63 STAT.] 81ST CONG. , 1ST SESS.-CH. 288-JUNE 30, 1949 ADVERTISING REQUTREMENTS SEC. 303. Whenever advertising is required- (a) The advertisement for bids shall be made a sufficient time previous to the purchase or contract, and specifications and invitations for bids shall permit such full and free competition as is consistent with the procurement of types of supplies and services necessary to meet the requirements of the agency concerned. (b) All bids shall be publicly opened at the time and place stated in the advertisement. Award shall be made with reasonable prompt- ness by written notice to that responsible bidder whose bid, conform- ing to the invitation for bids, will be most advantageous to the Govern- ment, price and other factors considered: Provided, That all bids may be rejected when the agency head determines that it is in the public interest so to do. REQUIREMENTS OF NEGOTIATED CONTRACTS SEC. 304. (a) Except as provided in subsection (b) of this section, contracts negotiated pursuant to section 302 (c) may be of any type which in the opinion of the agency head will promote the best interests of the Government. Every contract negotiated pursuant to section 302 (c) shall contain a suitable warranty, as determined by the agency head, by the contractor that no person or selling agency has been employed or retained to solicit or secure such contract upon an agree- ment or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the contractor for the purpose of securing business, for the breach or violation of which warranty the Government shall have the right to annul such contract without liability or in its discretion to deduct from the contract price or consideration the full amount of such commission, percentage, brokerage, or contingent fee. (b) The cost-plus-a -percentage-of-cost system of contracting shall not be used, and in the case of a cost-plus-a -fixed-fee contract the fee shall not exceed 10 per centum of the estimated cost of the contract exclusive of the fee, as determined by the agency head at the time of entering into such contract (except that a fee not in excess of 15 per centum of such estimated cost is authorized in any such contract for experimental, developmental, or research work and that a fee inclusive of the contractor's costs and not in excess of 6 per centum of the esti- mated cost, exclusive of fees, as determined by the agency head at the time of entering into the contract, of the project to which such fee is applicable is authorized in contracts for architectural or engineering services relating to any public works or utility project). Neither a cost nor a cost-plus-a -fixed-fee contract nor an incentive-type contract shall be used unless the agency head determines that such method of contracting is likely to be less costly than other methods or that it is impractical to secure supplies or services of the kind or quality required without the use of a cost or cost-plus-a-fixed-fee contract or an incentive-type contract. All cost and cost-plus-a-fixed-fee con- tracts shall provide for advance notification by the contractor to the procuring agency of any subcontract thereunder on a cost-plus-a- fixed-feebasis and of any fixed-price subcontract or purchase order which exceeds in dollar amount either $25,000 or 5 per centum of the total estimated cost of the prime contract; and a procuring agency, through any authorized representative thereof, shall have the right to inspect the plans and to audit the books and records of any prune contractor or subcontractor engaged in the performance of a cost or cost-plus-a-fixed-fee contract. 395 Opening of bids. Rejection. Ante, p. 393. Warranty. Cost-plus contracts. Advance notifica- tion of subcontract, etc.
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