§ 596.504-1 Bidding procedures.

(a) Solicitation of Canadian firms. In the procurement of research and development, whether or not requests for proposals have been furnished to known Canadian sources, three copies of the request for proposal or notice of prenegotiation briefing shall be furnished the Ottawa office of the Canadian Commercial Corporation by cover letter which specifically refers to the inclosure and includes one of the following statements, as appropriate:

(1) "Copies of the inclosure have been addressed to these Canadian sources: (Here insert list)."

(2) "Copies of the inclosure have not been addressed to any Canadian source. The inclosed copies are furnished to the Canadian Commercial Corporation for distribution to such Canadian sources considered capable of and possibly interested in competing for this research and development work. Reproduction of the inclosure is authorized." Canadian sources have been authorized to communicate directly with the installation or activity initiating the procurement when unclassified questions arise regarding solicitations. Direct replies shall be made to the requesting source. Two copies of the replies shall be furnished to the Canadian Commercial Corporation. Classified replies shall be made to the Canadian source through the Canadian Commercial Corporation.

(b) Submission of bids and proposals. Bids of the Canadian Commercial Corporation normally shall be subject to the same consideration with respect to determining responsiveness as is applied to domestic bids.

§ 596.550 Accredited Canadian representatives for procurement purposes.

(a) Accreditation to a procuring activity of Canadian representatives may be established for performance of a procurement function for Canada after appropriate coordination among the Head of Procuring Activity, the Canadian Department of Defence Production, and the Canadian Commercial Corporation.

(b) A procuring activity is authorized to release to duly accredited representatives of the Canadian Government classified military information necessary for procurement by prime contract to Canadian contractors or by subcontract to Canadian sources from Canadian contractors, within the terms of their procurement accreditation and provided the classified information is releasable under the criteria set forth in the references contained in AR 1-25, the DOD Industrial Security Manual for Safeguarding Classified Information, and Disclosure of Classified Military Information to Foreign Governments.

(c) Classified military information which may not be released under authority of the references cited in paragraph (b) of this section may be released only upon the prior written approval of the Assistant Chief of Staff for Intelligence.

(d) All visits by Canadian nationals to Army installations or activities and to contractors' or subcontractors' plants shall be cleared on a government-to-government basis in conformance with the procedures prescribed in AR 380-25 and AR 380-130.

Subpart F-Duty and Customs

SOURCE: 34 FR 9518, June 18, 1969, unless otherwise noted.

§ 596.603 Emergency purchases of war materials abroad.

§ 596.603-4 Customs entries and duty-free certificates.

Procuring contracting officers (PCO's) are designated as Government representatives to execute Customs Entries and Duty-Free Certificates, except

§ 596.805 Supply and service contracts.

§ 596.805-2 Procurement limitations.

(a) Requests for approval at Departmental level pursuant to § 6.805-2 (b) and (c) of this title to procure foreign end products (including construction materials) or services for use outside the United States shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b)(6) of this chapter (see § 591.150(d) of this chapter) and shall contain the following information—

(1) A complete description of the foreign end product or service contemplated for purchase;

(2) The purpose for which the foreign end product or service is intended;

(3) The estimated cost of the supply or service, stating—

(i) The estimated amount of foreign cost and the estimated amount of CONUS cost; and

(ii) If a combination of supplies and services, the estimated amount of foreign and CONUS cost for each;

(4) If a foreign end product(i) The unity and quantity; (ii) The required delivery date; (iii) The cubic measure or weight when packed;

(iv) The country of origin and, if a Communist area, justification for the need for purchasing the product from a source in a Communist area; and

(v) A statement as to efforts made to obtain a U.S. end product and results thereof;

(5) If a foreign service

(i) The period for which required;

(ii) The manner in which the service was previously performed, i.e. in-house or by contract

(a) If in-house, reasons why the service must now be obtained by contract,

or

(b) If a new requirement, reasons why the service must be obtained by contract, and

(iii) A statement as to efforts made to obtain organic capability to perform the service and results thereof;

(6) If under § 6.805-2(a)(11) of this title, Unreasonable Cost

(i) The estimated costs from the foreign source and the U.S. source, show

ing as a separate cost transportation applicable to the domestic source end product or service;

(ii) A statement as to how the estimated costs were determined;

(iii) The name and address of the prospective source in the foreign country and in the United States, when known; and

(iv) If for acquisition of foreign buses, a statement as to efforts made to obtain buses of U.S. manufacture to fulfill the requirement and a copy of the determination by the head of procuring activity as required by § 6.306 of this title;

(7) A statement as to whether the purchase is a one-time or recurring requirement; if a recurring requirement, the date of approval of the foreign source procurement determination for the previous requirement and by whom approved;

(8) The type contract contemplated with reasons therefor;

(9) A statement as to whether the procurement will be competitive or noncompetitive, and, if noncompetitive, reasons therefor;

(10) The price paid for the last previous procurement of the product or service and

(i) Whether a domestic source end product or service or foreign end product or service was procured,

(ii) The date of the procurement, (iii) The name and address of the contractor, and

(iv) If purchased under a cost-plus-afixed-fee (or incentive fee) contract, the amount of the fee indicated separately;

(11) A statement giving reasons why the requirement cannot be foregone and the impact upon the military operation should the offshore purchase not be made; and

(12) Any other pertinent information peculiar to the procurement, the knowledge of which would give a clear understanding of the necessity for the procurement.

(b) Requests for approval of foreign source procurement determinations shall be obtained in advance of issuance of solicitations and those for approval of recurring requirements shall be submitted so as to reach the addressee in § 591.150(b)(6) of this chap

§ 596.1150 Payment instructions.

(a) When the contracting officer makes an award using excess foreign currency where the additional cost will be assumed by the Department of the Treasury, he shall provide payment instructions to the local finance and accounting officer and to the U.S. Embassy Disbursing Officer as to the DOD appropriation amounts involved and the Treasury supported amounts in excess foreign currencies.

(b) Payments shall be made in the following manner

(1) The local finance and accounting officer shall deposit a check at the U.S. Embassy Disbursing Office of the country concerned, covering the amount of the low dollar offer.

(2) The U.S. Embassy Disbursing Office shall issue a check in the total amount of the excess currency to the contractor, the difference being absorbed by the Department of the Treasury.

[36 FR 20682, Oct. 28, 1971]

§ 597.000 Scope of part.

This part implements Part 7 of this title with respect to uniform contract clauses for use in connection with the procurement of supplies and services and sets forth additional clauses to be used in Department of the Army contracts under the conditions prescribed. No special contract clauses of a repetitive nature (see § 1.108(a)(2) of this title) shall be authorized for use by a head of procuring activity or shall be used by a purchasing office unless deviations from ASPR or APP are first obtained in accordance with § 1.109-5 of this title and § 591.109-5 of this chapter.

Subpart A-Clauses for Fixed-Price Supply Contracts

§ 597.103 Required clauses.

§ 597.103-1 Definitions.

Additional definitions used shall not be inconsistent with the provisions of this subchapter.

§ 597.103-2 Changes.

When reasonable and practicable under the circumstances of a particular procurement, the contracting officer may substitute in the Changes clause a period longer or shorter than "30 days."

§ 597.103-5 Inspection.

(a) Specifications which do not contain complete and definite quality assurance provisions shall be supplemented to the extent necessary to define clearly the inspections required to be performed by the contractor.

(b) Solicitations shall contain reasonably definitive descriptions of the inspection system to be maintained by the contractor when it will be necessary for the contractor to establish an inspection system pursuant to subparagraph (e) of the Inspection clause (§ 7.103-5 of this title) which

(1) Is likely to represent a departure from customary industry procedures;

(2) Is of a nature not normally found among the prospective contractors who may be expected to participate in the procurement; or