BUSINESS SERVICES DEPARTMENT PROCUREMENT POLICIES AND PROCEDURES

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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 Fed-eral 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 es-tablish 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

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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

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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.

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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

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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:

historical 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 proc-esses 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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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 provirevi-sion or the provirevi-sion 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 opnotifica-tion and any modificanotifica-tion 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

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de-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 spe-cific 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 services) and components to the maximum practicable extent in order to further streamline the procurement

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process 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 definition 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 definition 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 services 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

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to the general public and SURA/JLab contemporaneously and under similar terms and conditions; and (2) Offers to use the same work force for providing SURA/JLab with such services 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.

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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 competiquota-tion 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 perform-ance 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 Labora-tory, or Government agency such as a GSA schedule contract or leveraged purchase sub-contract 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 SOURCES-Administration (GSSOURCES-A), 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.

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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 Substan-dard 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

buyer/subcontracting officer shall obtain the approval of the Director of Business Services who shall coor-dinate 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, al-though 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), ReRe-quest for Proposals (RFP's), and Invitation for Bids (IFB's).

4.12.5 Negotiations are the responsibility of the procurement professionals within the Business Serv-ices 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 ad-versely 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 Associate 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, money, 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 consid-erations, and maintain a professional, objective, and credible commitment to the goals, priori-ties, 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 Laboratory 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,

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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 propro-posals 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 weak-nesses 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:_________________________________"

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(SSO)-The Director of Business Services shall appoint the Source Selection Official (SSO) to serve as the pre-siding 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; rather it should be based upon the relative strengths and weaknesses of all offerors proposals, resulting 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.

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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 offi-cer 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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