D.C. Mun. Regs. tit. 8, r. 8-A2553

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 8-A2553 - CONTRACTOR ELIGIBILITY UNDER THE WALSH-HEALEY ACT

2553.1

As required in § 2202 of the D.C. Procurement Regulations, and under the provisions of the Walsh-Healey Public Contracts Act ( 41 U.S.C. §35, also referred to in this section as "this Act"), the contracting officer shall determine whether a prospective contractor is either a "manufacturer" or a "regular dealer" that is eligible to receive an award of a contract.

2553.2

The contracting officer shall determine contractor eligibility under this section for each solicitation.

2553.3

A prospective contractor's eligibility status as a prime contractor or subcontractor on other contracts subject to this Act shall not be determinative evidence of eligibility for award of a new contract.

2553.4

A prospective contractor shall not be eligible for the award of a contract as a "manufacturer" unless the prospective contractor meets one (1) of the following criteria:

(a) The contractor is an established manufacturer that owns, operates or maintains a factory or other establishment that produces on the premises materials, supplies, articles, or equipment required under the contract which are of the general character described in the specifications; or

(b) The contractor is newly entering into manufacturing activity and has made all of the necessary arrangements and commitments to conduct the manufacturing activity, in accordance with the requirements set forth in 48 C.F.R. §22.606-1(b).

2553.5

Each prospective contractor that is a manufacturer shall be required to show that it is a manufacturer in its own right and that it meets the requirements of the regulations in 48 C.F.R. §22.606-1(c) or that it qualifies as a performer of assembly operations under 48 C.F.R. §22.606-1(d).

2553.6

A prospective contractor shall not be eligible for the award of a contract as a "regular dealer" unless the prospective contractor meets the following criteria:

(a) The contractor has an establishment, or has a leased or assigned space, in which it regularly maintains a stock of the supplies, articles, materials, or equipment in which it claims to be a dealer. If warehouse space is maintained on a "demand" basis, the contractor does not meet the requirements of this paragraph;

(b) The stock maintained is a "true inventory" from which sales are made. Stock that is maintained merely as sample or display items or that consists of surplus items from prior orders, unrelated supplies, or stock maintained for purposes of token compliance with this Act from which few (if any) sales are actually made, does not meet the requirements of this paragraph;

(c) The supplies, materials, articles, or equipment stocked are of the same general character as those to be supplied under the contract;

(d) Sales are made regularly from the stock on a recurring basis, not on an occasional basis or as an exception from the contractor's usual business operations;

(e) Sales of the stock are made to the public (persons or entities other than federal, state, or District agencies) regularly in the usual course of business. This requirement is not met by an intent to sell to the public without actual sales; and

(f) The dealer is an established and going concern. An intent to set up a business does not constitute compliance with this Act.

2553.7

For certain specific products, mostly unmanufactured commodities, (including lumber and timber products, grain, petroleum, raw cotton liners, tea, green coffee, hay and straw, machine tools, agricultural liming products, used automated data processing equipment, speciality advertising products, coal, and uranium products), the contractor may qualify as a "regular dealer" even though it does not physically maintain a stock if the contractor meets the alternate qualifications established by the U.S. Department of Labor ( 50 C.F.R. § 201.101 and 50 C.F.R. § 201.604).

2553.8

A "manufacturer" or "regular dealer" that is otherwise qualified under this section may bid, negotiate, and contract through an authorized agent if the agency is disclosed and the agent acts and contracts in the name of the principal, subject to the provisions of § 2504 of this chapter.

2553.9

A contract for ten thousand dollars ($10,000) or less to a contractor that does not qualify as a "manufacturer" or "regular dealer" under this Act and the provisions of this section shall not be modified to exceed ten thousand dollars ($10,000) and shall not be subject to any option that would increase the value of the contract to more than ten thousand dollars ($10,000).

D.C. Mun. Regs. tit. 8, r. 8-A2553

Final Rulemaking published at 35 DCR 5822 (July 29, 1988)