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(a) Description and condition of the (2) From the United States on a vessel commodity. The commodity shall con- which A.I.D. has designated ineligible; form to the description in the imple- or menting document. Unless otherwise au- (3) Under any ocean or air charter thorized by AID/W in writing, the com- which has not received prior approval by modity shall be unused, and may not AID/W. have been disposed as surplus by any (e) Marine insurance. If A.I.D. degovernmental agency.

termines that the government of a co(b) Source(1) General rule. The

operating country, by statute, decree, source of the commodity shall be a coun- rule, or regulation, discriminates with retry authorized in the implementing doc- spect to A.I.D.-financed procurement ument by name or by reference to an against any marine insurance company A.I.D. geographic code. In addition, the authorized to do business in any State of commodity shall have been mined, the United States, then any A.I.D.-figrown, or through manufacturing, proc- nanced commodity shipped to the coessing, or assembly produced in a source operating country shall be insured country authorized in the implementing against marine risks and such insurance document.

shall be placed in the United States with (2) Exceptions. A produced commod- a company or companies authorized to do ity will not be eligible for A.I.D. financ- a marine insurance business in a State ing if

of the United States. “Discrimination" (i) It contains any component from within the meaning of this paragraph countries other than free world coun- may be found to exist whenever the tries as listed in A.I.D. geograpric code effect of governmental action by a co899; or

operating country is to hinder an im(ii) It contains components which porter in entering into a c.i.f. contract were imported into the country of pro- with a U.S. supplier or in instructing a duction from such free world countries U.S. supplier to place marine insurance other than authorized source countries; in the United States. and

(f) Timely submission of documents. (a) Such components were acquired All documents required under $ 201.52 by the producer in the form in which to be submitted by a supplier in order they were imported; and

to receive payment or reimbursement (b) The total cost of such components shall be submitted to A.I.D. or to a (delivered at the point of production) designated bank, whichever is approamounts to more than 10 percent, or priate, on or before the terminal date such other percentage as A.I.D. may pre- specified in the letter of commitment, scribe, of the lowest price (excluding the the request for the opening of a special cost of ocean transportation and marine letter of credit, or other implementing insurance) at which the supplier makes document. the commodity available for export sale (g) U.S. Treasury Department regula(whether or not financed by A.I.D.). tions. Procurement transactions shall

(3) Waiver provision. AID/W may comply with the requirements of the from time to time waive or modify the Foreign Assets Control Regulation and requirements of subparagraph (2) (ii) of Cuban Assets Control Regulation of the this paragraph if in its view such action U.S. Treasury Department. is necessary to achieve A.I.D.'s objective (h) Commodities shipped out of free of conformity with normal industry port or bonded warehouse. No compractices.

modity shipped out of a free port or (c) Date of shipping documents. The bonded warehouse is eligible for A.I.D. documents required as evidence of ship- financing if it was shipped to the free ment under $ 201.52(a) (4) shall show port or bonded warehouse without comthat the date of shipment was within

pliance with the requirements set forth the shipping period, if any, specified in

in paragraph (d) (1) and (2) of this

section. the implementing document. (d) Medium of transportation. Ship

(i) Purchase price. The purchase price

for the commodity shall satisfy the rement shall not be effected

quirements of Subpart G. (1) By transportation medium

(j) Purchases from eligible supplierś. owned, operated or under the control of

Commodities procured with funds made any country not included within A.I.D. available under this Part 201 shall be geographic code 899; or

purchased from eligible suppliers. A sup


plier shall not be eligible to receive A.I.D. funds if:

(1) The supplier has been suspended or debarred by AID pursuant to AID Regulation 8, Part 208 of this chapter;

(2) The supplier has been placed by AID on prior review and approval pursuant to § 201.33 of this part and AID has not, in fact, given its prior approval to the supplier for the furnishing of specific goods.

(3) With respect to procurement of U.S.-source commodities, the supplier is not an individual, resident in the United States; a nonresident citizen of the United States; a corporation or partnership organized under the laws of the United States; or a controlled foreign corporation (within the meaning of section 957 et seq. of the Internal Revenue Code) as attested by current information on file with the Internal Revenue Service of the United States (on IRS Form 959, 2952, 3646, or on substitute or successor forms) submitted by shareholders of the corporation.

(k) Determination of commodity eligibility. The commodity shall be approved in writing by A.I.D. for each sale transaction as eligible for A.I.D. financing. Such approval shall be indicated on the Commodity Eligibility Application submitted to A.I.D. by the supplier. (A.I.D. Reg. 1, 32 F.R. 7672, May 25, 1967, as amended at 32 F.R. 11264, Aug. 3, 1967; 32 F.R. 15013, Oct. 31, 1967; 33 F.R. 6769, May 3, 1968] 8 201.12 Eligibility of incidental serv

ices. Incidental services may be financed under the same implementing document which makes funds available for the procurement of equipment if

(a) The supplier does not procure such services with local currency in the cooperating country; and

(b) Such services are specified in the purchase contract relating to the equipment. $ 201.13 Eligibility of delivery services.

Delivery services will be financed by A.I.D. in the manner provided in this section.

(a) General. Delivery services which relate to A.I.D.-financed commodities may be financed under the implementing document which authorizes the

purchase of the commodities or under a separate implementing document.

(b) Conditions and limitations-(1) Freight. Unless otherwise authorized, A.I.D. will not finance freight

(i) For shipment beyond the point of entry in the cooperating country; or

(ii) On any non-U.S.-flag transportation medium or any U.S.-flag vessel transferred from foreign-flag to provisional U.S.-flag registry under 46 U.S.C. section 12 for carriage of commodities to the cooperating country, or to or from a free port or bonded warehouse; or

(iii) On any vessel designated by A.I.D. as ineligible to carry A.I.D.financed cargo; or

(iv) On any liner vessel for which the rate applicable to the commodity shipped and applying to both A.I.D.-financed and non-A.I.D.-financed cargo has not been filed with the Federal Maritime Commission (whether or not such filing is required by the Federal Maritime Commission); or

(v) Under any ocean or air charter covering full or part cargo (whether for a single voyage, consecutive voyages, or a time period) which has not received prior approval by AID/W (Resources Transportation Division); or

(vi) Which is attributable to brokerage commissions which exceed the limitations specified in § 201.65(1) or to address commissions, dead freight, or demurrage.

(2) Inspection services. A.I.D. will finance inspection of A.I.D.-financed commodities if such inspection is performed by independent inspectors at the request of the importer and is either customary in export transactions for the commodity involved or is necessary to determine conformity of the commodities to the contract.

(3) Insurance. (i) A.I.D. will finance U.S. dollar premiums for marine insurance including war risk on A.I.D.financed commodities, if

(a) The insurance is placed on a competitive basis, in an authorized source country, with a company or companies authorized to do a marine insurance business in any State of the United States; and

(b) Such insurance is placed either in accordance with the terms of the commodity purchase contract or by, or on the written instructions of, the importer; and

(c) Insurance coverage relates only to the period during which the commodities are in transit to the cooperating country, except that it may include coverage under a so-called “warehouse-to-warehouse” clause; and

(d) The premiums do not exceed the limitations contained in $ 201.68.

(e) Within 15 days after payment by a supplier of marine insurance of any loss claim in excess of $6,000 to the assured or to his assignee under any marine insurance policy financed by A.I.D. pursuant to this part, the supplier of marine insurance notifies A.I.D., Office of the Controller, of the amount and date of the payment, a description of the commodity, the A.I.D. number, name of carrier, vessel, and voyage number (alternatively, flight or inland carrier run number), date of the bill of lading, the identity and address of the assured, and the identity and address of any assignee of the assured to whom payment has actually been made.

(ii) Within the meaning of § 201.11(e) as well as of this subparagraph, insurance is “placed” in a country only if payment of the insurance premium is made to, and the insurance policy is issued by, an insurance company office located in said country. “On a competitive basis” means under conditions of effective competition, but not necessarily under formal competitive bid procedures. 5 $ 201.14 Eligibility of bid bonds and

performance guaranties. The cost of any bid bond posted by a successful bidder or of any guaranty of performance posted by a supplier is eligible for financing under the implementing document to the extent that the principal amount of the bond or guar

anty does not exceed the amount customary in international trade for the

type of transaction and commodity involved: Provided, That the bid bond and guarantee of performance must be payable in U.S. dollars and must conform to the requirements of the invitation for bids or the contract, as applicable. $ 201.15 U.S.-flag vessel shipping re

quirement. (a) General requirement. At least 50 percent of the gross tonnage of all commodities financed with A.I.D. dollar funds and transported to the cooperating country on ocean vessels shall be trans

ported on privately owned U.S.-flag commercial vessels. The foregoing requirement shall apply separately for any dry bulk carrier shipments, dry cargo liner shipments, and tanker shipments from each of the following geographical areas:

(1) United States;
(2) Europe and Africa;
(3) Near East and South Asia;
(4) Latin America and Canada; and
(5) Far East.

(b) Responsibility of borrower/grantee. The borrower/grantee shall be responsible for assuring compliance with the requirements of paragraph (a) of this section and for imposing upon subborrowers, contractors and importers such requirements regarding shipping arrangements with suppliers as will assure discharge of this responsibility. Such compliance shall be achieved during each U.S. fiscal year (July 1-June 30) as well as each quarterly period thereof, or during such other period or periods as may be specified by A.I.D. in agreements or implementing documents.

(c) Nonavailability of U.S.-flag vessels. Upon application of the borrower/ grantee, AID/W (Resources Transportation Division) will determine and advise the borrower/grantee whether or not a privately owned U.S.-flag commercial vessel is available for a specific shipment of commodities at fair and reasonable rates. Such determination and advice of nonavailability does not relieve the borrower/grantee of the obligation to comply with the requirements of paragraphs (a) and (b) of this section except to the extent that A.I.D. after reviewing shipments by the borrower/grantee during the fiscal year, quarterly period thereof, or other relevant time period, determines that such compliance has not been possible. Any such determination and advice will not render transportation costs on foreign flag vessels eligible for A.I.D. financing.

(d) Privately owned U.S.-flag commercial vessels. For purposes of this section the term “privately owned U.S.flag commercial vessels” shall not include any vessel which, subsequent to September 21, 1961, shall have been either built outside the United States, rebuilt outside the United States, or documented under any foreign registry until such vessel shall have been documented under the laws of the United States for a period of 3 years.

Subpart C-Procurement Proce- (3) Statement regarding this Part dures_Responsibilities of Im

201. Invitations for bids shall expressly

indicate the extent to which any resultporters.

ing contract is subject to the require8 201.20 Purpose.

ments of this part.

bids. This subpart prescribes procurement

(4) Statement regarding late

The invitation for bids shall state that procedures which shall apply to an importer whenever a commodity procure

no bid received at the address designated ment is to be financed by A.I.D.

in the invitation after closing hour and

date for submission will be considered § 201.21 Notice to supplier.

for award unless its late arrival at that The importer is responsible for pro

address is attributable to mishandling viding the supplier with the following of the bid documents by the purchaser information (either through the invita- or any of his agents directly associated tion for bids or otherwise):

with receiving or processing bids. In no (a) Notice that the transaction is to case will the purchaser consider a bid be financed by A.I.D. under this part; which was not received at the place of

(b) The identification number of the public opening before the award was implementing document; and

made. (c) All additional information pre- (b) Advertising the invitation for bids. requisite to A.I.D. financing and con

The invitation for bids shall be advertained in the instructions from the tised in the manner described in borrower/grantee to the importer (for § 201.24(a) (1). example, eligible source of commodity, (c) Handling bids. Bids received shall periods during which deliveries must be be held intact and sealed and shall be made, shipping provisions, and docu- safeguarded against disclosure of conmentation requirements).

tents prior to bid opening. The bids shall

be opened publicly as specified in the bid § 201.22 Formal competitive bid proce

invitation, and all properly submitted dures.

bids shall be considered. Direct submisIf the implementing document re- sion of a bid by a prospective supplier, quires, or if the importer elects procure- rather than through an agent or other ment through formal competitive bid representative of the supplier in the coprocedures, the following minimum re- operating country, shall not be cause for quirements shall apply:

rejection. (a) Contents of the invitation for bids. (d) Awards. Every award shall be Every invitation for bids and every at- made to that responsible bidder whose tachment or amendment to an invitation bid, conforming to the invitation for bids, shall be in the English language. The is lowest in price, unless another bid is invitation shall contain the following: demonstrably more adventageous to the

(1) Statement of requirements. The importer because of any factor (other invitation shall state specifically that than price) set forth in the invitation formal competitive bid procedures apply. for bids as a factor to be considered in The terms and conditions which apply the evaluation of bids. to the procurement shall be clearly indi- (e) Submission of award information cated, including any factors other than to A.I.D. The importer shall complete price to be used in evaluation. Com- Form A.I.D. 11–83 "Abstract of Bids", modity specifications shall be stated in identifying thereon the successful bidder, terms of U.S. standards, in a nonrestric- and noting any two or more identical tive manner, and in sufficient detail to bids or any evidence of suspected collupermit maximum response from pro- sion. If the lowest bid has not been acspective suppliers.

cepted, the importer shall justify the (2) Statement regarding submission of award and shall append to the Abstract bids. Invitations for bids shall state the à statement of reasons for rejecting all applicable invitation number, the address lower bids. The Abstract and any justito which bids are to be sent, the closing fication statement shall be sent in triplihour and date for submission and the cate to the Office of the Controller, date, hour, and place for public opening A.I.D., Washington, D.C. 20523, to arrive of bids. If additional drawings, details, within 20 days after the award of the or regulations or forms are necessary for contract. bidding, the invitation shall state where [A.I.D. Reg. 1, 32 F.R. 7672, May 25, 1967, as such material may be obtained.

amended by 34 F.R. 14518, Sept. 18, 1969)

§ 201.23 Other procurement proce

(ii) Time of submission. Copies of the dures.

invitation for bids must be furnished (a) General requirements. Procure

sufficiently in advance of the bid-closing ment not subject to $ 201.22 shall be

date to permit adequate preparation of made in accordance with good commer

bids. Unless a longer period is prescribed cial practice. Specifications shall be ex

by the Office of Small Business, AID/W, pressed in terms of U.S. standards and

or upon application of the importer a shall be in the English language. All so

lesser period is authorized by such Oflicitations of quotations and offers shall

fice, the required copies shall be sent be made uniformly to a reasonable num

so as to arrive in the Office of Small Busiber of prospective suppliers.

ness, AID/W, at least 45 days in advance (b) Notification as adequate solicita

of the bid-closing date. tion. If the notification requirements of

(2) Under other procurement proce$ 201.24(a) (2) apply, such notification

dures. In procurement other than by shall be deemed an adequate solicitation

formal competitive bids, the solicitation of quotations and offers, and all supple

of quotations and offers must include mentary solicitations shall be consistent

the following: The importer shall subwith such notification.

mit, in triplicate, to the Office of Small (c) Notice of quotations and offers re

Business, A.I.D., Washington, D.C. 20523, ceived. A.I.D. may require that an im

a notice of proposed procurement, which porter furnish an abstract in the English

shall include commodity specifications in language and identify thereon all offers

terms of U.S. standards, and other proor quotations received, the offer accepted

curement data, in the English language or order placed, the price, the quantity,

and in the format set out in "Instructhe name and address of all persons sub

tions for Notice of Proposed Procuremitting offers or quotations and of their

ment” (Appendix B to this part 201). e principals, if any (including manufac

No importer, importer's agent or repreturers or processors of the commodity).

sentative, or anyone acting in his behalf,

shall accept any offer or place any order $201.24 Solicitation of bids and quota- or agree to accept any offer or place any tions.

order until 45 days after the expected (a) Notification requirements. Except

arrival of such form at the Office of as paragraph (b) or (c) of this section Small Business, AID/W, in the course of may apply, the importer shall comply

mail. The Ofñce of Small Business may with the minimum notification require- require a longer period or, upon applicaments set forth in this paragraph (a). He

tion of the importer, authorize a lesser may take such additional steps to notify period. prospective suppliers as are consistent (3) Resubmission of notifications to with prudent procurement.

A.I.D. A.I.D. may require the revision (1) Under formal competitive bid pro

and resubmission to A.I.D. of any invicedures. Invitations for bids must be ad- tation for bids which does not comply vertised in the following manner:

with the requirements of $ 201.22(a) or (i) Submission to A.I.D. Three copies of subparagraph (1) of this paragraph of the invitation for bids must be sent or of any notice of proposed procureto the Office of Small Business, A.I.D., ment which does not comply with the Washington, D.C. 20523, and 50 copies requirements of subparagraph (2) of of the invitation shall be sent to a place this paragraph. In such cases the in the United States designated by the importer shall effect changes necessary borrower/grantee and agreed to by A.I.D. to assure compliance with the applicable Invitations must be available to prospec- requirements. The bid-closing date or tive suppliers free of charge, unless oth- the date before which an order may not erwise authorized by the Office of Small be placed or accepted will be extended Business AID/W. All copies must be ac- as A.I.D. (Office of Small Business) may companied by a complete set of any ad- instruct. A.I.D. (Office of Small Busiditional drawings, details, applicable ness) may, when it determines it necesGovernment regulations, and other per- sary, return to the importer for revision tinent data necessary to the preparation or resubmission the invitation for bids of bids, or make reference to such addi- or the notice of proposed procurement. tional documents as are readily available In such cases the revised invitation or to the public or are available for public notice must be resubmitted in accordinspection.

ance with all the requirements of this

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