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Federal Deposit Insurance Corporation

Acquisition Procedures, Guidance and Information

March 2014

Updated through PAB No. 2014-01, March 14, 2014


 

 

 

 


Table of Contents

MODULE 1: GUIDING PRINCIPLES, AUTHORITY, ETHICS, AND CONTROLS.. 1-1

PGI Chapter 1.1 Guiding Principles. 1-1

1.101 RESERVED.. 1-1

1.102 RESERVED.. 1-1

1.103 RESERVED.. 1-1

1.104 RESERVED.. 1-1

PGI Chapter 1.2 Authority. 1-1

1.201 Scope. 1-1

1.202 RESERVED.. 1-1

1.203 RESERVED.. 1-1

1.204 RESERVED.. 1-1

1.205 Modifications of Procurement Policy. 1-1

1.206 RESERVED.. 1-2

1.207 RESERVED.. 1-2

1.208 Application of Federal Statutes to the FDIC Contracting Program.. 1-2

1.209 Contracting Officer Authority. 1-6

1.210 RESERVED.. 1-9

1.211 Unauthorized Contractual Commitments. 1-9

1.212 RESERVED.. 1-10

1.213 Conduct of Business by Electronic Means. 1-11

PGI Chapter 1.3 Ethics. 1-2

1.301 Scope. 1-2

1.302 RESERVED.. 1-2

1.303 Ethics Procedures. 1-2

1.304 Minimum Standards of Contractor Integrity and Fitness. 1-2

1.305 Disqualifying Conditions. 1-3

1.306 Conflicts of Interest 1-3

1.307 Suspension and Exclusion of Contractors. 1-4

1.308 RESERVED.. 1-4

1.309 Roles and Responsibilities – Contractor Integrity and Fitness Review.. 1-4

1.310 Roles and Responsibilities – Contractor Suspension and Exclusion.. 1-6

1.311 RESERVED.. 1-8

1.312 RESERVED.. 1-8

1.313 Post-Government Employment 1-8

1.314 Prescriptions for Provisions and Clauses for Ethics. 1-9

MODULE 2: ACQUISITION PLANNING AND COMPETITION.. 2-1

PGI Chapter 2.1 Acquisition Planning.. 2-1

2.101 Scope. 2-1

2.102 RESERVED.. 2-1

2.103 Acquisition Planning Procedures. 2-1

2.104 Early Acquisition Planning. 2-1

2.105 Market Research.. 2-2

2.106 Acquisition Plan Documentation.. 2-4

2.107 Requirements Package. 2-7

2.108 RESERVED.. 2-8

PGI Chapter 2.2 Competition.. 2-9

2.201 Scope. 2-9

2.202 RESERVED.. 2-9

2.203 Competition Procedures. 2-9

2.204 RESERVED.. 2-9

2.205 RESERVED.. 2-9

2.206 Non-Competitive Acquisitions. 2-9

MODULE 3: CONTRACTING METHODS AND TYPES.. 3-1

PGI Chapter 3.1 Simplified Procurement 3-1

3.101 Scope. 3-1

3.102 Definitions. 3-1

3.103 Simplified Procurement Procedures. 3-1

3.104 Competition in Simplified Procurements. 3-1

3.105 Identifying Potential Sources. 3-2

3.106 Request for Quotation.. 3-3

3.107 RESERVED.. 3-5

3.108 Receipt of Quotations. 3-5

3.109 Evaluation of Quotations. 3-6

3.110 Contract Award. 3-7

3.111 Simplified Procurement Award Types. 3-10

3.112 Prescriptions for Provisions and Clauses for Simplified Procurements. 3-12

PGI Chapter 3.2 Formal Contracting.. 3-18

3.201 Scope. 3-18

3.202 RESERVED.. 3-18

3.203 Formal Contracting Procedures. 3-18

3.204 Competition in Formal Contracting. 3-18

3.205 Identifying Potential Sources. 3-20

3.206 Source Selection Planning. 3-20

3.207 Technical Evaluation Panel 3-22

3.208 Request for Proposals. 3-23

3.209 Receipt of Proposals. 3-26

3.210 Proposal Evaluation.. 3-27

3.211 Communications with Offerors. 3-31

3.212 RESERVED.. 3-33

3.213 Best and Final Offers. 3-33

3.214 Documenting the Source Selection Decision.. 3-34

3.215 Contract Award. 3-36

3.216 Notification to Unsuccessful Offerors and Debriefings. 3-39

3.217 Contract Types and Pricing Arrangements. 3-42

3.218 Prescriptions for Clauses and Provisions for Formal Contracting. 3-48

PGI Chapter 3.3 Other Contracting Methods. 3-55

3.301 Scope. 3-55

3.302 RESERVED.. 3-55

3.303 Other Contracting Methods Procedures. 3-55

3.304 Purchases from Mandatory Sources. 3-57

3.305 Federal Supply Schedule Contracts. 3-59

3.306 Prescriptions for Clauses and Provisions for Other Contracting Methods. 3-62

PGI Chapter 3.4 Contracting in Support of Potential Financial Institution Failures. 3-63

3.401 Scope. 3-63

3.402 RESERVED.. 3-63

3.403 Contracting in Support of Potential Financial Institution Failures Procedures. 3-63

3.404 Notification.. 3-63

3.405 Use of Existing Contracts and Purchase Cards/Convenience Checks. 3-64

3.406 Expedited Contracting Procedures. 3-64

3.407 Emergency Contracting Procedures. 3-65

3.408 Contracting Procedures Applicable to both Expedited and Emergency Contracting  3-65

3.409 Advance Authorization Letter 3-68

3.410 The Formal Contract 3-69

3.411 File Documentation.. 3-69

PGI Chapter 3.5 Contracting in Emergency Situations. 3-70

3.501 Scope. 3-70

3.502 RESERVED.. 3-70

3.503 Contracting in Emergency Situations Procedures. 3-70

3.504 Planning for Contracting in Emergency Situations. 3-70

3.505 Notification of Emergency. 3-71

3.506 Modified Procedures and Authorities. 3-71

3.507 Advance Authorization Letter 3-73

3.508 Short Term Manual Operations. 3-74

3.509 Emergency Contracting Kits. 3-74

3.510 RESERVED.. 3-74

3.511 Documenting Contracting Actions. 3-75

3.512 Restoring Normal Operations. 3-75

3.513 Prescriptions for Clauses and Provisions for Contracting in Emergency Situations  3-76

PGI Chapter 3.6 Receivership Contracting – Special Issues. 3-77

3.601 Scope. 3-77

3.602 RESERVED.. 3-77

3.603 Receivership Contracting Procedures. 3-77

3.604 Subsidiary Contracting Procedures. 3-77

3.605 Contracts Entered into by Failed Financial Institutions. 3-78

MODULE 4: SPECIAL CATEGORIES OF CONTRACTING.. 4-1

PGI Chapter 4.1 Performance-Based Acquisition.. 4-1

4.101 Scope. 4-1

4.102 RESERVED.. 4-1

4.103 Performance-Based Acquisition Procedures. 4-1

4.104 RESERVED.. 4-3

4.105 Additional Information on Performance-Based Acquisition/Management 4-3

PGI Chapter 4.2 Acquisition of Information Technology. 4-5

4.201 Scope. 4-5

4.202 RESERVED.. 4-5

4.203 Information Technology Acquisition Procedures. 4-5

4.204 Earned Value Management 4-10

4.205 Prescriptions for Provisions and Clauses for Information Technology Contracting. 4-11

PGI Chapter 4.3 Construction Contracting.. 4-13

4.301 Scope. 4-13

4.302 Definitions. 4-13

4.303 Construction Contracting Procedures. 4-13

4.304 Prescriptions for Provisions and Clauses for Construction Contracting. 4-15

MODULE 5: GENERAL CONTRACTING REQUIREMENTS.. 5-1

PGI Chapter 5.1 Protection of Sensitive Information.. 5-1

5.101 Scope. 5-1

5.102 RESERVED.. 5-1

5.103 Protection of Sensitive Information Procedures. 5-1

5.104 Sensitive Information and Confidentiality Agreements Procedures. 5-1

5.105 Application of the Privacy Act 5-2

5.106 Protection of Contractor Proposals and Source Selection information.. 5-2

5.107 Freedom of Information Act 5-3

5.108 Prescriptions for Provisions and Clauses. 5-4

PGI Chapter 5.2 Security. 5-5

5.201 Scope. 5-5

5.202 Definitions. 5-5

5.203 Contract Security Procedures. 5-5

5.204 Prescriptions for Provisions and Clauses. 5-8

PGI Chapter 5.3 Compliance with Section 508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d) 5-10

5.301 Scope. 5-10

5.302 RESERVED.. 5-10

5.303 Section 508 Compliance Procedures. 5-10

5.304 Prescriptions for Provisions and Clauses. 5-12

PGI Chapter 5.4 Intellectual Property. 5-13

5.401 Scope. 5-13

5.402 RESERVED.. 5-13

5.403 Intellectual Property Rights Procedures. 5-13

5.404 Rights in Data and Copyrights. 5-13

5.405 Prescriptions for Provisions and Clauses. 5-14

PGI Chapter 5.5 Options. 5-16

5.501 Scope. 5-16

5.502 RESERVED.. 5-16

5.503 Options Procedures. 5-16

5.504 Provisions and Clauses. 5-17

PGI Chapter 5.6 Subcontracting.. 5-18

5.601 Scope. 5-18

5.602 RESERVED.. 5-18

5.603 Subcontracting Procedures. 5-18

5.604 Prescriptions for Provisions and Clauses. 5-20

PGI Chapter 5.7 Incentive Contracting.. 5-22

5.701 Scope. 5-22

5.702 RESERVED.. 5-22

5.703 Incentive Contracting Procedures. 5-22

PGI Chapter 5.8 Bonds and Insurance. 5-25

5.801 Scope. 5-25

5.802 RESERVED.. 5-25

5.803 Bonds and Insurance Procedures. 5-25

5.804 Bonds. 5-25

5.805 Insurance. 5-26

5.806 RESERVED.. 5-27

5.807 Prescriptions for Provisions and Clauses. 5-27

PGI Chapter 5.9 Taxes. 5-29

5.901 Scope. 5-29

5.902 RESERVED.. 5-29

5.903 Tax Procedures. 5-29

5.904 Prescriptions for Provisions and Clauses. 5-30

PGI Chapter 5.10 Warranties. 5-31

5.1001 Scope. 5-31

5.1002 RESERVED.. 5-31

5.1003 Warranty Procedures. 5-31

5.1004 Criteria for Use of Warranties. 5-31

5.1005 Custom Warranty Clauses. 5-33

5.1006 Warranty Implementation Procedures. 5-33

5.1007 Notification of Deficiencies. 5-34

5.1008 Prescriptions for Provisions and Clauses. 5-34

PGI Chapter 5.11 Labor Laws - Service Contract Act and Davis Bacon Act 5-35

5.1101 Scope. 5-35

5.1102 Definitions. 5-35

5.1103 Service Contract Act Procedures. 5-35

5.1104 Davis-Bacon Act Procedures. 5-39

5.1105 Prescriptions for Provisions and Clauses. 5-41

PGI Chapter 5.12 Buy American Act; Trade Agreements Act of 1979. 5-43

5.1201 Scope. 5-43

5.1202 Definitions. 5-43

5.1203 Buy American Act 41 USC  §10a - 10d et seq Procedures. 5-44

5.1204 Trade Agreements Act of 1979 – 19 USC 2501 et seq. Procedures. 5-45

5.1205 RESERVED.. 5-50

5.1206 Prescriptions for Provisions and Clauses. 5-50

PGI Chapter 5.13 Contract Payment 5-51

5.1301 Scope. 5-51

5.1302 RESERVED.. 5-51

5.1303 Contract Payment Procedures. 5-51

5.1304 Invoices. 5-51

5.1305 Prompt Payment Act 5-53

5.1306 Prescriptions for Provisions and Clauses. 5-54

PGI Chapter 5.14  Protests, Claims, Disputes, and Appeals. 5-56

5.1401 Scope. 5-56

5.1402 RESERVED.. 5-56

5.1403 Protest Procedures. 5-56

5.1404 Claims, Disputes and Appeals Procedures. 5-57

5.1405 Prescriptions for Provisions and Clauses. 5-59

PGI Chapter 5.15 Legal Review of Acquisition Documents and Contract Actions. 5-60

5.1501 Scope. 5-60

5.1502 RESERVED.. 5-60

5.1503 Legal Review Procedures. 5-60

MODULE 6: CONTRACT MANAGEMENT AND ADMINISTRATION.. 6-1

PGI Chapter 6.1 FDIC Automated Procurement System... 6-1

6.101 Scope. 6-1

6.102 RESERVED.. 6-1

6.103 FDIC Automated Procurement System Procedures. 6-1

PGI Chapter 6.2 Contract File Management 6-2

6.201 Scope. 6-2

6.202 RESERVED.. 6-2

6.203 Contract File Management Procedures. 6-2

PGI Chapter 6.3 Contract Reporting.. 6-7

6.301 Scope. 6-7

6.302 RESERVED.. 6-7

6.303 Contract Reporting Procedures. 6-7

6.304 Prescriptions for Provisions and Clauses. 6-9

PGI Chapter 6.4 Contract Administration and Oversight Management 6-10

6.401 Scope. 6-10

6.402 Definitions. 6-10

6.403 Contract Administration and Oversight Management Procedures. 6-10

6.404 Contract Management Plan.. 6-10

6.405 Nomination and Appointment of Oversight Manager and Technical Monitor 6-11

6.406 Post-Award Conference. 6-13

6.407 Oversight Manager Responsibilities. 6-15

6.408 Monitoring Contract Performance. 6-15

6.409 Ratification of Unauthorized Contractual Commitments. 6-22

6.410 Prescriptions for Provisions and Clauses. 6-22

PGI Chapter 6.5 Contract Modifications. 6-23

6.501 Scope. 6-23

6.502 RESERVED.. 6-23

6.503 Contract Modification Procedures. 6-23

6.504 Types of Contract Modifications. 6-25

6.505 Constructive Changes. 6-26

6.506 Consent-to-Assignment: Novation.. 6-27

6.507 Assignment of Claims. 6-28

6.508 Stop Work Orders. 6-30

6.509 Prescriptions for Provisions and Clauses. 6-31

PGI Chapter 6.6 Contract Termination.. 6-32

6.601 Scope. 6-32

6.602 Definitions. 6-32

6.603 Termination Procedures. 6-32

6.604 Termination for Convenience. 6-32

6.605 Termination for Default 6-33

6.606 Prescriptions for Provisions and Clauses. 6-34

PGI Chapter 6.7 FDIC-Furnished Property. 6-35

6.701 Scope. 6-35

6.702 RESERVED.. 6-35

6.703 FDIC-Furnished Property Procedures. 6-35

6.704 Contracting Officer Responsibilities. 6-35

6.705 Oversight Manager Responsibilities. 6-35

6.706 RESERVED.. 6-36

6.707 Property Disposition Options. 6-36

6.708 Prescriptions for Provisions and Clauses. 6-36

PGI Chapter 6.8 Contract Closeout 6-37

6.801 Scope. 6-37

6.802 RESERVED.. 6-37

6.803 Contract Closeout Procedures. 6-37

6.804 Disposition of Contract Files. 6-39

MODULE 7: FDIC CONTRACT PROVISIONS AND CLAUSES.. 7-1

PGI Chapter 7.1 FDIC Contract Provision and Clauses. 7-1

7.101 Scope. 7-1

7.102 Instructions for Using Provisions and Clauses. 7-1

7.103 Text of Provisions and Clauses. 7-3

7.104 Provision/Clause Matrix. 7-204

APPENDIX A: ACRONYMS.. 1

APPENDIX B: APPROVALS MEMORANDUM AND MATRIX.. 1

APPENDIX C: FDIC PURCHASE CARD (P-CARD) GUIDE.. i

APPENDIX D: RECORD OF PGI CHANGES.. 1

APPENDIX E:  DOCUMENT TYPE DESIGNATOR CODES.. 1

 

 


MODULE 1:GUIDING PRINCIPLES, AUTHORITY, ETHICS, AND CONTROLS

PGI Chapter 1.1 Guiding Principles

 

1.101 RESERVED

 

1.102 RESERVED

 

1.103 RESERVED

 

1.104 RESERVED

 

PGI Chapter 1.2 Authority

1.201 Scope

This chapter provides procedures, guidance and information on authority, applicability of federal statues, ethics, and other controls related to Federal Deposit Insurance Corporation (FDIC) acquisitions.

 

1.202 RESERVED

 

1.203 RESERVED

 

1.204 RESERVED

 

1.205 Modifications of Procurement Policy

The ASB Deputy Director, DOA, is authorized to approve one-time deviations to procurement policy.  Such deviations are accomplished through the granting of a waiver, which is processed via email.  A Contracting Officer prepares the request for waiver and must follow the format in the Request for Waiver- Email Template found at http://fdic01/division/DOA/buying/acquisitiondocuments/acqdocs.html. The applicable Assistant Director must acknowledge his/her concurrence on the email and include any additional comments before submitting the request for waiver to the ASB Deputy Director for approval.   Any approval or coordination required from other Divisions or Offices, or waivers to other Directives, must be obtained prior to submission, and must be included in the waiver request.

 

1.206 RESERVED

 

1.207 RESERVED

 

1.208 Application of Federal Statutes to the FDIC Contracting Program

 

1.208(a) Overview

The federal statutes, regulations and executive orders described below apply to the FDIC contracting program and must be considered in the acquisition planning process. Not all laws apply to all contracts. Where a particular law applies only to a specific type of contract (e.g., some laws apply only to contracts for services), this is stated. If no such limitation is stated, the law applies to all types of contracts. Some laws apply only when FDIC is contracting in its corporate capacity and are so identified; otherwise, the laws apply to FDIC in all of its capacities. Lastly, the dollar thresholds that trigger the application of particular statutes, and the particular procedures for implementation of the requirements of the various statutes, are given.

 

1.208(b) RESERVED

 

1.208(c) Applicable Statutes and Executive Orders

(1)       Labor Laws: Labor laws apply only to contracts that FDIC enters into in its corporate capacity. 

§   Service Contract Act (SCA) of 1965 – 41 USC §351 et seq.: Guidance and information on the SCA is provided at Acquisition Policy Manual (APM) 5.11 and Procedures, Guidance and Information (PGI) 5.11.

§   Contract Work Hours and Safety Standards Act – 40 USC §3701 et seq.:  Generally requires that contracts for the employment of laborers and mechanics provide for a forty (40) hour work week and for payment of overtime at a minimum of one and a half (1½) times the basic rate of pay for all hours worked in excess of forty (40) hours in a work week. It applies to contracts and subcontracts greater than $100,000 in value.

§   Davis-Bacon Act – 40 USC §3141 et seq.: Guidance and information on the Davis-Bacon Act is provided at PGI 5.1104.

§   40 USC §3131 et seq. (formerly known as the Miller Act): Requires that contractors provide payment and performance bonds for construction contracts greater than $100,000 in value. It also requires a pledge of assets where the surety is an individual.

§   The Walsh-Healey Public Contracts Act – 41 USC §35-45: Applies to contracts for the manufacture or furnishing of supplies (materials, supplies, articles, or equipment), performed within the United States or its territories. It requires these contracts to incorporate by reference the stipulations in federal law governing minimum wages, maximum work hours, child labor, convict labor, and safe and sanitary working conditions. It applies to contracts greater than $10,000 in value.

(2)       Socio-Economic Programs:

§   Buy American Act (BAA) – 41 USC §10a: The BAA requires FDIC to give preference to American-made goods when it procures goods for use in the United States.

§   Trade Agreements Act (TAA) of 1979 – 19 USC §2501 et seq.:  The TAA is the statutory authority for many of the trade agreements to which the United States is a party.

In general, the BAA applies to contracts with a value greater than the micropurchase threshold, currently $3,000, and applies to contracts entered into by FDIC in its corporate capacity only. 

Application of the BAA is waived when a free trade agreement (FTA) applies to the acquisition. FTAs apply to contracts for goods, services and construction at different dollar thresholds; they apply to FDIC when it contracts in its corporate capacity only.

There is significant interplay between the BAA and the TAA; both need to be considered when planning an acquisition. See PGI 5.12 for a comprehensive discussion of the application of the BAA, the special procedures mandated by the TAA, the dollar thresholds and the exceptions to their application.

§   Rehabilitation Act of 1973 – 29 USC §794d (commonly known as Section 508): Section 508 requires that electronic and information technology (EIT) developed, procured, maintained or used by the FDIC or its contractors be as accessible to persons with disabilities as it is to persons without disabilities. Acquisitions of EIT must comply with Section 508 and the regulations published by the Architectural and Transportation Barriers Compliance Board. The FDIC has adopted its own regulation on Section 508 in 12 CFR Part 352. Detailed procedures are set out at PGI 5.3.

§   Javits-Wagner-O’Day Act (JWOD) – 41 USC §46 et seq.: JWOD applies to contracts for supplies and may apply to certain contracts for services. The JWOD program creates jobs and training opportunities for people who are blind or who have other severe disabilities. Its primary means of doing so is by requiring government agencies to purchase selected products and services from nonprofit agencies employing such individuals. The JWOD Program, also known as AbilityOne, maintains procurement lists of supplies and services available from groups participating in AbilityOne. FDIC is required to fill its procurement needs for items on AbilityOne’s procurement lists from AbilityOne groups. Additional information may be found at APM 3.3 and PGI 3.3.

§   Rehabilitation Act of 1973 – 29 USC §793: This act requires that contractors not discriminate against any employee or applicant qualified for a position because of any physical or mental disability. It also requires contractors to take affirmative action to employ, advance in employment, and otherwise treat qualified disabled individuals without discrimination because of their disabilities. FDIC voluntarily complies with this statute. 

§   Executive Order 11246 – Equal Opportunity: This Executive Order prohibits discrimination by contractors in employment practices. It applies to all contracts with a value greater than $10,000.

§   The FDIC Minority and Women Outreach Program for Contracting – 12 USC §1833e and 12 CFR Part 361: This program seeks to include minority and women-owned businesses (MWOBs) and small disadvantaged businesses (SDBs) in FDIC procurements. The Office of Minority and Women Inclusion manages this outreach program and works with the Acquisition Services Branch (ASB) to solicit MWOB and SDB firms. APM 2.105, 3.105, and 3.205 provide more information about FDIC’s Socio-Economic Programs.

§   Vietnam Era Veterans Rehabilitation Act of 1972 – 38 USC §4212:  This act applies to contracts with a value greater than $100,000. It requires that contractors not discriminate against any employee or applicant qualified for a position because they are a disabled veteran or veteran of the Vietnam era. It also requires contractors to take affirmative action to employ, advance in employment, and otherwise treat qualified disabled veterans and veterans of the Vietnam era without discrimination based upon their disability or veteran status.

§   Executive Order 12564 (Drug Free Workplace): This executive order addresses drugs in the work place. It applies to FDIC contracts where the contractor is an individual or, if other than an individual, to contracts exceeding $100,000, by virtue of the FDIC policy of voluntary compliance with its mandates. For a contract where the contractor is an individual, the contractor must agree not to engage in the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance in the performance of the contract. For a contract exceeding $100,000, the contractor must agree to make a good faith effort to maintain a drug-free workplace.

§   Federal Prison Industries (FPI) – 18 USC §4124: The FPI program directs federal departments and agencies to purchase prison-made products, subject to certain conditions, from the FPI (trade name UNICOR). It applies to contracts for goods of the classes listed in the Schedule of Products Made in Federal Penal and Correctional Institutions; see the FPI Schedule on the FPI website, http://www.unicor.gov. It is FDIC policy that goods valued at greater than $5,000 must be purchased on the FPI Schedule, when available, to fill its requirements so long as the FPI prices do not exceed current market prices. Detailed procedures for complying with the FPI statute are found at PGI 3.304.

§   Small Business Act – 15 USC §644e: This section of the Small Business Act deals with contract bundling.  It applies to contracts entered into by FDIC in its corporate capacity only.  See APM 2.204 for the specifics of its application.

(3)       Privacy and Payment Laws:

§   Privacy Act of 1974 – 5 USC §552a: This section applies to FDIC contracts for the design, development or operation of a system of records on individuals, whether that system is automated or paper-based. FDIC Circular 1031.1, Administration of the Privacy Act, is the FDIC comprehensive statement of procedures on the subject. The circular is available at http://fdic01/division/doa/adminservices/records/directives/1000/index.html.  During acquisition planning, the Program Office must identify whether the Privacy Act applies to the proposed acquisition. Contractors must comply with the requirements of the Privacy Act and the contract must contain a clause describing the requirements imposed on the contractor.

§   Prompt Payment Act – 31 USC §3901-05: This act applies to the FDIC only when it contracts in its corporate capacity. It requires the payment of interest on properly submitted invoices more than thirty (30) days past due. 

§   Assignment of Claims Act – 31 USC §3727: This act permits a contractor to assign claims for monies due to it from FDIC under a contract to a bank, trust company or other financing institution. 

(4)       Ethics and Integrity Laws:

§   Anti-Kickback Act of 1986 – 41 USC §§51-58: This Act prohibits both the payment and acceptance of kickbacks. It also prohibits including of the cost of kickbacks in the price of a contract. It provides substantial penalties, both criminal and civil, for violations.

§   Byrd Amendment – 31 USC §1352(b): This requirement limits the use of appropriated funds to influence, or attempt to influence, certain federal contracting and financial transactions. It applies to contracts greater than $100,000 in value, entered into by FDIC in its corporate capacity. An offeror must certify to compliance with the Byrd Amendment when it submits a bid.

§   Copeland (Anti-Kickback) Act – 40 USC §3145 and 18 USC §874:  This act applies to construction contracts greater than $2,000, using laborers and mechanics for construction, alteration or repair of FDIC buildings. It makes it unlawful to use threats or intimidation to induce a worker to give up part of the wages to which he is entitled.

§   Federal Deposit Insurance Act – 12 USC 1822f (and the corresponding regulations -12 CFR Part 366): Establishes the minimum standards of contractor integrity and fitness FDIC requires of its service contractors. An offeror must certify to the standards of this act when it submits a proposal valued at $100,000 or greater.

(5)       Environmental Laws: For construction contracts, FDIC complies with the provisions of the Clean Air Act (CAA) of 1990 – 42 USC 7401 et seq., (specifically 42 USC §7414) and the Clean Water Act - 33 USC §1251 et seq. (specifically 33 USC §1318). These acts cover the inspection and monitoring of facilities related to the development of implementation plans and the monitoring of compliance with air and water quality standards.

For contracts for either goods or services associated with refrigeration equipment or air conditioning, or goods containing ozone-depleting substances, FDIC complies with the CAA of 1990 – 42 USC Sections 7671g (servicing of refrigeration and air conditioning equipment), 7671h (national program for recycling and emissions reduction) and 7671j (labeling of products containing ozone-depleting substances).

(6)       Information Security Law: The Federal Information Security Management Act of 2002 – 44 USC §§3541-49 establishes a comprehensive program for the management of government information security. It applies to contracts for both goods and services involving information technology. It requires the FDIC to consider information security in its contract planning, to incorporate terms governing information security in its contracts, and to adequately oversee the information security practices of its contractors. Information regarding information security and protection of sensitive information is found at APM 5.1.

(7)       Tax Law: The Federal Deposit Insurance Act – 12 USC § 1825. This act exempts FDIC from all federal, state and local taxes, except taxes on real property.

(8)       Office of Management and Budget (OMB)Approval under the Paperwork Reduction Act - The Paperwork Reduction Act of 1980 - Pub. L. 96-511 requires Federal agencies to obtain approval from the OMB before collecting information from ten (10) or more members of the public. The information collection and recordkeeping requirements in the sections set out below have been approved by the OMB; the OMB Control Number 3064-0072 covers all FDIC procurement-related information collections, which are contained in the following PGI sections:

 

1.304

1.309(c)

3.210(b)

3.215(a)

5.203(c)

5.12

7.3.2-44 through -55

7.5.2-1 through -3

7.5.12-2, -4, -6 and -8.

 

1.209 Contracting Officer Authority

 

1.209(a) RESERVED

 

1.209(b) RESERVED

 

1.209(c) RESERVED

 

1.209(d) Contracting Officer Warrant Program

(1)       Warrant Levels:  Contracting Officers are delegated contracting authority for specified contracting dollar thresholds based on training and experience as follows:

§   Level I Contracting Officer (Up to $100,000);

§   Level II Contracting Officer (Up to $1,000,000);

§   Level III Contracting Officer (Up to $5,000,000);

§   Level IV Contracting Officer (Up to $10,000,000); and

§   Level V Contracting Officer (Unlimited)

Contracting Officers may award contracts or modifications within their delegated authority. When determining the value of a contract action, the total includes the basic contract and all options.  However, for contract modifications, the dollar threshold is not cumulative. For example, although a $25,000 modification may push total contract value above $100,000, a Level I Contracting Officer can still sign the modification, unless the modification increases the total value by more than fifteen (15) percent of the total contract value. In those cases, the modification must be signed by a Contracting Officer with authority for the new cumulative value.

(2)       Experience Requirements: Table 1 shows Contracting Officer warrant levels with associated minimum business and contracting experience requirements for each. Contracting experience may also be used to partially satisfy the business experience requirements.

Table 1. Contracting Officer Warrant Level Experience Requirements

Level

Dollar Threshold

Business Experience

Contracting Experience

I

Not to exceed $100,000

4 Years

2 Years

II

Not to exceed $1,000,000

5 Years

3 Years

III

Not to exceed $5,000,000

6 Years

3 Years 

IV

Not to exceed $10,000,000

7 Years

4 Years

V

Unlimited

8 Years

5 Years

 

(3)       Continuous Learning Requirements: Contracting Officers must complete a minimum of forty (40) hours of continuous learning annually, or eighty (80) hours every two years, in order to maintain their Contracting Officer Appointment.  Other ASB personnel in the 1102 job series must also meet the continuous learning requirement. Continuous learning may be in the form of training or may be earned by attending conferences, symposia, internal ASB workshops, and other events that offer topical presentations of value.

§   Training: In order to satisfy the continuous learning requirement, any training must enable the individual to: (1) demonstrate an in-depth functional knowledge of the laws, policies, procedures, and contracting methods that apply to FDIC contracts and to government contracts in general; and (2) effectively manage complex contracting actions. Examples of acceptable training subjects include:

o   Negotiation techniques;

o   Price analysis;

o   Price evaluations;

o   Contract terminations;

o   Contract administration;

o   Commercial and government contract law;

o   Best value contracting;

o   Contract claims;

o   Incentive contracting;

o   Performance-based contracting; and

o   Oversight management.

§   Additional Training Requirements:

o   Training must be directly related to the knowledge required for success in a position that has responsibility for contracts;

o   Training may be provided by FDIC or by FDIC-approved external organizations;

o   Web-based courses may be used to meet training requirements;

o   A course that addresses contract subject matter areas pertinent to ongoing FDIC contract work, in addition to courses prescribed in this section, may be acceptable in part, provided the number of hours of study for credit is readily identifiable;

o   Training hours must represent actual classroom hours, unless the training is from a web-based course; and

o   Courses satisfying these requirements that were completed prior to the effective date of the Contracting Officer Program are acceptable.

(4)       Identification of Contracting Officer Authority: Contracting Officers must prominently display their certificates of appointment within their offices.

(5)       Continuing Professionalism: All Contracting Officer appointments, regardless of level, must be reviewed annually by the ASB Deputy Director to ascertain that each Contracting Officer has maintained professional proficiency and otherwise remains qualified. 

(6)       Waivers: Waivers to the qualification requirements may be requested for individuals who, due to their extraordinary experience, or due to extraordinary circumstances, should be granted Contracting Officer authority. Requests must be submitted through the respective ASB Assistant Director to the ASB Deputy Director.