Page:United States Statutes at Large Volume 76.djvu/576

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PUBLIC LAW 87-653-SEPT. 10, 1962

[76 STAT.

Public Law 87-653 September 10, 1962

[H. R. 5532]

Armed Forces. Procurement. 70A Stat. 128.

AN ACT To amend chapter 137, of title 10, United States Code, relating to procurement.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That title 10 of the United States Code is hereby amended as follows: (a) Subsection 2304(a) is amended to read as follows: " (a) Purchases of and contracts for property or services covered by this chapter shall be made by forrnal advertising in all cases in which the use of such method is feasible and practicable under the existing conditions and circumstances. If use of such method is not feasible and practicable, the head of an agency, subject to the requirements for determinations and findings in section 2810, may negotiate such a purchase or contract, if—". (b) Subsection 2304(a) (14) is amended to read as follows: " (14) the purchase or contract is for technical or special property that he determines to require a substantial initial investment or an extended period of preparation for manufacture, and for which he determines that formal advertising would be likely to result in additional cost to the Government by reason of duplication of investment or would result in duplication of necessary preparation which would unduly delay the procurement of the property;". (c) Section 2304 is amended by adding a new subsection as follows: " (g) In all negotiated procurements in excess of $2,500 in which rates or prices are not fixed by law or regulation and in which time of delivery will permit, proposals shall be solicited from the maximum number of qualified sources consistent with the nature and requirements of the supplies or services to be procured, and written or oral discussions shall be conducted with all responsible offerors who submit proposals within a competitive range, price, and other factors considered: Provided, however, That the requirements of this subsection with respect to written or oral discussions need not be applied to procurements in implementation of authorized set-aside programs or to procurements where it can be clearly demonstrated from the existence of adequate competition or accurate prior cost experience with the product, that acceptance of an initial proposal without discussion would result in fair and reasonable prices and where the request for proposals notifies all offerors of the possibility that award may be made without discussion." (d) The second sentence of subsection 2306(a) is amended by substituting " (f) " for " (e)". (e) Section 2306 is amended by adding a new subsection as follows: "(f) A prime contractor or any subcontractor shall be required to submit cost or pricing data under the circumstances listed below, and shall be required to certifv that, to the best of his knowledge and belief, the cost or pricing data he submitted was accurate, complete and current— "(1) Prior to the award of any negotiated prime contract under this title where the price is expected to exceed $100,000; "(2) Prior to the pricing of any contract change or modification for which the price adjustment is expected to exceed $100,000, or such lesser amount as may be prescribed by the head of the agency; "(3) Prior to the award of a subcontract at any tier, where the prime contractor and each higher tier subcontractor have been required to furnish such a certificate, if the price of such subcontract is expected to exceed $100,000; or

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