4100.1 When it is in the best interests of the District, and if goods or services required in the performance of a District contract are available from District supply sources, contracting officers may authorize contractors to use these sources in performing the following types of contracts:

(a) Cost-reimbursement; or

(b) Other types of contracts when the contracting officer determines that a substantial dollar portion of the contract is of a cost-reimbursement nature, or that the contract cost can be reduced by authorizing the use of District sources by the contractor.

4100.2 Before issuing an authorization to a contractor to use District supply sources, the contracting officer shall prepare and place in the contract file a written finding supporting issuance of the authorization.

4100.3 The authorization to a contractor to use District supply sources shall include, but not be limited to, consideration of the following factors:

(a) The administrative cost of placing orders with District supply sources and the program impact of delay factors, if any;

(b) The lower cost of items available through District supply sources;

(c) The suitability of items available through District supply sources;

(d) Delivery factors, such as cost and time; and

(e) The recommendations of the contractor.

4100.4 The contracting officer shall issue authorizations to subcontractors to use District supply sources through, and with the approval of, the contractor.

4100.5 The contracting officer may include in the authorization to use District supply sources any limitations or conditions deemed necessary, such as the following:

(a) A limitation on the authority to purchase from District supply sources to any overhead supplies, but not production supplies;

(b) A limitation on the authority for use of District sources to a specific dollar amount;

(c) A restriction on the authorization to use certain facilities or to specific contracts; or

(d) A specific provision setting forth whether vesting of title will differ from other property acquired or otherwise furnished by the contractor for use under the contract.

4100.6 The contracting officer shall include a provision, approved by the Director, in all contracts that authorize the use by the contractor of District sources of supply and shall indicate any limitations on the authority.

4100.7 After issuing the authorization, the contracting officer shall be responsible for ensuring that the contractor complies with the terms of the authorization and that goods and services obtained from District supply sources are properly accounted for and properly used.

4100.8 When ordering from District supply sources, contractors shall follow all applicable rules,

regulations, procedures, and contract terms.

4100.9 Contractors placing orders with District supply sources shall comply with the requirements of the contracting officer's authorization and order only those items required for performance of the contract.

4100.10 Title to property acquired by the contractor under the contracting officer's authorization may vest in either the District or the contractor, as provided in the contract. If the contract is silent on the vesting of title, title shall vest in the District.

AUTHORITY: Unless otherwise noted, the authority for this chapter is the District of Columbia Procurement Practices Act of 1985, D.C. Law 6-85, as amended, D.C. Code §1-1181.1 et seq. (1981).

SOURCE: Final Rulemaking published at 35 DCR 1733 (February 26, 1988).