Bonneville Purchasing Instructions Business/purchase/BPI/BPI... · BONNEVILLE PURCHASING INSTRUCTIONS . Issued by the Head of the Contracting Activity Bonneville Power Administration

BONNEVILLE PURCHASING

INSTRUCTIONS

Issued by the Head of the Contracting Activity Bonneville Power Administration

September 2016

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B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

1 Bonneville Purchasing Instructions System ........................................................................ 34

1.1 Objective .....................................................................................................................34

1.2 Scope .........................................................................................................................34

1.3 Authority .....................................................................................................................34

1.4 Publication of the BPI ..................................................................................................35

1.4.1 Contract Clause Usage ........................................................................................35

1.5 Purchasing Policy Change Board ................................................................................36

1.6 Organization of the BPI ...............................................................................................36

1.7 Deviations from the BPI ..............................................................................................36

1.7.1 Definition ..............................................................................................................36

1.7.2 Policy ...................................................................................................................37

1.8 Definitions ...................................................................................................................37

2 Contracting Authority and Responsibilities ......................................................................... 43

2.1 Head of the Contracting Activity (HCA) .......................................................................43

2.2 Contracting Officers (CO)............................................................................................43

2.2.1 Appointment ........................................................................................................43

2.2.2 Authority ..............................................................................................................43

2.2.3 Goals and Responsibilities ...................................................................................44

2.2.4 Contracting Officer’s Signature ............................................................................44

2.2.5 Electronic Signatures and Records ......................................................................45

2.3 BPA Employees Without Contracting Authority ...........................................................45

2.3.1 Policy ...................................................................................................................45

2.3.2 Purchases Not Requiring HCA’s Delegation of Authority .....................................45

2.3.3 Purchases and Payment Processing through Invoice Certification/“PO None” .....45

2.4 Ratification of Unauthorized Contract Commitments ...................................................48

2.4.1 Procedures to Ratify Unauthorized Commitments ................................................48

3 Standards of Conduct and Business Practices ................................................................... 50

3.1 Standards of Conduct Regarding Purchasing and Assistance ....................................50

3.1.1 General ................................................................................................................50

3.1.2 Conduct of Purchasing and Assistance Activities .................................................50

3.1.3 Annual Certification by BPA Employees ...............................................................51

3.1.4 Disqualification .....................................................................................................51

3.1.5 Processing Violations or Possible Violations ........................................................52

3.1.6 Questions Regarding Standards of Conduct ........................................................52

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3.2 Standards of Conduct Regarding Independent Functioning and Transmission Information ............................................................................................................................52

3.2.1 General ................................................................................................................52

3.2.2 Policy ...................................................................................................................53

3.2.3 Procedure ............................................................................................................53

3.3 [Reserved] ..................................................................................................................53

3.4 Organizational Conflicts of Interest .............................................................................53

3.4.1 Policy ...................................................................................................................53

3.4.2 Disclosure of OCI .................................................................................................53

3.4.3 Remedies for Nondisclosure ................................................................................54

3.4.4 Evaluation, Findings and Contract Award ............................................................54

3.4.5 Action in Lieu of Termination ................................................................................55

3.5 Limitations on Payments to Influence Transactions.....................................................55

3.5.1 Statutory Prohibition and Requirement.................................................................55

3.5.2 Exceptions ...........................................................................................................55

3.5.3 Certifications and Disclosures ..............................................................................57

3.5.4 Policy ...................................................................................................................57

3.5.5 Processing Suspected Violations .........................................................................57

3.5.6 Procedures ..........................................................................................................58

3.6 [Reserved] ..................................................................................................................58

3.7 [Reserved] ..................................................................................................................58

3.8 Restriction on Commercial Advertising ........................................................................58

3.8.1 General ................................................................................................................58

3.9 Contractor Employee Whistleblower Protections .........................................................59

3.9.1 Scope ..................................................................................................................59

3.9.2 Definitions ............................................................................................................59

3.9.3 Policy ...................................................................................................................59

3.9.4 Filing Contractor Employee Whistleblower Complaints ........................................60

4 Administrative Matters ....................................................................................................... 61

4.1 Contract Reporting ......................................................................................................61

4.1.1 Purchasing Data ..................................................................................................61

4.1.2 Taxpayer Identification Number ...........................................................................61

4.2 Contract Files ..............................................................................................................62

4.2.1 Responsibilities ....................................................................................................62

4.2.2 Close-out of Contracts .........................................................................................62

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4.2.3 Disposal of Files ..................................................................................................63

4.3 Review of Purchasing Actions For Legal Sufficiency ...................................................63

4.4 [Reserved] ..................................................................................................................63

4.5 [Reserved] ..................................................................................................................63

4.6 [Reserved] ..................................................................................................................63

4.7 Monitor/Audit/Report ...................................................................................................64

4.8 Numbering of Business Instruments ...........................................................................64

4.9 Policy Regarding Clause Usage ..................................................................................64

4.10 Incorporating Clauses .................................................................................................65

4.11 Forms .........................................................................................................................65

5 Privacy and Freedom of Information .................................................................................. 66

5.1 Protection of Individual privacy....................................................................................66

5.1.1 Definitions ............................................................................................................66

5.1.2 General ................................................................................................................66

5.1.3 Procedures ..........................................................................................................67

5.1.4 Contract Clause ...................................................................................................67

5.2 Freedom of Information Act .........................................................................................67

5.2.1 Policy ...................................................................................................................67

6 Planning, Strategy, and Requistioning ............................................................................... 69

6.1 Requistioner-Contracting Officer Partnership ..............................................................69

6.2 [Reserved] ..................................................................................................................69

6.3 Determing Requirements ............................................................................................69

6.4 Communication of Requistioner’s Needs ....................................................................69

6.4.1 Use of Commercial Item Descriptions ..................................................................69

6.4.2 Specifications.......................................................................................................70

6.4.3 Statements of Work .............................................................................................70

6.4.4 Performance Work Statement ..............................................................................70

6.4.5 Liquidated Damages ............................................................................................70

6.4.6 Estimate of Contract Costs ..................................................................................71

6.4.7 Supplier Development ..........................................................................................71

6.4.8 Identifying Systems of Records to Be Maintained ................................................71

6.4.9 Identifying Safety and Work Practice Hazards .....................................................71

6.5 Submission of Requisitions .........................................................................................71

6.6 Procurements Requiring Additional Approvals ............................................................72

6.7 Preference for Commercial Products and Services .....................................................73

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6.8 Required Sources .......................................................................................................73

6.8.1 Excess Inventory .................................................................................................73

6.8.2 Blind-Made Products and Services ......................................................................74

6.8.3 Federal Prison Industries Supplies .......................................................................74

6.8.4 Federal Information Processing (Information Technology) Resources .................74

6.8.5 Purchase of Printing and Related Supplies ..........................................................77

6.9 Purchase of Personal Use Items .................................................................................77

6.9.1 General ................................................................................................................77

6.9.2 Special Circumstances ........................................................................................78

6.9.3 Procedures ..........................................................................................................78

6.10 Product/Contractor Information ...................................................................................78

6.11 Equipment Lease or Purchase ....................................................................................79

6.11.1 Leasing of Motor Vehicles ....................................................................................79

6.12 Trade-In of Personal Property .....................................................................................81

6.13 Safeguarding BPA’s Information and Data ..................................................................82

6.13.1 General ................................................................................................................82

6.13.2 Policy ...................................................................................................................82

6.13.3 Procedures ..........................................................................................................83

6.13.4 Contract Clause ...................................................................................................83

6.14 [Reserved] ..................................................................................................................83

6.15 Strategy Panels ..........................................................................................................83

6.15.1 Designation of Strategy Panel Members ..............................................................84

6.15.2 Selection of Program/Purchase Actions for Review .............................................84

6.15.3 Operation of the Strategy Panel ...........................................................................84

6.16 Ratification of Unauthorized Contract Commitments ...................................................85

6.17 Contracts with Federal Employees ..............................................................................85

6.17.1 Contracts with Current Federal Employees ..........................................................85

6.17.2 Contracts with Former BPA Employees ...............................................................85

6.17.3 Contracts with Other Federal Annuitants ..............................................................85

7 Contract Types and Methods ............................................................................................. 86

7.1 Contract Types ...........................................................................................................86

7.1.1 Firm-Fixed Price ..................................................................................................86

7.1.2 Fixed Price with Economic Price Adjustment .......................................................87

7.1.3 Fixed Price Award Fee .........................................................................................87

7.1.4 Time-and-Materials ..............................................................................................88

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7.1.5 Cost Reimbursement – General ...........................................................................89

7.1.6 Cost and Cost Sharing .........................................................................................89

7.1.7 Cost Plus Fixed Fee (CPFF) ................................................................................89

7.1.8 Cost Plus Award Fee (CPAF) ..............................................................................90

7.1.9 Concession Contracts ..........................................................................................91

7.1.10 Contract Clauses .................................................................................................91

7.2 Contract Methods .......................................................................................................92

7.2.1 Long Term Relationships and Methods ................................................................92

7.2.2 Partnering ............................................................................................................93

7.2.3 Systems Contracts ...............................................................................................93

7.2.4 Paperless Purchasing ..........................................................................................93

7.2.5 Master Contracts and Master Agreements ...........................................................94

7.2.6 Task Assignments ............................................................................................. 100

7.2.7 Options .............................................................................................................. 100

7.2.8 Free Trial Agreements ....................................................................................... 100

7.2.9 Quick Response Contracts ................................................................................ 103

7.2.10 Trade-ins ........................................................................................................... 105

8 Supplier Diversity Program Awards .................................................................................. 106

8.1 BPA Supplier Diversity Program (SDP) Awards ........................................................ 106

8.1.1 BPA Supplier Diversity Program ........................................................................ 106

8.1.2 Supplier Diversity Program Manager ................................................................. 106

8.1.3 Roles and Responsibilities ................................................................................. 106

8.2 Definitions ................................................................................................................. 107

8.3 Subcontract Plan ...................................................................................................... 108

8.3.1 Subcontracting Requirements ............................................................................ 108

8.3.2 Reviewing the Subcontracting Plan .................................................................... 109

8.3.3 Awards Involving Subcontracting Plans ............................................................. 110

8.3.4 Liquidated Damages .......................................................................................... 110

8.3.5 Post-Award Responsibilities of the Contracting Officer ...................................... 111

8.3.6 Subcontract Plans – SBA’s Role ........................................................................ 112

9 Contracting with Foreign Businesses ............................................................................... 113

9.1 Buy American Act – Supplies .................................................................................... 113

9.1.1 Policy ................................................................................................................. 113

9.1.2 Definitions .......................................................................................................... 113

9.1.3 Acquisition of Civil Aircraft and Related Articles ................................................. 114

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9.1.4 Evaluation Procedure ......................................................................................... 114

9.1.5 [Reserved] ......................................................................................................... 115

9.1.6 Contract Clauses ............................................................................................... 115

9.2 Buy American Act – Construction Materials .............................................................. 116

9.2.1 Policy ................................................................................................................. 116

9.2.2 Definitions .......................................................................................................... 117

9.2.3 Evaluation Procedures ....................................................................................... 117


9.2.5 American Recovery and Reinvestment Act Requirements for Buy American Act – Construction Matters ........................................................................................................ 118

9.3 Additional Foregin Acquistion Policies....................................................................... 123

9.3.1 [Reserved] ......................................................................................................... 123

9.3.2 Restricted Foreign Purchases ............................................................................ 123

9.3.3 NAFTA Patent Notification Requirements .......................................................... 125

9.3.4 Services ............................................................................................................. 125

9.4 Trade Agreements .................................................................................................... 125

9.4.1 Definitions .......................................................................................................... 126

9.4.2 Trade Agreements Thresholds ........................................................................... 127

10 Labor Laws ...................................................................................................................... 129

10.1 General Labor Policies .............................................................................................. 129

10.1.1 Definitions .......................................................................................................... 129

10.1.2 Authorities of the Secretary of Labor .................................................................. 130

10.1.3 Policy ................................................................................................................. 131

10.1.4 Equal Employment Opportunity ......................................................................... 133

10.1.5 Affirmative Action for Workers with Disabilities ................................................... 135

10.1.6 Discrimination on the Basis of Age ..................................................................... 137

10.1.7 National Labor Relations Act Notification ........................................................... 137

10.1.8 Employment Eligibility Verification ...................................................................... 139

10.1.9 Equal Opportunity for Veterans .......................................................................... 140

10.1.10 Combating Trafficking in Persons ................................................................... 143

10.1.11 Child Labor ..................................................................................................... 145

10.2 Labor Policies for Service Contracts ......................................................................... 148

10.2.1 Policy ................................................................................................................. 148

10.2.2 Service Contract Labor Standards Statute ......................................................... 148

10.2.3 Compensation .................................................................................................... 150

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10.2.4 Nondisplacement of Qualified Workers .............................................................. 152

10.3 Labor Policies for Construction Contracts ................................................................. 152

10.3.1 Policy ................................................................................................................. 152

10.3.2 Construction Wage Rate Requirements ............................................................. 154

10.3.3 Kickbacks .......................................................................................................... 155

10.3.4 Compensation .................................................................................................... 156

10.3.5 Contract Termination and Debarment ................................................................ 160

10.3.6 Disputes Concerning Labor Standards............................................................... 160

11 Solicitation Policies .......................................................................................................... 162

11.1 Uses of Sources ....................................................................................................... 162

11.1.1 Excess Property ................................................................................................. 162

11.1.2 Federal Supply Schedules ................................................................................. 162

11.1.3 Federal Prison Industries ................................................................................... 162

11.1.4 Purchases from the Blind and other Severely Disabled ...................................... 163

11.1.5 Defense Logistics Agency .................................................................................. 163

11.2 Utility Services .......................................................................................................... 163

11.2.1 Definitions .......................................................................................................... 163

11.2.2 Acquisition of Utility Services ............................................................................. 164

11.2.3 Coordination of Utility Service Requirements ..................................................... 164

11.3 Publicizing BPA’s Purchasing Plans ......................................................................... 165

11.4 Market Information .................................................................................................... 165

11.4.1 Draft Specifications ............................................................................................ 166

11.4.2 Supplier Development ........................................................................................ 166

11.4.3 Protecting Agency Critical Information ............................................................... 166

11.5 Contracting Officer Assessment of Risk .................................................................... 167

11.6 Competition............................................................................................................... 168

11.7 Noncompetitive Transactions .................................................................................... 169

11.7.1 Purchases Not Requiring Competitive Consideration ......................................... 169

11.7.2 Unique Source Purchasing ................................................................................ 170

11.8 Selecting Firms to Solicit ........................................................................................... 171

11.8.1 Contract Clause ................................................................................................. 171

11.9 Requests for Quotations ........................................................................................... 171

11.10 Requests for Offers ............................................................................................... 172

11.10.1 Oral Requests for Offers ................................................................................. 172

11.10.2 Written Requests for Offers ............................................................................ 172

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11.11 Preparing Solicitations ........................................................................................... 173

11.11.1 Evaluation Factors .......................................................................................... 173

11.11.2 Lowest Price Technically Acceptable Offer ..................................................... 175

11.11.3 Reverse Auction ............................................................................................. 176

11.11.4 Tradeoff Analysis............................................................................................ 176

11.11.5 Innovative Approaches ................................................................................... 177

11.11.6 Additional Copies of Solicitations .................................................................... 178

11.11.7 Pre-proposal Conferences .............................................................................. 178

11.11.8 Site Tours and Inspections ............................................................................. 178

11.12 Changes in Requirements Before Receipt of Offers .............................................. 179

11.13 Disclosure of Information ....................................................................................... 179

11.14 Management Review of Solicitations ..................................................................... 179

12 Source Selection and Award ............................................................................................ 181

12.1 Receipt of Offers ....................................................................................................... 181

12.1.1 Handling of Offers .............................................................................................. 181

12.1.2 Late Offers ......................................................................................................... 181

12.1.3 Offers from Unsolicited Sources......................................................................... 181

12.2 Unsolicited Proposals ............................................................................................... 181

12.2.1 Policy ................................................................................................................. 181

12.2.2 Procedure .......................................................................................................... 182

12.2.3 Receipt and Initial Handling ............................................................................... 182

12.2.4 Evaluation and Negotiation ................................................................................ 182

12.3 Changes in Requirements After Receipt of Offers ..................................................... 183

12.3.1 Policy ................................................................................................................. 183

12.4 Evaluation Teams ..................................................................................................... 183

12.4.1 Establishment of Evaluation Teams ................................................................... 183

12.4.2 Conduct of Evaluation Teams ............................................................................ 183

12.4.3 Non-Disclosure Agreements for Evaluation Team Members .............................. 184

12.5 Evaluation Process ................................................................................................... 184

12.5.1 Policy ................................................................................................................. 185

12.5.2 Analysis of Price, Estimated Cost, and Total Cost ............................................. 186

12.5.3 Analysis of Profit ................................................................................................ 187

12.5.4 Cost and Pricing Information .............................................................................. 187

12.5.5 Accounting System Reviews .............................................................................. 187

12.5.6 Advance Agreements ......................................................................................... 188

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12.5.7 Analysis of Past Performance ............................................................................ 188

12.6 Source Selection ....................................................................................................... 188

12.6.1 Lowest Price Technically Acceptable Source Selection ..................................... 189

12.6.2 Tradeoff Analysis Source Selection ................................................................... 189

12.7 Negotiation ............................................................................................................... 190

12.7.1 Policy ................................................................................................................. 190

12.8 Administrative Requirements .................................................................................... 191

12.8.1 Contract Award Forms ....................................................................................... 191

12.8.2 Documentation Requirements ............................................................................ 191

12.8.3 Notification to Unsuccessful Offerors ................................................................. 196

12.8.4 Debriefings and Release of Related Information ................................................ 196

12.8.5 Discovery of Mistakes after Award ..................................................................... 196

12.8.6 Disposal of Proposals ........................................................................................ 196

12.8.7 Examination of Records ..................................................................................... 197

12.8.8 [Reserved] ......................................................................................................... 197

12.8.9 [Reserved] ......................................................................................................... 197

13 Cost Principles and Audit Considerations ........................................................................ 198

13.1 Fixed-Price Contracts ............................................................................................... 198

13.2 Cost Principles .......................................................................................................... 198

13.2.1 Contracts with Commercial Organizations ......................................................... 198

13.2.2 Contracts with Educational Institutions ............................................................... 198

13.2.3 Contracts with State and Local Governmental Organizations ............................. 199

13.2.4 Contracts with Non-profit Organizations ............................................................. 199

13.3 Contract Audit Services ............................................................................................ 199

13.4 Audit of Non-Federal Organizations .......................................................................... 200

13.5 Audit Resolution, Follow-up and Settlement .............................................................. 200

13.5.1 Policy ................................................................................................................. 201

14 General Contract Administration Policies ......................................................................... 202

14.1 Contract Management .............................................................................................. 202

14.2 Basic Responsibility for Contract Administration ....................................................... 202

14.3 Assignment of Contract Administration ..................................................................... 202


14.4 Basic Contract Administration Clauses ..................................................................... 202

14.4.1 Order of Precedence .......................................................................................... 202

14.4.2 Other Rights at Law ........................................................................................... 202

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14.5 Communications with Suppliers ................................................................................ 203

14.5.1 Relationships with Suppliers .............................................................................. 203

14.5.2 Protecting Agency Critical Information ............................................................... 203

14.5.3 Contract Clause ................................................................................................. 204

14.6 Variation in Quantity .................................................................................................. 204

14.6.1 Policy ................................................................................................................. 204

14.6.2 Supply Contracts ............................................................................................... 204

14.6.3 Service and Construction Contracts ................................................................... 204

14.7 Use of Government Supply Sources by Suppliers ..................................................... 204

14.8 Use of DOE Excess Equipment ................................................................................ 205

14.9 BPA Consent to Subcontract .................................................................................... 205

14.9.1 Contract Clause ................................................................................................. 205

14.10 Contract Modifications and Changes ..................................................................... 206

14.10.1 Definitions ...................................................................................................... 206

14.10.2 Policy ............................................................................................................. 206

14.10.3 Types of Contract Modifications ..................................................................... 206

14.10.4 Extension of Contracts ................................................................................... 206

14.10.5 Changes ......................................................................................................... 207

14.10.6 Forms ............................................................................................................. 209

14.11 Exercising Options ................................................................................................ 209

14.11.1 Policy ............................................................................................................. 209

14.12 Stopping a Work Activity and Stop Work Orders .................................................... 209

14.12.1 Definitions ...................................................................................................... 209

14.12.2 General .......................................................................................................... 209

14.12.3 Notification of Imminent Danger and Workers Rights to Decline Work ............ 210

14.12.4 Stopping a Work Activity for Safety and Health Concerns .............................. 210

14.12.5 Stop Work Orders for Safety and Health Concerns ........................................ 210

14.12.6 Procedures ..................................................................................................... 210

14.12.7 Contract Clause ............................................................................................. 211

14.13 Novation and Change-of-Name Agreements ......................................................... 211

14.13.1 Definitions ...................................................................................................... 211

14.13.2 Responsibility for Executing Agreements ....................................................... 211

14.13.3 Agreement to Recognize a Successor in Interest ........................................... 211

14.13.4 Processing Novation Agreements .................................................................. 213

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14.13.5 Contractor’s Change of Name ........................................................................ 214

14.14 [Reserved] ............................................................................................................. 214

14.15 Use of Privately-Owned US Flag Vessels .............................................................. 214

14.15.1 Procedure ...................................................................................................... 214

14.15.2 Contract Clause ............................................................................................. 214

14.15.3 Remedy for U.S. Flag Vessel Noncompliance ................................................ 215

14.16 Contractor Performance Measures ........................................................................ 215

14.16.1 Policy ............................................................................................................. 215

14.16.2 Procedure ...................................................................................................... 215

14.17 Indirect Cost Rates ................................................................................................ 215

14.17.1 General .......................................................................................................... 215

14.17.2 Cognizant Federal (Audit) Agency .................................................................. 216

14.17.3 Indirect Cost Rates ......................................................................................... 217

14.17.4 Limitations on Indirect Cost Rates .................................................................. 219

14.17.5 Quick-Close Out of Cost-Reimbursement Contracts ....................................... 220

14.18 Homeland Security ................................................................................................ 220

14.18.1 Definitions ...................................................................................................... 220

14.18.2 BPA Designation and Policy ........................................................................... 221

14.19 Bankruptcy ............................................................................................................ 222

14.19.1 Policy ............................................................................................................. 222

14.19.2 Procedures ..................................................................................................... 222

14.19.3 Contract Clause ............................................................................................. 222

15 Environment, Safety, and Security ................................................................................... 223

15.1 Pollution Control and Clear Air and Water ................................................................. 223

15.1.1 Policy ................................................................................................................. 223

15.1.2 Procedure .......................................................................................................... 223

15.1.3 Contract Clause ................................................................................................. 223

15.2 Drug-free workplace .................................................................................................. 223

15.2.1 Policy ................................................................................................................. 223

15.2.2 Applicability ........................................................................................................ 223

15.2.3 Penalties ............................................................................................................ 224

15.3 Contractor Compliance with BPA Policies ................................................................. 224

15.3.1 General .............................................................................................................. 224

15.4 Hazardous Materials and Safety Data ....................................................................... 225

15.4.1 Policy ................................................................................................................. 225

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15.5 Sustainable Products and Services ........................................................................... 225

15.5.1 Policy ................................................................................................................. 225

15.5.2 Ozone-Depleting Substances ............................................................................ 225

15.5.3 Energy and Water Efficiency .............................................................................. 226

15.5.4 Recovered Materials and Bio-Based Products ................................................... 227

15.6 Safety, Health and Property Protection ..................................................................... 227

15.6.1 Notification of Imminent Danger and Worker’s Right to Decline Work ................ 228

15.6.2 Stop Work Order ................................................................................................ 228

15.6.3 Stopping a Work Activity for Safety and Health Concerns .................................. 228

15.6.4 Identification and Resolution of Safety and Health Concerns ............................. 229

15.7 Screening Contractor Personnel ............................................................................... 230

15.7.1 Background Screenings ..................................................................................... 230

15.7.2 Pre-Registration of Foreign Nationals ................................................................ 230

15.8 Access to BPA NERC CIP Sites and Computer Systems .......................................... 231

15.8.1 Definitions .......................................................................................................... 231

15.8.2 Contractor Compliance with Security Policies .................................................... 232

15.8.3 Contract Clause ................................................................................................. 232

16 Bonds and Insurance ....................................................................................................... 233

16.1 Bonds ....................................................................................................................... 233

16.1.1 Performance and Payment Bonds for Construction Contracts ........................... 233

16.1.2 Performance and Payment Bonds Other Than Construction Contracts .............. 234

16.1.3 Processing Performance and Payment Bonds ................................................... 234

16.2 Sureties .................................................................................................................... 235

16.2.1 Requirements for Sureties ................................................................................. 235

16.2.2 Acceptability of Corporate Sureties .................................................................... 235

16.2.3 Acceptability of Individual Sureties ..................................................................... 236

16.2.4 Options in Lieu of Sureties ................................................................................. 236

16.2.5 Furnishing Information to Sureties ..................................................................... 236

16.2.6 Claims by Sureties ............................................................................................. 237

16.3 Insurance .................................................................................................................. 237

16.3.1 Policy ................................................................................................................. 237

16.3.2 Procedures ........................................................................................................ 237

16.3.3 Required Insurance............................................................................................ 238

16.3.4 Insurance Coverage Which Should Be Considered ........................................... 238

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16.3.5 Contract Clause ................................................................................................. 238

17 Patents, Copyrights, and Data ......................................................................................... 240

17.1 Intellectual Property .................................................................................................. 240

17.1.1 General .............................................................................................................. 240

17.1.2 Commercial Items and Services......................................................................... 240

17.1.3 Noncommercial Items ........................................................................................ 241

17.2 Commerical Software (Copyright) ............................................................................. 241

17.2.1 Policy ................................................................................................................. 241

17.2.2 Development of New Software Products ............................................................ 242

17.2.3 Commercial Off-the-Shelf (COTS) Software ...................................................... 242

17.2.4 GSA Schedule Contracts – Commercial Software ............................................. 243

17.2.5 Modifications to Commercial Software ............................................................... 243

17.2.6 Modifications that Result in New Software Products .......................................... 243

17.2.7 Limited Rights Licensing – Commercial Software .............................................. 243

17.2.8 Commercial Software Documentation ................................................................ 244

17.2.9 Support and Maintenance .................................................................................. 244

17.2.10 Warranty – Commercial Software ................................................................... 244

17.2.11 Rights in Data – Commercial Software ........................................................... 245

17.2.12 Perpetual Software Use Licenses ................................................................... 245

17.3 Commercial IT Hardware and Equipment (Patents) .................................................. 245

17.3.1 Procedure .......................................................................................................... 246

17.3.2 Acquisition of Commercial Hardware and Equipment ......................................... 246

17.3.3 Contract Clause ................................................................................................. 246

17.3.4 Commercial Off-the-Shelf (COTS) Hardware and Equipment ............................ 246

17.3.5 GSA Schedule Contracts – Commercial Hardware and Equipment ................... 246

17.3.6 Modifications to Commercial Hardware or Equipment ........................................ 247

17.3.7 Modifications that Result in New Hardware Products ......................................... 247

17.3.8 Support and Maintenance of Embedded Software ............................................. 247

17.3.9 Warranty – Commercial Hardware and Equipment ............................................ 247

17.4 Commercial IT Services ............................................................................................ 248

17.4.1 General .............................................................................................................. 248

17.4.2 Policy ................................................................................................................. 248

17.4.3 Warranty – IT Services ...................................................................................... 249

17.4.4 Supplemental IT Services (Supplemental Labor) ............................................... 249

17.4.5 IT Support and Maintenance .............................................................................. 249

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17.4.6 Software as a Service ........................................................................................ 250

17.5 Noncommercial Intellectual Property ......................................................................... 251

17.5.1 General .............................................................................................................. 251

17.5.2 Patents .............................................................................................................. 252

17.5.3 Copyrights ......................................................................................................... 256

17.5.4 Rights In Data .................................................................................................... 257

17.6 Other Requirments for IT and Intellectual Property Transactions .............................. 259

17.6.1 Sourcing Requirements ..................................................................................... 259

17.6.2 Nondisclosure – Safeguarding of Information..................................................... 261

17.6.3 [Reserved] ......................................................................................................... 263

17.6.4 Infringement Indemnification .............................................................................. 263

17.6.5 Source Code Escrow ......................................................................................... 266

17.6.6 Trademarks ....................................................................................................... 268

17.6.7 Audit Rights ....................................................................................................... 268

18 Quality Assurance ............................................................................................................ 270

18.1 Responsibility for Quality........................................................................................... 270

18.1.1 Policy ................................................................................................................. 270

18.2 [Reserved] ................................................................................................................ 270

18.3 Inspection and Acceptance ....................................................................................... 270


18.4 Responsibility for Damage or Loss of Supplies ......................................................... 270

18.4.1 Policy ................................................................................................................. 271

18.4.2 Contract Clause Usage ...................................................................................... 271

18.5 Warranties ................................................................................................................ 271


18.6 Defects and Consequential Damages ....................................................................... 272

18.6.1 Definitions .......................................................................................................... 272

18.6.2 Policy ................................................................................................................. 273

18.6.3 Procedure .......................................................................................................... 273


19 Property Management ..................................................................................................... 274

19.1 General ..................................................................................................................... 274

19.2 Defintions .................................................................................................................. 274

19.3 Policy ........................................................................................................................ 275

19.4 Contract Clause ........................................................................................................ 276

16


19.5 Contracting Officer responsibility ............................................................................... 276

19.6 BPA-Furnished Materials .......................................................................................... 277

19.7 Providing BPA Property “As Is” ................................................................................. 277

19.7.1 Contract Clause ................................................................................................. 277

19.8 Providing Motor Vehicles .......................................................................................... 277

19.8.1 Contract Clause ................................................................................................. 277

19.9 Transfer of BPA Property to the Contractor ............................................................... 277

19.9.1 Policy ................................................................................................................. 278

19.9.2 Contract Clause ................................................................................................. 278

19.10 Disposition Options ............................................................................................... 278

19.11 Alternate Method for Disposal of Materials ............................................................ 279

19.11.1 Policy ............................................................................................................. 279

19.11.2 Procedure ...................................................................................................... 279

20 Contract Termination ....................................................................................................... 280

20.1 General ..................................................................................................................... 280

20.1.1 Policy ................................................................................................................. 280

20.1.2 Types of Termination Actions ............................................................................. 280

20.1.3 Points to Consider Prior to Beginning Termination Action .................................. 281

20.2 Termination by Mutual Consent ................................................................................ 281

20.2.1 Procedure .......................................................................................................... 281

20.3 Termination for Convenience by Either Party ............................................................ 282

20.3.1 Contract Clause ................................................................................................. 282

20.3.2 Procedures ........................................................................................................ 282

20.4 Termination for the Convenience of BPA .................................................................. 282

20.4.1 Contract Clause ................................................................................................. 283

20.4.2 Fixed-Price Contracts ........................................................................................ 283

20.4.3 Cost-Reimbursement Contracts ......................................................................... 283

20.4.4 Settling Contracts Terminated for Convenience ................................................. 284

20.4.5 Settlement by Determination .............................................................................. 286

20.4.6 Documentation of Settlement Decision .............................................................. 286

20.4.7 Procedures for Termination for Convenience of BPA ......................................... 289

20.5 Termination for Default ............................................................................................. 290

20.5.1 Contract Clause ................................................................................................. 291

20.5.2 Effect of Termination for Default......................................................................... 291

20.5.3 Procedures for Default ....................................................................................... 291

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20.5.4 Cure Notices ...................................................................................................... 293

20.5.5 Show Cause and Stop Work Notices ................................................................. 293

20.5.6 Contracting Officer’s Decision ............................................................................ 294

20.5.7 Repurchases Charged to the Contractor (Firm-Fixed Price Only) ...................... 295

20.5.8 Other Damages ................................................................................................. 295

20.5.9 Termination of Cost-Reimbursement Contracts for Default ................................ 295

20.5.10 Surety-Takeover Agreements ......................................................................... 295

21 Protests and Disputes ...................................................................................................... 297

21.1 General ..................................................................................................................... 297

21.1.1 Policy ................................................................................................................. 297

21.1.2 Applicable Law ................................................................................................... 297

21.2 Protests .................................................................................................................... 297

21.2.1 Authorities .......................................................................................................... 297

21.2.2 Definitions .......................................................................................................... 297

21.2.3 Pre-Protest Resolution ....................................................................................... 298

21.2.4 Filing Protests with the General Accounting Office or Court of Federal Claims .. 298

21.2.5 GAO Recommendation ...................................................................................... 298

21.2.6 Filing of Protest to the HCA ................................................................................ 298

21.2.7 Award Pending Protest Resolution ..................................................................... 299

21.2.8 Protest Received After Award ............................................................................ 299

21.2.9 Contracting Officer Responsibilities ................................................................... 299

21.2.10 Agency Decision on the Protest ...................................................................... 300

21.2.11 Other Protests ................................................................................................ 300

21.3 Contract Disputes ..................................................................................................... 300

21.3.1 Definitions .......................................................................................................... 300

21.3.2 Disagreements Relating to Contractor Performance Evaluation ......................... 301

21.3.3 Contract Disputes Act ........................................................................................ 301

21.3.4 Applicability ........................................................................................................ 302

21.3.5 [Reserved] ......................................................................................................... 302

21.3.6 Initiation of a Claim ............................................................................................ 302

21.3.7 Contractor Certification ...................................................................................... 302

21.3.8 Interest on Claims .............................................................................................. 303

21.3.9 Suspected Fraudulent Claims ............................................................................ 303

21.3.10 Contracting Officer’s Authority ........................................................................ 303

21.3.11 Contracting Officer’s Decision ........................................................................ 303

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21.3.12 Contracting Officer’s Duties upon Appeal ....................................................... 305

21.3.13 Obligation to Continue Performance ............................................................... 305

21.3.14 Alternative Dispute Resolution........................................................................ 306

21.3.15 Binding Arbitration .......................................................................................... 307

22 Payments and Taxes ....................................................................................................... 308

22.1 Basis of Payment ...................................................................................................... 308

22.1.1 Single Payments and Partial Payments ............................................................. 308

22.1.2 Progress Payments............................................................................................ 308


22.1.4 Advance Payments ............................................................................................ 309

22.1.5 Withholding ........................................................................................................ 312

22.2 Prompt Payment ....................................................................................................... 312

22.2.1 Definitions .......................................................................................................... 312

22.2.2 Procedures ........................................................................................................ 313

22.2.3 Prompt Payment Discounts ................................................................................ 313

22.2.4 Payment Due Dates ........................................................................................... 314

22.2.5 Interest Penalties ............................................................................................... 314

22.2.6 Documentation of Acceptance ........................................................................... 315


22.3 Interest on amounts Due BPA ................................................................................... 316

22.3.1 Contract Clause ................................................................................................. 316

22.4 Assignment ............................................................................................................... 316

22.4.1 Procedures ........................................................................................................ 317

22.5 Taxes ........................................................................................................................ 317

22.5.1 General .............................................................................................................. 318

22.5.2 Federal Excise and Use Taxes .......................................................................... 318

22.5.3 Applicability of State and Local Taxation ............................................................ 318

22.5.4 Contracts for Expert/Consultant Services ........................................................... 320

22.5.5 Contracts for Supplemental Labor Services ....................................................... 320


22.6 Electronic Funds Transfer ......................................................................................... 321

22.6.1 Assignment of Claims ........................................................................................ 322

22.6.2 Contract Clause ................................................................................................. 322

22.7 Accelerated Payments to Small Business Subcontractors ........................................ 322

22.7.1 Policy ................................................................................................................. 322

19


22.7.2 Contract Clause ................................................................................................. 322

23 Service Contracts............................................................................................................. 323

23.1 Service Contracts...................................................................................................... 323

23.1.1 Definitions .......................................................................................................... 323

23.1.2 Expert/Consultant Services ................................................................................ 323

23.1.3 Supplemental Labor ........................................................................................... 324

23.1.4 Personal Services Contracts .............................................................................. 325

23.1.5 Inherently Governmental Functions ................................................................... 325

23.1.6 Nondisplacement of Qualified Workers .............................................................. 328

23.2 Unauthorized Use of Computer Software by Contractors .......................................... 330


24 Construction and Demolition Contracts ............................................................................ 331

24.1 Applicability ............................................................................................................... 331

24.2 Definitions ................................................................................................................. 331

24.3 Dismantling, Demolition or Removal of Improvements .............................................. 332

24.3.1 Contract Clause ................................................................................................. 332

24.4 General Construction Purchase Guidance ................................................................ 332

24.4.1 State Regulation of Federal Construction Projects ............................................. 332

24.4.2 Local Employment in Construction Projects ....................................................... 333

24.4.3 Disclosure of the magnitude of construction projects ......................................... 333

24.4.4 Safety Requirements ......................................................................................... 333

24.5 Specific Construction Purchase Guidance ................................................................ 334

24.5.1 Liquidated Damages .......................................................................................... 334

24.5.2 Inspection of Site and Examination of Data ........................................................ 334


24.5.4 Payment for Mobilization and Bonding Costs ..................................................... 338

25 Intergovernmental Contracts ............................................................................................ 339

25.1 General ..................................................................................................................... 339


25.2 Payment ................................................................................................................... 341

25.2.1 Policy ................................................................................................................. 341


25.3 Construction and Quality Assurance ......................................................................... 342


25.4 Disputes .................................................................................................................... 343

20



26 Purchase Cards ............................................................................................................... 344

26.1 General ..................................................................................................................... 344

26.2 Defintions .................................................................................................................. 344

26.3 Policy ........................................................................................................................ 345

26.4 Responsibilites .......................................................................................................... 346

26.4.1 Head of the Contracting Activity (HCA) .............................................................. 346

26.4.2 Supply Chain Services ....................................................................................... 347

26.4.3 Agency/Organizational Program Coordinator (A/OPC) ....................................... 347

26.4.4 Approving Official (AO) ...................................................................................... 348

26.4.5 Cardholder (CH) ................................................................................................ 348

26.4.6 Supervisors ........................................................................................................ 349

26.4.7 Finance Office .................................................................................................... 350

27 Emergency Purchases ..................................................................................................... 351

27.1 General ..................................................................................................................... 351

27.2 Definitions ................................................................................................................. 351

27.3 Policy ........................................................................................................................ 351

27.4 Responsibilities ......................................................................................................... 352

27.4.1 Administrator...................................................................................................... 352

27.4.2 Head of the Contracting Activity (HCA) .............................................................. 352

27.4.3 Supply Chain Services ....................................................................................... 352

27.4.4 Supervisors ........................................................................................................ 352

27.4.5 Finance Office .................................................................................................... 353

27.5 Retained Purchasing Policies ................................................................................... 353

27.6 Purchasing Requirements ......................................................................................... 353

27.7 Use of Purchase Cards in a Declared Emergency .................................................... 353

27.8 Summary of Purchasing Flexibilities ......................................................................... 353

27.8.1 Authorities .......................................................................................................... 353

27.8.2 Purchase Methods ............................................................................................. 353

27.8.3 Documentation Requirements under Emergency Purchases ............................. 354

27.8.4 Tests for Reasonability of Emergency Purchases .............................................. 354

28 Acquisition of Commercial Items and Services ................................................................. 356

28.1 Acquisition of Commercial Items and Services - General .......................................... 356

28.1.1 Applicability ........................................................................................................ 356

28.1.2 Policy ................................................................................................................. 356

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28.1.3 Commercial-Off-The-Shelf (COTS) Items .......................................................... 357

28.1.4 Subcontract Requirements ................................................................................. 358

28.2 Special Requirements for Acquiring Commercial Items and/or Services ................... 359

28.2.1 General .............................................................................................................. 359

28.2.2 Market Research and Description of Agency Need ............................................ 359

28.2.3 Procedures for solicitations, evaluation and award ............................................ 359

28.2.4 Contract Method ................................................................................................ 359

28.2.5 Contract type ..................................................................................................... 360

28.2.6 Period of Performance ....................................................................................... 361

28.2.7 Offers ................................................................................................................. 362

28.2.8 Use of Past Performance ................................................................................... 362

28.2.9 Contract Quality Assurance ............................................................................... 362

28.2.10 Determination of Price Reasonableness ......................................................... 362

28.2.11 Contract Financing ......................................................................................... 362

28.2.12 Technical Data ............................................................................................... 363

28.2.13 Computer Software ........................................................................................ 363

28.2.14 Customary Commercial Practices .................................................................. 363

28.3 Solicitation Provisions and Contract Clauses for the Acquisition of Commercial Items and Services........................................................................................................................ 363

28.3.1 Commercial Items Provisions and Clauses - General ........................................ 363

28.3.2 Policy ................................................................................................................. 364

28.3.3 Provisions and Clause Requirements ................................................................ 364


28.3.5 Tailoring of Provisions and Clauses for the Acquisition of Commercial Items ..... 374

28.3.6 Inclusion of Non-Part 28 Clauses in Commercial Procurements ........................ 375

28.4 Solicitation for Commercial Items .............................................................................. 375

28.4.1 General .............................................................................................................. 375

28.4.2 Evaluation Procedures for Commercial Items ....................

Documents

Bonneville Purchasing Instructions Business/purchase/BPI/BPI... · BONNEVILLE PURCHASING INSTRUCTIONS . Issued by the Head of the Contracting Activity Bonneville Power Administration