CFR Part 51-6
PART 51-6PROCUREMENT PROCEDURES
§ 51-6.1 Direct order process.
§ 51-6.2 Allocation process.
§ 51-6.3 Long-term procurements.
§ 51-6.4 Military resale commodities.
§ 51-6.5 Adjustment and cancellation of orders.
§ 51-6.6 Request for waiver of specification
requirement.
§ 51-6.7 Orders in excess of nonprofit agency
capability.
§ 51-6.8 Deletion of items from the Procurement
List.
§ 51-6.9 Correspondence and inquiries.
§ 51-6.10 Quality of merchandise.
§ 51-6.11 Quality complaints.
§ 51-6.12 Specification changes and similar actions.
§ 51-6.13 Replacement and similar commodities.
§ 51-6.14 Replacement services.
§ 51-6.15 Disputes.
§ 51-6.1 Direct order process.
(a) Once a commodity or service is added to the Procurement List,
the central nonprofit agency may authorize the contracting activity
to issue orders directly to a nonprofit agency without requesting
an allocation for each order. This procedure is known as the direct
order process.
(b) In these cases, the central nonprofit agency shall specify
the normal leadtime required for orders transmitted directly to
the nonprofit agencies. This method shall be used whenever possible
since it eliminates double handling and decreases the time required
for processing orders.
(c) An order for commodities or services shall provide leadtime
sufficient for purchase of materials, production or preparation,
and delivery or completion.
(d) The central nonprofit agency shall keep the contracting activity
informed of any changes in leadtime experienced by its nonprofit
agencies in order to keep to a minimum requests for extensions once
an order is placed. Where, due to unusual conditions, an order does
not provide sufficient leadtime, the central nonprofit agency or
the individual nonprofit agency may request an extension of delivery
or completion date which should be granted, if feasible. If extension
of delivery or completion date is not feasible, the contracting
activity shall:
(1) Notify the central nonprofit agency and the individual nonprofit
agency(ies) as appropriate.
(2) Request the central nonprofit agency to reallocate or to issue
a purchase exception authorizing procurement from commercial sources
as provided in § 51-5.4 of this chapter.
(e) The contracting activity shall promptly provide to the central
nonprofit agency concerned a copy of all orders issued to nonprofit
agencies.
(f) The written direct order authorization remains valid until
it is revoked by the central nonprofit agency.
§ 51-6.2 Allocation process.
(a) In those cases where a direct order authorization has not been
issued as described in § 51-6.1, the contracting activity shall
submit written requests for allocation to the appropriate central
nonprofit agency indicated by the Procurement List at the address
listed below:
Agency |
Agency symbol |
National Industries for the Blind,
1901 North Beauregard Street, Suite 200
Alexandria, Virginia 22311-1727 |
NIB |
NISH
2235 Cedar Lane
Vienna, Virginia 22182-5200 |
NISH |
(b) Requests for allocations shall contain, as a minimum:
(1) For commodities. Name, stock number, latest specification, quantity,
unit price, and place and time of delivery.
(2) For services. Type and location of service required, latest
specification, work to be performed, estimated volume, and time
for completion.
(c) Contracting activities shall request allocations in sufficient
time for the central nonprofit agency to reply, for the order(s)
to be placed, and for the nonprofit agencies to furnish the commodity
or service (see paragraph (i) of this section).
(d) When a commodity on the Procurement List also appears on the
Federal Prison Industries' "Schedule of Products," the contracting
activity shall obtain clearance from the Federal Prison Industries
prior to requesting an allocation or placing an order directly to
the nonprofit agency(ies).
(e) The central nonprofit agency shall make allocations to the
appropriate nonprofit agency(ies) upon receipt of a request from
the contracting activity and instruct that the orders be forwarded
to the central nonprofit agency or direct to the nonprofit agency(ies)
with a copy provided promptly to the central nonprofit agency.
(f) Central nonprofit agencies shall reply promptly to requests
for allocation. When a request for allocation provides a delivery
schedule (based on established lead times and time required for
processing the allocation request) which cannot be met, the central
nonprofit agency shall request a revision, which the contracting
activity shall grant, if feasible, or the central nonprofit agency
shall issue a purchase exception authorizing procurement from commercial
sources as provided in § 51-5.4 of this chapter.
(g) An allocation is not an obligation to supply a commodity or
service, or an obligation for the contracting activity to issue
an order. Nonprofit agencies are not authorized to commence production
until receipt of an order.
(h) Upon receipt of an allocation, the contracting activity shall
promptly submit an order to the appropriate central nonprofit agency
or designated nonprofit agency(ies). Where this cannot be done promptly,
the contracting activity shall advise the central nonprofit agency
and the nonprofit agency(ies) immediately.
(i) An order for commodities or services shall provide leadtime
sufficient for purchase of materials, production or preparation,
and delivery or completion.
(j) The Central nonprofit agency shall keep the contracting activity
informed of any changes in leadtime experienced by its nonprofit
agency(ies) in order to keep to a minimum requests for extensions
once an order is placed. Where, due to unusual conditions, an order
does not provide sufficient leadtime, the central nonprofit agency
or nonprofit agency may request an extension of delivery or completion
date which should be granted, if feasible. If extension of delivery
or completion date is not feasible, the contracting activity shall:
(1) Notify the central nonprofit agency and nonprofit agency(ies)
as appropriate.
(2) Request the central nonprofit agency to reallocate or to issue
a purchase exception authorizing procurement from commercial sources
as provided in § 51-5.4 of this chapter.
(k) In those instances where the central nonprofit agency is the
prime contractor rather than the nonprofit agency, the central nonprofit
agency will designate the nonprofit agency(ies) authorized by the
Committee to furnish definite quantities of commodities or specific
services upon receipt of an order from the contracting activity.
§ 51-6.3 Long-term procurements.
(a) Contracting activities are encouraged to investigate long-term
ordering agreements for commodities listed on the Procurement List
to level off demand, thereby helping ensure stability of employment
and development of job skills for persons who are blind or have
other severe disabilities.
(b) Contracting activities are encouraged to use the longest contract
term available by law to their agencies for contracts for commodities
and services under the JWOD Program, in order to minimize the time
and expense devoted to formation and renewal of these contracts.
§ 51-6.4 Military resale commodities.
(a) Purchase procedures for ordering military resale commodities are available from the central nonprofit agencies. Authorized resale outlets (military commissary stores, Armed Forces exchanges and like activities of other Government departments and agencies) shall request the central nonprofit agency responsible for the military resale commodity being ordered to designate the nonprofit agency or its agent to which the outlets shall forward orders.
(b) Authorized resale outlets shall stock military resale commodities in as broad a range as practicable. Authorized resale outlets may stock commercial items comparable to military resale commodities they stock, except that military commissary stores shall stock military resale commodities in the 300-800-, 900-, 1000-, 1100-, and 10000- (10000-10999) series exclusively, unless an exception has been granted on an individual store basis for the stocking of comparable commercial items for which there is a significant customer demand.
(c) The Defense Commissary Agency shall, after consultation with the
Committee:
(1) Establish mandatory lists of military resale commodities to be stocked in commissary stores.
(2) Require the stocking in commissary stores of military resale
commodities in the 0- (0-99), 200-, 300-, 400-, 500-, 600-, 700-, 800-, 900-, 1000-, 1100-, 1200- (1200-9999), and 10000- (10000-10999) series in as broad a range as is practicable.
(3) Issue guidance requiring commissary store personnel to maximize sales potential of military resale commodities.
(4) Establish policies and procedures which reserve to its agency headquarters the authority to grant exceptions to the exclusive stocking of 300-, 800-, 900-, 1000-, 1100-, and 10000- (10000-10999) series military resale commodities.
(d) The Defense Commissary Agency shall provide the Committee a copy of each directive which relates to the stocking of military resale commodities in commissary stores, including exceptions authorizing the stocking of commercial items in competition with 300-, 800-, 900-, 1000-, 1100-, and 10000- (10000-10999) series military resale commodities.
(e) The prices of military resale commodities include delivery to destination or, in the case of destinations overseas, to designated depots at ports of embarkation. Zone pricing is used for delivery to Alaska and Hawaii.
§ 51-6.5 Adjustment and cancellation
of orders.
When the central nonprofit agency or an individual nonprofit agency
fails to comply with the terms of a Government order, the contracting
activity shall make every effort to negotiate an adjustment before
taking action to cancel the order. When a Government order is canceled
for failure to comply with its terms, the central nonprofit agency
shall be notified, and, if practicable, requested to reallocate
the order. The central nonprofit agency shall notify the Committee
of any cancellation of an order and the reasons for that cancellation.
§ 51-6.6 Request for waiver of specification
requirement.
(a) Nonprofit agencies and central nonprofit agencies are encouraged
to recommend changes to specification requirements or request waivers
where there are opportunities to provide equal or improved products
at a lower cost to the Government.
(b) A nonprofit agency shall not request a waiver of a specification
requirement except when it is not possible to obtain the material
meeting the specification or when other requirements contained in
the specification cannot be met.
(c) Requests for waiver of specification shall be transmitted
by the nonprofit agency to its central nonprofit agency.
(d) The central nonprofit agency shall review the request and
the specification to determine if the request is valid and shall
submit to the contracting activity only those requests which it
has determined are necessary to enable the nonprofit agency to furnish
the item.
(e) The central nonprofit agency request for waiver shall be transmitted
in writing to the contracting activity. In addition, a copy of the
request shall be transmitted to the Committee, annotated to include
a statement concerning the impact on the cost of producing the item
if the waiver is approved.
§ 51-6.7 Orders in excess of nonprofit
agency capability.
(a) Nonprofit agencies are expected to furnish commodities on the
Procurement List within the time frames specified by the Government.
The nonprofit agency must have the necessary production facilities
to meet normal fluctuations in demand.
(b) Nonprofit agencies shall take those actions necessary to ensure
that they can ship commodities within the time frames specified
by the Government. In instances where the nonprofit agency determines
that it cannot ship the commodity in the quantities specified by
the required shipping date, it shall notify the central nonprofit
agency and the contracting activity. The central nonprofit agency
shall request a revision of the shipping schedule which the contracting
activity should grant, if feasible, or the central nonprofit agency
shall issue a purchase exception authorizing procurement from commercial
sources as provided in § 51-5.4 of this chapter.
§ 51-6.8 Deletion of items from the Procurement
List.
(a) When a central nonprofit agency decides to request that the
Committee delete a commodity or service from the Procurement List,
it shall notify the Committee staff immediately. Before reaching
a decision to request a deletion of an item from the Procurement
List, the central nonprofit agency shall determine that none of
its nonprofit agencies is capable and desirous of furnishing the
commodity or service involved.
(b) Except in cases where the Government is no longer procuring
the item in question, the Committee shall, prior to deleting an
item from the Procurement List, determine that none of the nonprofit
agencies of the other central nonprofit agency is desirous and capable
of furnishing the commodity or service involved.
(c) Nonprofit agencies will normally be required to complete production
of any orders for commodities on hand regardless of the decision
to delete the item. Nonprofit agencies shall obtain concurrence
of the contracting activity and the Committee prior to returning
a purchase order to the contracting activity.
(d) For services, a nonprofit agency shall notify the contracting
activity of its intent to discontinue performance of the service
90 days in advance of the termination date to enable the contracting
activity to assure continuity of the service after the nonprofit
agency's discontinuance.
(e) The Committee may delete an item from the Procurement List
without a request from a central nonprofit agency if the Committee
determines that none of the nonprofit agencies participating in
the JWOD Program are capable and desirous of furnishing the commodity
or service to the Government, or if the Committee decides that the
commodity or service is no longer suitable for procurement from
nonprofit agencies employing people who are blind or have other
severe disabilities. In considering such an action, the Committee
will consult with the appropriate central nonprofit agency, the
nonprofit agency or agencies involved, and the contracting activity.
§ 51-6.9 Correspondence and inquiries.
Routine contracting activity correspondence or inquiries concerning
deliveries of commodities being shipped from or performance of services
by nonprofit agencies employing persons who are blind or have other
severe disabilities shall be with the nonprofit agency involved.
Major problems shall be referred to the appropriate central nonprofit
agency. In those instances where the problem cannot be resolved
by the central nonprofit agency and the contracting activity involved,
the contracting activity or central nonprofit agency shall notify
the Committee of the problem so that action can be taken by the
Committee to resolve it.
§ 51-6.10 Quality of merchandise.
(a) Commodities furnished under Government specification by nonprofit
agencies employing persons who are blind or have other severe disabilities
shall be manufactured in strict compliance with such specifications.
Where no specifications exist, commodities furnished shall be of
a quality equal to or higher than similar items available on the
commercial market. Commodities shall be inspected utilizing nationally
recognized test methods and procedures for sampling and inspection.
(b) Services furnished by nonprofit agencies employing persons
who are blind or have other severe disabilities shall be performed
in accordance with Government specifications and standards. Where
no Government specifications and standards exist, the services shall
be performed in accordance with commercial practices.
§ 51-6.11 Quality complaints.
(a) When the quality of a commodity received is not considered
satisfactory by the using activity, the activity shall take the
following actions as appropriate:
(1) For commodities received from Defense Logistics Agency supply
centers, General Services Administration supply distribution facilities,
Department of Veterans Affairs distribution division or other central
stockage depots, or specifically authorized supply source, notify
the supplying agency in writing in accordance with that agency's
procedures. The supplying agency shall, in turn, provide copies
of the notice to the nonprofit agency involved and its central nonprofit
agency.
(2) For commodities received directly from nonprofit agencies employing
persons who are blind or have other severe disabilities, address
complaints to the nonprofit agency involved with a copy to the central
nonprofit agency with which it is affiliated.
(b) When the quality of a service is not considered satisfactory
by the contracting activity, it shall address complaints to the
nonprofit agency involved with a copy to the central nonprofit agency
with which it is affiliated.
§ 51-6.12 Specification changes and similar
actions.
(a) Contracting activities shall notify the nonprofit agency or
agencies authorized to furnish a commodity on the Procurement List
and the central nonprofit agency concerned of any changes to the
specification or other description of the commodity.
(b) When a Government entity is changing the specification or description
of a commodity on the Procurement List, including a change that
involves the assignment of a new national stock number or item designation,
the office assigned responsibility for the action shall obtain the
comments of the Committee and the central nonprofit agency concerned
on the proposed change and shall notify the nonprofit agency and
the central nonprofit agency concerned at least 90 days prior to
placing an order for a commodity covered by the new specification
or description.
(c) For services on the Procurement List, the contracting activity
shall notify the nonprofit agency furnishing the service and the
central nonprofit agency concerned at least 90 days prior to the
date that any changes in the statement of work or other conditions
of performance will be required, including assumption of performance
of the service by the contracting activity.
(d) If an emergency makes it impossible for a contracting activity
to give the 90-day notice required by paragraphs (b) and (c) of
this section, the contracting activity shall inform the nonprofit
agency and the central nonprofit agency concerned of the reasons
it cannot meet the 90-day notice requirement when it places the
order or change notice.
(e) Nonprofit agencies shall recommend changes in specifications,
item descriptions, and statements of work that will improve the
commodity or service being provided, reduce costs, or improve overall
value to the Government. Contracting activities shall respond promptly
to these recommendations and work with the nonprofit agencies to
implement them when appropriate.
§ 51-6.13 Replacement and similar
commodities.
(a) When a commodity on the Procurement List is replaced by another
commodity which has not been recently procured, and a nonprofit
agency can furnish the replacement commodity in accordance with
the Government's quality standards and delivery schedules, the replacement
commodity is automatically considered to be on the Procurement List
and shall be procured from the nonprofit agency designated by the
Committee at the fair market price the Committee has set for the
replacement commodity. The commodity being replaced shall continue
to be included on the Procurement List until there is no longer
a Government requirement for that commodity.
(b) If contracting activities desire to procure additional sizes,
colors, or other variations of a commodity after the commodity is
added to the Procurement List, and these similar commodities have
not recently been procured, these commodities are also automatically
considered to be on the Procurement List.
(c) In accordance with § 51-5.3 of this chapter, contracting activities
are not permitted to purchase commercial items that are essentially
the same as commodities on the Procurement List.
§ 51-6.14 Replacement services.
If a service is on the Procurement List to meet the needs of a
Government entity at a specific location and the entity moves to
another location, the service at the new location is automatically
considered to be on the Procurement List if a qualified nonprofit
agency is available to provide the service at the new location,
unless the service at that location is already being provided by
another contractor. If the service at the new location is being
provided by another contractor, the service will not be on the Procurement
List unless the Committee adds it as prescribed in Part 51-2 of
this chapter. If another Government entity moves into the old location,
the service at that location will remain on the Procurement List
to meet the needs of the new Government entity.
§ 51-6.15 Disputes.
Disputes between a nonprofit agency and a contracting activity
arising out of matters covered by parts 51-5 and 51-6 of this chapter
shall be resolved, where possible, by the contracting activity and
the nonprofit agency, with assistance from the appropriate central
nonprofit agency. Disputes which cannot be resolved by these parties
shall be referred to the Committee for resolution.
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