Chapter 5 - Acquisition Management

Title	Section
Acronyms Used in this Chapter	iii
Introduction	1-1
Status of Previous Policy Issuances (AOIs, CPLs, CPMs, And IHS Circulars)	2-1
Authorities and Responsibilities	3-1
Ethics and Standards of Conduct	4-1
Acquisition Planning – Under Revision. See SGM No. 25-03	5-1
Buy Indian Act Compliance and Contract File Review	6-1
Procurement Contracts - General – Under Revision. See SGM No. 25-03	7-1
Small Purchases – Under Revision. See SGM No. 25-03	8-1
Contract Award Files - Structure, Content, Maintenance – Under Revision. See SGM No. 25-03	9-1
Architectural and Engineering Contracting – Under Revision. See SGM No. 25-03	10-1
Construction Contracting – Under Revision. See SGM No. 25-03	11-1
Automated Data Processing And Telecommunications Contracting – Under Revision. See SGM No. 25-03	12-1
Acquisition of Health Care Services – Under Revision. See SGM No. 25-03	13-1
Urban Projects -- Contracts	14-1
Unauthorized Commitments – Under Revision. See SGM No. 25-03	15-1
Contract Protests, Disputes, and Appeals – Under Revision. See SGM No. 25-03	16-1
Post-Award Guidance – Under Revision. See SGM No. 25-03	17-1
Leasing Authority	18-1
Self-Determination Contracts	19-1
Tribal Self-Governance Compacts	20-1
Glossary of Terms	21-1
Index	22-1

Exhibit	Description
Manual Exhibit 5-5-1 [PDF - 2 MB]	IHS Buy Indian Act Deviation Form
Manual Exhibit 5-5-1A [PDF - 135 KB]	IHS IEE Representation Form
Manual Exhibit 5-5-2A	Summary of All Previous Policy Issuances
Manual Exhibit 5-5-5A	Acquisition Plan
Manual Exhibit 5-5-5B	Steps and Responsibilities in the Acquisition Cycle
Manual Exhibit 5-5-7A	A&E Commercial and 638 Construction Contracts Preaward Review and Approved Levels by Awarding Activities Office
Manual Exhibit 5-5-7B	IHS Comparison of Methods and Procurement
Manual Exhibit 5-5-7C	Sealed Bidding
Manual Exhibit 5-5-7D	Negotiated Procurement
Manual Exhibit 5-5-7E	Unsolicited Proposals - Record of Receipt
Manual Exhibit 5-5-7F	Unsolicited Proposal - Use and Disclosure of Data
Manual Exhibit 5-5-7G	Unsolicited Proposal - Certification by Offeror
Manual Exhibit 5-5-7H	Unsolicited Proposal - Acknowledgement of Receipt
Manual Exhibit 5-5-7I	Unsolicited Proposal - Use of Data Limited
Manual Exhibit 5-5-7J	Unsolicited Proposal - Request for Evaluation
Manual Exhibit 5-5-7K	Occupations/Classifications Subject to P.L. 101-630, Indian Child Protection and Family Violence Prevention act
Manual Exhibit 5-5-8A	Purchase/Service/Stock Requisition
Manual Exhibit 5-5-8B	Small Purchases
Manual Exhibit 5-5-9A	Commercial Supplies and Services File Index
Manual Exhibit 5-5-9B	Checklist - Contract Closeout
Manual Exhibit 5-5-10A	A&E Commercial and 638 Construction Contracts Preaward Review and Approved Levels by Awarding Activities Office
Manual Exhibit 5-5-10B	Architectural and Engineering Contracting Process
Manual Exhibit 5-5-11A	A&E Commercial and 638 Construction Contracts Preaward Review and Approved Levels by Awarding Activities Office
Manual Exhibit 5-5-11B	Construction Contracting (Sealed Bidding)
Manual Exhibit 5-5-12A	Purchase/Service/Stock Requisition
Manual Exhibit 5-5-12B	Delegation of Procurement Authority for Acquisition of Federal Information Processing (FIP) Resources
Manual Exhibit 5-5-13A	Sub Object Class Codes Processed and Paid by The IHS FI
Manual Exhibit 5-5-16A	Protests to the Agency
Manual Exhibit 5-5-16B	Public Health Service/Indian Health Service Protests to the Agency/Protest Before or After Award
Manual Exhibit 5-5-17A	Site Visit Report
Manual Exhibit 5-5-17B	Determination to Provide Government Property
Manual Exhibit 5-5-17C	Fixed-Price and Cost-Reimbursement Contract Closing Memorandum and Checklist
Manual Exhibit 5-5-18	Request for Ratification of Unauthorized Commitment (UAC)

ACRONYMS USED IN THIS CHAPTER

5-5.1  INTRODUCTION

1. Purpose.  This Chapter identifies, explains and clarifies Indian Health Service (IHS) policies and procedures for acquisition management.

   These policies and procedures are based on specific Federal statutes and regulations, including the Federal Acquisition Regulation (FAR); the Health and Human Services Acquisition Regulation (HHSAR); the Public Health Service Acquisition Regulation (PHSAR), with reference also to other current applicable chapters in the Indian Health Manual (IHM); IHS Circulars; IHS Special General Memoranda (SGM); IHS Contract Policy Memoranda (CPM); and other IHS Memoranda, such as the Indian Self-Determination Memoranda (ISDM).

   In FY 1994, the IHS was expected to outlay approximately $1.6 to $1.7 billion for all purposes.  Of this total amount, approximately 55% to 60% (i.e., $900 million to $1 billion) was spent in the form of direct expenditures, approximately 40% to 45% (i.e., $650 million to $750 million) was expended through contracts, and under 5% (i.e., less than $50 million) was outlayed in the form of grants and agreements.

2. Background.  The integrity of the IHS acquisition process must be maintained as a reflection of the IHS commitment to excellence in the management of its programs and fulfillment of its mission.

   Reference is made to Executive Order 12352, Federal Procurement Reforms, signed by President Ronald Reagan on March 17, 1982.  This Order requires each Executive Agency to:

   "... Designate a Procurement Executive with agency-wide responsibility to oversee development of procurement systems, evaluate system performance in accordance with approved criteria, enhance career management of the procurement workforce, and certify to the agency head that procurement systems meet approved criteria.”

   Subsequently, each PHS agency was required to conduct a self-assessment of their acquisition function to ensure the acceptability of their procurement practices.  The IHS system was certified by the Assistant Secretary for Management and Budget, Department of Health and Human Service (HHS) in September 1987 as part of the Health Resources and Services Administration’s procurement system.

   In 1989, the requirements of Executive Order 12352 were reinforced by the Administrator for Federal Procurement Policy in a memorandum that requested procurement officials to review their systems, identify any poor or improper procurement practices, and correct deficiencies.  In furtherance of this memorandum, HHS developed a list of systems and performance criteria to be used in conducting acquisition certification reviews of the various HHS contracting offices.  These criteria are compiled in the HHS Procurement Review Guide which was issued in final form in June 1993.  Beginning in 1989, the Division of Grants and Contracts, PHS began conducting reviews of a number of PHS contracting offices using the HHS Procurement Review Guide as the review protocol.

   The Division of Contracts and Grants Policy (DCGP), IHS, has also adopted the contract file review checklists contained in the HHS Procurement Review Guide for use by the IHS Awarding Activities Offices and for use by DCGP in conducting review of contract files submitted to IHS Headquarters for pre-award reviews.  The contents of these contract file checklists, as well as the factors relating to the efficient management of the procurement function contained in the HHS Procurement Review Guide, are reflected in this Manual Chapter.

3. Policy.  The Associate Director of the Office of Administration and Management (OAM) within IHS Associate Headquarters, the Directors of the IHS Area Offices and other Awarding Activities Offices and their respective functional managers for procurement are responsible for the uniform application and implementation of the Chapter 5 acquisition procedures.

   Within the IHS, the term “Awarding Activities Offices” includes: (1) the eleven IHS Area Offices and the Office of Health Program Research and Development (OHPRD) in Tucson, Arizona; (2) the Offices of Engineering Services (OES) within the PHS Regional Offices for Regions II, VI, and X; (3) the IHS Headquarters West in Albuquerque, New Mexico; (4) the IHS Supply Service Center in Perry Point, Maryland.

   IHS functional managers for procurement at Headquarters are responsible for providing technical and such other assistance as may be required by Area Directors and their staffs.

4. Revisions, Cancellations and Supplements.  The Director, IHS, with the support and assistance of the Principal Official Responsible for Acquisition (PORA), has the authority to revise this Chapter, in whole or in part, consistent with Federal statutes and regulations.

   Except when provisions in this Chapter explicitly indicate otherwise, the maintenance, administration, and operation of this IHM Chapter are to conform to the policy and procedural requirements established under the Indian Health Manual, Part 1, Chapter 1 - Indian Health Service Manual System.

   Any change, update, revision, or cancellation of any policy or procedure formalized by this Chapter issuance, or its supplement, must be made utilizing a Transmittal Notice (TN) and follow established IHS/OAM Division of Policy Management review, distribution, and control processes.

   Interim supplements to this Chapter, including various IHS numbered “memoranda” and circulars that originate at IHS Headquarters, may be issued and used to establish interim policies between periodic updates.  This Chapter is to be revised as needed, but no less than every two years to incorporate such interim policy revisions.  Such revisions are to be consistent with the requirements of the IHM, Part 1, Chapter 1.

   Numbered memoranda and circulars are cancelled by a supersession line.  To cancel a numbered issuance, an Errata Notice is issued using the same format as the item being cancelled, or a supersession line on a new issuance.

   As necessary, the respective Area Offices may issue Area specific supplements to this Chapter, provided that such supplements are first approved by the PORA and the Associate Director, OAM.

5. Preparation and Clearance of Revisions.  The PORA is responsible for maintaining this Chapter in accordance with the IHS/OAM Division of Management Policy circular and memorandum system.

   Area specific supplements are to be sent by the respective Area Director to the PORA, and the Associate Director for Administration and Management, IHS Headquarters, for review, clearance, and coordination prior to implementation.

6. Distribution and Control.  The PORA is responsible for the timely issuance of this IHM Chapter, its revisions and its supplements.

   A mailing list has been established by the IHS Directives and Delegations Control Officer to distribute this Chapter, and any subsequent revisions and/or supplements to all Headquarters, Area, and field activities that function as IHS Awarding Activities Offices.

7. Sequential Development of Chapter 5.  Part 5, Chapter 5 - Acquisition Management of the IHM consists of twenty substantive sections, plus a glossary and an index.

   Because of the broad range of policy matters covered by Chapter 5, a brief outline and discussion of its content and sequence of sections follows.

   The first four sections each discuss different introductory policies, procedures, and concepts involved in the IHS acquisition of supplies or services by contract or lease.  These four sections are: “Section 1--Introduction,” “Section 2--Status of Previous Policy Issuances (AOIs, CPLs, CPMs, and IHS Circulars),” ”Section 3--Authorities and Responsibilities”, and “Section 4--Ethics and Standards of Conduct.”

   “Section 5--Acquisition Planning” focuses on the various aspects and central importance of long-range, annual, and individual acquisition planning to the IHS procurement process.

   “Section 6--Buy Indian Policy” outlines IHS policy towards the preferential use of Indian-owned businesses as vendors in the acquisition of IHS supplies and services.

   “Section 7--Procurement-Contracts--General” is the essential section in Chapter 5 for obtaining a comprehensive overview of procurement contracting policies and procedures within the IHS.  Section 7 focuses on how to contract for supplies and services for the IHS, and covers key contracting policies and procedures for IHS acquisitions that exceed the “small purchase limitation” (currently $25,000 or less).  IHS contract procurements at or under the small purchase limitation are discussed in detail under “Section 8 -- Small Purchases.”

   Subjects discussed under Section 7 include the basic elements necessary for any contract, explanation of the two major Federal acquisition methods--sealed bidding and negotiation, the use of different types of contracts, and special considerations in IHS contracting.

   “Section 8--Small Purchases” examines the special policies and procedures that concern how to acquire supplies and services for the IHS when the total cost of the acquisition is at or under the small purchase limitation.

   “Section 9--Contract Award Files--Structure, Content, Maintenance” focuses on the importance of documentation throughout the acquisition process and the importance of establishing and maintaining file records throughout the life of a contract.

   Sections 10 through 13 each discuss a different IHS procurement contracting “special situation” that, in turn, requires certain special procedures depending on what is being purchased.

   These four special situation sections include: “Section 10--Architectural and Engineering Contracting”; “Section 11--Construction Contracting”; “Section 12--Automated Data Processing and Telecommunications Contracting”; and “Section 13--Acquisition of Health Case Services.”

   “Section 14--Urban Projects -- Contracts” concerns the policies that affect the IHS administered programs and contracts for health care services for American Indians and Alaskan Natives who live in urban areas, and who do not otherwise receive regular medical care through IHS facilities, or through Indian tribal Self-Determination contracts.

   “Section 15--Unauthorized Commitments” discusses the recurring problem of unauthorized contractual commitments, including how to avoid this problem and how to “cure” it through the ratification process.

   “Section 16--Contract Protests, Disputes, and Appeals” explains the procedures that the IHS follows when a contract protest, dispute, or appeal occurs, and ways to avoid such situations.

   “Section 17--Post-Award Guidance” concerns IHS contract administration policies and procedures, from the award of an acquisition contract through final contract close-out.

   “Section 18--Leasing Authority” focuses on IHS policies that govern leasing as an alternative to contract procurement.

   “Section 19--Self-Determination Contracts” provides references to current IHS policies and procedures that govern the special contractual relationship between the IHS and Indian tribal governments when the contracting authority specified under Public Law 93-638. the Indian Self-Determination and Education Assistance Act of 1975, as amended, is used to provide services that would otherwise be operated directly by the IHS.

   The references listed under this Section address special IHS responsibilities and procedures for Public Law 93-638 tribal contracts, since such 638 non-construction contracts are not subject to the FAR.  Tribal construction contracts are subject to the FAR and Agency supplemental acquisition regulations unless waived by the Secretary of HHS.

   “Section 20--Tribal Self-Governance Compacts” concerns the status of special IHS policies and procedures that govern contractual relationships with Indian tribes that receive Federal funding support under a tribal self-governance compact, as authorized under Public Law 100-472.

   “Section 21--Glossary” provides a brief definition for selected key terms used in this Chapter, while “Section 22--Index” provides a reference guide for finding topics discussed in this Chapter.

   A list of acronyms used in this Chapter is included after the “Table of Contents.”

5-5.2  STATUS OF PREVIOUS POLICY ISSUANCES

This chapter of the IHM consolidates a broad range of IHS and other policy issuances that concern IHS acquisitions.  As a policy consolidation vehicle, Chapter 5 -- Acquisition Management, supersedes the majority of these previously existing policy issuances as of September 30, 1994.

Manual Exhibit 5-5.2-A, which follows, provides a brief guide to the status of 74 such previous IHS policy issuances.  Included in this summary are 43 HRSA and IHS AOIs, 4 HRSA CPLs, 19 IHS CPLs, 5 IHS CPMs, plus 1 draft CPM, and 2 IHS Circulars.  For each of these policy issuances, Manual Exhibit 5-5.2-A provides: (1) the previous policy TN number; (2) the date issued; (3) the title or subject; (4) the status of each policy issuance as of the effective date of this IHM Chapter; and (5) a reference to where in this chapter the previous policy subject matter can be found.

5-5.3  AUTHORITIES AND RESPONSIBILITIES

1. Organizational Framework.  The Indian Health Service (IHS) is one of nine operating components that constitute the U.S. Public Health Service (PHS).

   The other eight PHS operating components are: the Agency for Health Care Policy and Research (AHCPR); the Agency for Toxic Substances and Disease Registry (ATSDR); the Centers for Disease Control and Prevention (CDC); the Food and Drug Administration (FDA); the Health Resources and Services Administration (HRSA); the National Institutes of Health (NIH); the Substance Abuse and Mental Health Services Administration (SAMHSA), and the Office of the Assistant Secretary for Health (OASH).

   The PHS is one of the four major operating divisions under the Office of the Secretary (OS) of the Department of Health and Human Services (HHS).  The other three major operating components are: the Administration for Children and Families (ACF); the Health Care Financing Administration (HCFA); and the Social Security Administration (SSA).

2. Regulatory Framework.  IHS acquisition policies and procedures are determined and governed by three distinct, yet interrelated levels of Federal regulations.

   The Federal Acquisition Regulation (FAR) is the primary regulation used by all Federal Executive agencies in their acquisition of supplies and services with appropriated funds.  The FAR is published in two volumes as Title 48-Chapter 1 of the Code of Federal Regulations (CFR).  Volume 1 of the FAR contains parts 1 through 51, and Volume 2 contains parts 52 and 53.  The FAR is issued within applicable laws under the joint authorities of the Administrator of the General Services Administration, the Secretary of Defense, and the Administrator of the National Aeronautics and Space Administration.  FAR structure and content also is based on broad policy guidelines established by the Office of Management and Budget (OMB) within the Executive Office of the President.

   The HHSAR establishes uniform acquisition policies and procedures for the HHS that conform to the FAR.  The HHSAR implements and supplements the FAR. Implementing material expounds upon or indicates the manner of compliance with the related FAR material.  Supplementing material is new material that is HHS unique in character, and that has no direct counterpart in the FAR.

   The HHSAR contains all formal Departmental policies and procedures that govern the acquisition process or otherwise control contracting relationships between HHS’s contracting offices and contractors.

   The PHSAR similarly establishes uniform acquisition policies and procedures throughout the PHS, of which the IHS is a part.  The PHSAR implements and supplements the HHSAR, but does not duplicate material published in either the HHSAR or the FAR.

   In summary, the order of regulatory precedence is: the FAR, the HHSAR, and the PHSAR. Each successive regulation either implements or supplements a higher order regulation. When referring to acquisition regulations that govern the IHS, it is necessary to review the FAR, HHSAR, and PHSAR.

3. IHS Policies and Procedures.  IHS policy and procedural guidelines are provided by directives through the IHS Manual System.  These directives are for IHS employees contracting for the IHS and the OES and are issued in the following authorized forms: Indian Health Manual (IHM) chapters and supplements; IHS circulars; IHS bulletins; and specialized IHS memoranda.  IHS directives address a broad range of acquisition and related topics.

   A more detailed description of the IHS directives system is provided in Section 1 of this Chapter, and a comprehensive discussion of the IHM is contained in Part 1, Chapter 1 - Indian Health Service Manual System.

   In addition to the IHS directive system, the Division of Contracts and Grants Policy (DCGP) also provides policy and procedure guidance on contract acquisition issues through the use of CPMs.

4. Head of the Contracting Activity.  As a PHS Agency Head, the Director of the Indian Health Service is the designated Head of the Contracting Activity (HCA) for the IHS.  The Director has delegated this authority to the Associate Director, Office of Administration and Management (OAM).

   The HCA is responsible for conducting an effective and efficient acquisition program within the IHS.  As prescribed in HHSAR 301.670-1. the HCA is to establish adequate controls that ensure compliance with applicable laws, regulations, procedures, and sound management practices.

5. Principal Official Responsible for Acquisition.  The Director of the Division of Contracts and Grants Policy, OAM, is designated as the Principal Official Responsible for Acquisition (PORA) for the IHS.  The PORA assists the HCA in carrying out the responsibilities associated with maintaining an efficient and effective acquisition program throughout the IHS.  Subordinate to the HCA, the PORA is directly responsible for the day-to-day management and operation of overall IHS acquisition activities.  As a result, the PORA provides both essential oversight and policy direction for IHS and other Awarding Activities Offices (HHSAR 302.1).

   The responsibilities of the PORA within the IHS include:

   1. issuing, as necessary, CPMs;
   2. ensuring consistency within IHS in the application of acquisition regulations, policies and procedures;
   3. identifying and resolving acquisition problems, conditions, or situations that are specific to the IHS;
   4. appointing IHS Contracting Officers, as prescribed by the HHSAR, and issuing Certificates of Appointment and Termination that specify limitations of authority;
   5. maintaining this IHM chapter to ensure that it remains current through use of the IHS/OAM Division of Management Policy system of IHM supplements, circulars, bulletins, and special memoranda;
   6. conducting oversight of IHS acquisition personnel to insure the integrity of the acquisition processes and procedures system;
   7. ensuring that all proposed contract actions exceeding prescribed thresholds are reviewed and approved prior to award;
   8. ensuring that all required reviews are conducted for Justifications for Other than Full and Open Competition (JOFOCs) and Advance Acquisition Plans;
   9. ensuring that all unauthorized commitments are fully documented and are submitted for review and approval; and
   10. approval of use of Letter contracts, as required by HHSAR 316.603-3.
6. Senior Contracting Officer.  The Senior Contracting Officer (SCO) in each of the respective Awarding Activities Offices serves as the respective Chief of the Contracting Office (CCO).  Each Awarding Activities Office has the authority to enter into acquisition contracts and other awards on behalf of the IHS.

   Candidates for SCO are selected and appointed by the Awarding Activities Offices Director, subject to the formal approval of the PORA.  The SCO is responsible for the day to day operation of acquisition activities at the Area, Service Unit, and Facility Levels, and for the direction and technical supervision of procurement staff employed at these locations.

   The SCO is supervised by the Awarding Activities Office Director.  The SCO also receives technical direction and oversight from the PORA for the proper administration of day-to-day acquisition functions.  An SCO has the authority to redelegate his/her authority consistent with his/her own delegation.

7. Area Directors.  Each IHS Area Director is responsible for supporting the HCA, the PORA, and their respective SCOs to ensure that the integrity of the IHS acquisition system is maintained.  This integrity is essential to the success of the IHS mission.

   This responsibility includes knowledge of and adherence to the acquisition regulations in the FAR, HHSAR, and PHSAR, and to the IHS Manual System directives.

8. Contracting Officers, Contract Specialists, and Purchasing Agents.  Properly trained acquisitions staff are essential in assisting program personnel in fulfilling IHS program requirements.

   Each Area SCO is supported by an acquisition staff composed of Contracting Officers, Small Business Technical Advisors, contract specialists, purchasing agents, procurement analysts, cost/price analysts, procurement assistants, and clerical support staff.  Workload is distributed to the acquisition staff by the SCO who must consider the complexity and dollar value of the acquisition, as well as the experience, training, HHS certification, and warrant level of the individual.

   The Contracting Officer (CO) is the authorized IHS agent responsible for the overall management, direction, and enforcement of contract regulations for a particular contract or other acquisition activity.  The CO also is responsible for organizing and coordinating the efforts of the various functional specialists and other support personnel who work on the contract.

   HHS certification is received through the HHS certification program for acquisition personnel.  This program has varying, progressive requirements obtained through experience and classroom training for the four levels of certification (HHSAR 301.6).  Certified staff are required to be familiar with the FAR, HHSAR, PHSAR, and IHS acquisitions policies and procedures in order to meet IHS performance objectives.

9. Project Officers.  Project Officers (POs) are a key operational link between IHS contractors and suppliers.

   The PO usually identifies an individual acquisition requirement during the annual Acquisition Planning activity through a meeting, or series of meetings, with the contracting staff before submitting a requisition or request for contract.  During this planning stage, the PO and the contracting staff informally discuss the procurement requirements (i.e., the nature of the purchase), and the best acquisition approach (i.e, how it should be purchased).  The PO could also be the Senior Program Official and, as such, would be involved in the acquisition planning process.

   In accordance with Section 5--Acquisition Planning, the PO is required to assist the acquisition staff in developing an Individual Acquisition Plan when such a plan is required.  Based on decisions resulting from such consultation, the PO and CO jointly are to develop a schedule of events and timetable that will result in meeting the procurement need in accordance with applicable regulations.

   Project Officer nominees are identified by appropriate, senior program officials, and are referred to the SCO for consideration.  The PO is selected and appointed by the CO, based on qualifications, experience, and training.  The PO serves as the CO’s “eyes and ears” with regard to contractor performance.  Nominations for appointment as a PO at each IHS organizational level -- Facility, Service Unit, Area Office, or Headquarters -- are to be made from among individuals who have experience and appropriate training, such as the successful completion of the HHS Project Officer course.

   After contract award, the PO serves as the primary contract monitor for contractor performance on behalf of the CO.  At this stage, the PO is responsible for tracking contract progress and for advising the CO, in writing, of contractor performance.  Whether purchasing supplies or services through use of a procurement contract or a small purchase arrangement, a PO is responsible for technical oversight and knowledge of the details of the acquisition requirement, and for monitoring the delivery of acceptable contractor supplies or services according to contract terms and conditions.

   The PO does not operate alone, but rather is a key member of the acquisition team.  The PO must concentrate on the responsibilities assigned by the CO in writing commensurate with the complexity of a particular award.

10. Small and Disadvantaged Business Utilization Specialist (SADBUS).  The Small and Disadvantaged Business Utilization Specialist (SADBUS) within IHS Headquarters is responsible for monitoring compliance with the various Federal socio-economic programs intended to promote the award of contracts to Indian economic enterprises, small business concerns, and small disadvantaged businesses, including minority-owned businesses, women-owned businesses, and businesses in labor surplus areas.

    Some of these socio-economic programs are authorized under the terms of the Small Business Act of 1958, (Public Law 85-536), as amended, and are centrally directed and coordinated by the Small Business Administration (SBA).  Other such programs are established by Executive Order of the President, and by other Federal statutes including the Buy Indian Act (25 U.S.C. 47).

    The IHS SADBUS recommends policies to the IHS Director and the PORA that will achieve the Federal goals and objectives of this Small Business Act program within the context of IHS procurement needs.  In addition, the IHS SADBUS coordinates activities and advises the Small Business Technical Advisors (SBTAs) who are located within each IHS Awarding Activities Office.

    General provisions concerning the Office of Small and Disadvantaged Business Utilization are contained under the FAR 19.201 through 19.202-6.  Specific duties of the SADBUS within the HHS are described and outlined under HHSAR 319.201-70.

11. Funds Certification Officer.  A Request for Contract (RFC) or the Requisition (SF-373) must be submitted to the certifying official to obtain the proper certification that funds are available to pay the costs of the proposed acquisition.  The certifying official is either the Finance Officer or other individual designated as a certifying official for the respective IHS Facility, Service Unit, Area, or Headquarters organizational component that has proposed the acquisition.  Each Awarding Activities Office shall maintain a list of all persons for offices under their purview who have been designated as certifying officials.  In no event, however, may a certifying official also be the individual initiating or approving the requirement.

    The certification is completed when the Finance Officer, or other certifying official, signs the Requisition Form 393 or the RFC.  This certification indicates that adequate funds to pay for the acquisition are available, and are reserved in the accounting records of the IHS Awarding Activities Office; or are currently unavailable, but will be made available upon receipt of appropriations.

5-5.4  ETHICS AND STANDARDS OF CONDUCT.

1. Overview.  As an Agency of the United States Federal Government, the IHS is governed by the specific standards of conduct that are found in various Federal laws and regulations.

   Many of these "basic" standards of conduct concern all IHS personnel, while others impose additional responsibilities on those individuals who hold positions or powers involving special or sensitive areas of trust or responsibility.  Thus, all IHS personnel share a number of "common" ethical responsibilities in the conduct of their Federal service.  Such common ethical responsibilities include those to the American people and taxpayers; to the American Indian and Alaska Native children and adults who are the beneficiaries of IHS services; to IHS vendors, contractors, and others who deal with the IHS; and to other IHS personnel.

   For all IHS personnel involved in procurement and other extramural award and agreement activities, special, additional ethical responsibilities are imposed.  These "extra" ethical responsibilities, imposed on all involved in the IHS acquisition, grant, and agreement processes, stem from the necessity to always conduct the business of the American people in a manner that is above reproach.

   To summarize, ethics within the IHS cover everything from standards of conduct imposed by statute and regulation to those imposed by custom and common sense.

2. Standards of Conduct.  Basic standards of conduct for the acquisition process are found in Part 3 of the FAR.  Standards of conduct for employees of HHS are found in 45 CFR Part 73 and in Personnel Pamphlet Series No. 7.  In addition, the U.S. Government Printing Office publishes and sells the August 1992 document, Standards of Ethical Conduct for Employees of the Executive Branch, which includes Executive Order 12674 of April 12, 1989, "Principles of Ethical Conduct for Government Officers and Employees" and the Final Rule of August 7, 1992, "Standards of Ethical Conduct for Employees of the Executive Branch," (5 CFR Part 2635), as published in the Federal Register of August 7, 1992 (pp 35006-35067).

   The regulations are designed to ensure that Government business is conducted effectively, objectively, and without improper influence or the appearance of improper influence.  As stated in FAR 3.101-1:

   "Transactions relating to the expenditure of public funds require the highest degree of public trust and an impeccable standard of conduct.  The general rule is to avoid strictly any conflict of interest, or even the appearance of a conflict of interest in Government-contractor relationships."

3. Conflict of Interest.  Conflicts of interest fall under two broad categories, “actual” and “apparent.” Actual conflicts of interest include the following:
   1. Engaging in a private business or professional activity where there would be a conflict between official duties and one’s private interests.
   2. Having a financial interest, either directly or indirectly, where there would be a conflict between official duties and the financial interest.  This includes the employee, the employee’s spouse, the employee’s children, any organization in which the employee serves as an officer, or an organization with which the employee may be negotiating or has an arrangement for prospective employment.
   3. Using, or giving the appearance of using, inside information to further a private interest of oneself or another person with whom one has family, business or financial ties.  Inside information is information available to the Government but not available to the public.
   4. Using one’s official position to get a financial benefit for oneself or another person.  Exercise care if you have a family, business, or financial connection with potential contracts with your agency.
   5. Acting as an agent in a claim against the United States.  This would include a claim before any Department, Court, or agency in which the United States is a party or has a direct and substantial interest.  Public Law 93-638 permits former IHS employees to serve as an agent for an Indian tribe.  The Secretary must be advised in these cases.

   Compared to actual conflicts of interest, apparent conflicts of interest are much more difficult to define or to prove.  To the general public, however, apparent conflicts are often more visible and, therefore, more difficult to disprove to the layman.  Since there is no clear definition, each employee should think about their actions and how their actions might be viewed by the public, and should guard against doing anything that might appear to give one person, group, or business an advantage over another.  Employees should also be especially careful if it might appear that the beneficiary is a friend or relative.

4. Gratuities.  FAR 3.101-2 states in part:

   “As a rule, no Government employee may solicit or accept, directly or indirectly, any gift, favor, entertainment, loan, or anything of monetary value from anyone who (a) has or is seeking to obtain Government business with the employee’s agency, (b) conducts activities that are regulated by the employee’s agency, or (c) has interests that may be substantially affected by the performance or nonperformance of the employee's official duties.  Certain limited exceptions may be authorized in agency regulations.”

   The definition of “gratuity” has been subject to different interpretations over the years.  There is no question that asking for or accepting money or presents would be considered gratuities.  However, food, drink, and transportation present another set of problems.  Currently, food, drink, and transportation are considered gratuities except in the following situations:

   1. Food and drink served at luncheons, dinners, and similar gatherings sponsored by an industrial, technical, or professional association are permitted if there are discussions of matters of mutual interest to Government and industry.  The sponsor must be an association, not a contractor.
   2. Customary social exchanges between personal friends and relatives are permitted if the exchange is on a personal basis.  However, care should be exercised if the “personal” friend is a contractor who has a contract with the Agency.  That could give the appearance of a conflict of interest.  This is an area where common sense must be used.
   3. Things available to the public at a trade show or exhibition.
   4. Participation in a community activity where the relationship with the contractor is remote, though the activity might be sponsored by the contractor.
   5. Local transportation provided by the contractor while on official business may be accepted when alternate arrangements are not practical.  However, this should be restricted to working hours.

   FAR 3.2 requires the clause at FAR 52.203-3 -- Gratuities, be included in solicitations and contracts, except those for personal services.  Agency personnel must report any suspected violations of the clause to the CO or other designated official.

   HHS reporting procedures are found in HHSAR 303.203.  These regulations require suspected violations of the clause to be reported under Subpart M, Reporting Violations, of the Department’s Standards of Conduct (45 CFR 73) and General Administration Manual, Chapters 5-10.

5. Anti-Trust Violations.  Contracting personnel must be alert to contractor practices that may be against Federal law or in violation of Federal regulations.  FAR 3.3 requires contracting personnel to report these practices to the Attorney General and the Agency official responsible for taking termination or debarment actions.

   HHSAR 303.3 requires that a copy of each suspected antitrust violation report be sent to the Attorney General and to the Director, Office of Acquisition and Grants Management, HHS.  The PORA should be notified immediately. Agency reports to the Department of Justice shall be sent to:

   Attorney General, U.S. Department of Justice Washington, DC 20530 Attn: Assistant Attorney General, Antitrust

   The report shall have a brief statement describing the suspected practice, the reason for the suspicion, and the name address and telephone number of the agency contact.

   Possible unlawful actions include:

   1. Identical bids on the same line items;
   2. Rotating low bids;
   3. Collusive price estimating systems; and
   4. Sharing of business.

   The fact that identical bids are received may not be due to an unlawful action.  It may simply be that a subcontractor quoted a price to more than one bidder.  FAR 3.303(c) explains the practices that may show there is a violation of the law.

6. Procurement Integrity.  In 1989, the Congress enacted new legal restrictions on Federal procurement officials and their counterparts in the private sector in response to a Pentagon investigation of military procurement problems code-named “Operation Ill-Wind.”  These new restrictions came in the form of an amendment to the Office of Federal Procurement Policy Act (OFPPA: Public Law 93-400, as amended).  Specifically, Section 814 of Public Law 101-189, the National Defense Authorization Act for Fiscal Years 1990 and 1991 (November 19, 1989) amended Section 27 of the OFPPA in order to strengthen and clarify various Federal procurement policies and procedures.

   The Public Law 101-189 Amendment (the 1989 Amendment) prohibits Government procurement officials and competing contractors from:

   1. Soliciting, disclosing, or obtaining protected procurement related information;
   2. Offering, giving, demanding, or receiving any money, gratuity, or other thing of value; or
   3. Soliciting, offering, accepting future employment, or a business opportunity.

   Regulations to carry out the 1989 Amendment to the OFPPA are found at FAR 3.104 and HHSAR 303.104.

   Definitions critical to understanding the law and its regulations are found at FAR 3.104-4 and HHSAR 303.104-4.  These definitions include, but are not limited to, the following:

   1. “Procurement official means any individual who has participated personally and substantially in the conduct of the procurement.” See HHSAR 303.104-4(h)(1) for a comprehensive listing of the classes of employees that HHS considers prospective “procurement officials” based on their participation in the conduct of a procurement.  The CO has the responsibility to decide who is a procurement official in a particular case.  The CO is responsible for consulting with the Office of the General Counsel if the situation is “particularly complex or sensitive.”  In those cases where a person designated as a procurement official disputes the designation, the PORA will make a final decision.  Any individual who serves as a procurement official shall be required to execute the one-time integrity certificate.
   2. “Participate personally and substantially” means active and significant involvement by the individual in activities directly related to the procurement.
   3. “Source selection information” includes documents that refer to, directly cite, or paraphrase proprietary or source selection information. See HHSAR 303.104-4(k)(1).
   4. “Competing contractor” with respect to any procurement... means ‘any entity that is, or is reasonably likely to become a competitor for or recipient of a contract or subcontract under such procurement, and includes any other person acting on behalf of such an entity’.  See FAR 3.104-4(a)(1) and (2).
   5. “During the conduct of any Federal agency procurement of property or services” means the period beginning with the development, preparation, and issuance of a procurement solicitation, and concluding with the award, modification, or extension of a contract, and includes the evaluation of bids, proposals, selection of sources, and conduct of negotiations.  See FAR 3.104-4(c)(1) and (2).
   6. A contract modification over $100,000 is a separate action for the purposes of procurement integrity certification.

   The following prohibitions apply during a procurement:

   1. There can be no offers of gratuities to procurement officials.
   2. There can be no attempts to obtain unauthorized access to procurement information protected by the OFPPA, i.e., Government source selection information, contractor proprietary data, or information.
   3. A competing contractor may not knowingly discuss, make an offer, or promise future employment or a business opportunity to a procurement official.  A procurement official may not accept or ask for any of these things.
   4. A competing contractor may not knowingly offer any money, gratuity, or other thing of value to a procurement official.  A procurement official may not accept or ask for any of these things.
   5. A contractor may not knowingly seek or obtain proprietary information submitted by a competing contractor.  A contractor may not seek or obtain the source selection information created by the procurement officials.  There is, also, a prohibition placed on procurement officials.  HHSAR 301.104-5(d) lists those persons who may have access to source selection information.  It requires the CO to include in the contract file the names and functions of any other individuals authorized access to proprietary or source selection information.  Also see HHSAR 301.104-5(c) as to the COs authority to authorize access to proprietary or source selection information.

   Certain certifications are required under the OFPPA when the contract or contract modification, individually or collectively, exceeds $100,000.  FAR 3.104-9(b) requires certifications by competing contractors.

   1. They must certify that, to the best of knowledge and belief, they have no information about any actual or possible violation of the OFPPA, either by a competing contractor or by a procurement official, and if they have such information, they must disclose it and certify that all information has been disclosed.
   2. They must affirm that all officers, employees, agents, etc., who participated personally and substantially in the procurement, have certified that they are familiar with conduct prohibited by the Act and will report any violations to them.

   When sealed bidding is used, the bid shall be rejected as nonresponsive if the certifications are not included with the bid and properly executed.  When negotiated acquisition is used, the successful offeror must submit the certifications in the time specified by the CO.  This must be done before the contract award.

   For contracts and contract modifications, that individually or collectively, exceed $100,000, the CO is also required to make a procurement integrity certification prior to award of the contract or modification.  The CO must (1) certify that, to the best of his/her knowledge and belief, he/she has no information concerning a violation or possible violation of the Act, as implemented by the FAR, or (2) disclose any such information and certify in writing that all such information has been disclosed.

   HHSAR 303.104-6 requires all procurement officials leaving IHS to complete the certification found in Chapter 1-90 of the General Administration Manual.  If an official leaves while conducting a procurement expected to result in a contract or contract modification, that individually or collectively exceeds $100,000 the Administrative Officer must send a copy of the certification to the CO to be included in the contract file.

   The SCO shall be responsible for insuring that proper procurement integrity certification files/records are maintained.  For processing violations or possible violations of procurement integrity, refer to HHSAR 303.104-11 for guidance.

7. Lobbying.  Section 319 of the Department of the Interior and Related Agencies Appropriations Act, Public Law 101-21, added a new section 1342 to Title 31 U.S.C. entitled “Limitation on Use of Appropriated Funds to Influence Certain Federal Contracting and Financial Transactions.”

   Section 1342 prohibits recipients of Federal contracts, grants, loans, or cooperative agreements from using appropriated funds for lobbying the executive or legislative branches of Government in connection with specific contract, grant, loan, or cooperative agreements.  It requires persons requesting or receiving a Federal contract, grant, or cooperative agreement over $100,000, or a loan over $150,000 to disclose lobbying with other than appropriated funds.

   Under FAR 3.801, Indian tribes, tribal organizations, or other Indian organizations are excluded from the definition of “person” with respect to “expenditures specifically permitted by other Federal law.”  Therefore, contracts entered into under P.L. 93-638 are not exempt from the requirements of 31 U.S.C. 1342.  FAR 3.8 cites the appropriate provision and clause to carry out the requirements.

   The CO is responsible for including the provision and the clause in all solicitations and shall also obtain the certifications and disclosures required by this provision and clause.  Copies of all contractor disclosures shall be sent to the responsible IHS official for action.  The original disclosure shall remain in the contract file.

5-5.5  ACQUISITION PLANNING

UNDER REVISION. SEE SGM No. 25-03

5-5.6  BUY INDIAN ACT COMPLIANCE AND CONTRACT FILE REVIEW

1. Overview.  This section addresses Indian Health Service (IHS) policy regarding the procurement of supplies and services under the authority of the Act of June 25, 1910, 25 U.S.C. 47, commonly referred to as the Buy Indian Act.
2. Purpose.  The purpose of this revised section of this chapter is to ensure compliance with the Buy Indian Act (25 U.S.C. § 47), and to ensure that the acquisition actions made to Indian Economic Enterprises (IEE) are maximized to the fullest extent allowed by the Act. Increasing the number of acquisition actions awarded to IEEs will strengthen Indian Health Service commitment to “raise the physical, mental, social and spiritual health of American Indians and Alaska Natives to the highest level” as well as fostering Indian employment and economic development.
3. Scope.  Except as provided in 48 CFR 326.602-2, this policy applies to all acquisition of supplies, services and construction made by or on behalf of IHS above the micro-purchase threshold.
4. Policy.  All acquisitions entered into by IHS shall be made under the Buy Indian Act set-aside authority whenever the use of that authority is authorized and practicable.
5. Authority.
   1. Statutes and Regulations.
      1. 25 U.S.C. §47, Buy Indian Act
      2. 48 CFR Chapter 3, Department of Health and Human Service (HHS) Acquisition Regulations (HHSAR), Part 326 – Other Socioeconomic Programs, Subpart 326.6 – Acquisitions under the Buy Indian Act
      3. 48 CFR Chapter 3, HHS Acquisition Regulations (HHSAR), Subpart 352 – Solicitation Provisions and Contract Clauses
      4. FAR, Part 19 – Small Business Programs
6. Responsibilities.
   1. Head of Contracting Activity (HCA). Oversees the acquisition management programs and ensures that acquisition management has the applicable resources, procedures and tools necessary to fulfill the duties assigned. Responsible for review and decision of all deviations exceeding $13.5 million but not exceeding $68 million.
   2. Director, Division of Acquisition Policy (DAP). Responsible for the implementation of the Buy Indian Act and ensures compliance with all applicable laws, regulations, policies and procedures. The Director, Division of Acquisition Policy (DAP) is responsible for issuing acquisition guidance and ensuring that Acquisition Management Reviews (AMR) are conducted annually. The Director, DAP is responsible for the management of the IHS Buy Indian Act reporting system. The Director, DAP is also responsible for review and decision of all deviations exceeding $25,000 but not exceeding $700,000, absent a Chief Contracting Officer (CCO).
   3. Chief Contracting Officer (CCO). The CCO is lead Supervisory Contract Specialist for their respective Area Office to include the Division of Engineering Services (DES). The CCO is responsible for ensuring that acquisition personnel adhere to this policy and that all Buy Indian Act contracts, deviations and challenges are reported quarterly to the DAP established reporting system and due date. Responsible for review and decision of all deviations exceeding $25,000 but not exceeding $700,000.
   4. Contracting Officer (CO). Responsible for adherence and application of this policy. The Contracting Officer (CO) must also communicate this policy and its implications to the programs they support. Responsible for review and decision of all deviations exceeding the micro-purchase threshold and up to $25,000.
   5. Competition Advocate. Responsible for review and decision of all deviations exceeding $700,000 but not exceeding $13.5 million.
   6. HHS Office of Small & Disadvantaged Business Utilization (OSDBU) Director; Office of the General Counsel (OGC); HHS Department Competition Advocate; and the HHS Senior Procurement Executive (SPE). Responsible for review and decision of all deviations exceeding $68 million.
   7. IHS members of the Senior Executive Service (SES). The IHS members of the Senior Executive Service (SES), who oversee programs supported by contract or contractor, are responsible for adherence and application of this policy.
7. Definitions.
   1. Indian Economic Enterprise (IEE). Any business activity owned by one or more Indians or Indian Tribes that is established for the purpose of profit provided that: the combined Indian or Indian Tribe ownership must constitute not less than 51 percent of the enterprise; the Indians or Indian Tribes must, together, receive at least a majority of the earnings from the contract; and the management and daily business operations of an enterprise must be controlled by one or more individuals who are Indians. To ensure actual control over the enterprise, the individuals must possess requisite management or technical capabilities directly related to the primary industry in which the enterprise conducts business. The enterprise must meet these requirements throughout the following time periods:
      1. At the time an offer is made in response to a written solicitation;
      2. At the time of the contract award; and
      3. During the full term of the contract.
   2. Indian Small Business Economic Enterprise (ISBEE). An IEE that is also a small business concern established in accordance with the criteria and size standards of 13 CFR part 121.
8. Deviations.There are certain instances where the application of the Buy Indian Act to an acquisition may not be appropriate. In these instances, the CO must detail the reasons in writing or via email and make a deviation determination. Any deviation must be approved by the authorized approving official specified in HHSAR 326.603-3 and documented in the contract file, except as provided in HHSAR 326.603-3(b).

   Documentation shall be made using the “Memorandum to the Contract File, Approved Deviation from the Buy Indian Act.” For all deviations, authorized documentation is required and must be supported by verifiable evidence (e.g., market research, sources sought notice, statutory authority, etc.).

   Approval and signature(s) authorization must be obtained by the official next-in-line before submission to the authorized official for approval. For example, a deviation for an acquisition requiring HCA review, must first be approved by the CO, Area CCO (or Director, DAP) and IHS Competition Advocate. All approvals to the IHS Competition Advocate and/or HCA, shall be submitted by the responsible CCO. All approvals requiring HHS approval shall be submitted through the Director, DAP or HCA.

9. Reporting and Compliance Review Requirements.
   1. Reporting of Deviations and Challenges will facilitate IHS efforts to monitor compliance with the Buy Indian Act. The CCOs shall manage and ensure all responsible deviations and challenges are uploaded and reported to the IHS Buy Indian Act reporting system by the 15th of the subsequent month of each fiscal year quarter (i.e. October 15th, for the previous fiscal year quarter ending on September 30th).

      Both deviation and challenge reports will be compiled each fiscal year and presented to the IHS Office of the Director, the HHS OSDBU and the HHS SPE.

      All Contracting Officers shall ensure IHS commercial contracts awards set-aside under the Buy Indian Act are accurately reported in the Federal Procurement Data System – Next Generation (FPDS-NG).

   2. The IHS will conduct annual AMRs that incorporate the Buy Indian Act into the HHS mandated annual testing of internal controls. The AMRs are conducted annually to evaluate the effectiveness and efficiency of the contracting office under review and provide suggestions to improve any noted weaknesses or deficiencies. For each acquisition case file tested for internal controls, the compliance review will be conducted under the Buy Indian Act using the current fiscal year AMR rating elements.

      All contracts selected for annual internal control review are tested for compliance with the Buy Indian Act award and exception procedures. Any findings resulting from the AMR will be discussed with the CCO, along with the Area Executive Officer and/or the Area Director. A compilation of the findings for the year will be reported to the HCA, the Deputy Director for Management Operations (DDMO) and the IHS Office of the Director.

10. Buy Indian Act Training. The IHS, on an annual basis, will conduct and make available to its employees, acquisition training in support of the procurement of supplies and services under the authority of the Buy Indian Act.

5-5.7  PROCUREMENT CONTRACTS--GENERAL.

UNDER REVISION. SEE SGM No. 25-03

5-5.8  SMALL PURCHASES

UNDER REVISION. SEE SGM No. 25-03

5-5.9  CONTRACT AWARD FILES--STRUCTURE, CONTENT, MAINTENANCE

UNDER REVISION. SEE SGM No. 25-03

5-5.10  ARCHITECTURAL AND ENGINEERING CONTRACTING

UNDER REVISION. SEE SGM No. 25-03

5-5.11  CONSTRUCTION CONTRACTING

UNDER REVISION. SEE SGM No. 25-03

5-5.12  AUTOMATED DATA PROCESSING AND TELECOMMUNICATIONS CONTRACTING

UNDER REVISION. SEE SGM No. 25-03

5-5.13  ACQUISITION OF HEALTH CARE SERVICES.

UNDER REVISION. SEE SGM No. 25-03

5-5.14  URBAN PROJECTS--CONTRACTS

1. General.  Urban Health services are provided for the benefit of urban American Indians and Alaska Natives by the IHS through grants, agreements and contracts with urban Indian organizations.

   The IHS Urban Health programs and related activities are authorized primarily by the Snyder Act.  Title V-- Health Services for Urban Indians of the Indian Health Care Improvement Act (IHCIA), Public Law 94-437, as amended, specifically targets programs for urban Indians.

   Title V includes both general and specific authorization for various contract and project grants that provide urban health care services and activities.

   The goals of the IHS urban health programs and related activities, as administered through the Urban Health Programs Branch, include:

   1. to elevate the health status of urban American Indians and Alaska Natives to the highest possible level; and
   2. to assist urban Indian organizations to establish and improve health services designed to meet the needs of the urban Indian community.

      Specific objectives include:

      1. providing assistance in the development of a comprehensive, effective health services delivery program with emphasis on health promotion and disease prevention; and
      2. providing assistance in the development of a comprehensive, effective network of local community resources for delivery of ambulatory health care services.  Such a network may be provided through direct and subcontract services, and through formal and informal agreements.

   Urban contracts are renewed annually provided that the contractor maintains an acceptable level of performance as determined by periodic IHS performance reviews.  More specifically, Section 505 of the IHCIA establishes requirements for renewing urban contract awards under Section 503.  The intent of these requirements is that Section 503 renewals will be awarded to incumbent contractors if they meet the provisions of Section 505, including the factors contained under Section 505(d).  As a result, Section 503 renewals of contracts which meet these requirements should be awarded to incumbent contractors on a non-competitive basis.  Section 506 states other contract and grant requirements.

2. Policy.  It is the policy of IHS to: (1) ensure that, within available resources, a comprehensive program of health services or access to health services is developed for each urban Indian community; (2) support community programs to prevent alcoholism and substance abuse; (3) assure that within those resources, eligible patients or clients, regardless of age or sex, have access to and are provided high quality health care service; and, (4) evaluate and monitor program performance of IHS-supported urban Indian programs.
3. Program Income for Urban Contracts.
   1. Background.  Title V of the IHCIA, as amended, Health Services for Urban Indians authorizes the IHS to enter into contracts with urban Indian organizations for the provision of health care and referral services for urban Indians residing in the urban centers in which such organizations are situated. P.L. 94.437 Section 506(c) allows the Secretary to revise or amend contracts, “notwithstanding any provision of the law to the contrary.”  This provision, however, is not intended as authorization for waiver of the Federal Acquisition Regulation (FAR); and Section 506(a) provides that: “Contracts with urban Indian organizations entered into pursuant to this title shall be in accordance with all Federal contracting laws and regulations.”
   2. Purpose.  The purpose of this subsection is to clarify the definition of “program income,” the ways in which it may be generated and accounted for, and its use and disposition.
   3. Definitions.
      1. “Urban Indian Organization” is a nonprofit corporate body situated in an urban center, governed by an urban Indian controlled board of directors.
      2. “Program Income” is gross income earned by the contractor from the federally supported activities.  It includes, but is not limited to, such income in the form of fees for services performed during the contract period, third-party patient reimbursement for hospital or other medical services such as insurance payments for patients where such reimbursement occurs because of contract supported activity, proceeds from the sale of tangible personal or real property, usage or rental fees, etc.  Further, interest earned as a result of program income shall be treated as program income.
   4. Utilization of Program Income.  Program income earned during the contract period shall be used to further eligible program objectives pursuant to the terms of the contract, regardless of the fiscal year in which the program income was collected.  Program income which is earned after the contract period is governed by the terms of the contract.  If the award does not address disposition of program income earned after the contract ends, that program income is to be retained by the contractor/Urban Indian Organization to further the objectives of the urban program.
   5. Reporting.  All contractors are required to report program income on a quarterly basis.  Records of the receipt and disposition of all program income must be maintained by the contractor in the same manner as required for the funds provided by the contract.
   6. Contract Clause.  All contracts awarded pursuant to Title V shall include the following clause:

      Program Income:

      Program Income is defined as gross income earned by the contractor from the federally supported activities (e.g. Third Party Income).  All program income earned during the contract period shall be retained by the awardee and shall be added to funds committed to the project by the Indian Health Service to further contract objectives.  Program income shall be utilized in a manner consistent with costs allowable under federal regulations.  Any other use of the funds is prohibited unless approved in writing by the Contracting Officer prior to the expenditure of the funds.

      Program income generated shall be reported to the awarding office on a quarterly basis.

4. References.  In future fiscal years, it is anticipated that funding for a proportion of IHS Urban Health Services Programs will be provided to recipients in the form of project grants.  A fuller discussion of these Urban Health grant programs will be provided under the forthcoming IHM, Part 5 - Management Services, Chapter 20 -- Grants and Agreements.

   In addition, further policy and procedural guidance concerning the IHS Urban Health Programs, is also provided under the IHM, Part 3-- Professional Services, Chapter 19- Urban Indian Health Program.

5-5.15  UNAUTHORIZED COMMITMENTS

UNDER REVISION. SEE SGM No. 25-03

5-5.16  CONTRACT PROTESTS, DISPUTES, AND APPEALS

UNDER REVISION. SEE SGM No. 25-03

5-5.17  POST-AWARD GUIDANCE

UNDER REVISION. SEE SGM No. 25-03

5-5.18  LEASING.

1. Overview.  This Section references IHS policy and procedures for the leasing of real property, including the lease of building space and of personal property, such as equipment and motor vehicles. Specific leasing regulations are contained in the FAR Part 7.4 for equipment, in the FAR 8.11 for motor vehicles, and in the “Federal Property Management Regulations” (FPMR), 41 CFR Part 101-16 for building space and other real property. Each of these Federal regulations is Government-wide in scope, governing the leasing activities of all Federal agencies, not just the IHS.

   Within the IHS, the IHM, Part 5, Chapter 11 -- Real Property discusses IHS real property management policies and should be referred to in planning and executing a real property lease activity.  This IHM chapter also discusses the special conditions that apply to IHS real property leases with Indian tribes.

   Similarly, IHM, Part 5, Chapter 12 -- Personal Property describes IHS personal property management policies, including leasing.

2. PHS Lease Contracting Officer Warrant Program.  Effective July 28, 1992, PHS implemented a warrant program for lease contracting officers to assure that real property leases are executed by officials who have appropriate experience and training.  Under this program, appointments (as described in 48 CFR 1.603-3) will be used to provide lease contracting officers with signature authority to acquire real estate by lease pursuant to the authorities contained in 41 CFR 101-18, specific delegations of authority from the Administrator of the GSA, and/or as provided by statute.  The OES, PHS, in Regions II, VI, and X have warrant authority to negotiate and sign all lease agreements on behalf of the IHS.

   The memorandum which contains the requirements and implements the PHS lease contracting officer warrant program which was signed by the Director, Office of Management, Public Health Service, on July 28, 1992, is provided in Exhibit 5.5-18-A.

3. Acquisition Real Property by Lease.  The Director, Division of Facilities Management, OEHE/HQE, has delegated signatory authority for all form SF-81, Requests for Space.
   1. Requests for leasing GSA-assigned building space must be approved as specified in FPMR 101-17.101.  These requirements are processed through the cognizant IHS Area Reality Officer and at IHS Headquarters.
   2. The IHM, Part 5, Chapter 11 -- Real Property, Section 5-11.4, Acquisition by Rationale, describes IHS procedures and approvals required for the lease of real property, including special purpose space.
   3. IHS real property leases with Indian tribes are governed by the specific policy requirements under the IHM, Part 5, Chapter 11 -- Real Property, Section 5-11.4, Direct Lease of Real Property.

   Except for GSA-assigned space, all requirements for leased space must be approved by the IHS Lease Priority Committee through an application to the Lease Priority System (LPS).  Instructions and forms for LPS applications are provided in the “Facilities Engineering Technical Handbook,” Volume 4, Chapter 7 -- IHS Lease Priority System.

   The appropriate leasing forms are available through the IHS Area or Headquarters Real Property Management Office.  Descriptions of these forms are provided under 48 CFR 570.8, Forms Used for Contracting for Leasehold Interests in Real Property.

4. Personal Property.
   1. Equipment.  The decision to either lease or purchase equipment should be based on a case-by-case evaluation of the comparative cost and other factors relevant to the specific requirement.  These factors are set forth in FAR 7.40(a).  Assistance and advice in making a lease versus a buy decision may be obtained from the cognizant IHS Property Management Officer at the Area Office or at IHS Headquarters.
   2. Motor Vehicles.  Leasing of motor vehicles must be coordinated with the cognizant IHS Property Management Officer at the Area Office or at IHS Headquarters.

5-5.19  SELF-DETERMINATION CONTRACTS.

1. Overview.  In 1975, the Indian Self-Determination and Education Assistance Act was signed into law as Public Law 93-638 by President Gerald Ford.  The central purpose of this legislation was to provide Federally-recognized American Indian tribes and Alaska Native groups with the right to contract directly with Federal agencies to receive funds to provide various services that heretofore had been provided by these agencies.

   As Public Law 93-638 has been amended by the Congress over the past twenty years, the obligation and involvement of the IHS in self-determination contracting has continued to expand.

   Within the IHS, the Office of Tribal Activities (OTA) is primarily responsible for the coordination of the Agency’s self-determination contracting policies and procedures.

2. Policy.  Public Law 93-638 self-determination contracting is considered non-procurement contracting.  As such, self-determination contracting involves a direct “government to government” relationship between the Federal Government and the various American Indian and Alaska Native governments.  For administrative purposes within the IHS, however, the self-determination contracting process has been institutionalized around the acquisition function.

   Pending issuance of joint, final self-determination regulations by the IHS and the Bureau of Indian Affairs (BIA), IHS “683 contracting” policy is governed by the Public Law 93-638 statute, as amended; relevant legislative history; existing Federal regulations, and IHS directives.

   At present, IHS self-determination policy and advisory directives are compiled in an Interim Guidebook published by the OTA.  The purpose of the Interim Guidebook is to centralize in one reference source all current operating instructions regarding the self-determination contracting process.  Applicable policies include Indian Self-Determination Memoranda (ISDMs) issued by the OTA and Contract Policy Letters (CPLs) developed by the OAM, Division of Contracts and Grants Policy (DCGP).  The Interim Guidebook also includes Indian Self-Determination Advisories (ISDAs) which focus on more specific 638 contracting issues or problems and which are issued by the OTA, as the need arises.

   The IHS will continue to operate within the framework of the Interim Guidebook until the joint IHS/BIA final regulations are published.  In general, these interim policies are “binding” on 638 tribal contractors only to the extent that they are included in statute or Federal regulation, or have been explicitly incorporated into a tribal contract.

   As policy related questions are received from Headquarters, Area Offices and Service Units, the Director of Self-Determination Services (DSDS) may call a Leadership Team Meeting, comprised of designated representatives of all IHS Associate Directors, to examine issues as they arise and make recommendations for their resolution.

   The DSDS determines if an ISDM or ISDA is required, formulates the interim policy, and coordinates it with the Division of Management Policy (DMP) for issuance.

3. Current Policy References.  The following reference list from the Interim Guidebook reflects all current ISDMs, CPLs, and ISDAs.  ISDMs and ISDAs that are not specifically included in this reference list have been officially rescinded and should be discarded. Once the IHS/BIA joint regulations are officially approved, OTA/DSDS will consolidate all IHS 638 interim policies in the IHM, Part 4 -- Staff Services/Special Programs, Chapter 5 -- Office of Tribal Activities, which is reserved for this purpose.

IHS INTERIM GUIDEBOOK ON THE PUBLIC LAW 93-638 CONTRACTING PROCESS:

Chronological Index of Policies & Advisories

Policies

• ISDM 81-2 -- Planning for ISD activities
• ISDM 81-3 -- Contracting process under ISD
• ISDM 81-4 -- Minimum health standards
• ISDM 82-1 -- Funding ISD personnel
• ISDM 85-4 -- Nonrecurring personnel costs
• ISDM 87-1 -- Sample contract
• ISDM 87-3 -- Facilities planning/construction
• ISDM 88-2 -- Funding levels
• ISDM 89-1 -- FTCA coverage - medical and non-medical
• CPL 89-3 -- Interim guidance
• CPL 89-4 -- Provisions effective w/amendments
• CPL 89-5 -- Quarterly reconciliation reports
• CPL 90-2 -- Procurement integrity
• CPL 90-3 -- Use of ISD contracts
• CPL 90-6 -- Conversion to calendar years
• CPL 90-7 -- Construction/preaward reviews
• CPL 90-8 -- Review of decisions
• CPL 90-9 -- Contract simplification measures
• CPL 90-11 -- Contract management
• CPL 90-12 -- Clarification of CPL 90-9
• CPL 92-1 -- Coverage for medical and non-medical claims under the Federal Tort Claims Act, P.L. 93-638 contractors and grantee
• ISDM 92-2 -- Contract support cost policy
• ISDM 92-3 -- IHS Headquarters P.L. 93-638 leadership team

Advisories

• ISDA 2 -- Contractibility functions
• ISDA 3 -- Title to property
• ISDA 6 -- Information disclosure
• ISDA 10 -- Contractibility/health boards
• ISDA 12 -- Retirement contributions
• ISDA 14 -- Physicians comparability allowance
• ISDA 16 -- IPA assignments/no ISD contracts
• ISDA 17 -- Waiver of IPA requirements
• ISDA 18 -- IPA assignments to tribes
• ISDA 19 -- Adequacy of trained personnel
• ISDA 20 -- Severance pay
• ISDA 21 -- Personnel policies/retrocession
• ISDA 22 -- Charging Indians for services
• ISDA 23 -- Resolutions for renewals
• ISDA 24 -- Indian preference
• ISDA 25 -- Licensing
• ISDA 30 -- Conversion to calendar years
• ISDA 32 -- Interim clause for "method of payment" to be incorporated in Section G.2, "Sample 638 cost reimbursement contract" ISDM 87-1

5-5.20  TRIBAL SELF-GOVERNANCE COMPACTS

1. Policy  The Indian Self-Determination and Education Assistance Act Amendments of 1988, Public Law 100-472, amended the Indian Self-Determination and Education Assistance Act, Public Law 93-638, in part, by adding a new “Title III -- Tribal Self-Governance Demonstration Project.”
   1. As a result of this Public Law 100-472 amendment, the Department of the Interior, Bureau of Indian Affairs (BIA) was required to develop special policies and procedures that will govern contractual relationships with Indian tribes that choose to receive BIA funding support under a tribal self-governance compact.
   2. Public Law 100-472 did not include the IHS, or IHS programs, under the new Title III self-governance requirements.  In a subsequent amendment under Public Law 102-184, however, the Congress added a new Section 308 to Public Law 93-638.  This new Section directed the Secretary of HHS to conduct a study for the purpose of determining the feasibility of extending the self-governance demonstration project to include activities, programs, functions, and services of the IHS.  It also gave authority to establish within the IHS an Office of Self-Governance to be responsible for coordinating the activities necessary to carry out the study.
   3. Without benefit of the feasibility study, self-governance demonstration project authority was extended to the IHS by Public Law 102-573, the Indian Health Care Amendments of 1992.

      Under the Public Law 102-573 amendment, the Secretary of HHS is authorized to negotiate and implement a Compact of Self-Governance and Annual Funding Agreement with each participating tribe upon completion of an authorized planning activity or a comparable planning activity.  Up to thirty tribes could be selected to participate in the project.

   4. The Compacts and Annual Funding Agreements authorize a participating tribe to plan, conduct, consolidate, and administer programs, services and functions of the IHS that are otherwise available to Indian tribes and Indians under other Federal authorizing statutes.
   5. Agreements authorize a participating tribe to redesign programs, activities, functions or services and to reallocate funds for such programs, activities, functions or services.  The Agreements provide for payment of funds from one or more programs, services, functions, or activities in an amount equal to that which the tribe would have been eligible to receive under Self-Determination contracts and grants, including direct program costs, and for any funds which are specifically related to the provision by the IHS of services and benefits to the tribe and its members.
   6. The IHS is currently in the process of developing self-governance policies and procedures under the terms of Title III of P.L. 93-638, as amended.  The IHS has negotiated for FY 1995, and Calendar Year 1995, Compacts and Annual Funding Agreements with over thirty tribes.

5-5.21  GLOSSARY

TERM, WORD,
or CONCEPT

Definition

Reference to FAR or other authority.

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ACCEPTANCE

1. The act of accepting an offer.
2. The act of an authorized representative of the Government by which the Government, for itself or as agent for another, assumes ownership of existing, identified supplies tendered, or approves specific services rendered as partial or complete performance of the contract.

   FAR 46.101.

   ACQUISITION

   The acquiring by contract, with appropriated funds, of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation, and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract.

   FAR 2.1.

   ACQUISITION PLAN

   A plan for an acquisition which serves as the basis for initiating the individual contracting actions necessary to acquire a system or support a program.

   FAR 7.104 and 1.105.

   ACQUISITION PLANNING

   The process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost: includes development of an overall strategy for managing the acquisition.

   FAR 7.101.

   ADMINISTRATIVE LAW

   Rules, regulations. and decisions made by instrumentalities of the Federal Government that have the force and effect of law.

   FAR 46.101.

   ADVANCE PAYMENTS

   Advances of money by the Government to a contractor before, in anticipation of, and for the purpose of complete performance under one or more contracts.  They are expected to be liquidated from payments due to the contractor incident to performance of the contracts.  Since they are not measured by performance, they differ from partial, progress, or other payments based on the performance, or partial performance of a contract.

   FAR 32.102(a).

   AGENCY

   One party, known as the principal, appoints another party, known as an agent, to enter into a business or contractual relationship with a third party.  In Government contracting, the principal, agent, and third party are respectively the Government, Contracting Officer (CO), and contractor.

   AGREEMENT

   Negotiated understandings on terms and conditions that will be incorporated in forthcoming contracts between the two.  By definition, an agreement does not contain all the elements necessary to be considered a contract.  See Basic Agreement and Basic Ordering Agreement.

   ALLOCABLE COST

   A cost is allocable to a Government contract if it:

   Is incurred specifically for the contact;

   Benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or

   Is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.

   FAR 31.201.4.

   AMENDMENT

   A change (correction, deletion, or addition) to any information contained in an IFB or RFP (or previous amendment thereto).  The amendment becomes part of the solicitation and any resulting contract.

   FAR 14.208 and 15.410.

   ANTI-DEFICIENCY ACT

   A law prohibiting the obligation of money in advance of any appropriation or in excess of the amount of an available appropriation.

   ANTI-TRUST VIOLATION

   Practices that eliminate competition or restrain trade, such as collusive bidding, follow-the-leader pricing, rotated low bids, collusive price estimating systems, and sharing of the business.

   FAR 3.301.

   APPROPRIATION

   Authority to obligate public funds that will result in immediate or future outlays.

   ASSIGNMENT OF CLAIMS

   The transfer or making over by the contractor to a bank, trust company, or other financing institution -- as security for a loan to the contractor -- of its right to be paid by the Government for contract performance.

   FAR 32.801.

   AUCTION

   A negotiation tactic prohibited under FAR 15.610. Prohibited auction techniques include:

   Indicating to an offeror a cost or price that it must meet to obtain further consideration;

   Advising an offeror of its price standing relative to another offeror (however, it is permissible to inform an offeror that its cost or price is considered by the Government to be too high or unrealistic);

   Otherwise furnishing information about other offerors' prices.

   FAR 15.610(d).

   AUDIT

   A review of a company’s accounting procedures, accounting practices, books, records, documents, and other evidence related to (a) cost or pricing data or (b) costs claimed to have been incurred or anticipated to be incurred in performing a contract.

   FAR 15.215.2.

   AUTHORIZATION LEGISLATION

   A law which permits the establishment or continuation of Federal programs and agencies.  Authorizing legislation is normally required before the enactment of budget authority, and such authority is normally provided in a separate appropriations act.

   AWARDING ACTIVITIES OFFICE

   Within the IHS, the term “Awarding Activities Offices” includes (1) the eleven IHS Area Offices and the Office of Health Program Research and Development (OHPRD) in Tucson, Arizona; (2) the Offices of Engineering Services (OES) within the PHS Regional Offices for Regions II, VI, and X; (3) the IHS Headquarters West in Albuquerque, New Mexico; and (4) the IHS Supply Service Center in Perry Point, Maryland.

   BASIC AGREEMENT

   A written instrument of understanding, negotiated between an agency or contracting activity and a contractor, that (1) contains contract clauses applying to future contracts between the parties during its terms and (2) contemplates separate future contracts that will incorporate by reference or attachment the required and applicable clauses agreed upon in the basic agreement.  A basic agreement is not a contract.

   BASIC ORDERING AGREEMENT (BOA)

   A written instrument of understanding, negotiated between an agency, contracting activity, or contracting office and a contractor, that contains (1) terms and clauses applying to future contracts (orders) between the parties during its term, (2) a description, as specific as practicable, of supplies or services to be provided, and (3) methods for pricing, issuing, and delivering future orders under the basic ordering agreement.  A basic order agreement is not a contract.

   BEST AND FINAL OFFER (BAFO)

   In competitive negotiations, proposals prepared by offeror in the competitive range following completion of discussions and receipt of a written request for BAFOs from the Contracting Officer.

   FAR 15.611.

   BID

   An offer in response to an Invitation for Bids.

   See definition of offer in FAR 2.1.

   BID GUARANTEE

   A form of security assuring that the bidder (a) will not withdraw a bid within the period specified for acceptance and (b) will execute a written contract and furnish required bonds, including any necessary coinsurance or reinsurance agreements, within the time specified in the bid, unless a longer time allowed, after receipt of the specified forms.

   FAR 28.001.

   BIDDER

   An offeror who submits a bid in response to an Invitation for Bids.

   BOARD OF CONTRACT APPEALS (BCA)

   An instrumentality of a Federal department or agency which hears contractor appeals of Contracting Officer decisions on claims arising under or relating to a contract subject to the Contract Disputes Act.

   BOND

   A written instrument executed by a bidder or contractor (the “principal”), and a second party (the “surety” or “sureties”), to assure fulfillment of the principal’s obligations to a third party (the “obligee” or “Government”), identified in the bond.  If the principal’s obligations are not met, the bond assures payment, to the extent stipulated, of any loss sustained by the obligee.

   FAR 28.001.

   BUY AMERICAN ACT

   An act requiring that only domestic end products be acquired for public use, except articles, materials, and supplies:

   For use outside the United States.

   For which the cost would be unreasonable, as determined in accordance with FAR 25.105.

   For which the agency head determines that domestic preference would be inconsistent with the public interest.

   That are not mined, produced, or manufactured in the United States in sufficient and reasonable available commercial quantities, of a satisfactory quality (see FAR 25.108.)

   Purchased specifically for commissary resale.

   CHANGE ORDER

   A written order signed by the Contracting Officer, directing the contractor to make a change that the Changes clause authorizes the Contracting Officer to order without the contractor’s consent.  A change order is an example of a unilateral modification (see Modification).

   FAR 43.101.

   CIVILIAN AGENCY ACQUISITION COUNCIL (CAAC)

   A council chaired by a representative of the GSA and consisting of members representing twelve civilian agencies, which, along with the Defense Acquisition Regulatory Council (DARC), has responsibility for maintaining the Federal Acquisition Regulation.

   CLAIM

   A written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract.

   FAR 33.201.

   CLOSEOUT

   The process for closing out the contract file following physical completion (i.e., discharge) of a contract.

   FAR 4.804.

   CODE OF FEDERAL REGULATIONS (CFR)

   Codification of rules published in the Federal Register by the executive departments and agencies of the Federal Government.

   COLLUSION

   Any consultation, communication, or agreement between two or more offerors or competitors relating to proposed prices, the intention to submit an offer, or the methods or factors used to calculate the prices offered.

   FAR 52.203-2(a)(1).

   COMMERCE BUSINESS DAILY (CBD)

   A publication of the U.S. Department of Commerce in which Government agencies are required to announce (IFBs and RFPs) procurement invitations, contract awards, and sales of surplus property.  A new edition of the CBD is issued every business day.  Each edition contains about 500 to 1,000 notices.  Each notice appears in the CBD only once.

   Readers Guide in the CBD.

   COMMON LAW

   Decision handed down by judges in courts of law.

   COMPETENT

   An agent for a contracting party who, at the time of agreement is:

   Of sound mind,

   Free of the influence of drugs or alcohol, and

   Otherwise legally authorized to enter into the agreement on behalf of the party.

   COMPETITIVE RANGE

   All proposals that the CO determines have a reasonable chance of being selected for award, based on cost or price and other factors that were stated in the solicitation.  Unless the CO decides to award without discussions, the CO must conduct written or oral discussion with all responsible offerors who submit proposals within the competitive range.

   FAR 15.609 and 15.610.

   CONSIDERATION

   Anything of value that changes hands between the parties to a contract.

   CONTINGENT FEE

   Any commission, percentage, brokerage, or other fee that is contingent upon the success that the person or concern has in securing a government contract.

   FAR 3.401.

   CONTRACT

   A mutually binding legal relationship obligating the seller to furnish supplies or services (including construction) and the buyer to pay for them.  It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and are in writing (unless otherwise authorized).  Contracts can include bilateral instruments, awards, and notices of awards, job, and task orders issued under basic ordering agreements, letter contracts, orders such as purchase orders that become effective when accepting in writing or when the contractor performs, and bilateral contract modifications.  Contracts do not include grants, cooperative agreements, or interagency agreements.

   FAR 2.1.

   CONTRACT CLAUSE

   A term or condition used in contracts or in both solicitations and contracts, and applying after contract award or both before and after award.  Clause states the right and obligations of the parties to a contract.

   FAR 52.101(a).

   CONTRACT MODIFICATION

   Any written change in the terms of a contract.  Unilateral modifications are signed only by the CO; bilateral by both parties.

   FAR 43.101 and 43.103.

   CONTRACT SCHEDULE

   The complete statement of the requirement in the solicitation, including not only the Statement of Work and Specifications, but also the terms and conditions with respect to packaging and marking, inspection and acceptance, deliveries or performance, contract administration data, and other special contract requirements.  The Schedule includes Sections A through H of the Uniform Contract Format.

   FAR 14.201-2, 14.201-9(b), and 15.406-2.

CONTRACT TYPE

1. The name of the compensation arrangement established by the terms and conditions of the contract, such as Firm fixed price, Fixed price redeterminable, Cost plus award fee, Cost plus fixed fee, or Cost plus incentive fee.
2. The name of the ordering arrangement established by the terms and conditions of an indefinite delivery contract, such as Definite Quantity, Indefinite Quantity, or Requirements.

   FAR 16.101 and 16.501(a).

   CONTRACTING

   The purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources.  Contracting includes the solicitation and selection of sources, preparation and award of contracts, and all phases of contract administration.  It does not include making grants or cooperative agreements.

   FAR 2.1.

   CONTRACTING ACTIVITY

   An element of an agency designated by the agency head and delegated board authority regarding acquisition functions.

   FAR 2.1.

   CONTRACTING OFFICER (CO)

   An agent of the Government (see “agency”) with authority to enter into, administer, or terminate contracts and make related determinations and findings.  The term includes certain authorized representatives of the Contracting Officer acting within the limits of their authority as delegated by the Contracting Officer, such as Administrative Contracting Officer (ACO) who administers the contract or a Termination Contracting Officer (TCC who settles terminated contracts.)  A single Contracting Officer may be responsible for duties in any or all of these areas.

   FAR 2.1.

   COST

   The amount of money expended (outlay) in acquiring supplies or services.  The total cost of an acquisition includes:

   The dollar amount paid to the contractor under the terms and conditions of the contract;

   Any direct costs for acquiring the supplies or services not covered in the contract price;

   Any cost of ownership not covered in the contract price;

   The Government's overhead for awarding and administering the contract.

   COST ACCOUNTING STANDARDS (CAS)

   Standards for the measurement, assignment, and allocation of costs to contracts with the United States.  These standards are established by the Cost Accounting Standard Board and incorporated in Part 30 of the FAR.

   Section 26(a) of the Office of Federal Procurement Policy Act as amended.

   COST ANALYSIS

   The review and evaluation of the separate cost elements and proposed profit of (a) an offeror’s or contract’s cost or pricing data and (b) 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 contract should be, assuming reasonable economy and efficiency.

   FAR 15.801.

   COST OR PRICING DATA

   All facts as of the date of price agreement that prudent buyers and sellers would reasonably expect to affect price negotiations significantly.  Cost or pricing data are factual, not judgmental, and are therefore verifiable.  While they do not indicate the accuracy of the prospective contractor’s judgment about estimated future costs or projections, they do include the data forming the basis for that judgment.  Cost or pricing data are more than historical accounting data; they are all the facts that can be reasonably expected to contribute to the soundness of estimates of future costs and to the validity of determinations of costs already incurred.

   Examples of cost and pricing data:

   Vendor quotations;

   Information on changes in production methods and in production or purchasing volume;

   Data supporting projections of business prospects and objectives and related operations costs;

   Unit-cost trends such as those associated with labor efficiency;

   Make-or-buy decision.

   FAR 15.801.

   COST REALISM

   A critical evaluation of a contractor’s proposed cost to determine if contractor’s proposal reflects the buyer’s requirement, or if the contractor understands the complexity of the proposed work.

   COST REIMBURSEMENT CONTRACTS

   Contracts that provide for payment of allowable incurred costs, to the extent prescribed in the contract.  These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed (except at its own risk) without the approval of the Contracting Officer.

   FAR 15.603-1.

   CURE NOTICE

   A notice of intent to terminate a contract for default unless the contractor “cures” the problem within 10 days (or more if authorized in writing by the Contracting Officer) after receipt of the notice from the Contracting Officer.

   FAR 49.607.

   DEBRIEFING

   Informing unsuccessful offerors of the basis for the selection decision and contract award.  This information includes the Government’s evaluation of the significant weak or deficient factors in the offeror’s proposal.

   FAR 15.1003.

   DEFECTIVE COST OR PRICING DATA

   Cost or pricing data that are inaccurate, incomplete, or noncurrent.

   FAR 15.804-7.

   DEFENSE REGULATORY ACQUISITION COUNCIL (DRAC)

   A council comprised of representatives of the Secretary of Defense, the Army, the Navy, the Air Force, the Defense Logistics Agency, and NASA.  Among other responsibilities, this council, along with the Civilian Agency Acquisition Council (CAAC), maintains the FAR.

   DELIVERY ORDER

   An order made pursuant to FAR 52.216-18 against an indefinite delivery contract.

   FAR 52.216-18.

   DESIGN SPECIFICATION

   A purchase description that establishes precise measurements, tolerances, materials, in process and finished product tests; quality control, inspection requirements, and other specific details of the deliverable.

   DISCHARGE OF A CONTRACT

   The obligations incurred by the parties when they entered into the agreement are excused, and the parties are no longer bound to perform as promised.

   DISCUSSIONS

   Any oral or written communication between the Government and an offeror, (other than communications conducted for the purpose of minor clarification) whether or not initiated by the Government, that (a) involves information essential for determining the acceptability of a proposal, or (b) provides the offeror an opportunity to revise or modify its proposal.

   FAR 15.601.

   ELEMENTS OF A CONTRACT

   Elements that must be present in a contract if it is to be binding.  These include:

   An offer;

   Acceptance;

   Consideration;

   Execution by competent parties;

   Legality of purpose;

   Clear terms and conditions.

   EVALUATION FACTORS

   Factors in selection of an offer for award.  See also Price-Related Factors and Technical Factors.

   FAR 15.605.

   EXCUSABLE DELAY

   Delay in performing, or failure to perform a contract, arising from causes beyond the control and without the fault or negligence of the contractor.

   FAR 52.249-8(c).

   EXECUTIVE ORDER (EO)

   An order issued by the President that establishes policies to be followed by executive agencies.

   FACTFINDING

   The process of identifying and obtaining information necessary to complete the evaluation of proposals.  If a prospective bidder makes inquires relative to other than readily available general information, it may be necessary to obtain specific information by communication with technical or other personnel in order to determine the appropriate response.  This may include factfinding sessions with offerors as provided in FAR 15.807a.

   FAR 15.807a.

   FEDERAL ACQUISITION COUNCIL

   A council comprised of the Administrator for Federal Procurement Policy, the Secretary of Defense, the Administrator of National Aeronautics and Space Administration, and the Administrator of General Services Administration.  Under the Office of Federal Procurement Policy Act, this council assists in the direction and coordination of Government-wide procurement policy and procurement regulatory activities.

   FEDERAL ACQUISITION REGULATIONS (FAR)

   Uniform policies and procedures for acquisition by executive agencies.  The FAR is jointly prescribed, prepared, issued, and maintained by the Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration.

   FEDERAL REGISTER (FR)

   A daily Government publication that informs the public of proposed rules, final rules, and other legal notices issued by Federal agencies.

   FEDERAL SPECIFICATIONS (FED SPECS)

   Specifications and standards that have been implemented for use by all Federal agencies.  GSA lists them in the index of Federal Specifications, Standards, and Commercial Item Descriptions.

   FAR 10.001.

   FEDERAL SUPPLY SCHEDULES

   Indefinite delivery contracts established by the General Services Administration with commercial firms.  The Schedules are a required source for commonly used supplies and services, and provide Federal activities with a simplified process for obtaining such supplies and services at prices associated with volume buying.

   FAR 8.104.

   FEDERAL SUPPLY SERVICE (FSS)

   A functional division of the General Services Administration.  The FSS is responsible, on a Government-wide basis, for acquiring and maintaining stocks of certain supplies; for acquiring office furniture, and fixtures, and certain power and hand tools; for purchasing or leasing motor vehicles; and for establishing and maintaining “schedule” contracts.

   FEE (OR PROFIT)

   Money paid to a contractor over and above total reimbursements for allowable costs.

   FAR 15.901(a).

   FIRM FIXED PRICE CONTRACT

   A contract that establishes a price not subject to any adjustment on the basis of the contractor’s cost experience in performing the contract.

   FAR 16.202-1.

   FIXED PRICE CONTRACT

   A contract that establishes a firm price or in appropriate cases, an adjustable price.  Fixed-price contracts providing for an adjustable price may include a ceiling price, a target price (including target cost), or both.  Unless otherwise specified in the contract, the ceiling price or target price is subject to adjustment only by operation of contract clauses providing for equitable adjustment or other revision of the contract price under stated circumstances.  See also Firm Fixed Price Contract.

   FAR 16.201.

   FRAUD

   A felonious act of corruption, or an attempt to cheat the Government or corrupt its agents.

   FULL AND OPEN COMPETITION (FAOC)

   FAOC means that all responsible sources are permitted to compete (although some sources may be excluded as provided in FAR 6.2).

   FAR 6.003.

   FUNCTIONAL SPECIFICATION

   A purchase description that describes the deliverable in terms of performance characteristics and intended use, including those characteristics which are the minimum necessary to satisfy the intended use.

   GENERAL ACCOUNTING OFFICE (GAO)

   An office within the legislation branch that serves as “the watchdog for the Congress.”  Among other things, the GAO makes decisions on protests filed with it relative to any agency’s handling of IFB’s, audits agency programs and management, and makes recommendations on protests.  These decisions are referred to as Comptroller General Decisions because the Comptroller is the head of GAO.

   GENERAL SERVICES ADMINISTRATION BOARD OF CONTRACT APPEALS (GSBCA)

   The GSBCA is a board which, among other responsibilities, has statutory authority to hear protests filed with it relative to an agency’s handling of IFB’s for acquisition of automatic data processing (ADP) equipment or related resources.

   GOVERNMENT PROPERTY

   All property owned by or leased to the Government or acquired by the Government under the terms of the contract.  It includes both (1) Government-furnished property and (2) property acquired or otherwise provided by the contractor for performing a contract and to which the Government has title.

   FAR 45.101.

   GOVERNMENT FURNISHED PROPERTY

   Property in the possession of, or directly acquired by, the Government and subsequently made available to the contractor.

   FAR 45.101.

   INDEFINITE DELIVERY CONTRACT

   A type of contract used when the exact times and/or quantities of future deliveries are not known at the time of contract award.  There are three variations of indefinite delivery contracts:

   Definite-Quantity;

   Requirements, and

   Indefinite-Quantity.

   FAR 16.501(a).

   INSPECTION

   Examining and testing supplies or services (including, when appropriate, raw materials, components, and intermediate assemblies) to determine whether they conform to contract requirements.

   FAR 31.001.

   INVITATION FOR BID (IFB)

   The solicitation used in Sealed bidding.

   LABOR HOUR CONTRACT

   A variation of the time-and-materials contract differing only in that materials are not supplied by the contractor.

   FAR 16.602.

   LABOR SURPLUS AREA

   A geographic area identified by the Department of Labor in accordance with 20 CFR 654, Subpart A, as an area of concentrated unemployment, underemployment, or an area of labor surplus.

   FAR 20.101.

   LABOR SURPLUS AREA CONTRACTOR

   A contractor that together with its first tier subcontractors will perform substantially in a labor surplus area.

   FAR 20.101.

   LETTER CONTRACT

   A written preliminary contractual instrument that authorizes the contractor to begin immediately manufacturing supplies or performing services.

   FAR 16.603-1.

   LOAN GUARANTEES

   Guarantees made by Federal Reserve banks, on behalf of designated guaranteeing agencies, to enable contractors to obtain financing from private sources under contracts for the acquisition of supplies or services for the national defense.

   FAR 32.102(c).

   MARKET RESEARCH

   Collecting and analyzing available information about the entire market to satisfy minimum agency needs to arrive at the most suitable approach to acquiring, distributing, and supporting supplies and services.

   FAR 10.001.

   METHOD OF PROCUREMENT

   The process employed for soliciting offers, evaluating offers, and awarding a contract.  In Federal contracting, officers use one of the following methods for any given acquisition:

   Small purchase;

   Sealed bidding;

   Two-step sealed bidding;

   Negotiation.

   MILITARY SPECIFICATIONS (MIL SPECS)

   Specifications and standards maintained by DOD and published in the DOD Index of Specifications and Standards.

   FAR 10.001.

   NEGOTIATION

1. A bargaining process between two or more parties seeking to reach a mutually satisfactory agreement or settlement on a matter of common concern.
2. A method of procurement prescribed in Part 15 of the FAR that includes the receipt of proposals from offerors, permits bargaining, and usually affords offerors an opportunity to revise their offers before award of a contract.  Bargaining, in the sense of discussion, persuasion, alteration of initial assumptions and positions, and give-and-take may apply to price, schedule, technical requirements, type of contract, or other terms of a proposed contract.

   FAR 15.102.

   NONPERSONAL SERVICES CONTRACT

   A contract under which the personnel rendering the services are not subject, either by the contract’s terms or by the manner of its administration, to the supervision and control that usually prevails in relationships between the Government and its employees.

   FAR 37.101.

   OBLIGATION OF FUNDS

   Legally binding commitments, such as contract awards, made by Federal agencies during a given period that will require outlays during the same or some future period.

   OFFER

   A legally binding promise, made by one party to another, to enter into a contractual agreement, if the offer is accepted.  In Sealed bidding, offers made in response to Invitations For Bids (IFBs) are called “bids.”  In Negotiated acquisitions, offers made in response to a Request for Proposals (RFP) are called “proposals.”

   FAR 2.1.

   OFFICE OF ENGINEERING SERVICES (OES), DIRECTOR

   The regional OES Directors are responsible for administrative authorities relating to engineering, facilities planning, and construction activities (both Federally funded and direct Federal) and leasing in support of selected IHS operating components and other DHHS divisions.  These PHS components include the IHS, HRSA, CDC, and NIH, and the DHHS divisions include ACF and HCFA.

   OFFICE OF FEDERAL PROCUREMENT POLICY (OFPP)

   An organization within the Office of Management and Budget (OMB) that provides leadership and direction to Federal procurement programs.

   OFFICE OF INFORMATION RESOURCES MANAGEMENT (OIRM)

   A functional division of the General Services Administration.  OIRM is responsible, on a Government-wide basis, for the acquisition of automatic data processing equipment and related services, establishment of ADP-related schedule contracts, and the provision of telecommunications systems and services.

   OFFICE OF MANAGEMENT AND BUDGET (OMB)

   An office that recommends and monitors Federal programs and funding levels, develops and issues Government-wide policy guidance on management concerns, and reviews proposed regulations.

   OPTION

   A unilateral right in a contract by which, for a specified time, the Government may elect to purchase additional supplies or services called for by the contract, or may elect to extend the term of the contract.

   FAR 17.201.

   OUTLAYS

   Payments (e.g., checks issued, cash disbursed, and electronic fund transfers) by a Federal department or agency.

   PARTIAL PAYMENTS

   Payments for items received and accepted by the Government when the contractor has shipped part of the order.  Partial payments are generally treated as a method of payment and not as a method of contract financing.

   FAR 32.102(d).

   PAYMENT BOND

   A bond that ensures payments as required by law to all persons supplying labor or material in the performance of the work provided for in the contract.

   FAR 28.001.

   PERFORMANCE BOND

   A bond that secures performance and fulfillment of the contractor's obligations under the contract.

   FAR 28.001.

   PERFORMANCE SPECIFICATION

   A purchase description that describes the deliverable in terms of desired operational characteristics.  Performance specifications tend to be more restrictive than functional specifications, in terms of limiting alternatives which the Government will consider and defining separate performance standards for each such alternative.

   PERSONAL SERVICES CONTRACT

   A contract that, by its express terms or as administered, makes the contractor personnel appear, in effect, as Government employees.

   FAR 37.101.

   PREAWARD INQUIRY

   Questions and comments from prospective offerors about specifications, terms, and conditions in a solicitation received prior to the opening date of the IFB or closing date of the RFP.

   FAR 14.211 and 15.413.

   PREBID/PROPOSAL CONFERENCE

   A meeting held with prospective offerors before bid opening or before the closing date for submission of proposals.  Generally, the purpose of such meetings is to brief the offerors and explain complicated specifications and requirements.

   FAR 14.207 and 15.409.

PRICE

1. A monetary amount given, received, or asked for in exchange for supplies or services.
2. Cost plus any fee or profit applicable to the contract type.  Price analysis includes comparing the various bid prices; comparing current bid prices; with prices previously paid; and other price analysis techniques.

   FAR 15.801.

   PRICE ANALYSIS

   The process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit.

   FAR 15.801.

PRICE COMPETITION, ADEQUATE

A competitive situation that exists if:

1. Offers are solicited;
2. Two or more responsible offerors that can satisfy the Government's requirements submit priced offers responsive to the solicitation's expressed requirements; and
3. These offerors compete independently for a contract to be awarded to the responsible offeror submitting the lowest evaluated price.

   If price competition exists, the Contracting Officer shall presume that it is adequate unless:

1. The solicitation is made under conditions that unreasonably deny to one or more known and qualified offerors an opportunity to compete;
2. The low offeror has such an advantage that it is practically immune from competition; or
3. There is a fInding, supported by a statement of the facts and approved at a level above the Contracting Officer, that the lowest price is unreasonable.

   A price is "based on" adequate price competition if it results directly form price competition or if price analysis alone clearly demonstrates that the proposed price is reasonable in camparision with current, recent prices for the same, or substantially the same items purchased in comparable quantities, terms and conditions under contracts that resulted from adequate price competition.

   FAR 15.84-3(b).

   PRICE-RELATED FACTOR

   When evaluating offers for award, any factor applied in identifying that offer which would represent the lowest total cost to the Government.  Examples include costs of inspection, transportation, and the cost of making multiple awards.  Any price-related factors must have been stated in the IFB.

   FAR 14.201-8.

   PROCUREMENT ACTION LEAD TIME (PALT)

   The time between (1) acceptance of a PR by the Contracting Officer, and (2) award of the contract.

   PROCUREMENT PLANNING

   Upon acceptance of the Purchase Request, the plan developed by a CO for soliciting offers, evaluating offers, and awarding a contract.

   PROFIT

   See Fee.

   PROGRESS PAYMENTS

   Payments made under a fixed price contract on the basis either of (1) costs incurred by the contractor as work progresses under the contract or (2) on physical progress in accomplishing the work.

   FAR 32.102(b).

   PROJECT OFFICER (PO)

   An agent of the Federal Government (see “Agency”) involved in the acquisition process.  A Project Officer is selected and appointed by a Contracting Officer based on qualifications, experience, and training.

   A Project Officer supports the Contracting Officer.  As a representative of the program office, he/she must ensure that program requirements are clearly defined and that the contract is designed to meet them.  A PO is responsible for ensuring that competitive sources are solicited, evaluated, and selected, and that the price the Government pays for the services it acquires is reasonable.  The PO establishes quality standards, delivery requirements, and makes sure that these are met.  While the contract is in force, the PO must ensure compliance with all contract provisions and applicable laws, and must report any deviations to the CO.

   PROTEST

   A written objection by an interested party to a solicitation, proposed award, or award of a contract.  Interested parties include actual or prospective offerors whose direct economic interests would be affected by the award of a contract or by the failure to award a contract.

   FAR 33.101.

   PUBLIC BUILDINGS SERVICE (PBS)

   A functional division of the General Services Administration.  PBS has broad responsibilities for acquiring, through purchase or lease, buildings, and other real estate for Federal departments and agencies, and for the maintenance of public buildings.

   PURCHASE DESCRIPTION

   Describe the essential physical characteristics or functions required to meet the Government’s minimum need.

   FAR 10.001.

   PURCHASE ORDER (PO)

   An offer by the Government to buy certain supplies or nonpersonal services and construction from commercial sources, upon specified terms and conditions, the aggregate amount of which does not exceed the small purchase limitation.

   FAR 13.101.

   PURCHASE REQUEST (PR)

   A requisition prepared by a requiring activity which (1) describes the supplies or services to be acquired, (2) certifies the availability of funds for the acquisition, and (3) includes other information, clearances, and approvals necessary for the CO to initiate the acquisition.

   QUALITY

   The extent to which the contract’s deliverable satisfies the actual minimum needs of the end users.

   QUALITY ASSURANCE (QA)

   Functions, including inspection, performed to determine whether a contractor has fulfilled the contract obligations pertaining to quality and quantity.

   FAR 46.101.

   REASONABLE COST

   A cost is reasonable if, in its nature and amount; it does not exceed that which would be incurred by a prudent person in the conduct of competitive business.

   FAR 31.201-3.

   REQUEST FOR PROPOSALS (RFP)

   The solicitation in negotiated acquisitions.

   REQUEST FOR QUOTATIONS (RFQ)

   A document used in soliciting quotations.  RFQs are used when the Government does not intend to award a contract on the basis of the solicitation but wishes to obtain price, delivery, or other market information as the basis for preparing a purchase order or for planning purposes.  A quotation received in response to an RFQ is not an offer and cannot be accepted by the Government to create a binding contract.

   RESPONSIBLE OFFEROR

   An offeror that meets the General and any Special Standards established under FAR 9.104.79.  To be determined responsible under the General Standards, a prospective contractor must:

   • Have adequate financial resources to perform the contract, or the ability to obtain them;
   • Be able to comply with the required or proposed delivery, or performance schedules, taking into consideration all existing commercial and governmental business commitments;
   • Have a satisfactory performance record;
   • Have a satisfactory record of integrity and business ethics;
   • Have the necessary organization, experience, accounting, and operational controls, and technical skills, or the ability to obtain them (including, as appropriate, such elements as production control procedures, property control systems, and quality assurance measures applicable to materials to be produced or services to be performed by the prospective contractor and subcontractor);
   • Have the necessary production, construction, and technical equipment and facilities, or the ability to obtain them; and
   • Be otherwise qualified and eligible to receive an award under applicable laws and regulations.

   FAR 9.101.

   RESPONSIVE

   A bid that complies in all material respects with the IFB.

   FAR 14.301(a).

   RISK

   The probability of not attaining the goals for which the party entered into a contract.  For the contractor (seller), the principal business or financial risk is an unexpected loss of money on the contract.  For the Government, the principal risks are that:

   • The total cost of the acquisition will be higher than expected or unreasonable in relation to the actual costs of performance;
   • The contractor will fail to deliver or will not deliver on time;
   • The final deliverable will not satisfy the Government’s actual need, whether or not “acceptable” under the terms and conditions of the contract;
   • The Government’s need will change prior to receipt of the deliverable.

   SEALED BIDDING

   A method of procurement prescribed in Part 14 of the FAR that employees competitive bids, public opening of bids, and awards. Under this method:

   • The CO issues an Invitation for Bids (IFB);
   • Offerors submit Sealed bids;
   • The bids are publicly opened;
   • Award is made to the responsible bidder whose bid, conforming to the Invitation for Bids, will be the most advantageous to the Government, considering only price and price-related factors included in the Invitation.

   FAR 14.101.

   SERVICE CONTRACT

   A contract that directly engages the time and effort of a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

   FAR 37.101.

   SET-ASIDE

   An acquisition reserved exclusively for offerors who fit into a specified category.  Set-asides are commonly established for small businesses and businesses in labor surplus areas.

   FAR 19.501(a) and 20.201-1.

   SHOW CAUSE NOTICE

   A written delinquency notice, sent to the contractor immediately upon expiration of the delivery period, advising that the Government is considering termination for default, and affording the contractor the opportunity to show cause why termination for default should not occur.

   FAR 49.607.

   SMALL BUSINESS CONCERN

   A concern (including it affiliates) which is (1) independently owned and operated, (2) not dominate in the field of operation in which it is bidding on Government contracts, and (3) qualifies as a small business under the criteria and size standards in 13 CFR Part 121.

   FAR 19.001.

   SMALL PURCHASE

   The acquisition of supplies, nonpersonal services, and construction at or below the “small purchase limitation” through the simplified procedures (e.g., imprest funds, purchase orders, and blanket purchase agreements) prescribed in Part 13 of the FAR.

   FAR 13.101.

   SMALL PURCHASE LIMITATION

   The aggregate dollar amount of an acquisition at or below which small purchase contracting procedures may be used.  As of the start of FY 1994, the small purchase limitation was $25,000.  The small purchase limitation is established by regulation, and is prescribed in the FAR, Part 13.

   SOLICITATION PROVISION

   A term or condition used only in solicitations and applying only before contract award.  Provisions provide information to prospective offerors on such matters as:

   • Preparing and submitting offers;
   • The evaluation of offers and the offeror's right to protest award.

   FAR 52.101(a).

   SOCIOECONOMIC OBJECTIVES

   Any objective for an acquisition established by statute or by an Executive Order which is an addition to the innate goals (i.e., quality, cost, timeliness, risk, competition, and integrity) of the acquisition process.

   SOLE SOURCE

   A contract for the purchase of supplies or services that is entered into or proposed to be entered into by an agency after soliciting and negotiating with only one source.

   FAR 6.003.

   SOLICITATION

   A document requesting or inviting offerors to submit offers, basically consisting of: (1) a draft contract. and (2) provisions on preparing and submitting offers.

   SOURCE SELECTION

   The process of soliciting and evaluating offers for award.  Formal source selections usually involve the:

   • Establishment of a group (e.g., source selection board) to evaluate proposals;
   • Naming of a source selection authority, who might be the CO, the requiring activity manager, or a higher level agency official, depending on the size and importance of the acquisition.
   • Preparation of a written source selection plan.

   FAR 15.612.

   SPECIFICATION

   A description of the technical requirements for a material, product, or service that includes the criteria for determining whether the requirements are met.

   FAR 10.001.

   STANDARD

   A document that establishes engineering and technical limitations and applications of items, materials, processes, methods, designs, and engineering practices; including any related criteria deemed essential to achieve the highest practical degree of uniformity in materials or products, or the interchangeability of parts used in those products.

   FAR 10.001.

   STATEMENT OF WORK (SOW)

   The complete description of work to be performed under the contract, encompassing all specifications and standards established or referenced in the contract.

   STATUTE

   A law enacted by the legislative branch of Government and signed by the President; identified by a Public Law number.

   STOP WORK ORDER

   Under the clause at FAR 52.212-13, a written order to the contractor from the CO requesting the contractor to stop all, or any part, of the work called for by the contract for a period of 90 days after the order is delivered to the Contractor, and for any further period to which the parties may agree.

   SUBCONTRACT

   Any contract entered into by a subcontractor to furnish supplies or services for performance of a prime contract or a subcontract.  It includes but is not limited to the purchase order, changes, and modifications to purchase orders.

   FAR 44.101.

   SUBCONTRACTOR

   Any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime contractor.

   FAR 44.101.

   SUPPLIES

   All property, except land or interest in land, including (but not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels together with parts and accessories; aircraft, and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing.

   FAR 2.1.

   SYNOPSIS

1. A brief description of the supplies and services to be acquired by contract.  The Synopsis also provides prospective offerrors with information on obtaining a copy of the IFB or RFP from the responsible contracting office.  Synopses are published in the commerce Business Daily (CBD).
2. A notice of award published in the CBD.

   FAR 5.201 and 5.301.

   TECHNICAL FACTORS

   Factors other than price-related used in evaluating offers for award.  Examples include technical excellence, management capability, personnel qualifications, prior experience, past performance, and schedule compliance.

   FAR 9.104-2 and 15.605.

   TECHNICAL LEVELING AND TRANSFUSION

   Negotiation tactics prohibited under FAR 15.610.  Technical leveling means helping an offeror to bring its proposal up to the level of other proposals through successive rounds of discussion, such as by pointing out weaknesses resulting from the offeror’s lack of diligence, competence, or inventiveness in preparing the proposal.  Technical transfusion means disclosing technical information supplied by one offeror (or otherwise pertaining to that offer) to other, competing offerors.

   FAR 15.610(d).

   TERMINATION FOR CONVENIENCE

   Generally, the exercise of the Government’s contractual right to completely or partially terminate a contract for the convenience of the Government.

   FAR 49.002.

   TERMINATION FOR DEFAULT

   Generally, the exercise of the Government’s contractual right to completely or partially terminate a contract because of the contractor’s actual or anticipated failure to perform its contractual obligations.

   FAR 49.401.

   TERMS AND CONDITIONS

   All language in a solicitation and contract, including amendments, attachments, and referenced clauses and provisions.

   TIME AND MATERIALS CONTRACT

   A type of contract that provides for acquiring supplies or services on the basis of (1) direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profits and (2) material handling costs as part of material costs.

   FAR 16.601(a).

   TIMELINESS

   Delivery of requisitioned supplies to the end user’s purpose, or performance of services at the time necessary for the end user’s purposes.

   TWO-STEP SEALED BIDDING

   A method of procurement prescribed in Section 14.5 of the FAR.  The two steps are as follows:

1. The CO issues a request for technical proposals.  Technical proposals received are evaluated, and, if necessary, discussed.
2. Sealed bids are solicited from only those sources that submitted acceptable proposals under step one.  Award is made as in Sealed bidding. UNALLOWABLE COST

   Any cost which, under the provisions of any pertinent law, regulation, or contract, cannot be included in prices, cost-reimbursements, or settlements under a Government contract to which it is allocable.

   FAR 31.001.

   UNIFORM CONTRACT FORMAT

   A format for preparing solicitations and contracts prescribed in FAR 14.201-1 and 15.405-1.

   UNSOLICITED PROPOSAL

   A written proposal that is submitted to an agency on the initiative of the submitter for the purpose of obtaining a contract with the Government and which is not in response to a formal or informal request.

   FAR 15.501.

5-5.22  INDEX Acquisition Planning, 5-1 to 5-9

• Annual, 5-1 to 5-3; 5-4 to 5-6

Acquisition Planning Document (ADP), 5-1, 5-3 to 5-4; 5-6 to 5-9

Anti-Trust Violations, 4-4

Architectural and Engineering Contracting, 10-1 to 10-5

• Contract award, 10-3 to 10-4;
• Evaluation Board, 10-2;
• Selection of A&E Firm, 10-3

Area Director, 3-4

Automated Data Processing (ADP) Contracting, 12-1 to 12-22;

Awarding Activities Offices, 1-2;

Blanket Purchase Agreements (BPAs), 8-11 to 8-12;

Buy Indian Policy, 6-1 to 6-3;

• Competition, 6-2
• Construction, 6-3; 11-4

Commerce Business Daily (CBD), 7-9; 11-5

• Synopsis, 7-11

Compacts, Tribal Self-Governance, 20-1 to 20-2

Conflict of Interest, 4-2

Contracting Officer (CO), 3-4; 3-5; 5-1; 5-6 to 5-9; 6-2; 7-2, 7-9; 7-13 to 7-22; 8-10; 8-12; 10-2 to 10-4; 11-4; 11-7 to 11-10; 15-1 to 15-3; 16-1 to 16-5; 17-1 to 17-10

Contracts (General), 7-1 to 7-23

Construction Contracting, 11-1 to 11-11

• Bonds, 11-6 to 11-7
• Buy Indian, 11-4
• Insurance, 11-7 to 11-8
• Planning, 11-2
• Preconstruction conference, 11-9 to 11-10
• Responsiveness versus Responsibility, 11-8 to 11-9

Contract Health Services, 13-1 to 13-48

Contract protests, disputes, appeals, 16-1 to 16-5

• Agency protests, 16-1 to 16-2
• GAO protests, 16-2
• GSA Board of Contract Appeals (GSBCA) protests, 16-2 to 16-3

Davis-Bacon Act, 11-2 to 11-3

Ethics, 4-1 to 4-8

Gratuities, 4-2 to 4-4

Head of the Contracting Activity (HCA), 3-2; 7-2

Imprest Fund, 8-12 to 8-13

Independent Government Cost Estimate (IGCE), 7-6 to 7-7

Justification for Other than Full and Open Competition (JOFOC), 7-10 to 7-11

Lease of motor vehicles, 18-2

Lease of Real Property, 18-1

Lease of personal property, 18-1 to 18-2

Letter Contracts, 7-16

Lobbying, 4-8

Negotiation, Contracting by, 7-13 to 7-16

Office of Federal Policy Act, 4-4; 4-7

Optional Form 347, 8-13 to 8-14

Pre-Negotiation Objectives Memorandum, 7-19

Principal Official Responsible for Acquisition (PORA), 1-3 to 1-4; 3-3 to 3-4; 7-2; 7-21; 15-1 to 15-3

Procurement Integrity, 4-4 to 4-8

Project Officer (PO), 3-5 to 3-6; 5-1; 5-6; 5-7 to 5-9; 7-5 to 7-8; 7-14; 7-17; 11-10; 17-2 to 17-7; 17-9 to 17-10

Post Award Guidance, 17-1 to 17-11

• Audit responsibilities, 17-10 to 17-11
• "Changes" clause, 17-4 to 17-15
• Closeout, 17-9 to 17-10
• Contract administration, 17-1 to 17-3
• Government property, use or acquire, 17-5 to 17-6
• Inspection and acceptance, 17-3 to 17-4
• Payments, 17-7 to 17-8
• Site Visits, 17-3
• Termination for convenience, 17-8
• Termination for default, 17-8 to 17-9

Purchasing Agent, 3-4 to 3-5

Regulatory Framework for IHS Acquisitions, 3-1 to 3-2

Requisition/Request for Contract (RFC), 3-6; 7-6; 8-4 to 8-5

Sealed Bidding, 7-11 to 7-12

• Two-Step Sealed Bidding 7-12 to 7-13

Self-Determination Contracts, 19-1 to 19-2

Senior Contracting Officer (SCO); 3-4; 5-4 to 5-6; 7-2; 9-1
SF 44 Purchase Order-Invoice-Voucher, 8-13

Small and Disadvantaged Business Utilization Specialist (SADBUS), 3-6

Small Purchases, 8-1 to 8-14

• Commercial Sources, 8-1 to 8-14
• Credit card use, 8-9
• Limitations on use, 8-2 to 8-3
• Services, Source Priorities, 8-9 to 8-10
• Small purchase limitation, 8-2 to 8-3
• Supplies, Source priorities, 8-5 to 8-9
• Ten Percent Rule, 8-3

Standards of Conduct, 4-1

Statement of Work (SOW), 7-5

Technical Evaluation, 7-17 to 7-18

Telecommunications Contracting, 12-1 to 12-21

Unauthorized Commitments, 15-1 to 15-3

• Approval process, 15-3
• Non-ratified commitments, 15-3
• Ratification process, 15-1 to 15-2

Urban Projects Contracts, 14-1 to 14-3

• Program income, 14-2 to 14-3