DoE attempts to conclude its review process for both documents within 30 days. Disap-
            proval or recommendations for specific changes shall be made in writing, with approvals con-
            firmed in writing.

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               Business Services Department Procurement Policies and Procedures




28.4.6 Execution of the CRADA (Copy of Record). With the express, prior approval of DoE, the La-
       boratory Director, or designated representative, may execute the CRADA. After all parties to the
       CRADA have executed the agreement, the Office of Technology Applications will send a copy of
       the fully executed CRADA to the DoE SURA/JLab Site Office Contracting Officer. The copy of
       record sent to the DoE shall not contain any information considered proprietary to any non-
       federal or non-contractor party to the CRADA. If a CRADA covers work of a proprietary nature,
       the parties shall prepare a non-proprietary version of the statement of work for the official
       CRADA copy of record and create a separate detailed Work Statement containing any proprietary
       information. The detailed Work Statement may be referenced in the CRADA but does not be-
       come a part of the contract and is not sent to the DoE.


28.4.7 A billing account must be established by the Accounting group.


28.4.8 CRADA modifications (such as extensions or SOW changes) are also approved by the DoE.




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                                 Part 29. User Facility Agreements
29.1 GENERAL-
SURA/JLab is authorized to enter into User Facility Agreements for those situations where a sponsor re-
quests the use of and will pay for certain SURA/JLab facilities for research and development activities. It
can be for other Federal Agencies, state, regional, and local governments, commercial firms, not-for-profit
organizations, universities, or private individuals.


    29.1.1 It is SURA/JLab policy to approve use of its facilities when the proposed work:
            a) Is consistent with the mission of SURA/JLab as specified in SURA/JLab's Management
                 and Operating Contract with DoE;


            b) Complements and does not adversely affect programs that are included in the Institutional Plan;


            c) Does not place SURA/JLab in direct competition with domestic, private or public sectors;


            d) Is based on specialized scientific capability and/or unique facilities which exist at
                 SURA/JLab; and


            e) Is fully funded and reimbursed by the sponsor.


29.2 RESPONSIBILITIES-
The Office of Technology Applications within the Business Services Department supports JLab’s user facil-
ities. The Business Services Department provides assistance in the development of applicable policies and
procedures; provides advice, assistance, and recommendations to SURA/JLab staff in the application of and
compliance with applicable SURA/JLab policies and procedures; provides guidance in the preparation of
materials by the divisions (appropriate documentation, approvals, etc.); provides assistance in describing the
mechanisms and procedures to be followed by outside organizations in placing work at SURA/JLab; pre-
pares required documentation for external coordination; and assists the respective Technical Representative
in overseeing the work.


    29.2.1 Coordinate all User Facility Agreements with the Accounting Group Manager to establish ap-
            propriate financial controls and accounts.




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                    Business Services Department Procurement Policies and Procedures


    29.2.2 The Technical Representative is the SURA/JLab individual responsible for technical liaison with the
            sponsor. This individual is responsible for oversight of the activity from inception to work completion.


29.3 PROCEDURES-
Prior to entering into any user facility commitment, the Technical Representative must coordinate with the Office
of Technology Applications to establish the nature and scope of the work, to develop a budget profile and advance
payment criteria, to identify sponsors and describe the situation and relationships among the participating parties,
and to coordinate the necessary administrative requirements to process the approval package.


    29.3.1 The Office of Technology Applications will work closely with the Technical Representative to provide
            the guidance and recommendations necessary to complete the administrative process of the proposal.


            29.3.1.1     A proposal from the sponsor to the Office of Technology Applications containing the
                         following is required before the sponsor will be authorized to use SURA/JLab Facilities:
                         a) The specific facilities requested,


                         b) The reason the requested facilities cannot be obtained from the private sector,


                         c) The authority to enter into the necessary agreement by state and local govern-
                             ments if required,


                         d) A description of the work to be accomplished and schedule,


                         e) Assurance of funding, and


                         f) Agreement to the User Facility Agreement Terms and Conditions.


                         29.3.1.1.1 The proposal will be coordinated with the appropriate division(s), Le-
                                     gal Counsel and approved by the Associate Directors;


            29.3.1.2     The following is required before the sponsor may commence work:
                         a) Execution of the User Facility Agreement;
                         b) Establishment of a billing account.



                                                     Page 29-2
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                                        Compilation of Changes 1-9: Jan 2001
                    Business Services Department Procurement Policies and Procedures


                                 Part 30. Work for Others (WFO)
30.1 GENERAL-
This is work accomplished by SURA/JLab for funding sponsors other than the DoE. It can be for other
Federal Agencies, state, regional, and local governments, commercial firms, not-for-profit organizations,
universities, or private individuals. SURA/JLab is not authorized to respond to Federal Agency Requests
for Proposals (RFP’s). Intelligence related activities will be conducted in accordance with applicable Ex-
ecutive Orders, US Laws, Presidential Directives and Director of CIA Intelligence Directives.


    30.1.1 Non-DoE funded work may be performed when the proposed work:
            a) Is consistent with the mission of SURA/JLab as specified in SURA/JLab's Management
                and Operating Contract with the DoE;


            b) Complements and does not adversely affect programs that are included in the Institutional
                Plan or create a detrimental future burden on DOE resources.


            c) Does not place SURA/JLab in direct competition with domestic private sectors;


            d) Is based on specialized scientific capability and/or unique facilities which exist at
                SURA/JLab; and


            e) Is funded by the sponsor including any required advance payments.


30.2 RESPONSIBILITIES-
The Procurement Group within the Business Services Department supports Jlab’s Work for Others (WFO) Pro-
gram. The group provides assistance in the development of WFO policies and procedures; provides advice, as-
sistance, and recommendations to SURA/Jlab staff in the application of and compliance with SURA/Jlab WFO
policies and procedures; provides guidance in the preparation of materials by the divisions (appropriate docu-
mentation, approvals, proposals to potential sponsors, etc.); provides assistance in describing the mechanisms
and procedures to be followed by outside organizations in placing work at SURA/Jlab; prepares required docu-
mentation for external coordination; and assists the Principal Investigator (PI) in administering the work.


    30.2.1 Coordinate all WFO proposals with the Accounting Group to ensure that all billing and cost
            accounts are appropriately established.



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    30.2.2 The Principal Investigator is the SURA/Jlab individual responsible for developing a specific
            Work for Others project. This individual is responsible for management of the activity from in-
            ception to completion.


    30.2.3 SURA/Jlab WFO proposals requiring DoE approval (including proposed responses to Broad
            Agency Announcements (BAAs) issued by other Federal Agencies) are approved by the re-
            spective division’s Associate Director and submitted to the DoE Site Office Contracting Of-
            ficer by the Laboratory Director or authorized representative.


30.3 PROCEDURES-
Prior to entering into any commitment to perform Work for Others, the Principal Investigator should hold
discussions with the Procurement Group to establish the nature and scope of the work, to develop a detailed
budget profile and advance payment criteria, to identify potential sponsors and describe the situation and
relationships among the participating parties, and to coordinate the necessary administrative requirements
to process the WFO package.


    30.3.1 The Procurement Group will work closely with the Principal Investigator to provide the guid-
            ance and recommendations necessary to complete the administrative process of the Proposal
            Information Form (PIF).


    30.3.2 For work involving Other Federal Agencies (OFA), the following items are required before
            SURA/Jlab may commence the work:
            a) A Proposal Information Form (PIF) submitted by the Laboratory Director or Representa-
                tive and approved by DoE;


            b) A Statement of Work (SOW) prepared by SURA/Jlab


            c) An interagency agreement (funding authorization) signed by DoE and the OFA. The OFA
                must certify on the agreement that the agreement is in compliance with requirements of the
                Economy Act of 1932 (31 U.S.C. 1535) and FAR 6.002 and that to the best of its
                knowledge the work requested will not place DoE and its contractor in direct competition
                with the domestic private sector;


            d) A funding authorization letter from DoE to SURA/JLab, and

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               Business Services Department Procurement Policies and Procedures




        e) Establishment of a billing account with the Accounting Group.


        f) Personal Property (equipment) acquired will be coordinated with, accounted for and man-
            aged through the JLab Property Control Office.


        g) The Procurement Group will ensure that all subcontracting is accomplished in accordance
            with Jlab approved policies and procedures.


30.3.3 For work involving non-Federal entities, the following items, including DoE approval, are re-
        quired before SURA/JLab may commence the work:
        a) A letter from the non-Federal entity to DoE through containing the following:
            1. The specific services requested of SURA/JLab,
            2. The reason why the requested services cannot be obtained from the private sector,
            3. The authority to enter into the necessary agreement by state and local governments if
               required, and
            4. Agreement to fund the work and if precluded from advance payment site the legislation

        b) A Proposal Information Form (PIF) submitted by the Laboratory Director or Representa-
            tive and approved by DoE;


        c) An executed contract; and


        d) Advance payment in accordance with DoE directives


        e) The Accounting Group must assure that a budget and reporting code (appropriate billing
            account) has been established.


        f) Personal Property (equipment) acquired will be coordinated with, accounted for and man-
            aged by the JLab Property Control Office.


        g) The Procurement Group will ensure that all subcontracting is accomplished in accordance
            with JLab procurement policies and procedures.




                                               Page 30-3
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